[Congressional Record Volume 155, Number 78 (Wednesday, May 20, 2009)]
[Senate]
[Pages S5702-S5732]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ENZI (for himself, Mr. Dorgan, Mr. Johnson, and Mr. 
        Grassley):
  S. 1086. A bill to amend the Packers and Stockyards Act, 1921, to 
prohibit the use of certain anti-competitive forward contracts; to the 
Committee on Agriculture, Nutrition, and Forestry.
  Mr. ENZI. President, I rise to speak on the introduction of the 
Livestock Marketing Fairness Act. I want to also acknowledge that I am 
joined in introducing this legislation by Senators Dorgan, Grassley, 
and Johnson. The Packers and Stockyards Act of 1921 was enacted at a 
time when there was significant concentration in the livestock and 
poultry industry. That law has since provided livestock producers, the 
family farmers and ranchers of our country, with a remedy to protect 
themselves against manipulative and anti-competitive practices in the 
marketplace. However, since the early 1920s our domestic livestock 
industry has changed significantly and so too have the ways in which 
producers market their livestock. Gone are the days when a simple 
handshake between buyer and seller was all you needed. Changes in 
marketing have introduced new ways for bad actors to manipulate prices 
and this legislation is designed to strengthen the laws originally 
enacted in the Packers and Stockyards Act.
  It is no secret that the packing industry in the U.S. has again 
become increasingly consolidated. In 1985, the four largest packers 
accounted for 39 percent of all cattle slaughtered in the U.S. Twenty 
years later, the top four firms controlled over 69 percent of the 
domestic cattle slaughter and this statistic does not even include the 
acquisitions that have taken place in the industry since 2007. Being 
big in agriculture is not bad, but it does present opportunities for a 
select few to manipulate the market for their own gain. The Livestock 
Marketing Fairness Act strikes at the heart of one particular anti-
competitive practice. Over the years, livestock producers, feeders, and 
packers have been given a number of new marketing tools for price 
discovery and hedging risk. One of those tools is the forward contract 
where a buyer and seller agree to a transaction at a specified point of 
time in the future. However, certain types of forward contracting 
agreements have become ripe for price manipulation. This is because a 
growing number of packing operations own their own livestock or control 
them through marketing agreements. These firms then can buy from 
themselves when prices are high and buy from others when prices are 
low. Captive supplies are animals that packers own and control prior to 
slaughter. The Livestock Marketing Fairness Act prohibits certain 
arrangements that provide packers with the opportunity use their 
captive supplies to manipulate local market prices. First, the 
legislation requires that forward contracts contain a ``firm base 
price'' which is derived from an external source. Though not outlined 
in the legislation, commonly used external sources of price include the 
live cattle futures market or wholesale beef market. This ensures that 
both buyers and sellers have a basis for how pricing in a contract will 
be derived at the time

[[Page S5703]]

the contract is agreed upon. Second, the bill requires that forward 
contracts be traded in open, public markets. This guarantees that 
multiple buyers and sellers can witness bids as well as offer their 
own. The Livestock Marketing Fairness Act also ensures that trading of 
contracts be done in a manner that provides both small and large buyers 
and sellers access to the market. Contracts are to be traded in sizes 
approximate to the common number of cattle or pigs transported in a 
trailer, but the law does not prohibit trading from occurring in 
multiples of those contracts for larger livestock orders.
  I travel to Wyoming nearly every weekend and have heard the same 
concerns from many of our ranchers. They want to be competitive in the 
market and sell the best animals possible so that they can continue the 
work that so many in their family have done for so many years. However, 
this problem is not isolated to Wyoming. Livestock producers from coast 
to coast are finding that with consolidation there are fewer and fewer 
buyers for their animals and their options for marketing too are being 
lost. This legislation not only increases openness in forward 
contracting but preserves the right for ranchers to choose the best 
methods for selling their animals without worry that their agreements 
will be subject to manipulation. The bill does not apply to producer 
cooperatives who often own their processing facility. The legislation 
also carefully targets the problem--large packers owning captive 
supplies--by also exempting packers that only own one facility and 
those that do not report for mandatory price reporting. The Livestock 
Marketing Fairness Act does not apply to agreements based on quality 
grading nor does it affect a producer's ability to negotiate contracts 
one-on-one with buyers. Therefore, sellers can still choose from a 
variety of methods including the spot market, futures market, or other 
alternative marketing arrangements.
  This bill is common sense and ensures that our ranchers have access 
to a competitive market in these difficult economic times. Ranchers 
aren't asking for a handout. What I am asking for is a level-playing 
field and an equal opportunity for our ranchers to succeed. I am 
pleased to say that I am joined by my colleagues on both sides of the 
aisle in working to address this problem. I encourage my other 
colleagues to support the Livestock Marketing Fairness Act and to join 
me in giving ranchers an honest chance to make a living.
  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. 1086

       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 ``Livestock Marketing Fairness 
     Act''.

     SEC. 2. PURPOSE.

       The purpose of the amendments made by this Act is to 
     prohibit the use of certain anti-competitive forward 
     contracts--
       (1) to require a firm base price in forward contracts and 
     marketing agreements; and
       (2) to require that forward contracts be traded in open, 
     public markets.

     SEC. 3. LIMITATION ON USE OF ANTI-COMPETITIVE FORWARD 
                   CONTRACTS.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192), is amended--
       (1) by striking ``Sec. 202. It shall be'' and inserting the 
     following:

     ``SEC. 202. UNLAWFUL PRACTICES.

       ``(a) In General.--It shall be'';
       (2) by striking ``to:'' and inserting ``to--'';
       (3) by redesignating subsections (a), (b), (c), (d), (e), 
     (f), and (g) as paragraphs (1), (2), (3), (4), (5), (7), and 
     (8), respectively, and indenting appropriately;
       (4) in paragraph (7) (as redesignated by paragraph (3)), by 
     designating paragraphs (1), (2), and (3) as subparagraphs 
     (A), (B), and (C), respectively, and indenting appropriately;
       (5) in paragraph (8) (as redesignated by paragraph (3)), by 
     striking ``subdivision (a), (b), (c), (d), or (e)'' and 
     inserting ``paragraph (1), (2), (3), (4), (5), or (6)'';
       (6) in each of paragraphs (1), (2), (3), (4), (5), (7), and 
     (8) (as redesignated by paragraph (3)), by striking the first 
     capital letter of the first word in the paragraph and 
     inserting the same letter in the lower case;
       (7) in each of paragraphs (1) through (5) (as redesignated 
     by paragraph (3)), by striking ``or'' at the end;
       (8) by inserting after paragraph (5) (as redesignated by 
     paragraph (3)) the following:
       ``(6) except as provided in subsection (c), use, in 
     effectuating any sale of livestock, a forward contract that--
       ``(A) does not contain a firm base price that may be 
     equated to a fixed dollar amount on the day on which the 
     forward contract is entered into;
       ``(B) is not offered for bid in an open, public manner 
     under which--
       ``(i) buyers and sellers have the opportunity to 
     participate in the bid; and
       ``(ii) buyers and sellers may witness bids that are made 
     and accepted;
       ``(C) is based on a formula price; or
       ``(D) subject to subsection (b), provides for the sale of 
     livestock in a quantity in excess of--
       ``(i) in the case of cattle, 40 cattle;
       ``(ii) in the case of swine, 30 swine; and
       ``(iii) in the case of other types of livestock, a 
     comparable quantity of the type of livestock determined by 
     the Secretary.''; and
       (9) by adding at the end the following:
       ``(b) Adjustments.--The Secretary may adjust the maximum 
     quantity of livestock described in subsection (a)(6)(D) to 
     reflect advances in marketing and transportation capabilities 
     if the adjusted quantity provides reasonable market access 
     for all buyers and sellers.
       ``(c) Exemption for Cooperatives.--Subsection (a)(6) shall 
     not apply to--
       ``(1) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter;
       ``(2) a packer that is not required to report to the 
     Secretary on each reporting day (as defined in section 212 of 
     the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) 
     information on the price and quantity of livestock purchased 
     by the packer; or
       ``(3) a packer that owns 1 livestock processing plant.''.
       (b) Definitions.--Section 2(a) of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended by adding 
     at the end the following:
       ``(15) Firm base price.--The term `firm base price' means a 
     transaction using a reference price from an external source.
       ``(16) Formula price.--
       ``(A) In general.--The term `formula price' means any price 
     term that establishes a base from which a purchase price is 
     calculated on the basis of a price that will not be 
     determined or reported until a date after the day the forward 
     price is established.
       ``(B) Exclusion.--The term `formula price' does not 
     include--
       ``(i) any price term that establishes a base from which a 
     purchase price is calculated on the basis of a futures market 
     price; or
       ``(ii) any adjustment to the base for quality, grade, or 
     other factors relating to the value of livestock or livestock 
     products that are readily verifiable market factors and are 
     outside the control of the packer.
       ``(17) Forward contract.--The term `forward contract' means 
     an oral or written contract for the purchase of livestock 
     that provides for the delivery of the livestock to a packer 
     at a date that is more than 7 days after the date on which 
     the contract is entered into, without regard to whether the 
     contract is for--
       ``(A) a specified lot of livestock; or
       ``(B) a specified number of livestock over a certain period 
     of time.''.
                                 ______
                                 
      By Mr. KERRY:
  S. 1087. A bill to amend the Internal Revenue Code of 1986 to repeal 
certain tax incentives related to oil and gas; to the Committee on 
Finance.
  Mr. KERRY. Mr. President, today I am introducing the Energy Fairness 
for America Act which repeals tax incentives for the oil and gas 
industry. This is the third consecutive Congress in which I have 
introduced this legislation. Some of the provisions of prior versions 
of my legislations were enacted last year, but more can be done. At a 
time when we are trying to incentivize clean energy, we should not 
continue to provide unnecessary tax incentives to the oil and gas 
industry.
  The Energy Fairness for America Act would repeal the section 199 
manufacturing deduction for income attributable to domestic production 
of oil and gas. The domestic manufacturing deduction was designed to 
replace export-related tax benefits that were successfully challenged 
by the European Union. Producers of oil and gas did not benefit from 
this tax break. Initial legislation proposed to address the repeal of 
the export-related tax benefits and to replace them with a new domestic 
manufacturing deduction. That legislation only provided the deduction 
to industries that benefited from the export-related tax benefits. 
However, the final product extended the deduction to include the oil 
and gas industry as well.
  The tax code provides numerous other preferences to the oil and gas 
industry. This legislation would repeal provisions that do not promote 
low-carbon energy sources and further our addiction to oil. The Energy 
Fairness

[[Page S5704]]

for America Act would repeal the credit for the crude oil and natural 
gas produced from marginal wells, expensing of intangible drilling 
costs and 60-month amortization and capitalized intangible drilling 
costs, exception from the passive loss rules for working interests in 
oil and gas properties, and percentage depletion for oil and gas wells. 
In addition, it would increase the amortization period from two years 
to seven years for geological and geophysical expenditures incurred by 
independent producers in connection with oil and gas exploration in the 
U.S.
  This legislation will help align our tax code with our broader energy 
goals. Our focus should be on lowering carbon emissions and encouraging 
renewable energy sources, not rewarding the oil and gas industry. I 
urge my colleagues to join me in eliminating these unnecessary tax 
breaks.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Crapo, Ms. Cantwell, Mr. Roberts, 
        Ms. Landrieu, Mr. Bingaman, Mrs. Lincoln, Mr. Harkin, Mrs. 
        Murray, Mr. Pryor, Mr. Bond, Mr. Johnson, Mr. Dorgan, Mr. 
        Wyden, Mr. Lugar, Mrs. McCaskill, and Mr. Enzi):
  S. 1089. A bill to facilitate the export of United States 
agricultural commodities and products to Cuba as authorized by the 
Trade Sanctions Reform and Export Enhancement Act of 2000, to establish 
an agricultural export promotion program with respect to Cuba, to 
remove impediments to the export to Cuba of medical devices and 
medicines, to allow travel to Cuba by United States citizens and legal 
residents, to establish an agricultural export promotion program with 
respect to Cuba, and for other purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, this Nation and this body have debated 
divisive trade issues for more than a century. In the 1820s, the 
cotton, indigo, and rice exporting southern States quarreled with 
northern States intent on protecting nascent manufacturing In the 
1930s, President Hoover's appeals to save American jobs brought the 
Smoot-Hawley tariff.
  Since the Second World War, America has moved to open the world's 
markets and our own. We are better for it. But divisive trade debates 
do and will continue. Few debates have been as long and contentious as 
those regarding our economic sanctions on Cuba.
  I am introducing legislation today to bring this divisive debate to 
an end. I do so not as an ideologue or a partisan. I am neither the 
Cuban government's friend nor its staunchest enemy. I instead am a 
Montanan. Like most Montanans, I take no pleasure in disagreement. Like 
most Montanans, I try to make a deal when I can. Like most Montanans, I 
stick to the facts.
  Here is how I see the facts. Opening Cuba to our exports means money 
in the pockets of farmers and ranchers across America. Lifting 
financing and other restrictions on U.S. agriculture could increase 
U.S. beef exports from states like Montana and Colorado from $1 million 
to as much as $13 million. Lifting these restrictions could allow 
agricultural exporters in States like North Dakota and Arkansas to 
obtain nearly 70 percent of Cuba's wheat market, nearly 40 percent of 
its rice market, and more than 90 percent of its poultry market. 
Lifting these restrictions could allow America's farmers and ranchers 
to export as much as $1.2 billion in total agricultural goods to Cuba.
  The facts also show that European and other exporters already reap 
these benefits. Europe has scrapped its Cuba sanctions. Just last week, 
EU officials were in Havana calling for full normalization of ties. 
Those officials made no secret of wanting to solidify ties with Cuba 
now to get the jump on the U.S.
  Those are the facts as I see them. But that is not all I see. I am 
not blind to the Cuban people's suffering or the crimes of their 
government. I am not deaf to the calls for political and religious 
freedom just 90 miles off our shores. But I also see that increased 
trade ties historically have led to improved political ties, whether 
between Argentina and Brazil in this hemisphere or between former rival 
nations in Europe.
  Am I certain that increased trade will improve our political ties 
with Cuba? I am not. But I am certain that we have had these sanctions 
in place for over 5 decades. I am certain that five decades of 
sanctions have made no Cuban freer, no nation more prosperous, and no 
government more democratic. I am certain that one side has gotten its 
chance and its way. I am certain that the status quo must now change.
  Here is how I propose to change our status quo with Cuba. My bill, 
which 15 other Democratic and Republic Senators have joined, would help 
U.S. farmers and ranchers sell their products to Cuba by facilitating 
cash payment for agricultural goods, authorizing direct transfers 
between U.S. and Cuban banks, and creating a U.S. agricultural export 
promotion fund. This bill also eases restrictions on exports of 
medicines and medical devices. It allows all Americans to travel to 
Cuba--not just one particular group.
  John Stuart Mill wrote that ``Commerce first taught nations to see 
with goodwill the wealth and prosperity of one another. Before, the 
patriot . . . wished all countries weak, poor, and ill-governed but his 
own . . .'' For too long, America has stood atop our barricade of 
sanctions and looked down upon a weak, poor, and ill-governed Cuba. Let 
us now open our commerce with Cuba. Let us wish them wealth, 
prosperity, and an abundance of all that we value and hold dear in 
America.
                                 ______
                                 
      By Mr. WYDEN (for himself and Ms. Cantwell):
  S. 1090. A bill to amend the Internal Revenue Code of 1986 to provide 
tax credit parity for electricity produced from renewable resources; to 
the Committee on Finance.
  Mr. WYDEN. Mr. President, I rise to discuss the subject of U.S. 
energy policy and to introduce a series of bills to address this issue, 
S. 1090-S. 1098.
  Americans consume too much oil, and they pay too high a price for it. 
National security pays a price. The environment pays a price and the 
economy clearly pays a price. It's clear that Americans can no longer 
afford the energy policy of the status quo.
  Last summer, when crude oil prices approached $150 dollars a barrel, 
Americans were sending roughly $1.7 billion dollars a day to foreign 
countries to pay to cover their addiction to oil. That's $1.7 billion a 
day that was not invested here at home. Rather it went into the pockets 
of oil producers in foreign countries--and often to countries that 
oppose America's interests and undermine American security. A third of 
the oil Americans use comes from the OPEC oil cartel--a cartel that 
includes governments who are either openly hostile to the United States 
or who provide a haven and support to those who are. American 
dependence on their oil is a recipe for disaster.
  Oil prices have retreated, but America's addiction to oil has not let 
up. The Nation's transportation system is almost entirely fueled by it. 
When the price of oil goes up, transportation costs go up, which means 
shipping costs and the cost of everything that has to be shipped goes 
up right along with it.
  On top of all the other faults oil brings with it, burning fossil 
fuels is bad for our health and the health of our planet. Burning 
fossil fuels produces 86 percent of the man-made greenhouse gases 
released into the environment every year in the U.S. Motor fuels have 
become cleaner over the years, but they still heat up the environment 
with greenhouse gases, just like burning coal at electric generation 
plants. Continuing to rely on energy sources that do harm to the air, 
land and water is a failed policy and bad for America's future.
  Spelling out the problem, however, is the easy part. There is no 
silver bullet when it comes to remaking the way the entire nation 
consumes energy and encouraging the development of viable alternatives. 
No one person, organization or piece of legislation can do it alone.
  If America is going to get on the path to real energy independence, 
Americans not only have to build that path, every American is going to 
have to commit to changing course in the way they use energy. While I 
believe that Government cannot simply legislate such transformative 
change, it is my view that government can provide the incentives and 
framework needed to empower Americans to rise to the challenge.
  While I cannot tell you where the next advancement in green energy 
will

[[Page S5705]]

come from, I know that given the right tools and incentives there is no 
limit to what American ingenuity can achieve. This is why today I am 
offering a series of proposals to speed up our progress toward a 
cleaner energy future. My proposals address the spectrum of solutions 
needed to get there. They start with harnessing the intellectual power 
of our colleges and universities to invent new energy technologies. 
They create new incentives for businesses to turn those technologies 
into new energy products. They give consumers incentives to buy and 
install those new energy technologies in their homes and businesses.
  If America is going to cut back in its use of oil, then it needs to 
take a hard look at the single largest user of oil, the transportation 
sector. Today, I am proposing a three-pronged program to dramatically 
reduce the amount of oil Americans use every day to get to work, do 
their errands, and transport American products to market.
  First, I propose to dramatically revise the Renewable Fuel Standard 
that now requires gasoline and diesel fuel providers to blend larger 
and larger amounts of ethanol and other biofuels into motor fuel. I 
strongly support the continued development of biofuels, especially 
those that do not require the use of food grains like corn and oils 
used to make them. But as we have seen in recent years, you cannot 
divert large amounts of food grains and oils without impacting the 
supply and price of those commodities. Last year, nearly a third of the 
U.S. corn crop was used for ethanol production, leading to more 
expensive food for families at a time when they can least afford it. 
That does not make sense to me.
  The current standard also does not do enough to genuinely reduce the 
amount of oil being consumed. In part this is because fuels like 
ethanol simply do not contain as much energy per gallon as the gasoline 
it is intended to replace. The existing standard is aimed at replacing 
less than 15 percent of U.S. gasoline and diesel fuel with renewable 
fuels. I think we can do better, which is why my proposal aims to 
replace a third of those fuels with new low-carbon fuels. Right now a 
third of the United States gasoline is imported from OPEC countries. 
Let us aim to get this country off OPEC oil once and for all.
  I want to make it clear that I am not proposing these changes because 
I am opposed to using renewable fuels. I have already introduced 
legislation--S. 536--to allow biomass from Federal lands to be used in 
the production of biofuels. Under the existing Renewable Fuel Standard, 
biomass from Federal lands is prohibited from being used as a renewable 
fuel. This makes no sense from either an energy perspective or an 
environmental perspective. Allowing for the use of fuel derived from 
biomass from Federal lands will reduce the threat of catastrophic wild 
fires, help make those forests healthier, and open up a variety of 
economic opportunities for hard hit rural communities. It is also a 
step towards a sound national energy policy.
  However, if the U.S. is going to have a Renewable Fuel Standard for 
motor fuels, then it really ought to be a standard open to all 
renewable fuels, not just a chosen few. This is why my legislation 
would allow a range of energy sources to qualify as motor ``fuels'' 
including electricity for plug-in cars, methane to fuel compressed 
natural gas vehicles, and hydrogen for fuel cells. Initially, these 
low-carbon fuels could come from conventional sources, such as 
electricity from the electric grid, but eventually they would need to 
come from renewable energy sources.
  Singling out ethanol as the only additive approved for motor fuel 
only creates a market for ethanol, which in turn discourages research 
and investment in other promising fuels. Creating a technology neutral 
``low-carbon'' standard to replace traditional fossil fuels with 
alternative lower-carbon domestic fuels opens the door for a whole host 
of advancements and innovations yet unknown.
  In addition to supplying new, cleaner, renewable transportation 
fuels, I will also be introducing legislation to authorize the U.S. 
Department of Transportation to designate ``Energy Smart Transportation 
Corridors'' so that these fuels will be readily available for 
consumers. By working with trucking companies, fuel providers, and 
State and local officials, the Transportation Department would 
establish which alternative fuels would be available and where they 
could be purchased. They would standardize other features such as 
weight limit standards geared towards reducing fossil fuel use and the 
release of greenhouse gases. The corridors would also include 
designation of other methods of freight and passenger transportation, 
such as rail or mass transit--to help reduce transportation fuel use.
  Beyond empowering Americans to make more energy efficient choices, my 
legislation would make sure that energy efficient choices are within 
the reach of more Americans. Because I believe that energy efficient 
vehicles should not just be a luxury item for affluent Americans, I 
will be reintroducing legislation to provide tax credits to Americans 
who purchase fuel efficient vehicles. Vehicles getting at least 10 
percent more than national average fuel efficiency would get a $900 tax 
credit. The credit would increase up to $2,500 as vehicle fuel 
efficiency increased. The bill also provides a tax credit for heavy 
truck owners to install fuel saving equipment. And it would increase 
both the gas guzzler tax and the civil penalty for vehicle 
manufacturers who miss their legally-required Corporate Average Fuel 
Economy, CAFE, requirements. The technology-neutral tax credit is 
designed to get more fuel-efficient vehicles on the road by making 
fuel-efficient vehicles an affordable choice for more Americans.
  But reducing oil use by the transportation sector alone is not 
enough. Some forty percent of energy use in the U.S. is consumed in 
buildings. So I am introducing legislation to empower American 
families--as well as small and mid-sized businesses--to save energy and 
install clean energy equipment. The ``Re-Energize America Loan 
Program'' will create a $10 billion revolving loan program to allow 
home and property owners and small and mid-sized businesses, schools, 
hospitals and others to make clean energy investments. This zero-
interest loan program would be administered at the State level, not by 
bureaucrats in Washington, DC, so it will be tailored to regional 
needs. It would be financed through the transfer of Federal energy 
royalties paid on the production of coal, gas and oil, and renewable 
energy from Federal land. It would empower Americans and businesses to 
help themselves and help their country start laying the groundwork for 
an entirely different energy future.

  States like Oregon have enormous potential for development of 
renewable energy--solar, wind, geothermal, biomass, wave and tidal. The 
challenge is to find new ways to harness these energies. Renewable 
energy is also not just about fuel that goes into cars or electricity 
for homes or buildings. Renewable energy can also be used to heat homes 
and buildings, and power factories and businesses. So I am introducing 
legislation to provide tax credits for the production of energy from 
renewable sources, such as steam from geothermal wells, or biogas from 
feedlots or dairy farms that is sold directly to commercial and 
industrial customers. A separate credit would be available if this 
renewable energy is used right on site to heat a building or provide 
energy for the dairy.
  The goal of this bill is to foster the development of new renewable 
energy technologies while expanding the market for renewable energy 
beyond the wind farms and electric generation plants already in place. 
The amount of the tax credit will no longer be tied to the way energy 
is produced but rather the amount of energy produced. This will help 
new energy technologies get in the game, and reward solutions that 
create the most energy. I am also introducing legislation to end the 
current tax penalty on biomass, hydroelectric, wave and tidal energies 
and other forms of renewable energy that are only eligible for half of 
the available Federal production tax credit. America needs all of these 
resources if it is going to move into a new energy future. My goal is 
to create a level playing field and give all of these technologies the 
full tax benefit in order to stimulate investment and get more 
renewable energy projects built.
  One big advantage of renewable energy is that some form of it can be 
found on every corner, and in every

[[Page S5706]]

corner of the country. Whether it's a solar panel on a home or store--
or geothermal power plant--there is renewable energy potential 
virtually everywhere. One set of technologies that can make renewable 
energy even more available are energy storage technologies. These are 
solutions that can store solar energy during the day for use at night, 
or store wind energy when the wind blows, to be used when it does not.
  Simply put, not enough attention has been paid to the use of energy 
storage technologies, which can also address daily and seasonal peaks 
in energy demand such as all of those air conditioners that Americans 
will soon be putting to good use during the summer's hottest days. 
Federal funding for energy storage technologies has been virtually 
nonexistent. So I am introducing legislation to create an investment 
tax credit that will help pay for the installation of energy storage 
equipment both by energy companies who connect it to the electric 
transmission and distribution system and for on-site use in buildings, 
homes, and factories. Any number of different types of storage 
technology can qualify--batteries, flywheels, pumped water storage, to 
name a few. The credit would be based on the energy stored, not on the 
technology used.
  The goal throughout the bills I am introducing today is not to pick 
winners and losers. The goal is to encourage innovation and 
installation.
  Last but not least, America not only needs new solutions to our 
energy problems. It needs a skilled workforce to make them a reality. 
So, I am also proposing an ``Energy Grant'' Higher Education program to 
provide $300 million a year to America's colleges and universities to 
work on regional energy problems. This program is modeled on the highly 
successful SeaGrant research and education program that has been run by 
the U.S. Department of Commerce for more than 30 years and the SunGrant 
program established to research biofuels. The EnergyGrant program would 
fund groups of colleges and universities to do research and develop 
education programs aimed at unique opportunities and challenges in each 
region of the country. Why rely solely on the Federal Government 
research programs to come up with solutions for regional energy issues 
when labs and research departments at colleges and universities around 
the country can contribute to the effort?
  The Senate Energy Committee has already adopted legislation I have 
proposed to create a $100 million a year, community college-based 
training program for skilled technicians to build, install and maintain 
the new American energy infrastructure of wind turbines, geothermal 
energy plants, fuel cells, and other 21st Century technologies. Without 
these skilled workers, this future will not happen and without 
effective training programs there won't be skilled workers to fill the 
jobs. I am also introducing this proposal as a stand-alone bill to help 
ensure that job training gets the attention that it needs. What good 
will ``green jobs'' do for Americans if Americans don't have the skills 
that these jobs will demand?
  My goal in formulating this agenda has been to mobilize Americans and 
American resources to achieve authentic energy independence and a new 
energy future. To really accomplish this goal, I believe we must employ 
every tool at our disposal. But in the end the success or failure of 
any effort to transform the way Americans use energy will ultimately 
rest with the American people. There is no question that this will not 
be easy, but I have faith that the energy challenges facing the nation 
today are no match for the collective ingenuity, talent and energy of 
the American people. Let us put those resources to work.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the text of the bills were ordered to be 
printed in the Record, as follows:

                                S. 1090

       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 ``Renewable Energy Parity and 
     Investment Remedy Act'' or ``REPAIR Act''.

     SEC. 2. TAX CREDIT PARITY FOR ELECTRICITY PRODUCED FROM 
                   RENEWABLE RESOURCES.

       Subparagraph (A) of section 45(b)(4) of the Internal 
     Revenue Code of 1986 is amended by inserting ``and before 
     2010'' after ``any calendar year after 2003''.

                                S. 1091

       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 ``Storage Technology of 
     Renewable and Green Energy Act of 2009'' or the ``STORAGE Act 
     of 2009''.

     SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY 
                   CONNECTED TO THE GRID.

       (a) 20 Percent Credit Allowed.--Subparagraph (A) of section 
     48(a)(2) of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subclause (IV) of 
     clause (i),
       (2) by striking ``clause (i)'' in clause (ii) and inserting 
     ``clause (i) or (ii)'',
       (3) by redesignating clause (ii) as clause (iii), and
       (4) by inserting after clause (i) the following new clause:
       ``(ii) 20 percent in the case of qualified energy storage 
     property, and''.
       (b) Qualified Energy Storage Property.--Subsection (c) of 
     section 48 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new paragraph:
       ``(5) Qualified energy storage property.--
       ``(A) In general.--The term `qualified energy storage 
     property' means property--
       ``(i) which is directly connected to the electrical grid, 
     and
       ``(ii) which is designed to receive electrical energy, to 
     store such energy, and to convert such energy to electricity 
     and deliver such electricity for sale.

