[Congressional Record Volume 156, Number 82 (Thursday, May 27, 2010)]
[Senate]
[Pages S4531-S4553]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BINGAMAN (for himself, Mr. Warner, Mr. Graham, Ms. Snowe,
Mr. Merkley, Mr. Brown of Massachusetts, Ms. Stabenow, Mr.
Sanders, Mr. Dodd, Mrs. Gillibrand, Mr. Carper, Mr. Pryor, Mr.
Begich, Ms. Klobuchar, Ms. Cantwell, and Mr. Harkin):
S. 3434. A bill to provide for the establishment of a Home Star
Retrofit Rebate Program, and for other purposes; to the Committee on
Finance.
Mr. BINGAMAN. Mr. President, I rise to introduce the Home Star Energy
Retrofit Act of 2010 and to recognize the original cosponsors of the
bill: Senator Warner, Senator Graham, Senator Snowe, Senator Sanders,
Senator Brown of Massachusetts, Senator Merkley, Senator Stabenow,
Senator Dodd, Senator Gillibrand, Senator Carper, Senator Pryor and
Senator Harkin. This innovative legislation will save consumers money,
create American skilled labor jobs, and reduce home energy consumption.
If enacted, HOME STAR will build on existing policies and initiatives
that have already proved effective. The program is supported by a broad
coalition of over 600 groups including construction contractors,
building products and mechanical manufacturers, retail sales
businesses, environmental groups and labor advocates.
HOME STAR will provide point-of-sale instant savings to encourage
homeowners to install residential energy upgrades such as air sealing,
insulation, and high efficiency furnaces and water heaters.
HOME STAR incorporates a two-tiered approach that will offer
flexibility to homeowners when choosing efficiency improvements to
install. Under the Silver Star program, rebates averaging $1,000 will
be offered for the installation of each eligible energy-saving measure
such as new insulation and high-efficiency heating and cooling systems,
up to maximum of $3,000 per home. Under the Gold Star program, there
will be performance-based grants of $3,000 for a 20 percent reduction
in home energy consumption and $1,000 for each additional 5 percent of
verified energy reduction as determined by a comparison of the energy
consumption of the home before and after the retrofit.
In addition to the short-term rebate programs in Home Star, our
revised bill includes longer term efficiency tax policies to maintain
the momentum for energy efficient home retrofits. These performance-
based energy improvement tax credits will encourage the continuation of
Gold Star-type whole home retrofits.
HOME STAR will create American jobs in the construction industry,
which has lost 1.6 million jobs since December 2007, with unemployment
rates topping 25 percent in some regions. HOME STAR leverages private
investment to create a strong market for home energy retrofits, and
will put hundreds of thousands of unemployed Americans back to work as
well as stimulating demand for building materials produced by American
factories.
Finally, HOME STAR will reduce home energy consumption and dependence
on foreign oil. HOME STAR helps Americans pay for cost-effective home
improvements, create permanent reductions in household energy bills,
and reduce our national carbon footprint. Residential energy efficiency
improvements covered by the HOME STAR program reduce energy waste in
most homes by 20 to 40 percent. When combined with low-interest
financing, these retrofits can be cash-flow positive upon project
completion. An initiative with a potential to retrofit over 3 million
homes, HOME STAR will achieve significant reductions in building-
related greenhouse gas emissions while generating long-term energy
savings for American consumers and reducing energy usage by an amount
equal to four 300 megawatt power plants.
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. 3434
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 ``Home Star
Energy Retrofit Act of 2010''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--HOME STAR ENERGY RETROFITS
Sec. 101. Definitions.
Sec. 102. Home Star Retrofit Rebate Program.
Sec. 103. Contractors.
Sec. 104. Rebate aggregators.
Sec. 105. Quality assurance providers.
Sec. 106. Silver Star Home Energy Retrofit Program.
[[Page S4532]]
Sec. 107. Gold Star Home Energy Retrofit Program.
Sec. 108. Grants to States and Indian tribes.
Sec. 109. Quality assurance framework.
Sec. 110. Report.
Sec. 111. Administration.
Sec. 112. Treatment of rebates.
Sec. 113. Penalties.
Sec. 114. Home Star Energy Efficiency Loan Program.
Sec. 115. Funding.
TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS
Sec. 201. Performance based energy improvements for nonbusiness
property.
TITLE I--HOME STAR ENERGY RETROFITS
SEC. 101. DEFINITIONS.
In this title:
(1) Accredited contractor.--The term ``accredited
contractor'' means a residential energy efficiency contractor
that meets the minimum applicable requirements established
under section 103.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(3) BPI.--The term ``BPI'' means the Building Performance
Institute.
(4) Certified workforce.--The term ``certified workforce''
means a residential energy efficiency construction workforce
that is entirely certified in the appropriate job skills for
all employees performing installation work under--
(A) an applicable third party skills standard established--
(i) by the BPI;
(ii) by the North American Technician Excellence;
(iii) by the Laborers' International Union of North
America; or
(iv) in the State in which the work is to be performed,
pursuant to a program operated by the Home Builders Institute
in connection with Ferris State University, to be effective
beginning on the date that is 30 days after the date notice
is provided by those organizations to the Secretary that the
program has been established in the State unless the
Secretary determines, not later than 30 days after the date
of the notice, that the standard or certification is
incomplete; or
(B) other standards approved by the Secretary, in
consultation with the Secretary of Labor and the
Administrator.
(5) Conditioned space.--The term ``conditioned space''
means the area of a home that is--
(A) intended for habitation; and
(B) intentionally heated or cooled.
(6) DOE.--The term ``DOE'' means the Department of Energy.
(7) Electric utility.--The term ``electric utility'' means
any person or State agency that delivers or sells electric
energy at retail, including nonregulated utilities and
utilities that are subject to State regulation and Federal
power marketing administrations.
(8) EPA.--The term ``EPA'' means the Environmental
Protection Agency.
(9) Federal rebate processing system.--The term ``Federal
Rebate Processing System'' means