     Such term may include hydroelectric pumped storage and 
     compressed air energy storage, regenerative fuel cells, 
     batteries, superconducting magnetic energy storage, 
     flywheels, thermal, and hydrogen storage, or combination 
     thereof.
       ``(B) Minimum capacity.--The term `qualified energy storage 
     property' shall not include any property unless such property 
     in aggregate--
       ``(i) has the ability to store at least 2 megawatt hours of 
     energy, and
       ``(ii) has the ability to have an output of 500 kilowatts 
     of electricity for a period of 4 hours.
       ``(C) Electrical grid.--The term `electrical grid' means 
     the system of generators, transmission lines, and 
     distribution facilities which--
       ``(i) are under the jurisdiction of the Federal Energy 
     Regulatory Commission or State public utility commissions, or
       ``(ii) are owned by--

       ``(I) a State or any political subdivision of a State,
       ``(II) an electric cooperative that receives financing 
     under the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.) or that sells less than 4,000,000 megawatt hours of 
     electricity per year, or
       ``(III) any agency, authority, or instrumentality of any 
     one or more of the entities described in subclause (I) or 
     (II), or any corporation which is wholly owned, directly or 
     indirectly, by any one or more of such entities.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, 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. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE GRID 
                   ELIGIBLE FOR NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Paragraph (1) of section 54C(d) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a facility which 
     is--
       ``(A)(i) a qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     to any placed in service date), or
       ``(ii) a qualified energy storage property (as defined in 
     section 48(c)(5)), and
       ``(B) owned by a public power provider, a governmental 
     body, or a cooperative electric company.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY STORAGE.

       (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of 
     the Internal Revenue Code of 1986, as amended by this Act, is 
     amended--
       (1) by striking ``and'' at the end of subclause (III),
       (2) by inserting ``and'' at the end of subclause (IV), and
       (3) by adding at the end the following new subclause:

       ``(V) qualified onsite energy storage property,''.

       (b) Qualified Onsite Energy Storage Property.--Subsection 
     (c) of section 48 of the Internal Revenue Code of 1986, as 
     amended by this Act, is amended by adding at the end the 
     following new paragraph:
       ``(6) Qualified onsite energy storage property.--

[[Page S5707]]

       ``(A) In general.--The term `qualified onsite energy 
     storage property' means property which--
       ``(i) provides supplemental energy to reduce peak energy 
     requirements primarily on the same site where the storage is 
     located, or
       ``(ii) is designed and used primarily to receive and store 
     intermittent renewable energy generated onsite and to deliver 
     such energy primarily for onsite consumption.

     Such term may include property used to charge plug-in and 
     hybrid electric vehicles if such vehicles are equipped with 
     smart grid services which control time-of-day charging and 
     discharging of such vehicles. Such term shall not include any 
     property for which any other credit is allowed under this 
     chapter.
       ``(B) Minimum capacity.--The term `qualified onsite energy 
     storage property' shall not include any property unless such 
     property in aggregate--
       ``(i) has the ability to store the energy equivalent of at 
     least 20 kilowatt hours of energy, and
       ``(ii) has the ability to have an output of the energy 
     equivalent of 5 kilowatts of electricity for a period of 4 
     hours.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, 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. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.

       (a) Credit Allowed.--Subsection (a) of section 25C of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of paragraph (1),
       (2) by redesignating paragraph (2) as paragraph (3), and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) 30 percent of the amount paid or incurred by the 
     taxpayer for qualified residential energy storage equipment 
     installed during such taxable year, and''.
       (b) Qualified Residential Energy Storage Equipment.--
       (1) In general.--Section 25C of the Internal Revenue Code 
     of 1986 is amended--
       (A) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively, and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(d) Qualified Residential Energy Storage Equipment.--For 
     purposes of this section, the term `qualified residential 
     energy storage equipment' means property--
       ``(1) which is installed in or on a dwelling unit located 
     in the United States and owned and used by the taxpayer as 
     the taxpayer's principal residence (within the meaning of 
     section 121), or on property owned by the taxpayer on which 
     such a dwelling unit is located, and
       ``(2) which--
       ``(A) provides supplemental energy to reduce peak energy 
     requirements primarily on the same site where the storage is 
     located, or
       ``(B) is designed and used primarily to receive and store 
     intermittent renewable energy generated onsite and to deliver 
     such energy primarily for onsite consumption.

     Such term may include property used to charge plug-in and 
     hybrid electric vehicles if such vehicles are equipped with 
     smart grid services which control time-of-day charging and 
     discharging of such vehicles. Such term shall not include any 
     property for which any other credit is allowed under this 
     chapter.''.
       (2) Conforming amendment.--Section 1016(a)(33) of such Code 
     is amended by striking ``section 25C(f)'' and inserting 
     ``section 25C(g)''.
       (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.

                                S. 1092

       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 ``Reenergize America Loan 
     Program Act of 2009''.

     SEC. 2. REENERGIZE AMERICA LOAN PROGRAM.

       (a) Definitions.--In this section:
       (1) Fund.--The term ``Fund'' means the Reenergize America 
     Loan Program Fund established by subsection (g).
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Program.--The term ``Program'' means the Green America 
     Loan Program established by subsection (b).
       (4) Qualified person.--The term ``qualified person'' means 
     an individual or entity that is determined to be capable of 
     meeting all terms and conditions of a loan provided under 
     this section based on the criteria and procedures approved by 
     the Secretary in a plan submitted under subsection (d).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (6) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico;
       (D) any other territory or possession of the United States; 
     and
       (E) an Indian tribe.
       (b) Establishment.--There is established within the 
     Department of Energy a revolving loan program to be known as 
     the ``Reenergize America Loan Program''.
       (c) Allocations to States.--
       (1) In general.--In carrying out the Program, the Secretary 
     shall allocate funds to States for use in providing zero-
     interest loans to qualified persons to carry out residential, 
     commercial, industrial, and transportation energy efficiency 
     and renewable generation projects contained in State energy 
     conservation plans submitted and approved under sections 362 
     and 363 of the Energy Policy and Conservation Act (42 U.S.C. 
     6322, 6323), respectively.
       (2) Administrative expenses.--A State that receives an 
     allocation of funds under this subsection may impose on each 
     qualified person that receives a loan from the allocated 
     funds of the State administrative fees to cover the costs 
     incurred by the State in administering the loan.
       (3) Repayment and return of principal.--Return of principal 
     from loans provided by a State may be retained by the State 
     for the purpose of making additional loans pursuant to--
       (A) a plan approved by the Secretary under subsection (d); 
     and
       (B) such terms and conditions as the Secretary considers 
     appropriate to ensure the financial integrity of the Program.
       (d) Application.--A State that seeks to receive an 
     allocation under this section shall--
       (1) submit to the Secretary for review and approval a 5-
     year plan for the administration and distribution by the 
     State of funds from the allocation, including a description 
     of criteria that the State will use to determine the 
     qualifications of potential borrowers for loans made from the 
     allocated funds;
       (2) agree to submit to annual audits with respect to any 
     allocated funds received and distributed by the State; and
       (3) reapply for a subsequent allocation at the end of the 
     5-year period covered by the plan.
       (e) Allocation.--In approving plans submitted by the States 
     under subsection (d) and allocating funds among States under 
     this section, the Secretary shall consider--
       (1) the likely energy savings and renewable energy 
     potential of the plans,;
       (2) regional energy needs; and
       (3) the equitable distribution of funds among regions of 
     the United States.
       (f) Maximum Amount; Term.--A loan provided by a State using 
     funds allocated under this section shall be--
       (1) in an amount not to exceed $5,000,000; and
       (2) for a term of not to exceed 4 years.
       (g) Reenergize America Loan Program Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a revolving fund, to be known as the 
     ``Reenergize America Loan Program Fund'', consisting of such 
     amounts as are transferred to the Fund under paragraph (2).
       (2) Transfers to fund.--From any Federal royalties, rents, 
     and bonuses derived from Federal onshore and offshore oil, 
     gas, coal, or alternative energy leases issued under the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) or 
     the Mineral Leasing Act (30 U.S.C. 181 et seq.) that are 
     deposited in the Treasury, and after distribution of any 
     funds described in paragraph (3), there shall be transferred 
     to the Fund $1,000,000,000 for each of fiscal years 2010 
     through 2020.
       (3) Prior distributions.--The distributions referred to in 
     paragraph (2) are those required by law--
       (A) to States and to the Reclamation Fund under the Mineral 
     Leasing Act (30 U.S.C. 191(a)); and
       (B) to other funds receiving amounts from Federal oil and 
     gas leasing programs, including--
       (i) any recipients pursuant to section 8(g) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337(g));
       (ii) the Land and Water Conservation Fund, pursuant to 
     section 2(c) of the Land and Water Conservation Fund Act of 
     1965 (16 U.S.C. 460l-5(c));
       (iii) the Historic Preservation Fund, pursuant to section 
     108 of the National Historic Preservation Act (16 U.S.C. 
     470h); and
       (iv) the coastal impact assistance program established 
     under section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a).
       (4) Expenditures from fund.--
       (A) In general.--Subject to subparagraph (B), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary such amounts as the Secretary 
     determines to be necessary to provide allocations to States 
     under subsection (c).
       (B) 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 subsection.
       (5) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection 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.
       (B) 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.
       (h) Funding.--Notwithstanding any other provision of law, 
     for each of fiscal years 2010 through 2020, the Secretary 
     shall use to

[[Page S5708]]

     carry out the Program such amounts as are available in the 
     Fund.

                                S. 1093

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Oil 
     Independence, Limiting Subsidies, and Accelerating Vehicle 
     Efficiency Act'' or the ``OILSAVE Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. 2. TAX CREDIT FOR FUEL-EFFICIENT MOTOR VEHICLES.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to other credits) is amended by inserting 
     after section 30D the following new section:

     ``SEC. 30E. FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the amount determined under paragraph (2) 
     with respect to any new qualified fuel-efficient motor 
     vehicle placed in service by the taxpayer during the taxable 
     year.
       ``(2) Credit amount.--With respect to each new qualified 
     fuel-efficient motor vehicle, the amount determined under 
     this paragraph shall be equal to--
       ``(A) in the case of any vehicle manufactured in model year 
     2011, the applicable amount determined in accordance with the 
     table contained in paragraph (3), and
       ``(B) in the case of any passenger automobile or non-
     passenger automobile manufactured in a model year after 2011, 
     the lesser of--
       ``(i) the sum of--

       ``(I) $900, plus
       ``(II) $100 for each whole mile per gallon in excess of 110 
     percent of the respective industry-wide average fuel economy 
     standard for such model year for all passenger automobiles 
     and all non-passenger automobiles, or

       ``(ii) $2,500.
       ``(3) Applicable amount.--For purposes of paragraph (2)(A), 
     the applicable amount shall be determined as follows:
       ``(A) In the case of a passenger automobile which achieves:


------------------------------------------------------------------------
                                                          The applicable
                 ``The fuel economy of:                     amount is:
------------------------------------------------------------------------
At least 33.2 but less than 34.2........................           $900.
At least 34.2 but less than 35.2........................         $1,000.
At least 35.2 but less than 36.2........................         $1,100.
At least 36.2 but less than 37.2........................         $1,200.
At least 37.2 but less than 38.2........................         $1,300.
At least 38.2 but less than 39.2........................         $1,400.
At least 39.2 but less than 40.2........................         $1,500.
At least 40.2 but less than 41.2........................         $1,600.
At least 41.2 but less than 42.2........................         $1,700.
At least 42.2 but less than 43.2........................         $1,800.
At least 43.2 but less than 44.2........................         $1,900.
At least 44.2 but less than 45.2........................         $2,000.
At least 45.2 but less than 46.2........................         $2,100.
At least 46.2 but less than 47.2........................         $2,200.
At least 47.2 but less than 48.2........................         $2,300.
At least 48.2 but less than 49.2........................         $2,400.
At least 49.2...........................................         $2,500.
------------------------------------------------------------------------

       ``(B) In the case of a non-passenger automobile which 
     achieves:


------------------------------------------------------------------------
                                                          The applicable
                 ``The fuel economy of:                     amount is:
------------------------------------------------------------------------
At least 26.5 but less than 27.5........................           $900.
At least 27.5 but less than 28.5........................         $1,000.
At least 28.5 but less than 29.5........................         $1,100.
At least 29.5 but less than 30.5........................         $1,200.
At least 30.5 but less than 31.5........................         $1,300.
At least 31.5 but less than 32.5........................         $1,400.
At least 32.5 but less than 33.5........................         $1,500.
At least 33.5 but less than 34.5........................         $1,600.
At least 34.5 but less than 35.5........................         $1,700.
At least 35.5 but less than 36.5........................         $1,800.
At least 36.5 but less than 37.5........................         $1,900.
At least 37.5 but less than 38.5........................         $2,000.
At least 38.5 but less than 39.5........................         $2,100.
At least 39.5 but less than 40.5........................         $2,200.
At least 40.5 but less than 41.5........................         $2,300.
At least 41.5 but less than 42.5........................         $2,400.
At least 42.5...........................................         $2,500.
------------------------------------------------------------------------

       ``(b) New Qualified Fuel-Efficient Motor Vehicle.--For 
     purposes of this section, the term `new qualified fuel-
     efficient motor vehicle' means a passenger automobile or non-
     passenger automobile--
       ``(1) which is treated as a motor vehicle for purposes of 
     title II of the Clean Air Act,
       ``(2) which--
       ``(A) in the case of a passenger automobile, achieves a 
     fuel economy of not less than 110 percent of the industry-
     wide average fuel economy standard for the model year for all 
     passenger automobiles, and
       ``(B) in the case of a non-passenger automobile, achieves a 
     fuel economy of not less than 110 percent of the industry-
     wide average fuel economy standard for the model year for all 
     non-passenger automobiles,
       ``(3) which has a gross vehicle weight rating of less than 
     14,000 pounds,
       ``(4) the original use of which commences with the 
     taxpayer,
       ``(5) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(6) which is made by a manufacturer during the period 
     beginning with model year 2011 and ending with model year 
     2020.
       ``(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, 25D, 30, and 30D) 
     and section 27 for the taxable year.
       ``(d) Other Definitions.--For purposes of this section--
       ``(1) Manufacturer.--The term `manufacturer' has the 
     meaning given such term 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.).
       ``(2) Model year.--The term `model year' has the meaning 
     given such term under section 32901(a) of such title 49.
       ``(3) Motor vehicle.--The term `motor vehicle' means any 
     vehicle which is manufactured primarily for use on public 
     streets, roads, and highways (not including a vehicle 
     operated exclusively on a rail or rails) and which has at 
     least 4 wheels.
       ``(4) Fuel economy; average fuel economy standard.--The 
     terms `fuel economy' and `average fuel economy standard' have 
     the meanings given such terms under section 32901 of such 
     title 49.
       ``(e) Special Rules.--
       ``(1) Basis reduction.--For purposes of this subtitle, the 
     basis of any property for which a credit is allowable under 
     subsection (a) shall be reduced by the amount of such credit 
     so allowed.
       ``(2) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter for a new qualified 
     fuel-efficient motor vehicle shall be reduced by the amount 
     of credit allowed under subsection (a) for such vehicle.
       ``(3) Credit may be transferred.--
       ``(A) In general.--A taxpayer may, in connection with the 
     purchase of a new qualified fuel-efficient motor vehicle, 
     transfer any credit allowable under subsection (a) to any 
     person who is in the trade or business of selling new 
     qualified fuel-efficient motor vehicles, but only if such 
     person clearly discloses to such taxpayer, through the use of 
     a window sticker attached to the new qualified fuel-efficient 
     vehicle--
       ``(i) the amount of any credit allowable under subsection 
     (a) with respect to such vehicle (determined without regard 
     to subsection (c)), and
       ``(ii) a notification that the taxpayer will not be 
     eligible for any credit under section 30, 30B, or 30D with 
     respect to such vehicle unless the taxpayer elects not to 
     have this section apply with respect to such vehicle.
       ``(B) Consent required for revocation.--Any transfer under 
     subparagraph (A) may be revoked only with the consent of the 
     Secretary.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as necessary to ensure that any credit described 
     in subparagraph (A) is claimed once and not retransferred by 
     a transferee.
       ``(4) Property used outside united states not qualified.--
     No credit shall be allowable under subsection (a) with 
     respect to any property referred to in section 50(b)(1).
       ``(5) 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.
       ``(6) 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.
       ``(7) Interaction with air quality and motor vehicle safety 
     standards.--A motor vehicle shall not be considered eligible 
     for a credit under this section unless such vehicle is in 
     compliance with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(f) Termination.--This section shall not apply to 
     property placed in service after December 31, 2020.''.
       (b) Credit Allowed Against Alternative Minimum Tax.--

[[Page S5709]]

       (1) Business credit.--Section 38(c)(4)(B) is amended by 
     redesignating clauses (i) through (viii) as clauses (ii) 
     through (ix), respectively, and by inserting before clause 
     (ii) (as so redesignated) the following new clause:
       ``(i) the credit determined under section 30E,''.
       (2) Personal credit.--
       (A) Section 24(b)(3)(B) is amended by striking ``and 30D'' 
     and inserting ``30D, and 30E''.
       (B) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``30E,'' after ``30D,''.
       (C) Section 25B(g)(2) is amended by striking ``and 30D'' 
     and inserting ``30D, and 30E''.
       (D) Section 26(a)(1) is amended by striking `` and 30D'' 
     and inserting ``30D, and 30E''.
       (E) Section 904(i) is amended by striking ``and 30D'' and 
     inserting ``30D, and 30E''.
       (c) Conforming Amendments.--
       (1) Section 38(a) is amended by striking ``plus'' at the 
     end of paragraph (34), by striking the period at the end of 
     paragraph (35) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(36) the portion of the new qualified fuel-efficient 
     motor vehicle credit to which section 30E(c)(1) applies.''.
       (2) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 30E(e)(1).''.
       (3) Section 6501(m) is amended by inserting ``30E(e)(6),'' 
     after ``30D(e)(4),''.
       (4) The table of section for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30D the following new item:

``Sec. 30E. Fuel-efficient motor vehicle credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 3. CREDIT FOR FUEL SAVINGS COMPONENTS FOR CERTAIN 
                   VEHICLES.

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

     ``SEC. 45R. CREDIT FOR FUEL SAVINGS COMPONENTS FOR CERTAIN 
                   VEHICLES.

       ``(a) General Rule.--For purposes of section 38, the fuel 
     savings tax credit determined under this section for the 
     taxable year is an amount equal to the applicable percentage 
     of the amount paid or incurred for 1 or more qualifying fuel 
     savings components placed in service on a qualifying vehicle 
     by the taxpayer during the taxable year.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage is equal to the sum of--
       ``(1) 5 percent, plus
       ``(2) 5 percentage points (not to exceed 45 percentage 
     points), for each percent in excess of 2 percent by which the 
     fuel economy achieved by the qualifying vehicle with 1 or 
     more qualifying fuel savings components exceeds such 
     qualifying vehicle without such component or components.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualifying fuel savings component.--The term 
     `qualifying fuel savings component' means any device or 
     system of devices that--
       ``(A) is installed on a qualifying vehicle,
       ``(B) is designed to increase the fuel economy of such 
     vehicle by at least 2 percent, the amount of such increase to 
     be verified by the Administrator of the Environmental 
     Protection Agency under the SmartWay Transport Partnership,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) is acquired for use by the taxpayer and not for 
     resale, and
       ``(E) has not been taken into account for purposes of 
     determining the credit under this section for any preceding 
     taxable year with respect to such qualifying vehicle.
       ``(2) Qualifying vehicle.--The term `qualifying vehicle' 
     means any vehicle subject to transportation fuels regulations 
     under the Clean Air Act.
       ``(3) Fuel economy.--The term `fuel economy' has the 
     meaning given such term under section 32901 of such title 49.
       ``(d) Special Rules.--
       ``(1) No double benefit.--
       ``(A) Reduction in basis.--If a credit is determined under 
     this section with respect to any property by reason of 
     expenditures described in subsection (a), the basis of such 
     property shall be reduced by the amount of the credit so 
     determined.
       ``(B) Other deductions and credits.--The amount of any 
     deduction or other credit allowable under this chapter for a 
     qualifying vehicle shall be reduced by the amount of credit 
     allowed under subsection (a) with respect to such vehicle.
       ``(2) Credit may be transferred.--
       ``(A) In general.--A taxpayer may, in connection with the 
     purchase of a qualifying fuel savings component, transfer any 
     credit allowable under subsection (a) to any person who is in 
     the trade or business of selling such components, but only if 
     such person clearly discloses to such taxpayer, through the 
     use of a sticker attached to the qualifying fuel savings 
     component, the amount of any credit allowable under 
     subsection (a) with respect to such component.
       ``(B) Consent required for revocation.--Any transfer under 
     subparagraph (A) may be revoked only with the consent of the 
     Secretary.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as necessary to ensure that any credit described 
     in subparagraph (A) is claimed once and not retransferred by 
     a transferee.
       ``(3) Election not to claim credit.--No credit shall be 
     allowed under subsection (a) for any component if the 
     taxpayer elects to not have this section apply to such 
     component.
       ``(e) Termination.--This section shall not apply to 
     property placed in service after December 31, 2020.''.
       (b) Credit to Be Part of General Business Credit.--
     Subsection (b) of section 38 (relating to general business 
     credit), as amended by this Act, is amended by striking 
     ``plus'' at the end of paragraph (35), by striking the period 
     at the end of paragraph (36) and inserting ``, plus'' , and 
     by adding at the end the following new paragraph:
       ``(37) the fuel savings tax credit determined under section 
     45R(a).''.
       (c) Conforming Amendments.--
       (1) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 45Q the following new item:

``Sec. 45R. Credit for fuel savings components for certain vehicles and 
              engines.''.

       (2) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by adding at the end the following:
       ``(39) in the case of a component with respect to which a 
     credit was allowed under section 45R, to the extent provided 
     in section 45R(d)(1)(A).''.
       (3) Section 6501(m), as amended by this Act, is amended by 
     inserting ``45R(d)(3)'' after ``45H(g)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years ending after such date.

     SEC. 4. INCREASE IN GAS GUZZLER TAX.

       (a) In General.--Subsection (a) of section 4064 (relating 
     to gas guzzler tax) is amended to read as follows:
       ``(a) Imposition of Tax.--
       ``(1) In general.--There is hereby imposed on the sale by 
     the manufacturer of each automobile a tax equal to--
       ``(A) in the case of any automobile manufactured in model 
     year 2011, the applicable tax amount determined in accordance 
     with the table contained in paragraph (2), and
       ``(B) in the case of any automobile manufactured in a model 
     year after 2011, if the fuel economy of the model type in 
     which such automobile falls is less than 80 percent of the 
     industry-wide average fuel economy standard for such model 
     year for all automobiles, an amount equal to the lesser of--
       ``(i) an amount based on each mile per gallon reduction 
     below such 80 percent equal to_

       ``(I) $1,000 for the first mile per gallon reduction, or
       ``(II) an aggregate amount equal to 125 percent of the 
     previous dollar amount for each additional mile per gallon 
     reduction, or

       ``(ii) $22,737.

     For purposes of subparagraph (B), any fraction of a mile per 
     gallon shall be rounded to the nearest mile per gallon and 
     any fraction of a dollar shall be rounded to the nearest 
     dollar.
       ``(2) Applicable tax amount.--For purposes of paragraph 
     (1)(A), the applicable tax amount shall be determined as 
     follows:


------------------------------------------------------------------------
  ``If the fuel economy of the model type in which the    The applicable
                  automobile falls is:                    tax amount is:
------------------------------------------------------------------------
At least 24.2...........................................            $0.
At least 23.2 but less than 24.2........................        $1,000.
At least 22.2 but less than 23.2........................        $1,250.
At least 21.2 but less than 22.2........................        $1,563.
At least 20.2 but less than 21.2........................        $1,953.
At least 19.2 but less than 20.2........................        $2,441.
At least 18.2 but less than 19.2........................        $3,052.
At least 17.2 but less than 18.2........................        $3,815.
At least 16.2 but less than 17.2........................        $4,768.
At least 15.2 but less than 16.2........................        $5,960.
At least 14.2 but less than 15.2........................        $7,451.
At least 13.2 but less than 14.2........................        $9,313.
At least 12.2 but less than 13.2........................       $11,642.
At least 11.2 but less than 12.2........................       $14,552.
At least 10.2 but less than 11.2........................       $18,190.
Less than 10.2..........................................     $22,737.''.
------------------------------------------------------------------------

       (b) Definition.--Section 4064(b) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(8) Average fuel economy standard.--The term `average 
     fuel economy standard' has the meaning given such term under 
     section 32901 of title 49, United States Code.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2009.

     SEC. 5. INCREASE IN MANUFACTURER CAFE PENALTIES.

       (a) In General.--Section 32912 of title 49, United States 
     Code, is amended--
       (1) by striking ``$5'' in subsection (b) and inserting 
     ``$50'', and
       (2) by striking ``$10'' in subsection (c)(1)(B) and 
     inserting ``$100''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to model years beginning after the date of the 
     enactment of this Act.

     SEC. 6. DEPLOYMENT OF LOW-GREENHOUSE GAS AND FUEL-SAVING 
                   TECHNOLOGIES.

       Section 756 of the Energy Policy Act of 2005 (42 U.S.C. 
     16104) is amended--

[[Page S5710]]

       (1) by striking the section heading and all that follows 
     through the end of subsection (b) and inserting the 
     following:

     ``SEC. 756. DEPLOYMENT OF LOW-GREENHOUSE GAS AND FUEL-SAVING 
                   TECHNOLOGIES.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Advanced truck stop electrification system.--The term 
     `advanced truck stop electrification system' means a 
     stationary system that delivers heat, air conditioning, 
     electricity, or communications, and is capable of providing 
     verifiable and auditable evidence of use of those services, 
     to a heavy-duty vehicle and any occupants of the heavy-duty 
     vehicle with, or for delivery, of those services.
       ``(3) Auxiliary power unit.--The term `auxiliary power 
     unit' means an integrated system that--
       ``(A) provides heat, air conditioning, engine warming, or 
     electricity to components on a heavy-duty vehicle; and
       ``(B) is certified by the Administrator under part 89 of 
     title 40, Code of Federal Regulations (or any successor 
     regulation), as meeting applicable emission standards.
       ``(4) Heavy-duty vehicle.--The term `heavy-duty vehicle' 
     means a vehicle that has a gross vehicle weight rating 
     greater than 8,500 pounds.
       ``(5) Idle reduction technology.--The term `idle reduction 
     technology' means an advanced truck stop electrification 
     system, auxiliary power unit, or other technology that--
       ``(A) is used to reduce idling; and
       ``(B) allows for the main drive engine or auxiliary 
     refrigeration engine to be shut down.
       ``(6) Long-duration idling.--
       ``(A) In general.--The term `long-duration idling' means 
     the operation of a main drive engine or auxiliary 
     refrigeration engine, for a period greater than 15 
     consecutive minutes, at a time at which the main drive engine 
     is not engaged in gear.
       ``(B) Exclusions.--The term `long-duration idling' does not 
     include the operation of a main drive engine or auxiliary 
     refrigeration engine during a routine stoppage associated 
     with traffic movement or congestion.
       ``(7) Low-greenhouse gas and fuel-saving technology.--The 
     term `low-greenhouse gas and fuel-saving technology' means 
     any device, system of devices, strategies, or equipment 
     that--
       ``(A) reduces greenhouse gas emissions; or
       ``(B) improves fuel efficiency.
       ``(b) Low-Greenhouse Gas and Fuel-Saving Technology 
     Deployment Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of the OILSAVE Act, the Administrator, in 
     consultation with the Secretary of Energy, shall implement, 
     through the SmartWay Transport Partnership of the 
     Environmental Protection Agency, a program to support 
     deployment of low-greenhouse gas and fuel-saving 
     technologies.
       ``(B) Priority.--The Administrator shall give priority to 
     the deployment of low-greenhouse gas and fuel-saving 
     technologies that meet SmartWay performance thresholds 
     developed under paragraph (2)(B).
       ``(2) Technology designation and deployment.--The 
     Administrator shall--
       ``(A) develop measurement protocols to evaluate the fuel 
     consumption and greenhouse gas performance of transportation 
     technologies, including technologies for passenger transport 
     and goods movement;
       ``(B) develop SmartWay performance thresholds that can be 
     used to certify, verify, or designate low-greenhouse gas and 
     fuel-saving technologies that provide superior environmental 
     performance for each mode of passenger transportation and 
     goods movement; and
       ``(C)(i) publish a list of low-greenhouse gas and fuel-
     saving technologies;
       ``(ii) identify the greenhouse gas and fuel efficiency 
     performance of each technology; and
       ``(iii) identify those technologies that meet the SmartWay 
     performance thresholds developed under subparagraph (B).
       ``(3) Promotion and deployment of technologies.--The 
     Administrator shall--
       ``(A) implement partnership and recognition programs to 
     promote best practices and drive demand for fuel-efficient, 
     low-greenhouse gas transportation performance;
       ``(B) promote the availability of and encourage the 
     adoption of technologies that meet the SmartWay performance 
     thresholds developed under paragraph (2)(B);
       ``(C) publicize the availability of financial incentives 
     (such as Federal tax incentives, grants, and low-cost loans) 
     for the deployment of low-greenhouse gas and fuel-saving 
     technologies; and
       ``(D) deploy low-greenhouse gas and fuel-saving 
     technologies through grant and loan programs.
       ``(4) Stakeholder consultation.--
       ``(A) In general.--The Administrator shall solicit the 
     comments of interested parties prior to establishing a new or 
     revising an existing SmartWay technology category, 
     measurement protocol, or performance threshold.
       ``(B) Notice.--On adoption of a new or revised technology 
     category, measurement protocol, or performance threshold, the 
     Administrator shall publish a notice and explanation of any 
     changes and, if appropriate, responses to comments submitted 
     by interested parties.
       ``(5) Freight partnership.--
       ``(A) In general.--The Administrator shall implement, 
     through the SmartWay Transport Partnership, a program with 
     shippers and carriers of goods to promote fuel-efficient, 
     low-greenhouse gas transportation.
       ``(B) Administration.--The Administrator shall--
       ``(i) verify the greenhouse gas performance and fuel 
     efficiency of participating freight carriers, including 
     carriers involved in rail, trucking, marine, and other goods 
     movement operations;
       ``(ii) publish a comprehensive greenhouse gas and fuel 
     efficiency performance index of freight modes (including 
     rail, trucking, marine, and other modes of transporting 
     goods) and individual freight companies so that shippers can 
     choose to deliver the goods of the shippers most efficiently 
     with minimum greenhouse gas emissions;
       ``(iii) develop tools for--

       ``(I) freight carriers to calculate and improve the fuel 
     efficiency and greenhouse gas performance of the carriers; 
     and
       ``(II) shippers--

       ``(aa) to calculate the fuel and greenhouse gas impacts of 
     moving the products of the shippers; and
       ``(bb) to evaluate the relative impacts from transporting 
     the goods of the shippers by different modes and carriers; 
     and
       ``(iv) recognize participating shipper and carrier 
     companies that demonstrate advanced practices and achieve 
     superior levels of fuel efficiency and greenhouse gas 
     performance.
       ``(6) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administrator to carry out this 
     subsection $19,500,000 for each of fiscal years 2010 through 
     2020.''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d) Improving Freight Greenhouse Gas Performance 
     Databases.--The Secretary of Commerce, in consultation with 
     the Administrator, shall--
       ``(1)(A) define and collect data on the physical and 
     operational characteristics of the truck fleet of the United 
     States, with special emphasis on data relating to fuel 
     efficiency and greenhouse gas performance to provide data for 
     the performance index published under subsection 
     (b)(5)(B)(ii); and
       ``(B) publish the data described in subparagraph (A) 
     through the Vehicle Inventory and Use Survey as soon as 
     practicable after the date of enactment of the OILSAVE Act, 
     and at least every 5 years thereafter, as part of the 
     economic census required under title 13, United States Code; 
     and
       ``(2) define, collect, and publish data for other modes of 
     goods transport (including rail and marine), as necessary.
       ``(e) Report.--Not later than 18 months after the date on 
     which funds are initially awarded under this section and on a 
     biennial basis thereafter, the Administrator shall submit to 
     Congress a report containing a description of--
       ``(1) actions taken to implement the low-greenhouse gas and 
     fuel-saving technology deployment program established under 
     subsection (b), including--
       ``(A) the measurement protocols;
       ``(B) the SmartWay performance thresholds; and
       ``(C) a list of low-greenhouse gas and fuel-saving 
     technologies; and
       ``(2) estimated greenhouse gas emissions and fuel savings 
     from the program.''.

                                S. 1094

       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 ``Renewable Energy Alternative 
     Production Act'' or the ``REAP Act''.

     SEC. 2. CREDIT FOR PRODUCTION OF RENEWABLE ENERGY.

       (a) In General.--Section 45 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Credit Allowed for Production of Non-Electric 
     Energy.--
       ``(1) In general.--The credit allowed under subsection (a) 
     shall be increased by an amount equal to the product of--
       ``(A) the dollar amount determined under paragraph (2), and
       ``(B) each million British thermal units (mmBtu) of 
     qualified fuel which is--
       ``(i) produced by the taxpayer--

       ``(I) from qualified energy resources, and
       ``(II) at any facility during the 10-year period beginning 
     on the date such facility was placed in service,

       ``(ii) not used for the production of electricity, and
       ``(iii) sold by the taxpayer to an unrelated person during 
     the taxable year.
       ``(2) Dollar amount.--The dollar amount determined under 
     this paragraph shall be the amount determined by the 
     Secretary to be the equivalent, expressed in British thermal 
     units, of the credit allowed under subsection (a) for 1 
     kilowatt hour of electricity.
       ``(3) Reduction for grants, tax exempt bonds, subsidized 
     energy financing, and other credits.--Rules similar to the 
     rules of subsection (b)(3) shall apply for purposes of 
     paragraph (1).
       ``(4) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Qualified fuel.--The term `qualified fuel' means an 
     energy product which is produced, extracted, converted, or 
     synthesized from a qualified energy resource through a

[[Page S5711]]

     controlled process, including pyrolysis, electrolysis, and 
     anaerobic digestion, which results in a product consisting of 
     methane, synthesis gas, hydrogen, steam, manufactured 
     cellulosic fuels, or any other form of energy provided under 
     regulations by the Secretary and which is used solely as a 
     source of energy.
       ``(B) Allocation of credit to patrons of agricultural 
     cooperatives.--Rules similar to the rules of subsection 
     (e)(11) shall apply for purposes of paragraph (1).''.
       (b) Conforming Amendments.--
       (1) The heading for section 45 of the Internal Revenue Code 
     of 1986 is amended by striking ``ELECTRICITY'' and inserting 
     ``ENERGY''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     ``Electricity'' in the item relating to section 45 and 
     inserting ``Energy''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 3. ENERGY CREDIT FOR ONSITE RENEWABLE NON-ELECTRIC 
                   ENERGY PRODUCTION FACILITIES.

       (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subclause (III), and
       (2) by adding at the end the following new subclause:

       ``(V) qualified onsite renewable non-electric energy 
     production property,''.

       (b) Qualified Onsite Renewable Non-Electric Energy 
     Production Property.--Subsection (c) of section 48 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Qualified onsite renewable non-electric energy 
     production property.--
       ``(A) In general.--The term `qualified onsite renewable 
     non-electric energy production property' means property which 
     produces qualified fuel--
       ``(i) from qualified energy resources,
       ``(ii) not used for the production of electricity, and
       ``(iii) used primarily on the same site where the 
     production is located to replace an equivalent amount of non-
     renewable fuel (determined based on the number of British 
     thermal units of non-renewable fuel consumed by the taxpayer 
     in the prior taxable year) or to provide energy primarily on 
     such site for a use that did not exist prior to the later of 
     the date of the enactment of this paragraph or the date such 
     property was placed in service.
       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Qualified fuel.--The term `qualified fuel' means an 
     energy product which is produced, extracted, converted, or 
     synthesized from a qualified energy resource through a 
     controlled process, including pyrolysis, electrolysis, and 
     anaerobic digestion, which results in a product consisting of 
     methane, synthesis gas, hydrogen, steam, manufactured 
     cellulosic fuels, or any other form of energy provided under 
     regulations by the Secretary and which is used solely as a 
     source of energy.
       ``(ii) Qualified energy resources.--The term `qualified 
     energy resources' has the meaning given such term by 
     paragraph (1) of section 45(c).
       ``(iii) Termination.--The term `qualified onsite renewable 
     non-electric energy production property' shall not include 
     any property for any period after the date which is 10 years 
     after the date of the enactment of the Renewable Energy 
     Alternative Production Act.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, 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. 4. RENEWABLE NON-ELECTRIC ENERGY PRODUCTION FACILITIES 
                   ELIGIBLE FOR NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Paragraph (1) of section 54C(d) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a facility which 
     is--
       ``(A)(i) a qualified facility (as determined under section 
     45(d) without regard to paragraphs (8) and (10) thereof and 
     to any placed in service date), or
       ``(ii) a facility which produces qualified fuel (as defined 
     in section 45(f)(4)(A)) which is derived from qualified 
     energy resources (within the meaning of section 45(f)(4)(B)) 
     and not used for the production of electricity, and
       ``(B) owned by a public power provider, a governmental 
     body, or a cooperative electric company.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

                                S. 1095

       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 ``America's Low-Carbon Fuel 
     Standard Act of 2009''.

     SEC. 2. LOW-CARBON FUEL PROGRAM.

       (a) In General.--Section 211 of the Clean Air Act (42 
     U.S.C. 7545) is amended by striking subsection (o) and 
     inserting the following:
       ``(o) Low-Carbon Fuel Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Baseline lifecycle greenhouse gas emissions.--The 
     term `baseline lifecycle greenhouse gas emissions' means the 
     average lifecycle greenhouse gas emissions, as determined by 
     the Administrator, after notice and opportunity for comment, 
     for transportation fuel sold or distributed as transportation 
     fuel in 2005.
       ``(B) Lifecycle greenhouse gas emissions.--The term 
     `lifecycle greenhouse gas emissions' means the aggregate 
     quantity of greenhouse gas emissions (including direct 
     emissions and significant indirect emissions such as 
     significant emissions from land use changes), as determined 
     by the Administrator, related to the full fuel lifecycle, 
     including all stages of fuel and feedstock production and 
     distribution, from feedstock generation or extraction through 
     the distribution and delivery and use of the finished fuel to 
     the ultimate consumer, where the mass values for all 
     greenhouse gases are adjusted to account for their relative 
     global warming potential.
       ``(C) Low-carbon fuel.--The term `low-carbon fuel' means 
     transportation fuel (including renewable fuel, electricity, 
     hydrogen, and other forms of energy) that has lifecycle 
     greenhouse gas emissions, as determined by the Administrator, 
     after notice and opportunity for comment, that on annual 
     average basis are equal to at least the following percentage 
     less than baseline lifecycle greenhouse gas emissions 
     determined in accordance with the following table:

``CalApplicable percentage less than baseline lifecycle greenhouse gas 
                                                             emissions:
  2015............................................................20.0 
  2016............................................................21.5 
  2017............................................................23.0 
  2018............................................................24.5 
  2019............................................................26.0 
  2020............................................................27.5 
  2021............................................................29.0 
  2022............................................................30.5 
  2023............................................................32.0 
  2024............................................................33.5 
  2025............................................................35.0 
  2026............................................................36.5 
  2027............................................................38.0 
  2028............................................................39.5 
  2029............................................................41.0 
  2030............................................................42.5 
  2031 and thereafter........................................Percentage
                                                       determined under
                                                  paragraph (2)(B)(ii).
       ``(D) Renewable biomass.--The term `renewable biomass' 
     means each of the following:
       ``(i) Planted crops and crop residue harvested from 
     agricultural land cleared or cultivated at any time prior to 
     December 19, 2007, that is either actively managed or fallow, 
     and nonforested.
       ``(ii) Planted trees, bioenergy crops, and tree residue 
     from actively managed tree plantations on non-Federal land 
     cleared at any time prior to December 19, 2007, including 
     land belonging to an Indian tribe or an Indian individual, 
     that is held in trust by the United States or subject to a 
     restriction against alienation imposed by the United States.
       ``(iii) Slash, brush, and those trees that are byproducts 
     of ecological restoration, disease or insect infestation 
     control, or hazardous fuels reduction treatments and do not 
     exceed the minimum size standards for sawtimber, harvested--

       ``(I) in ecologically sustainable quantities, as determined 
     by the appropriate Federal land manager; and
       ``(II) from National Forest System land or public land (as 
     defined in section 103 of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1702)), other than--

       ``(aa) components of the National Wilderness Preservation 
     System;
       ``(bb) wilderness study areas;
       ``(cc) inventoried roadless areas;
       ``(dd) old growth or late successional forest stands unless 
     biomass from the stand is harvested as a byproduct of an 
     ecological restoration treatment that fully maintains, or 
     contributes toward the restoration of, the structure and 
     composition of an old growth forest stand taking into account 
     the contribution of the stand to landscape fire adaptation 
     and watershed health, and retaining large trees contributing 
     to old-growth structure;
       ``(ee) components of the National Landscape Conservation 
     System; and
       ``(ff) National Monuments.
       ``(iv) Animal waste material and animal byproducts.
       ``(v) Slash and pre-commercial thinnings that are from non-
     Federal forestland, including forestland belonging to an 
     Indian tribe or an Indian individual, that are held in trust 
     by the United States or subject to a restriction against 
     alienation imposed by the United States, but not forests or 
     forestland that are ecological communities with a global or 
     State ranking of critically imperiled, imperiled, or rare 
     pursuant to a State Natural Heritage Program, old growth 
     forest, or late successional forest.
       ``(vi) Biomass from land in any ownership obtained from the 
     immediate vicinity of

[[Page S5712]]

     buildings and other areas regularly occupied by people, or of 
     public infrastructure, at risk from wildfire.
       ``(vii) Algae.
       ``(viii) Municipal solid waste, including separated yard 
     waste or food waste, including recycled cooking and trap 
     grease.
       ``(E) Renewable fuel.--The term `renewable fuel' means fuel 
     that is--
       ``(i) produced from renewable biomass; and
       ``(ii) used to replace or reduce the quantity of fossil 
     fuel present in a transportation fuel.
       ``(F) Transportation fuel.--The term `transportation fuel' 
     means fuel for use in motor vehicles, motor vehicle engines, 
     or nonroad vehicles (except for ocean-going vessels).
       ``(2) Program.--
       ``(A) Regulations.--
       ``(i) In general.--Not later than January 31, 2015, the 
     Administrator shall promulgate regulations to ensure that the 
     applicable percentage determined under subparagraph (B) of 
     the transportation fuel sold or introduced into commerce in 
     the United States, on an annual average basis, is low-carbon 
     fuel.
       ``(ii) Provisions of regulations.--Regardless of the date 
     of promulgation, the regulations promulgated under clause 
     (i)--

       ``(I) shall contain compliance provisions applicable to 
     producers, refiners, blenders, distributors, and importers, 
     as appropriate, to ensure that the requirements of this 
     paragraph are met; but
       ``(II) shall not--

       ``(aa) restrict geographic areas in which low-carbon fuel 
     may be used; or
       ``(bb) impose any per-gallon obligation for the use of low-
     carbon fuel.
       ``(B) Applicable volumes.--
       ``(i) Calendar years 2015 through 2030.--For the purpose of 
     subparagraph (A), the applicable percentage of the 
     transportation fuel sold or introduced into commerce in the 
     United States, on an annual average basis, that is low-carbon 
     fuel for each of calendar years 2015 through 2030 shall be 
     determined by the Administrator, in consultation with the 
     Secretary of Energy, in accordance with the following table:

``Applicable percentage of transportation fuel sold that is low-carbon 
                                                                  fuel:
  2015............................................................10.0 
  2016............................................................11.5 
  2017............................................................13.0 
  2018............................................................14.5 
  2019............................................................16.0 
  2020............................................................17.5 
  2021............................................................19.0 
  2022............................................................20.5 
  2023............................................................22.0 
  2024............................................................23.5 
  2025............................................................25.0 
  2026............................................................26.5 
  2027............................................................28.0 
  2028............................................................29.5 
  2029............................................................31.0 
  2030............................................................32.5.
       ``(ii) Subsequent calendar years.--

       ``(I) In general.--For the purposes of subparagraph (A), 
     the applicable percentage of the transportation fuel sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, that is low-carbon fuel for calendar year 2031 and 
     each subsequent calendar year shall be determined by the 
     Administrator, in consultation with the Secretary of Energy, 
     based on a review of the implementation of the program during 
     calendar years specified in the tables established under this 
     subsection, and an analysis of--

       ``(aa) the impact of the production and use of low-carbon 
     fuel on the environment, including on air quality, climate 
     change, conversion of wetland, ecosystems, wildlife habitat, 
     water quality, and water supply;
       ``(bb) the impact of low-carbon fuel on the energy security 
     of the United States;
       ``(cc) the expected annual rate of future commercial 
     production of low-carbon fuel;
       ``(dd) the impact of low-carbon fuel on the infrastructure 
     of the United States, including deliverability of materials, 
     goods, and products other than low-carbon fuel, and the 
     sufficiency of infrastructure to deliver and use low-carbon 
     fuel;
       ``(ee) the impact of the use of low-carbon fuel on the cost 
     to consumers of transportation fuel and on the cost to 
     transport goods; and
       ``(ff) the impact of the use of low-carbon fuel on other 
     factors, including job creation, the price and supply of 
     agricultural commodities, rural economic development, and 
     food prices.

       ``(II) Deadline.--The Administrator shall promulgate rules 
     establishing the applicable volumes under this clause not 
     later than 14 months before the first year for which the 
     applicable percentage will apply.

       ``(3) Applicable percentages.--
       ``(A) Provision of estimate of volumes of gasoline sales.--
     Not later than October 31 of each of calendar years 2005 
     through 2021, the Administrator of the Energy Information 
     Administration shall provide to the Administrator of the 
     Environmental Protection Agency an estimate, with respect to 
     the following calendar year, of the volumes of transportation 
     fuel and low-carbon fuel projected to be sold or introduced 
     into commerce in the United States.
       ``(B) Determination of applicable percentages.--
       ``(i) In general.--Not later than November 30 of each of 
     calendar years 2015 through 2029, based on the estimate 
     provided under subparagraph (A), the Administrator of the 
     Environmental Protection Agency shall determine and publish 
     in the Federal Register, with respect to the following 
     calendar year, the low-carbon fuel obligation that ensures 
     that the requirements of paragraph (2) are met.
       ``(ii) Required elements.--The low-carbon fuel obligation 
     determined for a calendar year under clause (i) shall--

       ``(I) be applicable to refineries, blenders, and importers, 
     as appropriate;
       ``(II) be expressed in terms of a volume percentage of 
     transportation fuel sold or introduced into commerce in the 
     United States; and
       ``(III) subject to subparagraph (C), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in subclause (I).

       ``(C) Adjustments.--In determining the applicable 
     percentage for a calendar year, the Administrator shall make 
     adjustments to prevent the imposition of redundant 
     obligations on any person specified in subparagraph 
     (B)(ii)(I).
       ``(4) Modification of greenhouse gas reduction 
     percentages.--
       ``(A) In general.--In the regulations promulgated under 
     paragraph (2)(A)(i), the Administrator may adjust the 
     required percentage reductions in lifecycle greenhouse gas 
     emissions for low-carbon fuel to a lower percentage if the 
     Administrator determines that generally the reduction is not 
     commercially feasible for low-carbon fuel made using a 
     variety of feedstocks, technologies, and processes to meet 
     the applicable reduction.
       ``(B) Amount of adjustment.--In promulgating regulations 
     under this paragraph, the specified percent reduction in 
     greenhouse gas emissions from low-carbon fuel may not be 
     reduced more than 10 percentage points below the percentage 
     otherwise required under this subsection.
       ``(C) Adjusted reduction levels.--
       ``(i) In general.--An adjustment in the percentage 
     reduction in greenhouse gas levels shall be the minimum 
     practicable adjustment for low-carbon fuel.
       ``(ii) Maximum achievable level.--The adjusted greenhouse 
     gas reduction shall be established at the maximum achievable 
     level, taking cost in consideration, allowing for the use of 
     a variety of feedstocks, technologies, and processes.
       ``(D) Subsequent adjustments.--
       ``(i) In general.--After the Administrator has promulgated 
     a final rule under paragraph (2)(A)(i) with respect to the 
     method of determining lifecycle greenhouse gas emissions, the 
     Administrator may not adjust the percent greenhouse gas 
     reduction levels unless the Administrator determines that 
     there has been a significant change in the analytical basis 
     used for determining the lifecycle greenhouse gas emissions.
       ``(ii) Criteria and standards.--If the Administrator makes 
     the determination that an adjustment is required, the 
     Administrator may adjust the percent reduction levels through 
     rulemaking using the criteria and standards established under 
     this paragraph.
       ``(iii) 5-Year review.--If the Administrator makes any 
     adjustment under this paragraph, not later than 5 years 
     thereafter, the Administrator shall review and revise (based 
     on the same criteria and standards as required for the 
     initial adjustment) the level as adjusted by the regulations.
       ``(5) Credit program.--
       ``(A) In general.--The regulations promulgated under 
     paragraph (2)(A) shall provide for the generation of an 
     appropriate quantity of credits by any person that refines, 
     blends, imports, or distributes transportation fuel that 
     contains a quantity of low-carbon fuel that is greater than 
     the quantity required under paragraph (2).
       ``(B) Use of credits.--A person that generates credits 
     under subparagraph (A) may use the credits, or transfer all 
     or a portion of the credits to another person, for the 
     purpose of complying with paragraph (2).
       ``(C) Duration of credits.--A credit generated under this 
     paragraph shall be valid to demonstrate compliance for the 12 
     month-period beginning on the date of generation.
       ``(D) Inability to generate or purchase sufficient 
     credits.--The regulations promulgated under paragraph (2)(A) 
     shall include provisions allowing any person that is unable 
     to generate or purchase sufficient credits to meet the 
     requirements of paragraph (2) to carry forward a low-carbon 
     fuel deficit on condition that the person, in the calendar 
     year following the year in which the low-carbon fuel deficit 
     is created--
       ``(i) achieves compliance with the low-carbon fuel 
     requirement under paragraph (2); and
       ``(ii) generates or purchases additional low-carbon fuel 
     credits to offset the low-carbon fuel deficit of the previous 
     year.
       ``(E) Credits for additional low-carbon fuel.--The 
     Administrator may promulgate regulations providing--
       ``(i) for the generation of an appropriate quantity of 
     credits by any person that refines, blends, imports, or 
     distributes additional low-carbon fuel specified by the 
     Administrator; and
       ``(ii) for the use of the credits by the generator, or the 
     transfer of all or a portion of the credits to another 
     person, for the purpose of complying with paragraph (2).
       ``(6) Waivers.--

[[Page S5713]]

       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     waive the requirements of this subsection in whole or in part 
     on petition by 1 or more States, by any person subject to the 
     requirements of this subsection, or by the Administrator on 
     the Administrator's own motion, by reducing the national 
     percentage of low-carbon fuel required under paragraph (2)--
       ``(i) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that 
     implementation of the requirement would severely harm the 
     economy or environment of a State, a region, or the United 
     States; or
       ``(ii) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that there is an 
     inadequate domestic supply of low-carbon fuel.
       ``(B) Petitions for waivers.--The Administrator, in 
     consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall approve or disapprove a petition 
     for a waiver of the requirements of paragraph (2) not later 
     than 90 days after the date on which the petition is received 
     by the Administrator.
       ``(C) Termination of waivers.--A waiver granted under 
     subparagraph (A) shall terminate after 1 year, but may be 
     renewed by the Administrator after consultation with the 
     Secretary of Agriculture and the Secretary of Energy and 
     after public notice and opportunity for comment.
       ``(D) Modification of applicable percentages.--
       ``(i) In general.--In the case of any table established 
     under this subsection, if the Administrator waives at least 
     20 percent of the applicable percentage requirement specified 
     in the table for 2 consecutive years, or at least 50 percent 
     of the percentage requirement for a single year, the 
     Administrator shall promulgate regulations (not later than 1 
     year after issuing the waiver) that modify the applicable 
     volumes specified in the table concerned for all years 
     following the final year to which the waiver applies, except 
     that no such modification in applicable percentages shall be 
     made for any year before calendar year 2016.
       ``(ii) Administration.--In promulgating the regulations, 
     the Administrator shall comply with the processes, criteria, 
     and standards established under paragraph (2)(B)(ii).
       ``(7) Low-carbon market concentration analysis.--
       ``(A) Analysis.--
       ``(i) In general.--Not later than January 1, 2015, and 
     annually thereafter, the Federal Trade Commission shall 
     perform a market concentration analysis of the low-carbon 
     fuel production, import, and distribution industries using 
     the Herfindahl-Hirschman Index to determine whether there is 
     sufficient competition among industry participants to avoid 
     price-setting and other anticompetitive behavior.
       ``(ii) Scoring.--For the purpose of scoring under clause 
     (i) using the Herfindahl-Hirschman Index, all marketing 
     arrangements among industry participants shall be considered.
       ``(B) Report.--Not later than December 1, 2015, and 
     annually thereafter, the Federal Trade Commission shall 
     submit to Congress and the Administrator a report on the 
     results of the market concentration analysis performed under 
     subparagraph (A)(i).
       ``(8) Periodic reviews.--To allow for the appropriate 
     adjustment of the requirements described in paragraph (2)(B), 
     the Administrator shall conduct periodic reviews of--
       ``(A) existing technologies;
       ``(B) the feasibility of achieving compliance with the 
     requirements; and
       ``(C) the impacts of the requirements of this subsection on 
     each individual and entity described in paragraph (2).
       ``(9) Effect on other provisions.--
       ``(A) In general.--Subject to subparagraph (B), nothing in 
     this subsection, or regulations promulgated under this 
     subsection, affects the regulatory status of carbon dioxide 
     or any other greenhouse gas, or expands or limits regulatory 
     authority regarding carbon dioxide or any other greenhouse 
     gas, for purposes of other provisions (including section 165) 
     of this Act.
       ``(B) Administration.--Subparagraph (A) shall not affect 
     implementation and enforcement of this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on January 1, 2015.

     SEC. 3. TRANSITION PROVISIONS.

       (a) Definitions.--Section 211(o)(1) of the Clean Air Act 
     (42 U.S.C. 7545(o)(1)) is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Additional renewable fuel.--
       ``(i) In general.--The term `additional renewable fuel' 
     means fuel that--

       ``(I) is--

       ``(aa) produced from renewable biomass; or
       ``(bb) low-carbon fuel;

       ``(II) is used to replace or reduce the quantity of fossil 
     fuel present in--

       ``(aa) transportation fuel;
       ``(bb) home heating oil; or
       ``(cc) aviation jet fuel; and

       ``(III) has lifecycle greenhouse gas emissions, as 
     determined by the Administrator, after notice and opportunity 
     for comment, that are at least 20 percent less than baseline 
     lifecycle greenhouse gas emissions.'';

       (2) by redesignating subparagraphs (I) through (L) as 
     subparagraphs (J) through (M), respectively; and
       (3) by inserting after subparagraph (H) the following:
       ``(I) Low-carbon fuel.--The term `low-carbon fuel' means 
     renewable fuel that has lifecycle greenhouse gas emissions, 
     as determined by the Administrator, after notice and 
     opportunity for comment, that are at least 20 percent less 
     than baseline lifecycle greenhouse gas emissions.''.
       (b) Credits for Additional Renewable Fuel.--Section 
     211(o)(5) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) Credits for additional renewable fuel.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of the America's Low-Carbon Fuel Standard Act of 
     2009, the Administrator shall issue regulations providing--

       ``(I) for the generation of an appropriate quantity of 
     credits by any person that produces, refines, blends, or 
     imports additional renewable fuels or low-carbon fuels 
     specified by the Administrator; and
       ``(II) for the use of the credits by the generator, or the 
     transfer of all or a portion of the credits to another 
     person, for the purpose of complying with paragraph (2).

       ``(ii) Increased credit.--For each of calendar years 2012 
     through 2014, the Administrator shall increase the amount of 
     the credit provided under clause (i) in proportion to the 
     extent to which the lifecycle greenhouse gas emissions of the 
     additional renewable fuel is less than baseline lifecycle 
     greenhouse gas emissions.''.

                                S. 1096

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

     SECTION 1. ENERGYGRANT COMPETITIVE EDUCATION PROGRAM.

       (a) Definitions.--In this section:
       (1) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy, acting through the Director appointed under 
     subsection (c).
       (3) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (b) Establishment.--The Secretary shall establish and carry 
     out a program to awards grants, on a competitive basis, to 
     each consortium of institutions of higher education operating 
     in each of the regions established under subsection (d) to 
     conduct research, extension, and education programs relating 
     to the energy needs of the regions.
       (c) Director.--The Secretary shall appoint a Director to 
     carry out the program established under this section.
       (d) Grants.--
       (1) In general.--The Secretary shall use amounts made 
     available under this section to award grants, on a 
     competitive basis, to each consortium of institutions of 
     higher education located in each of at least 6 regions 
     established by the Secretary that, collectively, cover all 
     States.
       (2) Manner of distribution.--
       (A) In general.--Except as provided in subparagraph (B), in 
     making grants for a fiscal year under this section, the 
     Secretary shall award grants to each consortium of 
     institutions of higher education in equal amounts for each 
     region of not less than $50,000,000 for each region.
       (B) Territories and possessions.--The Secretary may adjust 
     the amount of grants awarded to a consortium of institutions 
     of higher education in a region under this section if the 
     region contains territories or possessions of the United 
     States.
       (3) Plans.--As a condition of an initial grant under this 
     section, a consortium of institutions of higher education in 
     a region shall submit to the Secretary for approval a plan 
     that--
       (A) addresses the energy needs for the region; and
       (B) describes the manner in which the proposed activities 
     of the consortium will address those needs.
       (4) Failure to comply with requirements.--If the Secretary 
     finds on the basis of a review of the annual report required 
     under subsection (g) or on the basis of an audit of a 
     consortium of institutions of higher education conducted by 
     the Secretary that the consortium has not complied with the 
     requirements of this section, the consortium shall be 
     ineligible to receive further grants under this section for 
     such period of time as may be prescribed by the Secretary.
       (e) Use of Funds.--
       (1) Competitive grants.--
       (A) In general.--A consortium of institutions of higher 
     education in a region that is awarded a grant under this 
     section shall use the grant to conduct research, extension, 
     and education programs relating to the energy needs of the 
     region, including--
       (i) the promotion of low-carbon clean and green energy and 
     related jobs that are applicable to the region;
       (ii) the development of low-carbon green fuels to reduce 
     dependency on oil;
       (iii) the development of energy storage and energy 
     management innovations for intermittent renewable 
     technologies; and

[[Page S5714]]

       (iv) the accelerated deployment of efficient-energy 
     technologies in new and existing buildings and in 
     manufacturing facilities.
       (B) Administration.--
       (i) In general.--Subject to clauses (ii) through (vi), the 
     Secretary shall make grants under this paragraph in 
     accordance with section 989 of the Energy Policy Act of 2005 
     (42 U.S.C. 16353).
       (ii) Priority.--A consortium of institutions of higher 
     education in a region shall give a higher priority to 
     programs that are consistent with the plan approved by the 
     Secretary for the region under subsection (d)(3).
       (iii) Term.--A grant awarded to a consortium of 
     institutions of higher education under this section shall 
     have a term that does not exceed 5 years.
       (iv) Cost-sharing requirement.--As a condition of receiving 
     a grant under this paragraph, the Secretary shall require the 
     recipient of the grant to share costs relating to the program 
     that is the subject of the grant in accordance with section 
     988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
       (v) Buildings and facilities.--Funds made available for 
     grants under this section shall not be used for the 
     construction of a new building or facility or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building or facility (including site grading and 
     improvement and architect fees).
       (vi) Limitation on indirect costs.--A consortium of 
     institutions of higher education may not recover the indirect 
     costs of using grants under subparagraph (A) in excess of the 
     limits established under paragraph (2).
       (C) Federally funded research and development centers.--
       (i) In general.--A federally funded research and 
     development center may be a member of a consortium of 
     institutions of higher education that receives a grant under 
     this section.
       (ii) Scope.--The Secretary shall ensure that the scope of 
     work performed by a single federally funded research and 
     development center in the consortium is not more significant 
     than the scope of work performed by any of the other academic 
     institutions of higher education in the consortium.
       (2) Administrative expenses.--A consortium of institutions 
     of higher education may use up to 15 percent of the funds 
     described in subsection (d) to pay administrative and 
     indirect expenses incurred in carrying out paragraph (1), 
     unless otherwise approved by the Secretary.
       (f) Grant Information Analysis Center.--A consortium of 
     institutions of higher education in a region shall maintain 
     an Energy Analysis Center at 1 or more of the institutions of 
     higher education to provide the institutions of higher 
     education in the region with analysis and data management 
     support.
       (g) Annual Reports.--Not later than 90 days after the end 
     of each fiscal year, a consortium of institutions of higher 
     education receiving a grant under this section shall submit 
     to the Secretary a report that describes the policies, 
     priorities, and operations of the program carried out by the 
     consortium of institutions of higher education under this 
     section during the fiscal year.
       (h) Administration.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary shall establish such 
     criteria and procedures as are necessary to carry out this 
     section.
       (i) Coordination.--The Secretary shall coordinate with the 
     Secretary of Agriculture and the Secretary of Commerce each 
     activity carried out under the program under this section--
       (1) to avoid duplication of efforts; and
       (2) to ensure that the program supplements and does not 
     supplant--
       (A) the Sun Grant program established under section 7526 of 
     the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
     8114); and
       (B) the national Sea Grant college program carried out by 
     the Administrator of the National Oceanic and Atmospheric 
     Administration.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out--
       (1) this section $300,000,000 for each of fiscal years 2010 
     through 2014; and
       (2) the activities of the Department of Energy (including 
     biomass and bioenergy feedstock assessment research) under 
     the Sun Grant program established under section 7526 of the 
     Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8114) 
     $15,000,000 for each of fiscal years 2010 through 2014.

                                S. 1097

       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 ``Community College Energy 
     Training Act of 2009''.

     SEC. 2. SUSTAINABLE ENERGY TRAINING PROGRAM FOR COMMUNITY 
                   COLLEGES.

       (a) Definition of Community College.--In this Act, the term 
     ``community college'' means an institution of higher 
     education, as defined in section 101(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1001(a)), that--
       (1) provides a 2-year program of instruction for which the 
     institution awards an associate degree; and
       (2) primarily awards associate degrees.
       (b) Workforce Training and Education in Sustainable 
     Energy.--From funds made available under subsection (d), the 
     Secretary of Energy, in coordination with the Secretary of 
     Labor, shall carry out a joint sustainable energy workforce 
     training and education program. In carrying out the program, 
     the Secretary of Energy, in coordination with the Secretary 
     of Labor, shall award grants to community colleges to provide 
     workforce training and education in industries and practices 
     such as--
       (1) alternative energy, including wind and solar energy;
       (2) energy efficient construction, retrofitting, and 
     design;
       (3) sustainable energy technologies, including chemical 
     technology, nanotechnology, and electrical technology;
       (4) water and energy conservation;
       (5) recycling and waste reduction; and
       (6) sustainable agriculture and farming.
       (c) Award Considerations.--Of the funds made available 
     under subsection (d) for a fiscal year, not less than one-
     half of such funds shall be awarded to community colleges 
     with existing (as of the date of the award) sustainability 
     programs that lead to certificates or degrees in 1 or more of 
     the industries and practices described in paragraphs (1) 
     through (6) of subsection (b).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of the fiscal years 2010 through 2015.

                                S. 1098

       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 ``EnergySmart Transport 
     Corridors Act of 2009''.

     SEC. 2. ENERGYSMART TRANSPORT CORRIDORS PROGRAM.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Interstate system.--The term ``Interstate System'' has 
     the meaning given the term in section 101(a) of title 23, 
     United States Code.
       (3) Program.--The term ``Program'' means the EnergySmart 
     Transport Corridor program established under subsection (b).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Establishment.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Administrator, shall establish an EnergySmart Transport 
     Corridor program in accordance with this section.
       (c) Requirements.--In carrying out the Program, the 
     Secretary shall coordinate the planning and deployment of 
     measures that will increase the energy efficiency of the 
     Interstate System and reduce the emission of greenhouse gases 
     and other environmental pollutants, including by--
       (1) increasing the availability and standardization of 
     anti-idling equipment;
       (2) increasing the availability of alternative, low-carbon 
     transportation fuels;
       (3) coordinating and adjusting vehicle weight limits for 
     both existing and future highways on the Interstate System;
       (4) coordinating and expanding intermodal shipment 
     capabilities;
       (5) coordinating and adjusting time of service 
     restrictions; and
       (6) planning and identifying future construction within the 
     Interstate System.
       (d) Designation of Corridors.--
       (1) In general.--The Secretary, in consultation with the 
     Administrator and with the concurrence of the Governors of 
     the States in which EnergySmart transport corridors are to be 
     located, and in consultation with the appropriate advisory 
     committees established under paragraph (3), shall designate 
     EnergySmart transport corridors in accordance with the 
     requirements described in subsection (c).
       (2) Intermodal facilities and other surface transportation 
     modes.--In designating EnergySmart transport corridors, the 
     Secretary may include--
       (A) intermodal passenger and freight transfer facilities, 
     particularly those that use measures to significantly 
     increase the energy efficiency of the Interstate System and 
     reduce greenhouse gas emissions and other environmental 
     pollutants; and
       (B) other surface transportation modes.
       (3) Advisory committees.--
       (A) In general.--The Secretary, in consultation with the 
     Governors of the States in which EnergySmart transport 
     corridors are to be located, may establish advisory 
     committees to assist in the designation of individual 
     EnergySmart transport corridors.
       (B) Membership.--The advisory committees established under 
     this paragraph shall include representatives of interests 
     affected by the designation of EnergySmart transport 
     corridors, including--
       (i) freight and trucking companies;
       (ii) vehicle and vehicle equipment manufacturers and 
     retailers;
       (iii) independent owners and operators;
       (iv) conventional and alternative fuel providers; and
       (v) local transportation, planning, and energy agencies.
       (e) Priority.--In allocating funds for Federal highway 
     programs, the Secretary shall give special consideration and 
     priority to projects and programs that enable deployment and 
     operation of EnergySmart transport corridors.
       (f) Grants.--In carrying out the Program, the Secretary may 
     provide grants to States to assist in the planning, 
     designation, development, and maintenance of EnergySmart 
     transport corridors.

[[Page S5715]]

       (g) Annual Report.--Each fiscal year, the Secretary shall 
     submit to the appropriate committees of Congress a report 
     describing activities carried out under the Program during 
     the preceding fiscal year.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $25,000,000 for each of fiscal years 2010 through 2015.

     SEC. 3. REDUCTION OF ENGINE IDLING.

       Section 756(b)(4)(B) of the Energy Policy Act of 2005 (42 
     U.S.C. 16104(b)(4)(B)) is amended by striking ``for fiscal 
     year 2008'' each place it appears in clauses (i) and (ii) and 
     inserting ``for each of fiscal years 2008 through 2015''.
                                 ______
                                 
      By Mr. COBURN (for himself, Mr. Burr, Mr. Bunning, Mr. Chambliss, 
        Mr. Alexander, and Mr. Inhofe):
  S. 1099. A bill to provide comprehensive solutions for the health 
care system of the United States, and for other purposes; to the 
Committee on Finance.
  Mr. BURR. Mr. President, I rise today to speak on the pressing issue 
of health care in America. Millions of Americans go without health 
insurance each year. Especially during these tough economic times, many 
families are looking to Washington to fix the health care crisis in 
this country.
  This year, Congress is poised to make significant changes to our 
health care system. Ultimately, the American people want solutions that 
work. In that vein I am pleased to join today with my colleague, 
Senator Coburn, to introduce, S. 1099, the Patients' Choice Act. It 
will start to build a health care system that is responsive to 
patients' needs and conscious of their budgets.
  As we developed the framework of the Patients' Choice Act, we had to 
think about what would truly transform the failing health care system 
in America right now. Typically, the problems with our health care 
system relate to cost, quality, and our inability to make important 
lifestyle interventions before treatable symptoms become chronic 
conditions. With that thought in mind, Senator Coburn and I set out to 
reform our health care system so it met the following requirements. We 
believe that any truly transformational health care plan must guarantee 
that every American can get affordable coverage.
  It must demand more value for our health care dollar instead of 
imposing a new tax or passing on a new obligation to future 
generations.
  It must transform the health care system so that we focus on keeping 
people healthy and well instead of only treating them when they are 
sick.
  It must make health coverage affordable for those with pre-existing 
conditions.
  It must end the current discrimination in the tax code that benefits 
the wealthy and corporations but fails the poor and those who can't get 
coverage through their employer.
  It must ensure that health care is accessible when people want it, 
where people want it.
  It must be sustainable so that it will be there for future 
generations.
  We believe the Patient's Choice Act will meet all of these 
requirements. The bill focuses on 6 key areas: preventing disease and 
promoting healthier lifestyles; creating affordable and accessible 
health insurance options; equalizing the tax treatment of health care; 
establishing transparency in health care price and quality; and 
ensuring compensation for injured patients.
  S. 1099 transforms health care in America by strengthening the 
relationship between the patient and the doctor and relying on choice 
and competition rather than rationing and restrictions. In doing so, we 
can ensure universal, affordable health care for all Americans.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself and Ms. Collins):
  S. 1102. A bill to provide benefits to domestic partners of Federal 
employees; to the Committee on Homeland Security and Governmental 
Affairs.
  Mr. LIEBERMAN. Mr. President, I rise today to speak in favour of the 
Domestic Partner Benefits and Obligations Act, which I am introducing 
with my colleague and friend on the Homeland Security and Governmental 
Affairs Committee, Senator Susan Collins.
  Last year, the Homeland Security and Governmental Affairs Committee 
held a hearing on this legislation, but time ran out before we were 
able to move the measure to the Senate floor.
  I also want to thank my former cosponsor, Senator Gordon Smith of 
Oregon, with whom I and more than 20 other Senators introduced 
identical legislation in the 110th Congress. We expect about 20 
cosponsors again this year, and I want to express my appreciation to 
them for helping us get an early enough start in the 111th Congress so 
that we can pass the bill, hopefully, this year.
  This legislation makes eminent sense for two reasons: It will help 
the Federal Government attract the best and the brightest and it is the 
fair and right thing to do from a human rights perspective.
  Let me explain. The Domestic Partners Benefits and Obligations Act 
would provide the same employee benefit programs to same-sex domestic 
partners of Federal employees that are now provided to the opposite-sex 
spouses of Federal employees. In other words, same-sex domestic 
partners--living in a committed relationship and unrelated by blood 
would be eligible to participate in health benefits, long-term care, 
Family and Medical Leave, federal retirement benefits, and all other 
benefits for which married employees and their spouses are eligible. 
Federal employees and their domestic partners would also be subject to 
the same responsibilities that apply to married employees and their 
spouses, such as anti-nepotism rules and financial disclosure 
requirements.
  When the domestic partners of Federal employees are granted the same 
benefits and obligations as the spouses of federal employees, the 
Federal Government will be able to attract from a larger pool of 
applicants the best possible employees to carry out the Government's 
responsibilities to the American people. In the coming years, as a 
large percentage of federal employees become eligible for retirement, a 
new generation of employees will be hired, and the Federal Government 
will be competing with the private sector for the most qualified among 
them. This legislation will help put the Federal Government on equal 
footing to compete for those new recruits and then retain them.
  From a human rights perspective, this legislation is one more step on 
the long road to bring the gay and lesbian community equality under the 
law.
  We are not talking about an insignificant number of people. According 
to UCLA's Williams Institute, over 30,000 federal workers live in 
committed relationships with same-sex partners who are not Federal 
employees.
  We often hear--and I have often said--that Government should be run 
more like a business. While the purpose of Government and business are 
different, I believe Government has a lot to learn from private sector 
business models including in the matter before us today. The fact is 
that a majority of U.S. corporations--including more than half of all 
Fortune 500 companies--already offer benefits to domestic partners.
  General Electric, IBM, Eastman Kodak, Dow Chemical, the Chubb 
Corporation, Lockheed Martin, and Duke Energy are among the major 
employers that have recognized the economic reward of providing 
benefits to domestic partners. Overall, almost 10,000 private-sector 
companies of all sizes provide benefits to domestic partners. The 
governments of 13 States, including my home State of Connecticut, about 
145 local jurisdictions across our country, and some 300 colleges and 
universities also provide these benefits.

  Surveys show that many private sector employers offer these benefits 
because it is the right thing to do. You can bet each one knows that 
the policy makes good business sense; it is good management policy, it 
is good employee policy, and it is good recruitment and retention 
policy.
  In fact, employers have told analysts that they extend benefits to 
domestic partners to boost recruitment and retain quality employees--as 
well as to be fair. If we want the Government to be able to compete for 
the most qualified employees, we are going to have to provide the same 
benefits that job seekers can find elsewhere.
  The experts tell us that 19 percent of an employee's compensation 
comes in the form of benefits, including benefits for family members. 
Employees who do not get benefits for their families are,

[[Page S5716]]

therefore, not being paid equally. Of course, the supporters of this 
legislation understand that covering domestic partners will add some 
increment to the total cost of providing federal employee benefits. And 
we understand that we have to be particularly careful about government 
spending right now and perform rigorous cost benefit analyses of all, 
not just new, federal expenditures.
  Based on the experience of private companies and state and local 
governments, the Congressional Budget Office has estimated that 
benefits to same-sex domestic partners of federal employees would 
increase the cost of those programs by less than one-half of one 
percent. The Office of Personnel Management says the cost of health 
benefits for domestic partners over 10 years would be $670 million. In 
the name of fairness and raising the appeal of federal employment, this 
is affordable legislation.
  Among the many stories I have heard about the impact of this 
inequality on real people, I particularly remember the words of Michael 
Guest, who was ambassador to Romania in the Bush Administration and 
Dean of the Foreign Service Institute before he left public service. In 
his resignation letter, Mr. Guest made a moving and eloquent case for 
extending benefits to same sex partners. I believe Ambassador Guest was 
the first publicly gay man to be confirmed for an U.S. ambassadorship 
from the U.S. When he resigned the Foreign Service in 2007, he said, 
and I quote here from his farewell address to his colleagues ``. . . I 
have felt compelled to choose between obligations to my partner--who is 
my family--and service to my country. That anyone should have to make 
that choice is a stain on the Secretary's leadership and a shame for 
this institution and our country.''
  Those are convincing words from a talented and loyal former public 
servant--who once described the Foreign Service as the career he was 
``born for . . . what I was always meant to do.'' It is a great loss to 
the nation that he felt compelled to leave the Foreign Service--
particularly at a time when our nation so desperately needs talented 
diplomats to help meet the challenges we face abroad. He may have left 
public service for many reasons--but one of them should not have been 
that his federal employee benefits did not allow him to care for the 
needs of his family in an adequate manner.
  The Domestic Partners Benefits and Obligations Act makes good 
economic sense. It is sound policy. And it is the right thing to do. I 
urge my colleagues to support this bill.
  Mr. President, I ask unanimous consent that the text of the bill and 
a bill summary be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1102

       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 ``Domestic Partnership 
     Benefits and Obligations Act of 2009''.

     SEC. 2. BENEFITS TO DOMESTIC PARTNERS OF FEDERAL EMPLOYEES.

       (a) In General.--An employee who has a domestic partner and 
     the domestic partner of the employee shall be entitled to 
     benefits available to, and shall be subject to obligations 
     imposed upon, a married employee and the spouse of the 
     employee.
       (b) Certification of Eligibility.--In order to obtain 
     benefits and assume obligations under this Act, an employee 
     shall file an affidavit of eligibility for benefits and 
     obligations with the Office of Personnel Management 
     identifying the domestic partner of the employee and 
     certifying that the employee and the domestic partner of the 
     employee--
       (1) are each other's sole domestic partner and intend to 
     remain so indefinitely;
       (2) have a common residence, and intend to continue the 
     arrangement;
       (3) are at least 18 years of age and mentally competent to 
     consent to contract;
       (4) share responsibility for a significant measure of each 
     other's common welfare and financial obligations;
       (5) are not married to or domestic partners with anyone 
     else;
       (6) are same sex domestic partners, and not related in a 
     way that, if the 2 were of opposite sex, would prohibit legal 
     marriage in the State in which they reside; and
       (7) understand that willful falsification of information 
     within the affidavit may lead to disciplinary action and the 
     recovery of the cost of benefits received related to such 
     falsification and may constitute a criminal violation.
       (c) Dissolution of Partnership.--
       (1) In general.--An employee or domestic partner of an 
     employee who obtains benefits under this Act shall file a 
     statement of dissolution of the domestic partnership with the 
     Office of Personnel Management not later than 30 days after 
     the death of the employee or the domestic partner or the date 
     of dissolution of the domestic partnership.
       (2) Death of employee.--In a case in which an employee 
     dies, the domestic partner of the employee at the time of 
     death shall receive under this Act such benefits as would be 
     received by the widow or widower of an employee.
       (3) Other dissolution of partnership.--
       (A) In general.--In a case in which a domestic partnership 
     dissolves by a method other than death of the employee or 
     domestic partner of the employee, any benefits received by 
     the domestic partner as a result of this Act shall terminate.
       (B) Exception.--In a case in which a domestic partnership 
     dissolves by a method other than death of the employee or 
     domestic partner of the employee, the former domestic partner 
     of the employee shall be entitled to benefits available to, 
     and shall be subject to obligations imposed upon, a former 
     spouse.
       (d) Stepchildren.--For purposes of affording benefits under 
     this Act, any natural or adopted child of a domestic partner 
     of an employee shall be deemed a stepchild of the employee.
       (e) Confidentiality.--Any information submitted to the 
     Office of Personnel Management under subsection (b) shall be 
     used solely for the purpose of certifying an individual's 
     eligibility for benefits under subsection (a).
       (f) Regulations and Orders.--
       (1) Office of personnel management.--Not later than 6 
     months after the date of enactment of this Act, the Office of 
     Personnel Management shall promulgate regulations to 
     implement section 2 (b) and (c).
       (2) Other executive branch regulations.--Not later than 6 
     months after the date of enactment of this Act, the President 
     or designees of the President shall promulgate regulations to 
     implement this Act with respect to benefits and obligations 
     administered by agencies or other entities of the executive 
     branch.
       (3) Other regulations and orders.--Not later than 6 months 
     after the date of enactment of this Act, each agency or other 
     entity or official not within the executive branch that 
     administers a program providing benefits or imposing 
     obligations shall promulgate regulations or orders to 
     implement this Act with respect to the program.
       (4) Procedure.--Regulations and orders required under this 
     subsection shall be promulgated after notice to interested 
     persons and an opportunity for comment.
       (g) Definitions.--In this Act:
       (1) Benefits.--The term ``benefits'' means--
       (A) health insurance and enhanced dental and vision 
     benefits, as provided under chapters 89, 89A, and 89B of 
     title 5, United States Code;
       (B) retirement and disability benefits and plans, as 
     provided under--
       (i) chapters 83 and 84 of title 5, United States Code;
       (ii) chapter 8 of the Foreign Service Act of 1980 (22 
     U.S.C. 4041 et seq.); and
       (iii) the Central Intelligence Agency Retirement Act of 
     1964 for Certain Employees (50 U.S.C. chapter 38);
       (C) family, medical, and emergency leave, as provided 
     under--
       (i) subchapters III, IV, and V of chapter 63 of title 5, 
     United States Code;
       (ii) the Family and Medical Leave Act of 1993 (29 U.S.C. 
     2601 et seq.), insofar as that Act applies to the Government 
     Accountability Office and the Library of Congress;
       (iii) section 202 of the Congressional Accountability Act 
     of 1995 (2 U.S.C. 1312); and
       (iv) section 412 of title 3, United States Code;
       (D) Federal group life insurance, as provided under chapter 
     87 of title 5, United States Code;
       (E) long-term care insurance, as provided under chapter 90 
     of title 5, United States Code;
       (F) compensation for work injuries, as provided under 
     chapter 81 of title 5, United States Code;
       (G) benefits for disability, death, or captivity, as 
     provided under--
       (i) sections 5569 and 5570 of title 5, United States Code;
       (ii) section 413 of the Foreign Service Act of 1980 (22 
     U.S.C. 3973); and
       (iii) part L of title I of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3796 et seq.), insofar as 
     that part applies to any employee;
       (H) travel, transportation, and related payments and 
     benefits, as provided under--
       (i) chapter 57 of title 5, United States Code;
       (ii) chapter 9 of the Foreign Service Act of 1980 (22 
     U.S.C. 4081 et seq.); and
       (iii) section 1599b of title 10, United States Code; and
       (I) any other benefit similar to a benefit described under 
     subparagraphs (A) through (H) provided by or on behalf of the 
     United States to any employee.
       (2) Domestic partner.--The term ``domestic partner'' means 
     an adult unmarried person living with another adult unmarried 
     person of the same sex in a committed, intimate relationship.

[[Page S5717]]

       (3) Employee.--The term ``employee''--
       (A) means an officer or employee of the United States or of 
     any department, agency, or other entity of the United States, 
     including the President of the United States, the Vice 
     President of the United States, a Member of Congress, or a 
     Federal judge; and
       (B) shall not include a member of the uniformed services.
       (4) Obligations.--The term ``obligations'' means any duties 
     or responsibilities with respect to Federal employment that 
     would be incurred by a married employee or by the spouse of 
     an employee.
       (5) Uniformed services.--The term ``uniformed services'' 
     has the meaning given under section 2101(3) of title 5, 
     United States Code.

     SEC. 3. EFFECTIVE DATE.

       This Act shall--
       (1) with respect to the provision of benefits and 
     obligations, take effect 6 months after the date of enactment 
     of this Act; and
       (2) apply to any individual who is employed as an employee 
     on or after the date of enactment of this Act.
                                  ____


       Domestic Partnership Benefits and Obligations Act of 2009


                                SUMMARY

       Under the Domestic Partnership Benefits and Obligations Act 
     of 2009, federal employees who have same-sex domestic 
     partners will be entitled to the same employment benefits 
     that are available to married federal employees and their 
     spouses. Federal employees and their domestic partners will 
     also be subject to the same employment-related obligations 
     that are imposed on married employees and their spouses.
       In order to obtain benefits and assume obligations, an 
     employee must file an affidavit of eligibility with the 
     Office of Personnel Management (OPM). The employee must 
     certify that the employee and the employee's same-sex 
     domestic partner have a common residence, share 
     responsibility for each other's welfare and financial 
     responsibilities, are not related by blood, and are living 
     together in a committed intimate relationship. They must also 
     certify that, as each other's sole domestic partner, they 
     intend to remain so indefinitely. If a domestic partnership 
     dissolves, whether by death of the domestic partner or 
     otherwise, the employee must file a statement of dissolution 
     with OPM within 30 days.
       Employees and their domestic partners will have the same 
     benefits as married employees and their spouses under--
       Employee health benefits.
       Retirement and disability plans.
       Family, medical, and emergency leave.
       Group life insurance.
       Long-term care insurance.
       Compensation for work injuries.
       Death, disability, and similar benefits.
       Relocation, travel, and related expenses.
       For purposes of these benefits, any natural or adopted 
     child of the domestic partner will be treated as a stepchild 
     of the employee.
       The employee and the employee's domestic partner will also 
     become subject to the same duties and responsibilities with 
     respect to federal employment that apply to a married 
     employee and the employee's spouse. These will include, for 
     example, anti-nepotism rules and financial disclosure 
     requirements.
       The Act will apply with respect to those federal employees 
     who are employed on the date of enactment or who become 
     employed on or after that date.
                                 ______
                                 
      By Mr. BINGAMAN (for himself and Mr. Udall, of New Mexico):
  S. 1105. A bill to authorize the Secretary of the Interior, acting 
through the Commissioner of Reclamation, to develop water 
infrastructure in the Rio Grande Basin, and to approve the settlement 
of the water rights claims of the Pueblos of Nambe, Pojoaque, San 
lldefonso, and Tesuque; to the Committee on Indian Affairs.
  Mr. BINGAMAN. Mr. President, today Senator Udall and I are 
introducing a bill that will help end a contentious dispute over water 
rights claims in the Rio Pojoaque general stream adjudication in New 
Mexico. This is accomplished by authorizing an Indian water rights 
settlement of the claims being pursued by the Nambe, Pojoaque, San 
Ildefonso, and Tesuque Pueblos in the Rio Pojoaque basin north of Santa 
Fe.
  This general stream adjudication is known as the Aamodt case, and I 
believe it is the longest active case in the Federal court system 
nationwide. The case began in 1966, and since that time has been 
actively litigated before the New Mexico District Court and the Tenth 
Circuit Court of Appeals. Forty years of litigation has resolved very 
little in the basin. Fortunately, the parties to the case took matters 
into their own hands. By engaging directly with each other they have 
resolved their differences, something the litigation could not 
accomplish. The Aamodt Litigation Settlement Act represents an 
agreement by the parties that will secure water to meet the present and 
future needs of the four Pueblos involved in the litigation; protect 
the interests and rights of longstanding water users, including 
century-old irrigation practices; and ensure that water is available 
for municipal and domestic needs for all residents in the Pojoaque 
basin. Negotiation of this agreement was a lengthy process. In the end, 
however, the parties' commitment to solving water supply issues in the 
basin prevailed.
  Legislation to implement this settlement was introduced in the 110th 
Congress. Hearings were held in both the House and Senate and based on 
the submitted testimony a number of changes were made to address 
concerns with the legislation. These changes help standardize the 
Pueblos' waivers of claims as part of the settlement; limit the 
settlement's impact on the Federal budget; and allows for flexibility 
in developing the size and scope of the regional water system in 
response to local concerns.
  This settlement is widely supported in the region and it is time to 
move swiftly to enact this legislation. The State of New Mexico 
deserves recognition for actively pursuing a settlement of this matter 
and committing significant resources so that the Federal government 
does not bear the entire cost of the settlement. The bill is critical 
to New Mexico's future since it provides certainty in allocating water 
in a perennially water-short area of the state. It also helps address a 
long-neglected responsibility of the Federal Government to protect the 
rights and interests of these Pueblos. I look forward to working with 
my colleagues in the Senate as well as the House of Representatives to 
enact this legislation as soon as possible.
  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. 1105

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

             TITLE I--POJOAQUE BASIN REGIONAL WATER SYSTEM

Sec. 101. Authorization of Regional Water System.
Sec. 102. Operating Agreement.
Sec. 103. Acquisition of Pueblo water supply for the Regional Water 
              System.
Sec. 104. Delivery and allocation of Regional Water System capacity and 
              water.
Sec. 105. Aamodt Settlement Pueblos' Fund.
Sec. 106. Environmental compliance.
Sec. 107. Authorization of appropriations.

        TITLE II--POJOAQUE BASIN INDIAN WATER RIGHTS SETTLEMENT

Sec. 201. Settlement Agreement and contract approval.
Sec. 202. Environmental compliance.
Sec. 203. Conditions precedent and enforcement date.
Sec. 204. Waivers and releases.
Sec. 205. Effect.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Aamodt case.--The term ``Aamodt Case'' means the civil 
     action entitled State of New Mexico, ex rel. State Engineer 
     and United States of America, Pueblo de Nambe, Pueblo de 
     Pojoaque, Pueblo de San Ildefonso, and Pueblo de Tesuque v. 
     R. Lee Aamodt, et al., No. 66 CV 6639 MV/LCS (D.N.M.).
       (2) Acre-feet.--The term ``acre-feet'' means acre-feet of 
     water per year.
       (3) Authority.--The term ``Authority'' means the Pojoaque 
     Basin Regional Water Authority described in section 9.5 of 
     the Settlement Agreement or an alternate entity acceptable to 
     the Pueblos and the County to operate and maintain the 
     diversion and treatment facilities, certain transmission 
     pipelines, and other facilities of the Regional Water System.
       (4) City.--The term ``City'' means the city of Santa Fe, 
     New Mexico.
       (5) Cost-sharing and system integration agreement.--The 
     term ``Cost-Sharing and System Integration Agreement'' means 
     the agreement to be executed by the United States, the State, 
     the Pueblos, the County, and the City that--
       (A) describes the location, capacity, and management 
     (including the distribution of water to customers) of the 
     Regional Water System; and
       (B) allocates the costs of the Regional Water System with 
     respect to--
       (i) the construction, operation, maintenance, and repair of 
     the Regional Water System;
       (ii) rights-of-way for the Regional Water System; and
       (iii) the acquisition of water rights.

[[Page S5718]]

       (6) County.--The term ``County'' means Santa Fe County, New 
     Mexico.
       (7) County distribution system.--The term ``County 
     Distribution System'' means the portion of the Regional Water 
     System that serves water customers on non-Pueblo land in the 
     Pojoaque Basin.
       (8) County water utility.--The term ``County Water 
     Utility'' means the water utility organized by the County 
     to--
       (A) receive water distributed by the Authority; and
       (B) provide the water received under subparagraph (A) to 
     customers on non-Pueblo land in the Pojoaque Basin.
       (9) Engineering report.--The term ``Engineering Report'' 
     means the report entitled ``Pojoaque Regional Water System 
     Engineering Report'' dated September 2008 and any amendments 
     thereto, including any modifications which may be required by 
     section 101(d)(2).
       (10) Fund.--The term ``Fund'' means the Aamodt Settlement 
     Pueblos' Fund established by section 105(a).
       (11) Operating agreement.--The term ``Operating Agreement'' 
     means the agreement between the Pueblos and the County 
     executed under section 102(a).
       (12) Operations, maintenance, and replacement costs.--
       (A) In general.--The term ``operations, maintenance, and 
     replacement costs'' means all costs for the operation of the 
     Regional Water System that are necessary for the safe, 
     efficient, and continued functioning of the Regional Water 
     System to produce the benefits described in the Settlement 
     Agreement.
       (B) Exclusion.--The term ``operations, maintenance, and 
     replacement costs'' does not include construction costs or 
     costs related to construction design and planning.
       (13) Pojoaque basin.--
       (A) In general.--The term ``Pojoaque Basin'' means the 
     geographic area limited by a surface water divide (which can 
     be drawn on a topographic map), within which area rainfall 
     and runoff flow into arroyos, drainages, and named 
     tributaries that eventually drain to--
       (i) the Rio Pojoaque; or
       (ii) the 2 unnamed arroyos immediately south; and
       (iii) 2 arroyos (including the Arroyo Alamo) that are north 
     of the confluence of the Rio Pojoaque and the Rio Grande.
       (B) Inclusion.--The term ``Pojoaque Basin'' includes the 
     San Ildefonso Eastern Reservation recognized by section 8 of 
     Public Law 87-231 (75 Stat. 505).
       (14) Pueblo.--The term ``Pueblo'' means each of the pueblos 
     of Nambe, Pojoaque, San Ildefonso, or Tesuque.
       (15) Pueblos.--The term ``Pueblos'' means collectively the 
     Pueblos of Nambe, Pojoaque, San Ildefonso, and Tesuque.
       (16) Pueblo land.--The term ``Pueblo land'' means any real 
     property that is--
       (A) held by the United States in trust for a Pueblo within 
     the Pojoaque Basin;
       (B)(i) owned by a Pueblo within the Pojoaque Basin before 
     the date on which a court approves the Settlement Agreement; 
     or
       (ii) acquired by a Pueblo on or after the date on which a 
     court approves the Settlement Agreement, if the real property 
     is located--
       (I) within the exterior boundaries of the Pueblo, as 
     recognized and conformed by a patent issued under the Act of 
     December 22, 1858 (11 Stat. 374, chapter V); or
       (II) within the exterior boundaries of any territory set 
     aside for the Pueblo by law, executive order, or court 
     decree;
       (C) owned by a Pueblo or held by the United States in trust 
     for the benefit of a Pueblo outside the Pojoaque Basin that 
     is located within the exterior boundaries of the Pueblo as 
     recognized and confirmed by a patent issued under the Act of 
     December 22, 1858 (11 Stat. 374, chapter V); or
       (D) within the exterior boundaries of any real property 
     located outside the Pojoaque Basin set aside for a Pueblo by 
     law, executive order, or court decree, if the land is within 
     or contiguous to land held by the United States in trust for 
     the Pueblo as of January 1, 2005.
       (17) Pueblo water facility.--
       (A) In general.--The term ``Pueblo Water Facility'' means--
       (i) a portion of the Regional Water System that serves only 
     water customers on Pueblo land; and
       (ii) portions of a Pueblo water system in existence on the 
     date of enactment of this Act that serve water customers on 
     non-Pueblo land, also in existence on the date of enactment 
     of this Act, or their successors, that are--

       (I) depicted in the final project design, as modified by 
     the drawings reflecting the completed Regional Water System; 
     and
       (II) described in the Operating Agreement.

       (B) Inclusions.--The term ``Pueblo Water Facility'' 
     includes--
       (i) the barrier dam and infiltration project on the Rio 
     Pojoaque described in the Engineering Report; and
       (ii) the Tesuque Pueblo infiltration pond described in the 
     Engineering Report.
       (18) Regional water system.--
       (A) In general.--The term ``Regional Water System'' means 
     the Regional Water System described in section 101(a).
       (B) Exclusions.--The term ``Regional Water System'' does 
     not include the County or Pueblo water supply delivered 
     through the Regional Water System.
       (19) San juan-chama project.--The term ``San Juan-Chama 
     Project'' means the Project authorized by section 8 of the 
     Act of June 13, 1962 (76 Stat. 96, 97), and the Act of April 
     11, 1956 (70 Stat. 105).
       (20) San juan-chama project act.--The term ``San Juan-Chama 
     Project Act'' means sections 8 through 18 of the Act of June 
     13, 1962 (76 Stat. 96, 97).
       (21) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (22) Settlement agreement.--The term ``Settlement 
     Agreement'' means the stipulated and binding agreement among 
     the State, the Pueblos, the United States, the County, and 
     the City dated January 19, 2006, and signed by all of the 
     government parties to the Settlement Agreement (other than 
     the United States) on May 3, 2006, and as amended in 
     conformity with this Act.
       (23) State.--The term ``State'' means the State of New 
     Mexico.

             TITLE I--POJOAQUE BASIN REGIONAL WATER SYSTEM

     SEC. 101. AUTHORIZATION OF REGIONAL WATER SYSTEM.

       (a) In General.--The Secretary, acting through the 
     Commissioner of Reclamation, shall plan, design, and 
     construct a regional water system in accordance with the 
     Settlement Agreement, to be known as the ``Regional Water 
     System''--
       (1) to divert and distribute water to the Pueblos and to 
     the County Water Utility, in accordance with the Engineering 
     Report; and
       (2) that consists of--
       (A) surface water diversion facilities at San Ildefonso 
     Pueblo on the Rio Grande; and
       (B) any treatment, transmission, storage and distribution 
     facilities and wellfields for the County Distribution System 
     and Pueblo Water Facilities that are necessary to supply 
     4,000 acre-feet of water within the Pojoaque Basin, unless 
     modified in accordance with subsection (d)(2).
       (b) Final Project Design.--The Secretary shall issue a 
     final project design within 90 days of completion of the 
     environmental compliance described in section 106 for the 
     Regional Water System that--
       (1) is consistent with the Engineering Report; and
       (2) includes a description of any Pueblo Water Facilities.
       (c) Acquisition of Land; Water Rights.--
       (1) Acquisition of land.--Upon request, and in exchange for 
     the funding which shall be provided in section 107(c), the 
     Pueblos shall consent to the grant of such easements and 
     rights-of-way as may be necessary for the construction of the 
     Regional Water System at no cost to the Secretary. To the 
     extent that the State or County own easements or rights-of-
     way that may be used for construction of the Regional Water 
     System, the State or County shall provide that land or 
     interest in land as necessary for construction at no cost to 
     the Secretary. The Secretary shall acquire any other land or 
     interest in land that is necessary for the construction of 
     the Regional Water System.
       (2) Water rights.--The Secretary shall not condemn water 
     rights for purposes of the Regional Water System.
       (d) Conditions for Construction.--
       (1) In general.--The Secretary shall not begin construction 
     of the Regional Water System facilities until the date on 
     which--
       (A) the Secretary executes--
       (i) the Settlement Agreement; and
       (ii) the Cost-Sharing and System Integration Agreement; and
       (B) the State and the County have entered into an agreement 
     with the Secretary to contribute the non-Federal share of the 
     costs of the construction in accordance with the Cost-Sharing 
     and System Integration Agreement.
       (2) Modifications to regional water system.--
       (A) In general.--The State and the County, in agreement 
     with the Pueblos, the City, and other signatories to the 
     Cost-Sharing and System Integration Agreement, may modify the 
     extent, size, and capacity of the County Distribution System 
     as set forth in the Cost-Sharing and System Integration 
     Agreement.
       (B) Effect.--A modification under subparagraph (A)--
       (i) shall not affect implementation of the Settlement 
     Agreement so long as the provisions in section 203 are 
     satisfied; and
       (ii) may result in an adjustment of the State and County 
     cost-share allocation as set forth in the Cost-Sharing and 
     System Integration Agreement.
       (e) Applicable Law.--The Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.) shall not 
     apply to the design and construction of the Regional Water 
     System.
       (f) Construction Costs.--
       (1) Pueblo water facilities.--The costs of constructing the 
     Pueblo Water Facilities, as determined by the final project 
     design and the Engineering Report--
       (A) shall be at full Federal expense subject to the amount 
     authorized in section 107(a)(1); and
       (B) shall be nonreimbursable to the United States.
       (2) County distribution system.--The costs of constructing 
     the County Distribution System shall be at State and local 
     expense.
       (g) State and Local Capital Obligations.--The State and 
     local capital obligations for the Regional Water System 
     described in the Cost-Sharing and System Integration 
     Agreement shall be satisfied on the

[[Page S5719]]

     payment of the State and local capital obligations described 
     in the Cost-Sharing and System Integration Agreement.
       (h) Conveyance of Regional Water System Facilities.--
       (1) In general.--Subject to paragraph (2), on completion of 
     the construction of the Regional Water System, the Secretary, 
     in accordance with the Operating Agreement, shall convey to--
       (A) each Pueblo the portion of any Pueblo Water Facility 
     that is located within the boundaries of the Pueblo, 
     including any land or interest in land located within the 
     boundaries of the Pueblo that is acquired by the United 
     States for the construction of the Pueblo Water Facility;
       (B) the County the County Distribution System, including 
     any land or interest in land acquired by the United States 
     for the construction of the County Distribution System; and
       (C) the Authority any portions of the Regional Water System 
     that remain after making the conveyances under subparagraphs 
     (A) and (B), including any land or interest in land acquired 
     by the United States for the construction of the portions of 
     the Regional Water System.
       (2) Conditions for conveyance.--The Secretary shall not 
     convey any portion of the Regional Water System facilities 
     under paragraph (1) until the date on which--
       (A) construction of the Regional Water System is complete; 
     and
       (B) the Operating Agreement is executed in accordance with 
     section 102.
       (3) Subsequent conveyance.--On conveyance by the Secretary 
     under paragraph (1), the Pueblos, the County, and the 
     Authority shall not reconvey any portion of the Regional 
     Water System conveyed to the Pueblos, the County, and the 
     Authority, respectively, unless the reconveyance is 
     authorized by an Act of Congress enacted after the date of 
     enactment of this Act.
       (4) Interest of the united states.--On conveyance of a 
     portion of the Regional Water System under paragraph (1), the 
     United States shall have no further right, title, or interest 
     in and to the portion of the Regional Water System conveyed.
       (5) Additional construction.--On conveyance of a portion of 
     the Regional Water System under paragraph (1), the Pueblos, 
     County, or the Authority, as applicable, may, at the expense 
     of the Pueblos, County, or the Authority, construct any 
     additional infrastructure that is necessary to fully use the 
     water delivered by the Regional Water System.
       (6) Liability.--
       (A) In general.--Effective on the date of conveyance of any 
     land or facility under this section, the United States shall 
     not be held liable by any court for damages of any kind 
     arising out of any act, omission, or occurrence relating to 
     the land and facilities conveyed, other than damages caused 
     by acts of negligence by the United States, or by employees 
     or agents of the United States, prior to the date of 
     conveyance.
       (B) Tort claims.--Nothing in this section increases the 
     liability of the United States beyond the liability provided 
     in chapter 171 of title 28, United States Code (commonly 
     known as the ``Federal Tort Claims Act'').
       (7) Effect.--Nothing in any transfer of ownership provided 
     or any conveyance thereto as provided in this section shall 
     extinguish the right of any Pueblo, the County, or the 
     Regional Water Authority to the continuous use and benefit of 
     each easement or right of way for the use, operation, 
     maintenance, repair, and replacement of Pueblo Water 
     Facilities, the County Distribution System or the Regional 
     Water System or for wastewater purposes as provided in the 
     Cost-Sharing and System Integration Agreement.

     SEC. 102. OPERATING AGREEMENT.

       (a) In General.--The Pueblos and the County shall submit to 
     the Secretary an executed Operating Agreement for the 
     Regional Water System that is consistent with this Act, the 
     Settlement Agreement, and the Cost-Sharing and System 
     Integration Agreement not later than 180 days after the later 
     of--
       (1) the date of completion of environmental compliance and 
     permitting; or
       (2) the date of issuance of a final project design for the 
     Regional Water System under section 101(b).
       (b) Approval.--Not later than 180 days after receipt of the 
     operating agreement described in subsection (a), the 
     Secretary shall approve the Operating Agreement upon 
     determination that the Operating Agreement is consistent with 
     this Act, the Settlement Agreement, and the Cost-Sharing and 
     System Integration Agreement.
       (c) Contents.--The Operating Agreement shall include--
       (1) provisions consistent with the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement and 
     necessary to implement the intended benefits of the Regional 
     Water System described in those documents;
       (2) provisions for--
       (A) the distribution of water conveyed through the Regional 
     Water System, including a delineation of--
       (i) distribution lines for the County Distribution System;
       (ii) distribution lines for the Pueblo Water Facilities; 
     and
       (iii) distribution lines that serve both--

       (I) the County Distribution System; and
       (II) the Pueblo Water Facilities;

       (B) the allocation of the Regional Water System capacity;
       (C) the terms of use of unused water capacity in the 
     Regional Water System;
       (D) the construction of additional infrastructure and the 
     acquisition of associated rights-of-way or easements 
     necessary to enable any of the Pueblos or the County to fully 
     use water allocated to the Pueblos or the County from the 
     Regional Water System, including provisions addressing when 
     the construction of such additional infrastructure requires 
     approval by the Authority;
       (E) the allocation and payment of annual operation, 
     maintenance, and replacement costs for the Regional Water 
     System, including the portions of the Regional Water System 
     that are used to treat, transmit, and distribute water to 
     both the Pueblo Water Facilities and the County Water 
     Utility;
       (F) the operation of wellfields located on Pueblo land;
       (G) the transfer of any water rights necessary to provide 
     the Pueblo water supply described in section 103(a);
       (H) the operation of the Regional Water System with respect 
     to the water supply, including the allocation of the water 
     supply in accordance with section 3.1.8.4.2 of the Settlement 
     Agreement so that, in the event of a shortage of supply to 
     the Regional Water System, the supply to each of the Pueblos' 
     and to the County's distribution system shall be reduced on a 
     prorata basis, in proportion to each distribution system's 
     most current annual use; and
       (I) dispute resolution; and
       (3) provisions for operating and maintaining the Regional 
     Water System facilities before and after conveyance under 
     section 101(h), including provisions to--
       (A) ensure that--
       (i) the operation of, and the diversion and conveyance of 
     water by, the Regional Water System is in accordance with the 
     Settlement Agreement;
       (ii) the wells in the Regional Water System are used in 
     conjunction with the surface water supply of the Regional 
     Water System to ensure a reliable firm supply of water to all 
     users of the Regional Water System, consistent with the 
     intent of the Settlement Agreement that surface supplies will 
     be used to the maximum extent feasible;
       (iii) the respective obligations regarding delivery, 
     payment, operation, and management are enforceable; and
       (iv) the County has the right to serve any new water users 
     located on non-Pueblo land in the Pojoaque Basin; and
       (B) allow for any aquifer storage and recovery projects 
     that are approved by the Office of the New Mexico State 
     Engineer.
       (d) Effect.--Nothing in this Act precludes the Operating 
     Agreement from authorizing phased or interim operations if 
     the Regional Water System is constructed in phases.

     SEC. 103. ACQUISITION OF PUEBLO WATER SUPPLY FOR THE REGIONAL 
                   WATER SYSTEM.

       (a) In General.--For the purpose of providing a reliable 
     firm supply of water from the Regional Water System for the 
     Pueblos in accordance with the Settlement Agreement, the 
     Secretary, on behalf of the Pueblos, shall--
       (1) acquire water rights to--
       (A) 302 acre-feet of Nambe reserved water described in 
     section 2.6.2 of the Settlement Agreement pursuant to section 
     107(c)(1)(C); and
       (B) 1141 acre-feet from water acquired by the County for 
     water rights commonly referred to as ``Top of the World'' 
     rights in the Aamodt Case;
       (2) make available 1079 acre-feet to the Pueblos pursuant 
     to a contract entered into among the Pueblos and the 
     Secretary in accordance with section 11 of the San Juan-Chama 
     Project Act, under water rights held by the Secretary; and
       (3) by application to the State Engineer, obtain approval 
     to divert the water acquired and made available under 
     paragraphs (1) and (2) at the points of diversion for the 
     Regional Water System, consistent with the Settlement 
     Agreement and the Cost-Sharing and System Integration 
     Agreement.
       (b) Forfeiture.--The nonuse of the water supply secured by 
     the Secretary for the Pueblos under subsection (a) shall in 
     no event result in forfeiture, abandonment, relinquishment, 
     or other loss thereof.
       (c) Trust.--The Pueblo water supply secured under 
     subsection (a) shall be held by the United States in trust 
     for the Pueblos.
       (d) Applicable Law.--The water supply made available 
     pursuant to subsection (a)(2) shall be subject to the San 
     Juan-Chama Project Act, and no preference shall be provided 
     to the Pueblos as a result of subsection (c) with regard to 
     the delivery or distribution of San Juan-Chama Project water 
     or the management or operation of the San Juan-Chama Project.
       (e) Contract for San Juan-Chama Project Water Supply.--With 
     respect to the contract for the water supply required by 
     subsection (a)(2), such San Juan-Chama Project contract shall 
     be pursuant to the following terms:
       (1) Waivers.--Notwithstanding the provisions of the San 
     Juan-Chama Project Act, or any other provision of law--
       (A) the Secretary shall waive the entirety of the Pueblos' 
     share of the construction costs for the San Juan-Chama 
     Project, and pursuant to that waiver, the Pueblos' share of 
     all construction costs for the San Juan-Chama Project, 
     inclusive of both principal and interest, due from 1972 to 
     the execution of the contract required by subsection (a)(2), 
     shall be nonreimbursable;

[[Page S5720]]

       (B) the Secretary's waiver of each Pueblo's share of the 
     construction costs for the San Juan-Chama Project will not 
     result in an increase in the pro rata shares of other San 
     Juan-Chama Project water contractors, but such costs shall be 
     absorbed by the United States Treasury or otherwise 
     appropriated to the Department of the Interior; and
       (C) the costs associated with any water made available from 
     the San Juan-Chama Project which were determined 
     nonreimbursable and nonreturnable pursuant to Public Law No. 
     88-293, 78 Stat. 171 (March 26, 1964) shall remain 
     nonreimbursable and nonreturnable.
       (2) Termination.--The contract shall provide that it shall 
     terminate only upon the following conditions--
       (A) failure of the United States District Court for the 
     District of New Mexico to enter a final decree for the Aamodt 
     Case by December 15, 2012, or within the time period of any 
     extension of that deadline granted by the court; or
       (B) entry of an order by the United States District Court 
     for the District of New Mexico voiding the final decree and 
     Settlement Agreement for the Aamodt Case pursuant to section 
     10.3 of the Settlement Agreement.
       (f) Limitation.--The Secretary shall use the water supply 
     secured under subsection (a) only for the purposes described 
     in the Settlement Agreement.
       (g) Fulfillment of Water Supply Acquisition Obligations.--
     Compliance with subsections (a) through (f) shall satisfy any 
     and all obligations of the Secretary to acquire or secure a 
     water supply for the Pueblos pursuant to the Settlement 
     Agreement.
       (h) Rights of Pueblos in Settlement Agreement Unaffected.--
     Notwithstanding the provisions of subsections (a) through 
     (g), the Pueblos, the County or the Regional Water Authority 
     may acquire any additional water rights to ensure all parties 
     to the Settlement Agreement receive the full allocation of 
     water provided by the Settlement Agreement and nothing in 
     this Act amends or modifies the quantities of water allocated 
     to the Pueblos thereunder.

     SEC. 104. DELIVERY AND ALLOCATION OF REGIONAL WATER SYSTEM 
                   CAPACITY AND WATER.

       (a) Allocation of Regional Water System Capacity.--
       (1) In general.--The Regional Water System shall have the 
     capacity to divert from the Rio Grande a quantity of water 
     sufficient to provide--
       (A) up to 4,000 acre-feet of consumptive use of water; and
       (B) the requisite peaking capacity described in--
       (i) the Engineering Report; and
       (ii) the final project design.
       (2) Allocation to the pueblos and county water utility.--Of 
     the capacity described in paragraph (1)--
       (A) there shall be allocated to the Pueblos--
       (i) sufficient capacity for the conveyance of 2,500 acre-
     feet consumptive use; and
       (ii) the requisite peaking capacity for the quantity of 
     water described in clause (i); and
       (B) there shall be allocated to the County Water Utility--
       (i) sufficient capacity for the conveyance of up to 1,500 
     acre-feet consumptive use; and
       (ii) the requisite peaking capacity for the quantity of 
     water described in clause (i).
       (3) Applicable law.--Water shall be allocated to the 
     Pueblos and the County Water Utility under this subsection in 
     accordance with--
       (A) this title;
       (B) the Settlement Agreement; and
       (C) the Operating Agreement.
       (b) Delivery of Regional Water System Water.--The Authority 
     shall deliver water from the Regional Water System--
       (1) to the Pueblos water in a quantity sufficient to allow 
     full consumptive use of up to 2,500 acre-feet per year of 
     water rights by the Pueblos in accordance with--
       (A) the Settlement Agreement;
       (B) the Operating Agreement; and
       (C) this title; and
       (2) to the County water in a quantity sufficient to allow 
     full consumptive use of up to 1,500 acre-feet per year of 
     water rights by the County Water Utility in accordance with--
       (A) the Settlement Agreement;
       (B) the Operating Agreement; and
       (C) this title.
       (c) Additional Use of Allocation Quantity and Unused 
     Capacity.--The Regional Water System may be used to--
       (1) provide for use of return flow credits to allow for 
     full consumptive use of the water allocated in the Settlement 
     Agreement to each of the Pueblos and to the County; and
       (2) convey water allocated to one of the Pueblos or the 
     County Water Utility for the benefit of another Pueblo or the 
     County Water Utility or allow use of unused capacity by each 
     other through the Regional Water System in accordance with an 
     intergovernmental agreement between the Pueblos, or between a 
     Pueblo and County Water Utility, as applicable, if--
       (A) such intergovernmental agreements are consistent with 
     the Operating Agreement, the Settlement Agreement, and this 
     Act;
       (B) capacity is available without reducing water delivery 
     to any Pueblo or the County Water Utility in accordance with 
     the Settlement Agreement, unless the County Water Utility or 
     Pueblo contracts for a reduction in water delivery or 
     Regional Water System capacity;
       (C) the Pueblo or County Water Utility contracting for use 
     of the unused capacity or water has the right to use the 
     water under applicable law; and
       (D) any agreement for the use of unused capacity or water 
     provides for payment of the operation, maintenance, and 
     replacement costs associated with the use of capacity or 
     water.

     SEC. 105. AAMODT SETTLEMENT PUEBLOS' FUND.

       (a) Establishment of the Aamodt Settlement Pueblos' Fund.--
     There is established in the Treasury of the United States a 
     fund, to be known as the ``Aamodt Settlement Pueblos' Fund,'' 
     consisting of--
       (1) such amounts as are made available to the Fund under 
     section 107(c) or other authorized sources; and
       (2) any interest earned from investment of amounts in the 
     Fund under subsection (b).
       (b) Management of the Fund.--The Secretary shall manage the 
     Fund, invest amounts in the Fund, and make amounts available 
     from the Fund for distribution to the Pueblos in accordance 
     with--
       (1) the American Indian Trust Fund Management Reform Act of 
     1994 (25 U.S.C. 4001 et seq.); and
       (2) this Act.
       (c) Investment of the Fund.--On the date set forth in 
     section 203(a)(1), the Secretary shall invest amounts in the 
     Fund in accordance with--
       (1) the Act of April 1, 1880 (25 U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (25 
     U.S.C. 162a); and
       (3) the American Indian Trust Fund Management Reform Act of 
     1994 (25 U.S.C. 4001 et seq.).
       (d) Tribal Management Plan.--
       (1) In general.--A Pueblo may withdraw all or part of the 
     Pueblo's portion of the Fund on approval by the Secretary of 
     a tribal management plan as described in the American Indian 
     Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et 
     seq.).
       (2) Requirements.--In addition to the requirements under 
     the American Indian Trust Fund Management Reform Act of 1994 
     (25 U.S.C. 4001 et seq.), the tribal management plan shall 
     require that a Pueblo spend any amounts withdrawn from the 
     Fund in accordance with the purposes described in section 
     107(c).
       (3) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the provisions of any tribal 
     management plan to ensure that any amounts withdrawn from the 
     Fund under an approved tribal management plan are used in 
     accordance with this title.
       (4) Liability.--If a Pueblo or the Pueblos exercise the 
     right to withdraw amounts from the Fund, neither the 
     Secretary nor the Secretary of the Treasury shall retain any 
     liability for the expenditure or investment of the amounts 
     withdrawn.
       (5) Expenditure plan.--
       (A) In general.--The Pueblos shall submit to the Secretary 
     for approval an expenditure plan for any portion of the 
     amounts in the Fund that the Pueblos do not withdraw under 
     this subsection.
       (B) Description.--The expenditure plan shall describe the 
     manner in which, and the purposes for which, amounts 
     remaining in the Fund will be used.
       (C) Approval.--On receipt of an expenditure plan under 
     subparagraph (A), the Secretary shall approve the plan if the 
     Secretary determines that the plan is reasonable and 
     consistent with this Act, the Settlement Agreement, and the 
     Cost-Sharing and System Integration Agreement.
       (D) Annual report.--The Pueblos shall submit to the 
     Secretary an annual report that describes all expenditures 
     from the Fund during the year covered by the report.
       (6) No per capita payments.--No part of the principal of 
     the Fund, or the interest or income accruing on the principal 
     shall be distributed to any member of a Pueblo on a per 
     capita basis.
       (7) Availability of amounts from the fund.--
       (A) Approval of settlement agreement.--Amounts made 
     available under subparagraphs (A) and (C) of section 
     107(c)(1) or from other authorized sources shall be available 
     for expenditure or withdrawal only after the date on which 
     the United States District Court for the District of New 
     Mexico issues an order approving the Settlement Agreement.
       (B) Completion of certain portions of regional water 
     system.--Amounts made available under section 107(c)(1)(B) or 
     from other authorized sources shall be available for 
     expenditure or withdrawal only after those portions of the 
     Regional Water System described in section 1.5.24 of the 
     Settlement Agreement have been declared substantially 
     complete by the Secretary.
       (C) Failure to fulfill conditions precedent.--If the 
     conditions precedent in section 203 have not been fulfilled 
     by September 15, 2017, the United States shall be entitled to 
     set off any funds expended or withdrawn from the amounts 
     appropriated pursuant to section 107(c), together with any 
     interest accrued, against any claims asserted by the Pueblos 
     against the United States relating to the water rights in the 
     Pojoaque Basin.

     SEC. 106. ENVIRONMENTAL COMPLIANCE.

       (a) In General.--In carrying out this title, the Secretary 
     shall comply with each law of the Federal Government relating 
     to the protection of the environment, including--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and

[[Page S5721]]

       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).
       (b) National Environmental Policy Act.--Nothing in this Act 
     affects the outcome of any analysis conducted by the 
     Secretary or any other Federal official under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

     SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

       (a) Regional Water System.--
       (1) In general.--Subject to paragraph (4), there is 
     authorized to be appropriated to the Secretary for the 
     planning, design, and construction of the Regional Water 
     System and the conduct of environmental compliance activities 
     under section 106 a total of $106,400,000 between fiscal 
     years 2010 and 2022.
       (2) Priority of funding.--Of the amounts authorized under 
     paragraph (1), the Secretary shall give priority to funding--
       (A) the construction of the San Ildefonso portion of the 
     Regional Water System, consisting of--
       (i) the surface water diversion, treatment, and 
     transmission facilities at San Ildefonso Pueblo; and
       (ii) the San Ildefonso Pueblo portion of the Pueblo Water 
     Facilities; and
       (B) that part of the Regional Water System providing 475 
     acre-feet to Pojoaque Pueblo pursuant to section 2.2 of the 
     Settlement Agreement.
       (3) Adjustment.--The amount authorized under paragraph (1) 
     shall be adjusted annually to account for increases in 
     construction costs since October 1, 2006, as determined using 
     applicable engineering cost indices.
       (4) Limitations.--
       (A) In general.--No amounts shall be made available under 
     paragraph (1) for the construction of the Regional Water 
     System until the date on which the United States District 
     Court for the District of New Mexico issues an order 
     approving the Settlement Agreement.
       (B) Record of decision.--No amounts made available under 
     paragraph (1) shall be expended unless the record of decision 
     issued by the Secretary after completion of an environmental 
     impact statement provides for a preferred alternative that is 
     in substantial compliance with the proposed Regional Water 
     System, as defined in the Engineering Report.
       (b) Acquisition of Water Rights.--There is authorized to be 
     appropriated to the Secretary funds for the acquisition of 
     the water rights under section 103(a)(1)(B)--
       (1) in the amount of $5,400,000.00 if such acquisition is 
     completed by December 31, 2010; and
       (2) the amount authorized under paragraph (b)(1) shall be 
     adjusted according to the CPI Urban Index commencing January 
     1, 2011.
       (c) Aamodt Settlement Pueblos' Fund.--
       (1) In general.--There is authorized to be appropriated to 
     the Fund the following amounts for the period of fiscal years 
     2010 through 2022:
       (A) $15,000,000, which shall be allocated to the Pueblos, 
     in accordance with section 2.7.1 of the Settlement Agreement, 
     for the rehabilitation, improvement, operation, maintenance, 
     and replacement of the agricultural delivery facilities, 
     waste water systems, and other water-related infrastructure 
     of the applicable Pueblo. The amount authorized herein shall 
     be adjusted according to the CPI Urban Index commencing 
     October 1, 2006.
       (B) $37,500,000, which shall be allocated to an account, to 
     be established not later than January 1, 2016, to assist the 
     Pueblos in paying the Pueblos' share of the cost of 
     operating, maintaining, and replacing the Pueblo Water 
     Facilities and the Regional Water System.
       (C) $5,000,000 and any interest thereon, which shall be 
     allocated to the Pueblo of Nambe for the acquisition of the 
     Nambe reserved water rights in accordance with section 
     103(a)(1)(A). The amount authorized herein shall be adjusted 
     according to the CPI Urban Index commencing January 1, 2011. 
     The funds provided under this section may be used by the 
     Pueblo of Nambe only for the acquisition of land, other real 
     property interests, or economic development.
       (2) Operation, maintenance, and replacement costs.--
       (A) In general.--Prior to conveyance of the Regional Water 
     System pursuant to section 101, the Secretary shall pay any 
     operation, maintenance or replacement costs associated with 
     the Pueblo Water Facilities or the Regional Water System up 
     to an amount that does not exceed $5,000,000, which is 
     authorized to be appropriated to the Secretary.
       (B) Obligation of the federal government after 
     completion.--Except as provided in section 103(a)(4)(B), 
     after construction of the Regional Water System is completed 
     and the amounts required to be deposited in the account have 
     been deposited under this section the Federal Government 
     shall have no obligation to pay for the operation, 
     maintenance, and replacement costs of the Regional Water 
     System.

        TITLE II--POJOAQUE BASIN INDIAN WATER RIGHTS SETTLEMENT

     SEC. 201. SETTLEMENT AGREEMENT AND CONTRACT APPROVAL.

       (a) Approval.--To the extent the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement do not 
     conflict with this Act, the Settlement Agreement and the 
     Cost-Sharing and System Integration Agreement (including any 
     amendments to the Settlement Agreement and the Cost-Sharing 
     and System Integration Agreement that are executed to make 
     the Settlement Agreement or the Cost-Sharing and System 
     Integration Agreement consistent with this Act) are 
     authorized, ratified, and confirmed.
       (b) Execution.--To the extent the Settlement Agreement and 
     the Cost-Sharing and System Integration Agreement do not 
     conflict with this Act, the Secretary shall execute the 
     Settlement Agreement and the Cost-Sharing and System 
     Integration Agreement (including any amendments that are 
     necessary to make the Settlement Agreement or the Cost-
     Sharing and System Integration Agreement consistent with this 
     Act).
       (c) Authorities of the Pueblos.--
       (1) In general.--Each of the Pueblos may enter into 
     contracts to lease or exchange water rights or to forbear 
     undertaking new or expanded water uses for water rights 
     recognized in section 2.1 of the Settlement Agreement for use 
     within the Pojoaque Basin in accordance with the other 
     limitations of section 2.1.5 of the Settlement Agreement 
     provided that section 2.1.5 is amended accordingly.
       (2) Execution.--The Secretary shall not execute the 
     Settlement Agreement until such amendment is accomplished 
     under paragraph (1).
       (3) Approval by secretary.--Consistent with the Settlement 
     Agreement as amended under paragraph (1), the Secretary shall 
     approve or disapprove a lease entered into under paragraph 
     (1).
       (4) Prohibition on permanent alienation.--No lease or 
     contract under paragraph (1) shall be for a term exceeding 99 
     years, nor shall any such lease or contract provide for 
     permanent alienation of any portion of the water rights made 
     available to the Pueblos under the Settlement Agreement.
       (5) Applicable law.--Section 2116 of the Revised Statutes 
     (25 U.S.C. 177) shall not apply to any lease or contract 
     entered into under paragraph (1).
       (6) Leasing or marketing of water supply.--The water supply 
     provided on behalf of the Pueblos pursuant to section 
     103(a)(1) may only be leased or marketed by any of the 
     Pueblos pursuant to the intergovernmental agreements 
     described in section 104(c)(2).
       (d) Amendments to Contracts.--The Secretary shall amend the 
     contracts relating to the Nambe Falls Dam and Reservoir that 
     are necessary to use water supplied from the Nambe Falls Dam 
     and Reservoir in accordance with the Settlement Agreement.

     SEC. 202. ENVIRONMENTAL COMPLIANCE.

       (a) Effect of Execution of Settlement Agreement.--The 
     execution of the Settlement Agreement under section 201(b) 
     shall not constitute a major Federal action under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       (b) Compliance With Environmental Laws.--In carrying out 
     this Act, the Secretary shall comply with each law of the 
     Federal Government relating to the protection of the 
     environment, including--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).

     SEC. 203. CONDITIONS PRECEDENT AND ENFORCEMENT DATE.

       (a) Conditions Precedent.--
       (1) In general.--Upon the fulfillment of the conditions 
     precedent described in paragraph (2), the Secretary shall 
     publish in the Federal Register by September 15, 2017 a 
     statement of finding that the conditions have been fulfilled.
       (2) Requirements.--The conditions precedent referred to in 
     paragraph (1) are the conditions that--
       (A) to the extent that the Settlement Agreement conflicts 
     with this title, the Settlement Agreement has been revised to 
     conform with this title;
       (B) the Settlement Agreement, so revised, including waivers 
     and releases pursuant to section 204, has been executed by 
     the appropriate parties and the Secretary;
       (C) Congress has fully appropriated, or the Secretary has 
     provided from other authorized sources, all funds authorized 
     by section 107, with the exception of subsection (a)(1) of 
     that section, by December 15, 2016;
       (D) the State has enacted any necessary legislation and 
     provided any funding that may be required under the 
     Settlement Agreement;
       (E) a partial final decree that sets forth the water rights 
     and other rights to water to which the Pueblos are entitled 
     under the Settlement Agreement and this title and that 
     substantially conforms to the Settlement Agreement has been 
     approved by the United States District Court for the District 
     of New Mexico; and
       (F) a final decree that sets forth the water rights for all 
     parties to the Aamodt Case and that substantially conforms to 
     the Settlement Agreement has been approved by the United 
     States District Court for the District of New Mexico by June 
     15, 2017.
       (b) Expiration Date.--If all the conditions precedent 
     described in subsection (a)(2) have not been fulfilled by 
     September 15, 2017--
       (1) the Settlement Agreement and this Act including waivers 
     described in those documents shall no longer be effective; 
     and
       (2) any funds that have been appropriated under this Act 
     but not expended shall immediately revert to the general fund 
     of the United States Treasury.
       (c) Enforcement Date.--The Settlement Agreement shall 
     become enforceable as of the date that the United States 
     District Court for the District of New Mexico enters a 
     partial final decree pursuant to subsection (a)(2)(E) and an 
     Interim Administrative

[[Page S5722]]

     Order consistent with the Settlement Agreement.
       (d) Effectiveness of Waivers.--The waivers and releases 
     executed pursuant to section 204 shall become effective as of 
     the date that the Secretary publishes the notice required by 
     subsection (a)(1).
       (e) Requirements for Determination of Substantial 
     Completion of the Regional Water System.--
       (1) Criteria for substantial completion of regional water 
     system.--Subject to the provisions in section 101(d) 
     concerning the extent, size, and capacity of the County 
     Distribution System, the Regional Water System shall be 
     determined to be substantially completed if the 
     infrastructure has been constructed capable of--
       (A) diverting, treating, transmitting, and distributing a 
     supply of 2,500 acre-feet of water to the Pueblos; and
       (B) diverting, treating, and transmitting the quantity of 
     water specified in the Engineering Report to the County 
     Distribution System.
       (2) Consultation.--On or after June 30, 2021, at the 
     request of 1 or more of the Pueblos, the Secretary shall 
     consult with the Pueblos and confer with the County and the 
     State on whether the criteria in paragraph (1) for 
     substantial completion of the Regional Water System have been 
     met or will be met by June 30, 2024.
       (3) Right to void final decree.--If the substantial 
     completion criteria have not been met by June 15, 2021, after 
     the consultation required by paragraph (2), the Pueblos or 
     the United States as trustee for the Pueblos have until 
     midnight June 30, 2024 to ask the Decree Court to void the 
     Final Decree pursuant to section 10.3 of the Settlement 
     Agreement.
       (f) Voiding of Waivers.--If the Court determines the Final 
     Decree is voided pursuant to Section 10.3 of the Settlement 
     Agreement, the Settlement Agreement shall no longer be 
     effective, the waivers and releases executed pursuant to 
     section 204 shall no longer be effective, and any unexpended 
     Federal funds, together with any income earned thereon, and 
     title to any property acquired or constructed with expended 
     Federal funds, shall be returned to the Federal Government 
     unless otherwise agreed to by the Pueblos and the United 
     States in writing and approved by Congress.

     SEC. 204. WAIVERS AND RELEASES.

       (a) Claims by the Pueblos and the United States.--In return 
     for recognition of the Pueblos' water rights and other 
     benefits, including waivers and releases by non-Pueblo 
     parties, as set forth in the Settlement Agreement and this 
     Act, the Pueblos, on behalf of themselves and their members, 
     and the United States acting in its capacity as trustee for 
     the Pueblos are authorized to execute a waiver and release 
     of--
       (1) all claims for water rights in the Pojoaque Basin that 
     the Pueblos, or the United States acting in its capacity as 
     trustee for the Pueblos, asserted, or could have asserted, in 
     any proceeding, including the Aamodt Case, up to and 
     including the waiver effectiveness date identified in section 
     203(d), except to the extent that such rights are recognized 
     in the Settlement Agreement or this Act;
       (2) all claims for water rights for lands in the Pojoaque 
     Basin and for rights to use water in the Pojoaque Basin that 
     the Pueblos, or the United States acting in its capacity as 
     trustee for the Pueblos, might be able to otherwise assert in 
     any proceeding not initiated on or before the date of 
     enactment of this title, except to the extent that such 
     rights are recognized in the Settlement Agreement or this 
     Act;
       (3) all claims for damages, losses or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking) for land within the Pojoaque Basin that accrued at 
     any time up to and including the waiver effectiveness date 
     identified in section 203(d);
       (4) their defenses in the Aamodt Case to the claims 
     previously asserted therein by other parties to the 
     Settlement Agreement;
       (5) all pending and future inter se challenges to the 
     quantification and priority of water rights of non-Pueblo 
     wells in the Pojoaque Basin, except as provided by section 
     2.8 of the Settlement Agreement;
       (6) all pending and future inter se challenges against 
     other parties to the Settlement Agreement;
       (7) all claims for damages, losses, or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) attributable to City of Santa Fe pumping 
     of groundwater that has effects on the ground and surface 
     water supplies of the Pojoaque Basin, provided that this 
     waiver shall not be effective by the Pueblo of Tesuque unless 
     there is a water resources agreement executed between the 
     Pueblo of Tesuque and the City of Santa Fe;
       (8) all claims for damages, losses, or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to land resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) attributable to County of Santa Fe 
     pumping of groundwater that has effects on the ground and 
     surface water supplies of the Pojoaque Basin; and
       (9) all claims for damages, losses, or injuries, or for 
     injunctive or other relief, because of the condition of, or 
     changes in, the concentration of naturally occurring 
     constituents of ground and surface water in the Pojoaque 
     Basin arising out of the diversion of water pursuant to water 
     rights recognized by the final decree.
       (b) Claims by the Pueblos Against the United States.--The 
     Pueblos, on behalf of themselves and their members, are 
     authorized to execute a waiver and release of--
       (1) all claims against the United States, its agencies, or 
     employees, relating to claims for water rights in or water of 
     the Pojoaque Basin or for rights to use water in the Pojoaque 
     Basin that the United States acting in its capacity as 
     trustee for the Pueblos asserted, or could have asserted, in 
     any proceeding, including the Aamodt Case;
       (2) all claims against the United States, its agencies, or 
     employees relating to damages, losses, or injuries to water, 
     water rights, land, or natural resources due to loss of water 
     or water rights (including damages, losses or injuries to 
     hunting, fishing, gathering or cultural rights due to loss of 
     water or water rights; claims relating to interference with, 
     diversion or taking of water or water rights; or claims 
     relating to failure to protect, acquire, replace, or develop 
     water, water rights or water infrastructure) within the 
     Pojoaque Basin that first accrued at any time up to and 
     including the waiver effectiveness date identified in section 
     203(d);
       (3) all claims against the United States, its agencies, or 
     employees for an accounting of funds appropriated by Acts, 
     including the Act of December 22, 1927 (45 Stat. 2), the Act 
     of March 4, 1929 (45 Stat. 1562), the Act of March 26, 1930 
     (46 Stat. 90), the Act of February 14, 1931 (46 Stat. 1115), 
     the Act of March 4, 1931 (46 Stat. 1552), the Act of July 1, 
     1932 (47 Stat. 525), the Act of June 22, 1936 (49 Stat. 
     1757), the Act of August 9, 1937 (50 Stat. 564), and the Act 
     of May 9, 1938 (52 Stat. 291), as authorized by the Pueblo 
     Lands Act of June 7, 1924 (43 Stat. 636) and the Pueblo Lands 
     Act of May 31, 1933 (48 Stat. 108) and for breach of Trust 
     relating to funds for water replacement appropriated by said 
     Acts that first accrued before the date of enactment of this 
     Act;
       (4) all claims against the United States, its agencies, or 
     employees relating to the pending litigation of claims 
     relating to the Pueblos' water rights in the Aamodt Case; and
       (5) all claims against the United States, its agencies, or 
     employees relating to the negotiation, Execution or the 
     adoption of the Settlement Agreement, exhibits thereto, the 
     Partial Final Decree, the Final Decree, or this Act.
       (c) Reservation of Rights and Retention of Claims.--
     Notwithstanding the waivers and releases authorized in this 
     Act, the Pueblos on behalf of themselves and their members 
     and the United States acting in its capacity as trustee for 
     the Pueblos retain.--
       (1) all claims for enforcement of the Settlement Agreement, 
     the Cost-Sharing and System Integration Agreement, the Final 
     Decree, including the Partial Final Decree, the San Juan-
     Chama Project contract between the Pueblos and the United 
     States or this Act;
       (2) all rights to use and protect water rights acquired 
     after the date of enactment of this Act;
       (3) all rights to use and protect water rights acquired 
     pursuant to state law to the extent not inconsistent with the 
     Partial Final Decree, Final Decree, and the Settlement 
     Agreement;
       (4) all claims against persons other than Parties to the 
     Settlement Agreement for damages, losses or injuries to water 
     rights or claims of interference with, diversion or taking of 
     water (including claims for injury to lands resulting from 
     such damages, losses, injuries, interference with, diversion, 
     or taking of water) within the Pojoaque Basin arising out of 
     activities occurring outside the Pojoaque Basin;
       (5) all claims relating to activities affecting the quality 
     of water including any claims the Pueblos may have under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) (including 
     claims for damages to natural resources), the Safe Drinking 
     Water Act (42 U.S.C. 300f et seq.), the Federal Water 
     Pollution Control Act (33 U.S.C. 1251 et seq.), and the 
     regulations implementing those laws;
       (6) all claims against the United States relating to 
     damages, losses, or injuries to land or natural resources not 
     due to loss of water or water rights (including hunting, 
     fishing, gathering or cultural rights);
       (7) all claims for water rights from water sources outside 
     the Pojoaque Basin for land outside the Pojoaque Basin owned 
     by a Pueblo or held by the United States for the benefit of 
     any of the Pueblos; and
       (8) all rights, remedies, privileges, immunities, powers 
     and claims not specifically waived and released pursuant to 
     this Act or the Settlement Agreement.
       (d) Effect of Section.--Nothing in the Settlement Agreement 
     or this Act--
       (1) affects the ability of the United States acting in its 
     sovereign capacity to take actions authorized by law, 
     including any laws relating to health, safety, or the 
     environment, including the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.), the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.), and the regulations implementing those laws;

[[Page S5723]]

       (2) affects the ability of the United States to take 
     actions acting in its capacity as trustee for any other 
     Indian tribe or allottee; or
       (3) confers jurisdiction on any State court to--
       (A) interpret Federal law regarding health, safety, or the 
     environment or determine the duties of the United States or 
     other parties pursuant to such Federal law; or
       (B) conduct judicial review of Federal agency action;
       (e) Tolling of Claims.--
       (1) In general.--Each applicable period of limitation and 
     time-based equitable defense relating to a claim described in 
     this section shall be tolled for the period beginning on the 
     date of enactment of this Act and ending on June 30, 2021.
       (2) Effect of subparagraph.--Nothing in this subsection 
     revives any claim or tolls any period of limitation or time-
     based equitable defense that expired before the date of 
     enactment of this Act.
       (3) Limitation.--Nothing in this section precludes the 
     tolling of any period of limitations or any time-based 
     equitable defense under any other applicable law.

     SEC. 205. EFFECT.

       Nothing in this Act or the Settlement Agreement affects the 
     land and water rights, claims, or entitlements to water of 
     any Indian tribe, pueblo, or community other than the 
     Pueblos.

  Mr. UDALL of New Mexico. Mr. President, today I join Senator Bingaman 
in introducing a bill to complete the Aamodt water settlement in 
northern New Mexico. Introduction of this bill represents a major 
milestone in the resolution of water rights claims for four tribes 
along the Rio Grande in northern New Mexico. Decades of work and 
negotiation have gone into the settlement, and I am pleased that the 
tribes, city, county, and community groups involved were able to come 
to an agreement that is mutually beneficial to all water users in the 
Pojoaque valley.
  The Aamodt settlement resolves the water claims of the Pueblos of 
Nambe, Pojoaque, San Ildefonso, and Tesuque, and addresses the needs of 
the surrounding communities in Santa Fe County for water and sanitation 
systems. The settlement is a result of long negotiations between the 
county and pueblos, and will result in the development of a mutually 
beneficial water infrastructure system. This system will ensure that 
the pueblos have access to clean running water into the future, and 
will allow the surrounding communities to work with the county and 
state to connect in to the water system. I applaud the efforts and 
success of these groups in coming to an agreement that both settles 
disputes and benefits each community.
  New Mexico is a State rich with tradition and culture, where water 
resources are scarce and precious. Diverse communities have depended on 
the on ground and surface water along the Rio Grande for centuries. As 
our population grows and communities expand to welcome newcomers, the 
impact on water resources in New Mexico is vivid. With such stress on 
this vital but limited commodity, conflict easily develops between 
communities and individuals, and in a State where the history is long 
and complex, disputes over water are uniquely complicated. But, ay. 
despite the potential for disagreement over water tenure, New Mexicans 
are united in a common respect for this resource. From the pueblos and 
tribes of New Mexico, to the historic acequias and growing communities, 
water is fundamental to both survival and cultural traditions, and is 
respected as such. The Aamodt settlement is an example of communities 
and tribes coming together to foster compromise rather than conflict. 
The parties involved have worked tirelessly to ensure that everyone has 
access to this precious and respected resource.
  It has been said that the wars of the future will be fought over 
access to water. In New Mexico, we are setting a different precedent--a 
precedent of respect and compromise, one that will help us move into 
the future with well-established partnerships and a commitment to 
conserve and manage this vital resource to the benefit of all. I am 
honored to join Senator Bingaman today in introducing this legislation 
that will bring the Pueblos of Nambe, Pojoaque, San Ildefonso, and 
Tesuque and the surrounding communities one step closer to establishing 
a secure water future.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Graham, and Mr. Hatch):
  S. 1107. A bill to amend title 28, United States Code, to provide for 
a limited 6-month period for Federal judges to opt into the Judicial 
Survivor' Annuities System and begin contributing toward an annuity for 
their spouse and dependent children upon their death, and for other 
purposes; to the Committee on the Judiciary.
  Mr. DURBIN. Mr. President, today I am introducing a bill, together 
with my Republican colleague Senator Orrin Hatch, that will help the 
financial security of Federal judges and their families. It will do so 
without costing the Federal Government a penny.
  Our bill, the Judicial Survivors Protection Act of 2009, will create 
an open season for active and senior federal judges to enroll in the 
Judicial Survivors' Annuities System, JSAS, if they are not currently 
enrolled. JSAS provides an annuity for the surviving spouses and 
dependent children of a deceased federal judge. Depending on the 
judge's length of service, the annuity for a surviving spouse can be as 
high as 50 percent of the judge's average annual salary, and the 
annuity for surviving dependent children can be as high as 20 percent.
  In addition, our bill would provide an important health insurance 
benefit for the surviving family members of decease Federal judges. For 
a surviving spouse or dependent child to continue to receive health 
insurance coverage under the Federal Employees Health Benefit, FEHB, 
program after the judge's death, the judge must have been enrolled in 
JSAS. Otherwise, they can no longer participate in FEHB.
  Federal judges have only 6 months from the date of their appointment 
to sign up for JSAS and, for a variety of reasons, many do not do so. 
For example, many individuals take substantial pay cuts when they leave 
a law firm to become a Federal judge, and they are unable to afford 
JSAS contributions, which amount to a 2.2 percent of a judge's annual 
salary. Nearly 900 federal judges, representing about 40 percent of the 
federal judiciary, currently do not participate in JSAS. However, if 
given the opportunity, the Administrative Office of the U.S. Courts 
estimates between 200 and 300 judges would sign up.
  Take, for example, the case of Judge Michael Mihm, who is a federal 
judge in the Central District of Illinois, my home State. Judge Mihm 
wrote a letter and said:

       In 1982, when I came on the bench, the survivor's pension 
     (JSAS) was so bad that almost no incoming judge signed up for 
     it. Plus, the percentage of salary involved was very high. So 
     I didn't sign up for it then. In the early 90s I was a member 
     of the Judicial Branch Committee, and at that time the 
     Committee and the judiciary succeeded in getting a bill 
     passed that improved the benefits (established a 25% floor) 
     and the percentage of salary paid. There was an open season. 
     That would have been the time to join. However, at that time 
     I had four children attending private universities . . . I 
     simply couldn't afford to bring home a smaller paycheck. I 
     have for some time now been very interested in `buying in' to 
     the survivor's pension, that is, pay in everything I would 
     have paid in if I had joined during the open season, plus a 
     penalty amount for waiting until now to join.

  I also received a letter from U.S. District Court Judge Robert 
Gettleman in the Northern District of Illinois, who said: ``Especially 
given the circumstances of our current economic crisis, providing for 
my family in the event of a death is of urgent importance to me. I 
think I speak for many of those in my circumstance that I am happy to 
make a make-up payment and contribute a greater share of my income to 
participate in this program.''
  The bill that Senator Hatch and I are introducing would allow Judge 
Mihm, Judge Gettleman, and the hundreds of other nonparticipating 
federal judges around the country to pay a penalty and buy into the 
JSAS program. Such judges would be required to pay an enhanced 
contribution rate of 2.75 percent of their salary each year rather than 
the 2.2 percent rate they would pay if they had enrolled within 6 
months of taking office.
  As a result, the cost of our bill would be borne by these new 
enrollees and not by the Federal Government or by previously enrolled 
judges. The Congressional Budget Office has conducted an informal 
review of this bill and determined that the cost of this bill is 
insignificant. Therefore, the bill would require no Federal funds and 
have no

[[Page S5724]]

PAYGO implications. The higher ongoing contribution rates for new 
enrollees will offset the value of any potential future liabilities 
that would be incurred by the JSAS fund, which currently has assets of 
over $500 million.
  One of the highest priorities of the federal judiciary in recent 
years has been the pursuit of a pay raise. Federal judges have not 
received a pay raise from Congress since 1991, other than occasional 
cost-of living adjustments, and there is a concern that some of this 
Nation's best and brightest attorneys no longer seek Federal judgeships 
because of the financial sacrifice they and their families would have 
to make. The bill that Senator Hatch and I are introducing today would 
not raise the judicial pay of our federal judges, but it would at least 
provide a modest benefit that might make judicial service more tenable 
and more attractive. I hope Congress will take up and pass the Judicial 
Survivors Protection Act of 2009 as soon as possible.
  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. 1107

       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 ``Judicial Survivors 
     Protection Act of 2009''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) The term ``judicial official'' refers to incumbent 
     officials defined under section 376(a) of title 28, United 
     States Code.
       (2) The term ``Judicial Survivors' Annuities Fund'' means 
     the fund established under section 3 of the Judicial 
     Survivors' Annuities Reform Act (28 U.S.C. 376 note; Public 
     Law 94-554; 90 Stat. 2611).
       (3) The term ``Judicial Survivors' Annuities System'' means 
     the program established under section 376 of title 28, United 
     States Code.

     SEC. 3. PERSONS NOT CURRENTLY PARTICIPATING IN THE JUDICIAL 
                   SURVIVORS' ANNUITIES SYSTEM.

       (a) Election of Judicial Survivors' Annuities System 
     Coverage.--An eligible judicial official may elect to 
     participate in the Judicial Survivors' Annuities System 
     during the open enrollment period specified in subsection 
     (d).
       (b) Manner of Making Elections.--An election under this 
     section shall be made in writing, signed by the person making 
     the election, and received by the Director of the 
     Administrative Office of the United States Courts before the 
     end of the open enrollment period.
       (c) Effective Date for Elections.--Any such election shall 
     be effective as of the first day of the first calendar month 
     following the month in which the election is received by the 
     Director.
       (d) Open Enrollment Period Defined.--The open enrollment 
     period under this section is the 6-month period beginning 30 
     days after the date of enactment of this Act.

     SEC. 4. JUDICIAL OFFICERS' CONTRIBUTIONS FOR OPEN ENROLLMENT 
                   ELECTION.

       (a) Contribution Rate.--Every active judicial official who 
     files a written notification of his or her intention to 
     participate in the Judicial Survivors' Annuities System 
     during the open enrollment period shall be deemed thereby to 
     consent and agree to having deducted from his or her salary a 
     sum equal to 2.75 percent of that salary or a sum equal to 
     3.5 percent of his or her retirement salary, except that the 
     deduction from any retirement salary--
       (1) of a justice or judge of the United States retired from 
     regular active service under section 371(b) or 372(a) of 
     title 28, United States Code;
       (2) of a judge of the United States Court of Federal Claims 
     retired under section 178 of title 28, United States Code; or
       (3) of a judicial official on recall under section 155(b), 
     373(c)(4), 375, or 636(h) of title 28, United States Code,

     shall be an amount equal to 2.75 percent of retirement 
     salary.
       (b) Contributions To Be Credited to Judicial Survivors' 
     Annuities Fund.--Contributions made under subsection (a) 
     shall be credited to the Judicial Survivors' Annuities Fund.

     SEC. 5. DEPOSIT FOR PRIOR CREDITABLE SERVICE.

       (a) Lump Sum Deposit.--Any judicial official who files a 
     written notification of his or her intention to participate 
     in the Judicial Survivors' Annuities System during the open 
     enrollment period may make a deposit equaling 2.75 percent of 
     salary, plus 3 percent annual, compounded interest, for the 
     last 18 months of prior service, to receive the credit for 
     prior judicial service required for immediate coverage and 
     protection of the official's survivors. Any such deposit 
     shall be made on or before the closure of the open enrollment 
     period.
       (b) Deposits To Be Credited to Judicial Survivors' 
     Annuities Fund.--Deposits made under subsection (a) shall be 
     credited to the Judicial Survivors' Annuities Fund.

     SEC. 6. VOLUNTARY CONTRIBUTIONS TO ENLARGE SURVIVORS' 
                   ANNUITY.

       Section 376 of title 28, United States Code, is amended by 
     adding at the end the following:
       ``(y) For each year of Federal judicial service completed, 
     judicial officials who are enrolled in the Judicial 
     Survivors' Annuities System on the date of enactment of the 
     Judicial Survivors Protection Act of 2009 may purchase, in 3-
     month increments, up to an additional year of service credit, 
     under the terms set forth in this section. In the case of 
     judicial officials who elect to enroll in the Judicial 
     Survivors' Annuities System during the statutory open 
     enrollment period authorized under the Judicial Survivors 
     Protection Act of 2009, for each year of Federal judicial 
     service completed, such an official may purchase, in 3-month 
     increments, up to an additional year of service credit for 
     each year of Federal judicial service completed, under the 
     terms set forth in section 4(a) of that Act.''.

     SEC. 7. EFFECTIVE DATE.

       This Act, including the amendment made by section 6, shall 
     take effect on the date of enactment of this Act.

  Mr. HATCH. Mr. President, I am pleased to join my colleague from 
Illinois and fellow Judiciary Committee member, Senator Durbin, in 
introducing the Judicial Survivors' Protection Act of 2009. This 
legislation will provide more Federal judges with an opportunity 
financially to provide for their own families after their death. Under 
this legislation, the cost of this opportunity will be borne by the 
judges themselves, not by the taxpayers, and I hope all my colleagues 
will support it.
  Congress created the Judicial Survivors' Annuity System in 1956. It 
allow Federal judges to devote a portion of their salary toward an 
annuity for their spouses and dependent children upon the judges' 
death. Enrollment in JSAS is also necessary for a judge's family 
members to continue receiving health insurance coverage under the 
Federal Employees Health Benefits Program.
  The catch is that judges must enroll within 6 months of taking 
judicial office or 6 months of marriage while in office. Approximately 
40 percent of current Federal judges did not do so, some for financial 
reasons. Many judges who had been in private practice, for example, 
took a substantial pay cut to enter public service. The enrollment 
period for JSAS was the very time when they and their families were 
making that financial adjustment, when maximizing current income was 
the priority. This is just one of the scenarios which have led judges 
to decline enrollment in JSAS, and it will become more likely, more 
pronounced, as Congress refuses to give Federal judges a much needed 
pay raise.
  Congress may authorize an open-season period for sitting judges to 
enroll but has not done so since 1992, the year after Congress last 
gave Federal judges a real salary increase. The legislation we 
introduce today would provide for such a one-time, 6 month period for 
sitting Federal judges to enroll in JSAS. Doing so would not cost the 
taxpayers anything because these judges would commit a higher 
percentage of their salary than those who enroll during the ordinary 
period.
  Congress' refusal to provide appropriate judicial compensation limits 
judges' ability to provide for their families financial future. 
Providing this one-time opportunity for judges to enroll in JSAS, 
therefore, is almost the least we can do. It will also allow more 
judges to ensure that their family members will continue receiving 
health insurance coverage. And since it will not cost the taxpayers 
anything, I think it is a win-win which I trust will receive wide 
bipartisan support.
                                 ______
                                 
      By Mr. REID (for Mr. Rockefeller):
  S. 1110. A bill to amend title XVIII of the Social Security Act to 
create a sensible infrastructure for delivery system reform by renaming 
the Medicare Payment Advisory Commission, making the Commission an 
executive branch agency, and providing the Commission new resources and 
authority to implement Medicare payment policy; to the Committee on 
Finance.
  Mr. ROCKEFELLER. Mr. President, I rise today to introduce the 
Medicare Payment Advisory Commission MedPAC Reform Act, legislation to 
elevate MedPAC to an executive branch entity and give it the resources 
and authority to implement Medicare payment policies. It is a fact that 
the quality of U.S. health care is mediocre

[[Page S5725]]

and its costs are unsustainable. Nonetheless, a modern health care 
delivery system is within our reach and something that we can start to 
achieve this year. Payment reforms, particularly in Medicare, are the 
cornerstone for driving quality improvement and improving the 
efficiency of our health care system. However, Congress must adopt a 
mechanism to implement and maintain Medicare reimbursement policies 
that are based on the best evidence and driven by the right incentives. 
This is simply not the case today.
  Currently, Congress has the sole authority to change the cost curve 
for Medicare. Unfortunately, this process is riddled with political 
influence and is slowed by an inadequate structure to research, 
analyze, test, and implement successful delivery system reforms. Given 
the role of Medicare in determining market norms among all health care 
payers, both public and private, the federal government has an 
opportunity to realign our nation's health care system to drive quality 
improvement and greater efficiency.
  The federal government already has a well-respected, independent 
entity--the Medicare Payment Advisory Commission, MedPAC--that 
currently advises Congress on Medicare payment policies. MedPAC, 
established by the Balanced Budget Act of 1997 (P.L. 105-33), employs a 
number of mechanisms to inform Congress on issues affecting the 
Medicare program. Specifically, MedPAC analyzes provider reimbursement, 
beneficiary access to care, and quality of care; delivers this 
information to Congress through regular reports and recommendations; 
engages in public meetings to discuss policy issues and formulate its 
recommendations to the Congress; and seeks input on Medicare issues in 
non-public forums through frequent meetings with a wide variety of 
parties.
  Despite MedPAC's reputation for providing thoughtful, evidence-based 
recommendations to improve Medicare's payment policies, MedPAC has no 
power to implement its recommendations. That power rests solely with 
Congress. Unfortunately, Members of Congress face unyielding pressure 
from the health care industry to pick and choose which MedPAC 
recommendations they consider, despite the evidence. This routinely 
leads to the passage of laws that put the special interests of industry 
over the needs of patients.
  MedPAC has proven, through its objectivity and its open and 
deliberative process, that they have the appropriate expertise to 
change the cost curve for Medicare and strengthen it for the future. 
The Medicare Payment Advisory Commission Reform Act of 2009 helps to 
achieve this goal. Specifically, this legislation would restructure 
MedPAC as an independent executive branch entity, like the Federal 
Reserve Board. This would provide MedPAC the appropriate authority to 
implement its recommendations for Medicare provider reimbursement 
policies.
  In addition to extending the terms and requirements of the 
Commissioners to be full-time employees of the Commission, this 
legislation also establishes three new advisory councils to assist them 
in their decision-making--a Council of Health and Economic Advisors, a 
Consumer Advisory Council, and a Federal Health Advisory Council with 
representatives from the health care industry.
  Lastly, MedPAC's authority to analyze health services research is 
also enhanced in this legislation by providing them with additional 
resources and staff to bolster their current analytical role. Given the 
limitations of the current Medicare demonstration process, this 
legislation provides new authority and resources to MedPAC to design 
and evaluate new payment models through Medicare demonstrations.
  I strongly feel that establishing MedPAC as an independent executive 
branch agency--which can only happen through an act of Congress--is the 
type of bold step forward that can truly transform our delivery system. 
Congress has proven itself to be inefficient and inconsistent in making 
decisions about provider reimbursement under Medicare. If we want 
serious improvements in our health care delivery system, then Congress 
should leave the reimbursement rules to the independent health care 
experts. I urge my colleagues to join me in support of a policy that 
truly improves Medicare today and in the future.
  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. 1110

       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 ``Medicare Payment Advisory 
     Commission (MedPAC) Reform Act of 2009''.

     SEC. 2. RENAMING AND REFORMING THE MEDICARE PAYMENT ADVISORY 
                   COMMISSION.

       (a) Amendment to Title.--
       (1) In general.--Section 1805 of the Social Security Act 
     (42 U.S.C. 1395b-6) is amended--
       (A) in the heading, by striking ``medicare payment advisory 
     commission'' and inserting ``medicare payment and access 
     commission''; and
       (B) in subsection (a), by striking ``Medicare Payment 
     Advisory Commission'' and inserting ``Medicare Payment and 
     Access Commission (or `MedPAC')''.
       (2) References.--Any reference to the Medicare Payment 
     Advisory Commission shall be deemed a reference to the 
     Medicare Payment and Access Commission.
       (b) Establishment as Executive Agency.--Section 1805 of the 
     Social Security Act (42 U.S.C. 1395b-6) is amended--
       (1) in the heading, by striking ``advisory'';
       (2) in subsection (a)--
       (A) by striking ``Advisory''; and
       (B) by striking ``agency of Congress'' and inserting 
     ``independent establishment (as defined in section 104 of 
     title 5, United States Code)'';
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking ``Appointment.--The Commission'' and 
     inserting ``Appointment.--
       ``(A) In general.--The Commission'';
       (ii) in subparagraph (A), as inserted by clause (i)--

       (I) by striking ``17'' and inserting ``11'';
       (II) by inserting ``the Secretary and the Administrator of 
     the Centers for Medicare & Medicaid Services, who shall each 
     serve as non-voting members of the Commission, and'' after 
     ``composed of''; and
       (III) by striking ``Comptroller General'' and inserting 
     ``President, by and with the advice and consent of the 
     Senate''; and

       (iii) by adding at the end the following new subparagraphs:
       ``(B) Limitation on number of terms served.--An individual 
     may not be appointed as a member of the Commission for more 
     than 2 consecutive terms.
       ``(C) Members currently appointed.--
       ``(i) In general.--Any individual serving as a member of 
     the Commission as of the date of enactment of the Medicare 
     Payment Advisory Commission (MedPAC) Reform Act of 2009 may 
     continue to serve as a member until the earlier of--

       ``(I) the remainder of the term for which the member was 
     appointed; or
       ``(II) April 30, 2010.

       ``(ii) Clarification regarding vacancies.--Any vacancy in 
     the Commission on or after such date of enactment shall be 
     filled as provided in accordance with subparagraph (A).''; 
     and
       (B) in paragraph (2), by striking subparagraph (D) and 
     inserting the following new subparagraph:
       ``(D) Additional qualifications.--In addition to the 
     qualifications described in the succeeding provisions of this 
     paragraph, the President shall consider the political balance 
     of the membership of the Commission and the needs of 
     individuals entitled to (or enrolled for) benefits under part 
     A or enrolled under part B who are entitled to medical 
     assistance under a State plan under title XIX.''.
       (C) in paragraph (3)--
       (i) by amending subparagraph (A) to read as follows:
       ``(A) In general.--The terms of members of the Commission 
     shall be for 6 years except that, of the members first 
     appointed--
       ``(i) four shall be appointed for terms of 5 years;
       ``(ii) four shall be appointed for terms of 3 years; and
       ``(iii) three shall be appointed for terms of 1 year.''; 
     and
       (ii) in subparagraph (B), in the third sentence, by 
     striking ``A vacancy'' and inserting ``Except as provided in 
     paragraph (1)(C), a vacancy'';
       (D) by amending paragraph (4) to read as follows:
       ``(4) Compensation.--Membership in the Commission shall be 
     a full-time position. A member of the Commission shall be 
     entitled to compensation at the rate payable for level IV of 
     the Executive Schedule under section 5316 of title 5, United 
     States Code.''.
       (E) by amending paragraph (5) to read as follows:
       ``(5) Chairman; vice chairman.--The President shall 
     designate a member of the Commission, at the time of 
     appointment of the member by and with the advice and consent 
     of the Senate, as Chairman and a member of the Commission, at 
     the time of appointment of the member by and with the advice 
     and consent of the Senate, as Vice Chairman, except that in 
     the case where the Chairman or the Vice Chairman is not able 
     to be present

[[Page S5726]]

     (including in the case of vacancy), a majority of the 
     Commission may designate another member for the period of 
     such absence.'';
       (4) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``Subject to such review as the Comptroller 
     General deems necessary to assure the efficient 
     administration of the Commission, the Commission'' and 
     inserting ``The Commission'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out the provisions of this section. Sixty percent of 
     such appropriations shall be payable from the Federal 
     Hospital Insurance Trust Fund, and 40 percent of such 
     appropriation shall be payable from the Federal Supplementary 
     Medical Insurance Trust Fund.''; and
       (6) by adding at the end the following new subsection:
       ``(g) References.--Any reference to the Medicare Payment 
     Advisory Commission or MedPAC shall be deemed a reference to 
     the Medicare Payment and Access Commission.''.
       (c) Authority to Determine Payment Rates and Routine 
     Evaluation of Payment Rates Under the Medicare Program.--
       (1) In general.--Section 1805(b) of the Social Security Act 
     (42 U.S.C. 1395b-6(b)) is amended--
       (A) in paragraph (1)(B), by inserting ``and determine 
     payment rates for items and services furnished under this 
     title in accordance with paragraph (9)'' before the semicolon 
     at the end; and
       (B) by adding at the end the following new paragraphs:
       ``(9) Authority to determine payment rates under this 
     title.--
       ``(A) Determination of payment rates.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, the Commission shall determine payment rates for items 
     and services furnished under this title. In determining such 
     payment rates, the Commission shall do so in a manner that is 
     consistent with the provisions of sections 1801 and 1802.
       ``(ii) Timeline for determinations with respect to payment 
     policies for physicians and hospitals.--The Commission shall 
     make a determination under this subparagraph with respect to 
     payment policies--

       ``(I) for physicians (as defined in section 1861(r)(1)), 
     not later than December 1 of each year (beginning with 2012); 
     and
       ``(II) for hospitals, not later than March 1 of each year 
     (beginning with 2013).

       ``(B) Implementation of payment rates.--
       ``(i) Authority of secretary.--Notwithstanding any other 
     provision of law, the Secretary shall promulgate regulations 
     to implement any payment rates determined by the Commission 
     under subparagraph (A).
       ``(ii) Payment rates and regulations currently in effect.--
     Any payment rate for items and services furnished under this 
     title as of the date of enactment of the Medicare Payment 
     Advisory Commission (MedPAC) Reform Act of 2009 or regulation 
     promulgated by the Secretary relating to such payments prior 
     to such date of enactment shall remain in effect until the 
     Secretary promulgates regulations under clause (ii) to 
     implement a payment rate determined by the Commission with 
     respect to the item or service.
       ``(C) Limitation on judicial review.--Any determination of 
     the Commission relating to payment rates for items and 
     services furnished under this title shall be a final agency 
     action of the Commission and shall not be subject to judicial 
     review.
       ``(D) Annual report.--Not later than March 15 of each year 
     (beginning with 2012), the Commission shall submit to 
     Congress a report on any payment rates determined under 
     subparagraph (A) during the preceding year, including the 
     performance of the Secretary in implementing such payment 
     rates by promulgating regulations under subparagraph (B).
       ``(10) Routine evaluation of payment rates.--The Commission 
     shall review the payment rate for each item and service 
     furnished under this title not less frequently than every 5 
     years in order to determine whether the Commission should 
     make a determination under paragraph (9) to update such 
     payment rate.''.
       (2) GAO study and annual report on determination and 
     implementation of payment rates.--
       (A) Study.--The Comptroller General of the United States 
     shall conduct a study on changes to payment policies under 
     the Medicare program under title XVIII of the Social Security 
     Act as a result of the amendments made by this subsection, 
     including an analysis of--
       (i) any determinations made by the Medicare Payment and 
     Access Commission under subparagraph (A) of section 
     1805(b)(9) of such Act, as added by paragraph (1), during the 
     preceding year;
       (ii) any regulations promulgated by the Secretary of Health 
     and Human Services under subparagraph (B) of such section 
     during the preceding year;
       (iii) the process for--

       (I) making such determinations (including the evidence to 
     support any such determination);
       (II) promulgating such regulations (including the capacity 
     of the Secretary of Health and Human Services to promulgate 
     such regulations); and

       (iv) the ability of the Centers for Medicare & Medicaid 
     Services to fulfill its responsibilities in carrying out such 
     regulations.
       (B) Report.--Not later than December 31 of each year 
     (beginning with 2012), the Comptroller General shall submit 
     to Congress a report containing the results of the study 
     conducted under subparagraph (A), together with 
     recommendations for such legislation and administrative 
     action as the Secretary determines appropriate.
       (d) Congressional Action.--Section 1805 of the Social 
     Security Act (42 U.S.C. 1395b-6), as amended by subsection 
     (b), is amended--
       (1) by redesignating subsections (f) and (g), respectively, 
     as subsections (g) and (h); and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Congressional Action.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, it shall only be in order in the Senate or the House of 
     Representatives to consider any measure that would overrule a 
     determination of the Commission with respect to payments for 
     items and services furnished under this title if \3/5\ of the 
     Members, duly chosen and sworn, of the Senate or the House of 
     Representatives agree to such consideration.
       ``(2) Rules of the senate and house of representatives.--
     This subsection is enacted by Congress--
       ``(A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and is deemed to 
     be part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a measure described in paragraph 
     (1), and it supersedes other rules only to the extent that it 
     is inconsistent with such rules; and
       ``(B) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.''.
       (e) Research, Information Access, and Demonstration 
     Projects.--Section 1805(e) of the Social Security Act (42 
     U.S.C. 1395b-6(e)) is amended by adding at the end the 
     following new paragraphs:
       ``(5) Authority to inform research priorities for data 
     collection.--The Commission may advise the Secretary (through 
     the Director of the Agency for Healthcare Research and 
     Quality and the Director of the National Institutes of 
     Health) on priorities for health services research, 
     particularly as such priorities pertain to necessary changes 
     and issues regarding payment reforms under this title.
       ``(6) Expanded authority to access federal data and 
     reports.--In addition to data obtained under paragraph (1), 
     the Commission shall have priority access to all raw data and 
     research conducted or funded by the Federal government, 
     including data and research produced by the Centers for 
     Medicare & Medicaid Services, the National Institutes of 
     Health, and the Agency for Healthcare Research and Quality.
       ``(7) Electronic access.--The National Director for Health 
     Information Technology, in coordination with the Secretary, 
     the Administrator of the Centers for Medicare & Medicaid 
     Services, and the Commission, shall establish a direct 
     electronic link for raw data, including claims data under 
     this title, to be accessed by the Commission for the purposes 
     of evaluating and determining recommendations under this 
     title, in accordance with applicable privacy laws and data 
     use agreements.
       ``(8) Access to biannual reports.--Not less frequently than 
     on a biannual basis, the National Institutes of Health and 
     the Agency for Healthcare Research and Quality shall submit 
     to the Commission a report containing information on any 
     research conducted by the National Institutes of Health and 
     the Agency for Healthcare Research and Quality, respectively, 
     which has relevance for the determinations and 
     recommendations being considered by the Commission. Such 
     information shall be provided to the Commission in electronic 
     form.
       ``(9) Revisions to process for conduct of demonstration 
     projects relating to payments under this title.--Effective 
     beginning January 1, 2011, the Commission shall have sole 
     authority to design and evaluate demonstration projects 
     relating to payments under this title which are authorized by 
     section 402 of the Social Security Amendments of 1967 or 
     under a waiver under section 1115. The Secretary shall 
     maintain all responsibility for implementing such 
     demonstration projects, including for implementing the 
     process through which providers are reimbursed for items and 
     services furnished under the demonstration projects. Nothing 
     in this paragraph shall affect the authority of the Secretary 
     with respect to demonstration projects under this title not 
     relating to such payments.''.
       (f) Additional Resources to Carry Out Duties.--
       (1) In general.--Section 1805(d) of the Social Security Act 
     (42 U.S.C. 1395b-6(d)) is amended--
       (A) in paragraph (1), by inserting ``(including an 
     attorney)'' after ``such other personnel''; and
       (B) in paragraph (5), by striking ``and'' at the end;
       (C) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following new paragraph:
       ``(7) establish a public affairs office.''.
       (2) Office of the ombudsman.--Section 1805(e) of the Social 
     Security Act (42 U.S.C.

[[Page S5727]]

     1395b-6(e)), as amended by subsection (e), is amended by 
     adding at the end the following new paragraph:
       ``(10) Office of the ombudsman.--
       ``(A) In general.--The Commission shall establish an office 
     of the ombudsman to handle complaints regarding the 
     implementation of regulations under subsection (a)(9)(B).
       ``(B) Duties.--The office of the ombudsman shall--
       ``(i) act as a liaison between the Commission and any 
     entity or individual affected by the implementation of such a 
     regulation; and
       ``(ii) ensure that the Commission has established 
     safeguards--

       ``(I) to encourage such entities and individuals to submit 
     complaints to the office of the ombudsman; and
       ``(II) to protect the confidentiality of any entity or 
     individual who submits such a complaint.''.

       (g) Use of Funding.--Section 1805(g) of the Social Security 
     Act (42 U.S.C. 1395b-6(g)), as amended by subsection (b) and 
     redesignated by subsection (d), is amended by adding at the 
     end the following new sentence: ``Out of amounts appropriated 
     under the preceding sentence, the Commission may use not more 
     than $500,000,000 each fiscal year to test new methods of 
     reimbursement under this title.''.
       (h) MACPAC Technical Amendments.--Section 1900(b) of the 
     Social Security Act (42 U.S.C. 1396) is amended--
       (1) in paragraph (1)(D), by striking ``June 1'' and 
     inserting ``June 15''; and
       (2) by adding at the end the following:
       ``(10) Consultation with medpac.--MACPAC shall regularly 
     consult with the Medicare Payment and Access Commission (in 
     this paragraph referred to as `MedPAC') established under 
     section 1805 in carrying out its duties under this 
     section.''.
       (i) Lobbying Cooling-Off Period for Members of the Medicare 
     Payment Advisory Commission.--Section 207(c) of title 18, 
     United States Code, is amended by inserting at the end the 
     following:
       ``(3) Members of the medicare payment advisory 
     commission.--
       ``(A) In general.--Paragraph (1) shall apply to a member of 
     the Medicare Payment Advisory Commission who was appointed to 
     such Commission as of the day before the date of enactment of 
     the Medicare Payment Advisory Commission (MedPAC) Reform Act 
     of 2009.
       ``(B) Agencies and congress.--For purposes of paragraph 
     (1), the agency in which the individual described in 
     subparagraph (A) served shall be considered to be the 
     Medicare Payment and Access Commission established under 
     section 1805 of the Social Security Act, the Department of 
     Health and Human Services, and the relevant committees of 
     jurisdiction of Congress.''.

     SEC. 3. ESTABLISHMENT OF COUNCIL OF HEALTH AND ECONOMIC 
                   ADVISERS, CONSUMER ADVISORY COUNCIL, AND 
                   FEDERAL HEALTH ADVISORY COUNCIL.

       Section 1805(b) of the Social Security Act (42 U.S.C. 
     1395b-6(b)), as amended by section 2(c), is amended by adding 
     at the end the following new paragraph:
       ``(11) Council of health and economic advisers, consumer 
     advisory council, and federal health advisory council.--
       ``(A) Council of health and economic advisers.--
       ``(i) In general.--The Commission shall establish a council 
     of health and economic advisers to advise the Commission on 
     its development, analyses, and implementation of payment 
     policies under this title.
       ``(ii) Membership.--

       ``(I) In general.--The council of health and economic 
     advisers shall be composed of acknowledged experts in health 
     care and economics selected by the Commission.
       ``(II) Initial inclusion of former members of medicare 
     payment advisory commission.--The members initially selected 
     for the council of health and economic advisers under 
     subclause (I) shall include those individuals who were 
     members of the Medicare Payment Advisory Commission as of the 
     day before the date of enactment of the Medicare Payment 
     Advisory Commission (MedPAC) Reform Act of 2009.

       ``(B) Consumer advisory council.--
       ``(i) In general.--There is established a consumer advisory 
     council to advise the Commission on the impact of payment 
     policies under this title on consumers.
       ``(ii) Membership.--

       ``(I) Number and appointment.--The consumer advisory 
     council shall be composed of 10 consumer representatives 
     appointed by the Comptroller General of the United States, 1 
     from among each of the 10 regions established by the 
     Secretary as of the date of enactment of the Medicare Payment 
     Advisory Commission (MedPAC) Reform Act of 2009.
       ``(II) Qualifications.--The membership of the council shall 
     represent the interests of consumers and particular 
     communities.

       ``(iii) Duties.--The consumer advisory council shall, 
     subject to the call of the Commission, meet not less 
     frequently than 2 times each year in the District of 
     Columbia.
       ``(iv) Open meetings.--Meetings of the consumer advisory 
     council shall be open to the public.
       ``(v) Election of officers.--Members of the consumer 
     advisory council shall elect their own officers.
       ``(C) Federal health advisory council.--
       ``(i) In general.--There is established a Federal health 
     advisory council to consult with and provide advice to the 
     Commission on all matters within the jurisdiction of the 
     Commission.
       ``(ii) Membership.--The Federal health advisory council 
     shall be composed of 10 representatives from the health care 
     industry appointed by the Comptroller General of the United 
     States, 1 from among each of the 10 regions established by 
     the Secretary as of the date of enactment of the Medicare 
     Payment Advisory Commission (MedPAC) Reform Act of 2009.
       ``(iii) Terms.--

       ``(I) In general.--The terms of members of the Federal 
     health advisory council shall be for 1 year.
       ``(II) Limitation on number of terms served.--An individual 
     may not be appointed as a member of the Federal health 
     advisory council for more than 3 terms.

       ``(iv) Duties.--The Federal health advisory council shall, 
     subject to the call of the Commission, meet not less 
     frequently than 2 times each year in the District of 
     Columbia.
       ``(v) Open meetings.--Meetings of the Federal health 
     advisory council shall be open to the public.
       ``(vi) Election of officers.--Members of the Federal health 
     advisory council shall elect their own officers.
       ``(D) Limitation on funding.--Out of amounts appropriated 
     under subsection (g), the Commission may use not more than 
     $300,000 each fiscal year to carry out this paragraph.''.
                                 ______
                                 
      By Mr. REID (for Mr. Rockefeller):
  S. 1111. A bill to require the Secretary of Health and Human Services 
to enter into agreements with States to resolve outstanding claims for 
reimbursement under the Medicare program relating to the Special 
Disability Workload project; to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, I rise today to introduce the Special 
Disability Workload Liability Resolution Act, legislation that will 
resolve Medicare's longstanding liability to state Medicaid programs 
for individuals who were covered by Medicaid when they should have been 
covered by Medicare.
  For the past several decades, hundreds of thousands of disabled 
people have had their health care paid for by Medicaid; however, their 
health care was actually the responsibility of Medicare. Therefore, 
states have been left financially responsible for individuals whose 
care should have been paid for entirely by the Federal Government. Both 
the Centers for Medicare and Medicaid Services, CMS, and the Social 
Security Administration, SSA, acknowledge Medicare's responsibility for 
these beneficiaries. The Social Security Administration is in the 
process of correcting the cash insurance payments that were due to 
disabled individuals. However, CMS has not acted to establish a means 
of satisfying Medicare's liability.
  This is unacceptable. Nearly every state is struggling to balance its 
budget in the midst of this terrible economic crisis, and it is 
estimated that the Medicare program owes the states an estimated $4 
billion. This figure continues to grow as the SSA corrects additional 
cases. When it is determined that a state owes the Federal Government 
money for Medicaid expenses, states have only 60 days to pay this debt. 
Yet, now that the situation is reversed, the Federal Government has not 
even established a timeline with which to pay its debt to the States.
  The legislation I am introducing today, the Special Disability 
Workload Liability Resolution Act, would provide $4 billion in Federal 
funding to settle this debt to the States. It requires the Social 
Security Administration and CMS to develop an accurate payment 
methodology to reimburse states within 6 months of the bill's 
enactment. Resolving this Federal debt would inject critical funds into 
State and local economies and help maintain state jobs.
  This bill is based on language successfully included in the Senate-
passed American Recovery and Reinvestment Act, but it was dropped in 
conference. It is my hope that my colleagues will once again 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. 1111

       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 ``Special Disability Workload 
     Liability Resolution Act of 2009''.

[[Page S5728]]

     SEC. 2. PAYMENT OF MEDICARE LIABILITY TO STATES AS A RESULT 
                   OF THE SPECIAL DISABILITY WORKLOAD PROJECT.

       (a) In General.--The Secretary, in consultation with the 
     Commissioner, shall work with each State to reach an 
     agreement, not later than 6 months after the date of 
     enactment of this Act, on the amount of a payment for the 
     State related to the Medicare program liability as a result 
     of the Special Disability Workload project, subject to the 
     requirements of subsection (c).
       (b) Payments.--
       (1) Deadline for making payments.--Not later than 30 days 
     after reaching an agreement with a State under subsection 
     (a), the Secretary shall pay the State, from the amounts 
     appropriated under paragraph (2), the payment agreed to for 
     the State.
       (2) Appropriation.--Out of any money in the Treasury not 
     otherwise appropriated, there is appropriated $4,000,000,000 
     for fiscal year 2010 for making payments to States under 
     paragraph (1).
       (3) Limitations.--In no case may the aggregate amount of 
     payments made by the Secretary to States under paragraph (1) 
     exceed $4,000,000,000.
       (c) Requirements.--The requirements of this subsection are 
     the following:
       (1) Federal data used to determine amount of payments.--The 
     amount of the payment under subsection (a) for each State is 
     determined on the basis of the most recent Federal data 
     available, including the use of proxies and reasonable 
     estimates as necessary, for determining expeditiously the 
     amount of the payment that shall be made to each State that 
     enters into an agreement under this section. The payment 
     methodology shall consider the following factors:
       (A) The number of SDW cases found to have been eligible for 
     benefits under the Medicare program and the month of the 
     initial Medicare program eligibility for such cases.
       (B) The applicable non-Federal share of expenditures made 
     by a State under the Medicaid program during the time period 
     for SDW cases.
       (C) Such other factors as the Secretary and the 
     Commissioner, in consultation with the States, determine 
     appropriate.
       (2) Conditions for payments.--A State shall not receive a 
     payment under this section unless the State--
       (A) waives the right to file a civil action (or to be a 
     party to any action) in any Federal or State court in which 
     the relief sought includes a payment from the United States 
     to the State related to the Medicare liability under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as 
     a result of the Special Disability Workload project; and
       (B) releases the United States from any further claims for 
     reimbursement of State expenditures as a result of the 
     Special Disability Workload project (other than 
     reimbursements being made under agreements in effect on the 
     date of enactment of this Act as a result of such project, 
     including payments made pursuant to agreements entered into 
     under section 1616 of the Social Security Act or section 
     211(1)(1)(A) of Public Law 93-66).
       (3) No individual state claims data required.--No State 
     shall be required to submit individual claims evidencing 
     payment under the Medicaid program as a condition for 
     receiving a payment under this section.
       (4) Ineligible states.--No State that is a party to a civil 
     action in any Federal or State court in which the relief 
     sought includes a payment from the United States to the State 
     related to the Medicare liability under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) as a result of 
     the Special Disability Workload project shall be eligible to 
     receive a payment under this section while such an action is 
     pending or if such an action is resolved in favor of the 
     State.
       (d) Definitions.--In this section:
       (1) Commissioner.--The term ``Commissioner'' means the 
     Commissioner of Social Security.
       (2) Medicaid program.--The term ``Medicaid program'' means 
     the program of medical assistance established under title XIX 
     of the Social Security Act (42 U.S.C. 1396a et seq.) and 
     includes medical assistance provided under any waiver of that 
     program approved under section 1115 or 1915 of such Act (42 
     U.S.C. 1315, 1396n) or otherwise.
       (3) Medicare program.--The term ``Medicare program'' means 
     the program established under title XVIII of the Social 
     Security Act (42 U.S.C. 1395 et seq.).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (5) Sdw case.--The term ``SDW case'' means a case in the 
     Special Disability Workload project involving an individual 
     determined by the Commissioner to have been eligible for 
     benefits under title II of the Social Security Act (42 U.S.C. 
     401 et seq.) for a period during which such benefits were not 
     provided to the individual and who was, during all or part of 
     such period, enrolled in a State Medicaid program.
       (6) Special disability workload project.--The term 
     ``Special Disability Workload project'' means the project 
     described in the 2008 Annual Report of the Board of Trustees 
     of the Federal Old-Age and Survivors Insurance and Federal 
     Disability Insurance Trust Funds, H.R. Doc. No. 110-104, 
     110th Cong. (2008).
       (7) State.--The term ``State'' means each of the 50 States 
     and the District of Columbia.
                                 ______
                                 
      By Mr. PRYOR (for himself, Ms. Snowe, Mr. Nelson, of Nebraska, 
        and Mr. Wicker):
  S. 1113. A bill to amend title 49, United States Code, to direct the 
Secretary of Transportation to establish and maintain a national 
clearinghouse for records related to alcohol and controlled substances 
testing of commercial motor vehicle operators, and for other purposes; 
to the Committee on Commerce, Science, and Transportation.
  Mr. PRYOR. Mr. President, I rise today to introduce legislation with 
Senators Snowe, Nelson of Nebraska, and Wicker. The legislation that we 
are introducing today is aptly named The Safe Roads Act of 2009, as it 
will go a long way toward improving the safety of our Nation's roads by 
closing loopholes that have allowed commercial truck and bus drivers to 
use and abuse drugs and continue to drive without receiving required 
treatment necessary to return to duty. The bill is designed to save 
lives by preventing unnecessary deaths on our Nation's roads.
  Nearly every day Americans can open their newspapers to learn about a 
death caused by drivers under the influence of drugs and alcohol. 
Sometimes, these drivers are behind the wheel of an 18-wheeler or a 
commercial bus, which due to their size and weight bring a destructive 
force on any road. On May 8th of this year, the Arkansas Democrat 
Gazette reported about a commercial bus driver involved in an accident 
on Interstate 40 near Forrest City, AR, in 2007 that resulted in four 
fatalities. The driver was reportedly under the influence of 
amphetamines, one of the substances tested for under Federal Motor 
Carrier Safety Administration, FMCSA, testing regulations. The driver 
of this commercial vehicle has been sentenced to jail and four lives 
were lost as a result of the accident.
  Some other similar accidents involving truck drivers that have 
occurred in recent years include: in October 2008, Kane County, IL, a 
truck driver rear-ended a passenger vehicle killing a woman. The truck 
driver was indicted for reckless homicide and driving under the 
influence of narcotics.
  In January 2008, in Franklin County, AL, a truck driver was arrested 
for being under the influence of drugs or alcohol after crossing the 
center line and killing a woman in a head-on accident.
  In July 2007, in Little Rock, AR, a truck driver killed a family of 
five in a crash. The driver admitted smoking crack cocaine a few hours 
before the crash.
  In May 2007, Centre County, PA, a truck driver ran over a car killing 
a woman. The driver faces charges including homicide by vehicle while 
driving under the influence of suspected methamphetamines.
  While drug abuse among the at least 3.4 million truck drivers in the 
industry is estimated by FMCSA to only represent 2 to 5 percent of the 
entire truck driving workforce, that still represents roughly 68,000 
truck drivers that have a drug or alcohol abuse problem. That is a high 
and unacceptable risk that needs to be addressed in a serious fashion. 
Our goal is to prevent accidents of this nature, and I would like to 
briefly explain how we intend to do so.
  Our bill will establish within the FMCSA a national drug and alcohol 
database and clearinghouse listing positive alcohol and drug test 
results or test refusals by commercial truck and bus drivers. The bill 
will expand current drug and alcohol testing regulations to require 
Medical Review Officers, MROs, and other FMCSA-approved agents 
conducting already-required testing to report positive test results and 
test refusals to the FMCSA drug and alcohol clearinghouse. Employers 
seeking new employees would then be required to not only follow the 
laws already in place for testing prospective employees, but they would 
also be required to examine the prospective employees' record in the 
FMCSA clearinghouse to determine if the prospective employee has 
recently failed or refused to take a drug and alcohol test. If the 
prospective employee has a positive test result or test refusal in the 
clearinghouse, an employer would not be allowed to hire the prospective 
employee unless it can be proven that he or she has not violated

[[Page S5729]]

the requirements of the testing program, or that he or she has fully 
completed a return-to-duty program as required by the testing program.
  There are major loopholes that exist today in the current drug and 
alcohol testing regime. Drivers have a tendency to ``job-hop'' after 
failing drug and alcohol tests, moving from one company to another 
without reporting past drug and alcohol test failures. Some States have 
since closed this loophole by establishing clearinghouses similar to 
our proposal, but not all States have these laws, and they do not do 
anything to prevent drivers with past drug and alcohol test failures 
from moving State-to-State to seek and gain employment. Our legislation 
would go to considerable lengths in closing both of these well-known 
and well-reported loopholes. Our bill would also provide extensive 
privacy protection for individuals whose data is collected at the 
clearinghouse or accessed from the clearinghouse. The bill would 
provide individuals with the means to challenge records in the 
clearinghouse and rights of actions against those who misuse 
information contained in the clearinghouse or accessed from the 
clearinghouse.
  The Government Accountability Office, GAO, and the FMCSA have 
acknowledged these loopholes. Both have published reports describing a 
national clearinghouse as a feasible, cost-effective measure to address 
this problem and improve highway safety. In addition, a clearinghouse 
is something that Congress has examined since implementing drug and 
alcohol testing requirements in 1995. In 1999, Congress required the 
FMCSA to evaluate the viability of a national clearinghouse database 
for positive test results and test refusals, and in 2004 the results of 
their study supported a need for such a system and revealed the safety 
benefits that would come from it. As recently as last year, the GAO 
released a report to Congress titled `Motor Carrier Safety: 
Improvements to Drug Testing Programs Could Better Identify Illegal 
Drug Users and Keep Them off the Road' that recommended the 
establishment of a national database and clearinghouse of drivers who 
have tested positive or refused to test. There is a clear need to close 
these well-known loopholes, and I believe our bill goes a long way in 
that direction.
  It is my hope that Congress will support this legislation and move 
forward quickly to enact this legislation. I believe it is an 
imperative step to enhance drug and alcohol testing requirements and 
improve pre-employment background reviews to reduce the number of 
accidents and needless deaths resulting from drivers that are under the 
influence of these types of substances.
  I want to thank Senators Snowe, Nelson of Nebraska, and Wicker for 
their hard work, leadership and support on this very important safety 
issue, and I urge the rest of my colleagues to support its swift 
passage.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Burr):
  S. 1114. A bill to establish a demonstration project to provide for 
patient-centered medical homes to improve the effectiveness and 
efficiency in providing medical assistance under the Medicaid program 
and child health assistance under the State Children's Health Insurance 
Program; to the Committee on Finance.
  Mr. DURBIN. Mr. President, I rise to introduce legislation with 
Senator Burr to help States improve quality and reduce the costs of 
health care for Medicaid and CHIP enrollees. The Medical Homes Act 
would create a pilot project in Medicaid and the State Children's 
Health Insurance Program to encourage hospitals and health clinics to 
create a medical home for the low-income people they serve.
  Those of us who have a medical home take it for granted. We see the 
same doctor, in the same setting, for extended periods of time. Our 
medical history is in one place, and even if we are seeing specialists 
or different doctors in the same practice, there is continuity in 
decisions about our health care.
  But many people do not have this luxury. Think about people who move 
from place to place whose home lives are less than stable, who do not 
have health insurance, whose medical care is sporadic. For these 
members of our community, each visit to a clinic or an emergency room 
means starting over again.
  Everyone should have access to a medical home, but it requires some 
changes in behavior and expectations and, perhaps most importantly, it 
requires a commitment by local providers to work together. The medical 
home model makes sense for improving health care for everyone. And it 
is a model of care that makes sense for stretching our limited Federal 
health care dollars.
  States like Illinois and North Carolina are already seeing progress 
with implementing the medical home model. Illinois Health Connect is a 
new program at the Illinois Department of Healthcare and Family 
Services that uses the medical home model to deliver primary and 
preventive care for children and adults covered through the All Kids 
program. This emphasis on coordinated and ongoing care is leading to 
better health outcomes, and it is saving money.
  Community Care of North Carolina launched a medical home model in 
1998, through nine physician-led networks. North Carolina started by 
creating medical homes for 250,000 Medicaid enrollees. Today, it is a 
state-wide program that has saved the State at least $60 million in 
Medicaid costs in 2003 and $120 million in 2004.
  Cost savings is not the only benefit. Several studies show that the 
medical home approach improves quality of care. Early analyses are 
finding that having regular access to a particular physician through 
the medical home is associated with earlier and more accurate 
diagnoses, fewer emergency room visits, fewer hospitalizations, lower 
costs, better care, and increased patient satisfaction. Many studies 
conclude that having both health insurance and a medical home leads to 
improved overall health for the entire population, which brings down 
the cost of care and reduces health care disparities.
  The bill that Senator Burr and I introduce today would make it easier 
for other States to implement a medical home model, much like Illinois 
and North Carolina have. Congress passed a medical home demonstration 
project for Medicare last year. The Medical Homes Act of 2009 would do 
this for Medicaid and SCHIP beneficiaries by making Federal funding 
available for a demonstration project in 8 States to provide care 
through patient-centered medical homes.
  The approach we propose requires a per-member, per-month care 
management fee to help pay for participating doctors and provides 
initial start-up funding for participating states. The start-up funds 
are used for the purchase of health information technology, primary 
care case managers, and other uses appropriate for the delivery of 
patient-centered care.
  This is a critical time in our country We have a President who wants 
health care reform. We have a Congress ready to act. We have an 
historic level of cooperation among stakeholders. Unlike the last time, 
there is substantial agreement this time among insurers, employers, 
consumers and lawmakers on the need for change and the broad outlines 
of reform. Change will only happen if everyone--doctors, patients, 
insurance companies, everyone--work with each other, not against each 
other. The specifics of the reform package still have to be worked 
out--and that will be difficult. But there is broad agreement that we 
must do a better job of delivering health care, not just treatment for 
illness.
  If patients, provider, payers, and the government continue to work 
together to create a system that values the patient more than payments 
and the health outcome of the patient more than the number of patients 
seen, we can really change the way primary care is provided. I urge my 
colleagues to support the Medical Homes Act of 2009 and help stabilize 
health care delivery for low-income Americans.
  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. 1114

       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 ``Medical Homes Act of 2009''.

[[Page S5730]]

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Medical homes provide patient-centered care, leading to 
     better health outcomes and greater patient satisfaction. A 
     growing body of research supports the need to involve 
     patients and their families in their own health care 
     decisions, to better inform them of their treatment options, 
     and to improve their access to information.
       (2) Medical homes help patients better manage chronic 
     diseases and maintain basic preventive care, resulting in 
     better health outcomes than those who lack medical homes. An 
     investigation of the Chronic Care Model discovered that the 
     medical home reduced the risk of cardiovascular disease in 
     diabetes patients, helped congestive heart failure patients 
     become more knowledgeable and stay on recommended therapy, 
     and increased the likelihood that asthma and diabetes 
     patients would receive appropriate therapy.
       (3) Medical homes also reduce disparities in access to 
     care. A survey conducted by the Commonwealth Fund found that 
     74 percent of adults with a medical home have reliable access 
     to the care they need, compared with only 52 percent of 
     adults with a regular provider that is not a medical home and 
     38 percent of adults without any regular source of care or 
     provider.
       (4) Medical homes reduce racial and ethnic differences in 
     access to medical care. Three-fourths of Caucasians, African 
     Americans, and Hispanics with medical homes report getting 
     care when they need it.
       (5) Medical homes reduce duplicative health services and 
     inappropriate emergency room use. In 1998, North Carolina 
     launched the Community Care of North Carolina (CCNC) program, 
     which employs the medical home concept. Presently, CCNC has 
     developed 14 regional networks that include all of the 
     Federally qualified health centers in the State and cover 
     740,000 recipients. An analysis conducted by Mercer Human 
     Resources Consulting Group found that CCNC resulted in 
     $244,000,000 in savings to the Medicaid program in 2004, with 
     similar results in 2005 and 2006.
       (6) Health information technology is a crucial foundation 
     for medical homes. While many doctors' offices use electronic 
     health records for billing or other administrative functions, 
     few practices utilize health information technology 
     systematically to measure and improve the quality of care 
     they provide. For example, electronic health records can 
     generate reports to ensure that all patients with chronic 
     conditions receive recommended tests and are on target to 
     meet their treatment goals. Computerized ordering systems, 
     particularly with decision-support tools, can prevent medical 
     and medication errors, while e-mail and interactive Internet 
     websites can facilitate communication between patients and 
     providers and improve patient education.

     SEC. 3. MEDICAID AND CHIP DEMONSTRATION PROJECT TO SUPPORT 
                   PATIENT-CENTERED PRIMARY CARE.

       (a) Definitions.--In this section:
       (1) Care management model.--The term ``care management 
     model'' means a model that--
       (A) uses health information technology and other 
     innovations such as the chronic care model, to improve the 
     management and coordination of care provided to patients;
       (B) is centered on the relationship between a patient and 
     their personal primary care provider;
       (C) seeks guidance from--
       (i) a steering committee; and
       (ii) a medical management committee; and
       (D) has established, where practicable, effective referral 
     relationships between the primary care provider and the major 
     medical specialties and ancillary services in the region.
       (2) Health center.--The term ``health center'' has the 
     meaning given that term in section 330(a) of the Public 
     Health Service Act (42 U.S.C. 254b(a)).
       (3) Medicaid.--The term ``Medicaid'' means the program for 
     medical assistance established under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.).
       (4) Medical management committee.--The term ``medical 
     management committee'' means a group of practitioners that--
       (A) provides services in the community in which the 
     practice or health center is located;
       (B) reviews evidence-based practice guidelines;
       (C) selects targeted disease and care processes that 
     address health conditions in the community (as identified in 
     the National or State health assessment or as outlined in 
     ``Healthy People 2010'', or any subsequent similar report (as 
     determined by the Secretary));
       (D) defines programs to target disease and care processes;
       (E) establishes standards and measures for patient-centered 
     medical homes, taking into account nationally-developed 
     standards and measures; and
       (F) makes the determination described in subparagraph 
     (A)(iii) of paragraph (5), taking into account the 
     considerations under subparagraph (B) of such paragraph.
       (5) Patient-centered medical home.--
       (A) In general.--The term ``patient-centered medical home'' 
     means a physician-directed practice or a health center that--
       (i) incorporates the attributes of the care management 
     model described in paragraph (1);
       (ii) voluntarily participates in an independent evaluation 
     process whereby primary care providers submit information to 
     the medical management committee of the relevant network;
       (iii) the medical management committee determines has the 
     capability to achieve improvements in the management and 
     coordination of care for targeted beneficiaries (as defined 
     by statewide quality improvement standards and outcomes); and
       (iv) meets the requirements imposed on a covered entity for 
     purposes of applying part C of title XI of the Social 
     Security Act (42 U.S.C. 1320d et seq.) and all regulatory 
     provisions promulgated thereunder, including regulations 
     (relating to privacy) adopted pursuant to the authority of 
     the Secretary under section 264(c) of the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
     note).
       (B) Considerations.--In making the determination under 
     subparagraph (A)(iii), the medical management committee shall 
     consider the following:
       (i) Access and communication with patients.--Whether the 
     practice or health center applies both standards for access 
     to care for, and standards for communication with, targeted 
     beneficiaries who receive care through the practice or health 
     center.
       (ii) Managing patient information and using information 
     management to support patient care.--Whether the practice or 
     health center has readily accessible, clinically useful 
     information on such beneficiaries that enables the practice 
     or health center to provide comprehensive and systematic 
     treatment.
       (iii) Managing and coordinating care according to 
     individual needs.--Whether the practice or health center--

       (I) maintains continuous relationships with such 
     beneficiaries by implementing evidence-based guidelines and 
     applying such guidelines to the identified needs of 
     individual beneficiaries over time and with the intensity 
     needed by such beneficiaries;
       (II) assists in the early identification of health care 
     needs;
       (III) provides ongoing primary care;
       (IV) coordinates with a broad range of other specialty, 
     ancillary, and related services; and
       (V) provides health care services and consultations in a 
     culturally and linguistically appropriate manner, as well as 
     at a time and location that is convenient to the patient.

       (iv) Providing ongoing assistance and encouragement in 
     patient self-management.--Whether the practice or health 
     center--

       (I) collaborates with targeted beneficiaries who receive 
     care through the practice or health center to pursue their 
     goals for optimal achievable health;
       (II) assesses patient-specific barriers; and
       (III) conducts activities to support patient self-
     management.

       (v) Resources to manage care.--Whether the practice or 
     health center has in place the resources and processes 
     necessary to achieve improvements in the management and 
     coordination of care for targeted beneficiaries who receive 
     care through the practice or health center.
       (vi) Monitoring performance.--Whether the practice or 
     health center--

       (I) monitors its clinical process and performance 
     (including process and outcome measures) in meeting the 
     applicable standards under paragraph (4)(E); and
       (II) provides information in a form and manner specified by 
     the steering committee and medical management committee with 
     respect to such process and performance.

       (6) Personal primary care provider.--The term ``personal 
     primary care provider'' means--
       (A) a physician, nurse practitioner, or other qualified 
     health care provider (as determined by the Secretary), who--
       (i) practices in a patient-centered medical home; and
       (ii) has been trained to provide first contact, continuous, 
     and comprehensive care for the whole person, not limited to a 
     specific disease condition or organ system, including care 
     for all types of health conditions (such as acute care, 
     chronic care, and preventive services); or
       (B) a health center that--
       (i) is a patient-centered medical home; and
       (ii) has providers on staff that have received the training 
     described in subparagraph (A)(ii).
       (7) Primary care case management services; primary care 
     case manager.--The terms ``primary care case management 
     services'' and ``primary care case manager'' have the meaning 
     given those terms in section 1905(t) of the Social Security 
     Act (42 U.S.C. 1396d(t)).
       (8) Project.--The term ``project'' means the demonstration 
     project established under this section.
       (9) CHIP.--The term ``CHIP'' means the State Children's 
     Health Insurance Program established under title XXI of the 
     Social Security Act (42 U.S.C. 1396aa et seq.).
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (11) Steering committee.--The term ``steering committee'' 
     means a local management group comprised of collaborating 
     local health care practitioners or a local not-for-profit 
     network of health care practitioners--
       (A) that implements State-level initiatives;
       (B) that develops local improvement initiatives;

[[Page S5731]]

       (C) whose mission is to--
       (i) investigate questions related to community-based 
     practice; and
       (ii) improve the quality of primary care; and
       (D) whose membership--
       (i) represents the health care delivery system of the 
     community it serves; and
       (ii) includes physicians (with an emphasis on primary care 
     physicians) and at least 1 representative from each part of 
     the collaborative or network (such as a representative from a 
     health center, a representative from the health department, a 
     representative from social services, and a representative 
     from each public and private hospital in the collaborative or 
     the network).
       (12) Targeted beneficiary.--
       (A) In general.--The term ``targeted beneficiary'' means an 
     individual who is eligible for benefits under a State plan 
     under Medicaid or a State child health plan under CHIP.
       (B) Participation in patient-centered medical home.--
     Individuals who are eligible for benefits under Medicaid or 
     CHIP in a State that has been selected to participate in the 
     project shall receive care through a patient-centered medical 
     home when available.
       (C) Ensuring choice.--In the case of such an individual who 
     receives care through a patient-centered medical home, the 
     individual shall receive guidance from their personal primary 
     care provider on appropriate referrals to other health care 
     professionals in the context of shared decision-making.
       (b) Establishment.--The Secretary shall establish a 
     demonstration project under Medicaid and CHIP for the 
     implementation of a patient-centered medical home program 
     that meets the requirements of subsection (d) to improve the 
     effectiveness and efficiency in providing medical assistance 
     under Medicaid and CHIP to an estimated 500,000 to 1,000,000 
     targeted beneficiaries.
       (c) Project Design.--
       (1) Duration.--The project shall be conducted for a 3-year 
     period, beginning not later than [October 1, 2011].
       (2) Sites.--
       (A) In general.--The project shall be conducted in 8 
     States--
       (i) four of which already provide medical assistance under 
     Medicaid for primary care case management services as of the 
     date of enactment of this Act; and
       (ii) four of which do not provide such medical assistance.
       (B) Application.--A State seeking to participate in the 
     project shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may require.
       (C) Selection.--In selecting States to participate in the 
     project, the Secretary shall ensure that urban, rural, and 
     underserved areas are served by the project.
       (3) Grants and payments.--
       (A) Development grants.--
       (i) First year development grants.--The Secretary shall 
     award development grants to States participating in the 
     project during the first year the project is conducted. 
     Grants awarded under this clause shall be used by a 
     participating State to--

       (I) assist with the development of steering committees, 
     medical management committees, and local networks of health 
     care providers; and
       (II) facilitate coordination with local communities to be 
     better prepared and positioned to understand and meet the 
     needs of the communities served by patient-centered medical 
     homes.

       (ii) Second year funding.--The Secretary shall award 
     additional grant funds to States that received a development 
     grant under clause (i) during the second year the project is 
     conducted if the Secretary determines such funds are 
     necessary to ensure continued participation in the project by 
     the State. Grant funds awarded under this clause shall be 
     used by a participating State to assist in making the 
     payments described in paragraph (B). To the extent a State 
     uses such grant funds for such purpose, no matching payment 
     may be made to the State for the payments made with such 
     funds under section 1903(a) or 2105(a) of the Social Security 
     Act (42 U.S.C. 1396b(a); 1397ee(a)).
       (B) Additional payments to personal primary care providers 
     and steering committees.--
       (i) Payments to personal primary care providers.--

       (I) In general.--Subject to subsection (d)(6)(B), a State 
     participating in the project shall pay a personal primary 
     care provider not less than $2.50 per month per targeted 
     beneficiary assigned to the personal primary care provider, 
     regardless of whether the provider saw the targeted 
     beneficiary that month.
       (II) Federal matching payment.--Subject to subparagraph 
     (A)(ii), amounts paid to a personal primary care provider 
     under subclause (I) shall be considered medical assistance or 
     child health assistance for purposes of section 1903(a) or 
     2105(a), respectively, of the Social Security Act (42 U.S.C. 
     1396b(a); 1397ee(a)).
       (III) Patient population.--In determining the amount of 
     payment to a personal primary care provider per month with 
     respect to targeted beneficiaries under this clause, a State 
     participating in the project shall take into account the care 
     needs of such targeted beneficiaries.

       (ii) Payments to steering committees.--

       (I) In general.--Subject to subsection (d)(6)(B), a State 
     participating in the project shall pay a steering committee 
     not less than $2.50 per targeted beneficiary per month.
       (II) Federal matching payment.--Subject to subparagraph 
     (A)(ii), amounts paid to a steering committee under subclause 
     (I) shall be considered medical assistance or child health 
     assistance for purposes of section 1903(a) or 2105(a), 
     respectively, of the Social Security Act (42 U.S.C. 1396b(a); 
     1397ee(a)).
       (III) Use of funds.--Amounts paid to a steering committee 
     under subclause (I) shall be used (in accordance with any 
     applicable Medicaid requirements) to purchase health 
     information technology, pay primary care case managers, 
     support network initiatives, and for such other uses as the 
     steering committee determines appropriate.

       (4) Technical assistance.--The Secretary shall make 
     available technical assistance to States, physician 
     practices, and health centers participating in the project 
     during the duration of the project.
       (5) Best practices information.--The Secretary shall 
     collect and make available to States participating in the 
     project information on best practices for patient-centered 
     medical homes.
       (d) Patient-Centered Medical Home Program.--
       (1) In general.--For purposes of this section, a patient-
     centered medical home program meets the requirements of this 
     subsection if, under such program, targeted beneficiaries 
     have access to a personal primary care provider in a patient-
     centered medical home as their source of first contact, 
     comprehensive, and coordinated care for the whole person.
       (2) Elements.--
       (A) Mandatory elements.--
       (i) In general.--Such program shall include the following 
     elements:

       (I) A steering committee.
       (II) A medical management committee.
       (III) A network of physician practices and health centers 
     that have volunteered to participate as patient-centered 
     medical homes to provide high-quality care, focusing on 
     preventive care, at the appropriate time and place and in a 
     cost-effective manner.
       (IV) Hospitals and local public health departments that 
     will work in cooperation with the network of patient-centered 
     medical homes to coordinate and provide health care.
       (V) Primary care case managers to assist with care 
     coordination.
       (VI) Health information technology to facilitate the 
     provision and coordination of health care by network 
     participants.

       (ii) Multiple locations in the state.--In the case where a 
     State operates a patient-centered medical home program in 2 
     or more areas in the State, the program in each of those 
     areas shall include the elements described in clause (i).
       (B) Optional elements.--Such program may include a non-
     profit organization that--
       (i) includes a steering committee and a medical management 
     committee; and
       (ii) manages the payments to steering committees described 
     in subsection (c)(3)(B)(ii).
       (3) Goals.--Such program shall be designed--
       (A) to increase--
       (i) cost efficiencies of health care delivery;
       (ii) access to appropriate health care services, especially 
     wellness and prevention care, at times convenient for 
     patients;
       (iii) patient satisfaction;
       (iv) communication among primary care providers, hospitals, 
     and other health care providers;
       (v) school attendance; and
       (vi) the quality of health care services (as determined by 
     the relevant steering committee and medical management 
     committee, taking into account nationally developed standards 
     and measures); and
       (B) to decrease--
       (i) inappropriate emergency room utilization, which can be 
     accomplished through initiatives, such as expanded hours of 
     care throughout the program network;
       (ii) avoidable hospitalizations; and
       (iii) duplication of health care services provided.
       (4) Payment.--Under the program, payment shall be provided 
     to personal primary care providers and steering committees 
     (in accordance with subsection (c)(3)(B)).
       (5) Notification.--The State shall notify individuals 
     enrolled in Medicaid or CHIP about--
       (A) the patient-centered medical home program;
       (B) the providers participating in such program; and
       (C) the benefits of such program.
       (6) Treatment of states with a managed care contract.--
       (A) In general.--In the case where a State contracts with a 
     private entity to manage parts of the State Medicaid program, 
     the State shall--
       (i) ensure that the private entity follows the care 
     management model; and
       (ii) establish a medical management committee and a 
     steering committee in the community.
       (B) Adjustment of payment amounts.--The State may adjust 
     the amount of payments made under (c)(3)(B), taking into 
     consideration the management role carried out by the private 
     entity described in subparagraph (A) and the cost 
     effectiveness provided by such entity in certain areas, such 
     as health information technology.
       (e) Evaluation and Project Report.--
       (1) In general.--

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       (A) Evaluation.--The Secretary, in consultation with 
     appropriate health care professional associations, shall 
     evaluate the project in order to determine the effectiveness 
     of patient-centered medical homes in terms of quality 
     improvement, patient and provider satisfaction, and the 
     improvement of health outcomes.
       (B) Project report.--Not later than 12 months after 
     completion of the project, the Secretary shall submit to 
     Congress a report on the project containing the results of 
     the evaluation conducted under subparagraph (A). Such report 
     shall include--
       (i) an assessment of the differences, if any, between the 
     quality of the care provided through the patient-centered 
     medical home program conducted under the project in the 
     States that provided medical assistance for primary care case 
     management services and those that did not;
       (ii) an assessment of quality improvements and clinical 
     outcomes as a result of such program;
       (iii) estimates of cost savings resulting from such 
     program; and
       (iv) recommendations for such legislation and 
     administrative action as the Secretary determines to be 
     appropriate.
       (2) Sense of the senate.--It is the sense of the Senate 
     that titles XIX and XXI of the Social Security Act (42 U.S.C. 
     1396 et seq.; 1397aa et seq.) should be amended, based on the 
     results of the evaluation and report under paragraph (1), to 
     establish a patient-centered medical home program under such 
     titles on a permanent basis.
       (f) Waiver.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall waive compliance with such requirements of titles XI, 
     XIX, and XXI of the Social Security Act (42 U.S.C. 1301 et 
     seq.; 1396 et seq.; 1397aa et seq.) to the extent and for the 
     period the Secretary finds necessary to conduct the project.
       (2) Limitation.--In no case shall the Secretary waive 
     compliance with the requirements of subsections (a)(10)(A), 
     (a)(15), and (bb) of section 1902 of the Social Security Act 
     (42 U.S.C. 1396a) under paragraph (1), to the extent that 
     such requirements require the provision of and reimbursement 
     for services described in section 1905(a)(2)(C) of such Act 
     (42 U.S.C. 1396d(a)(2)(C)).

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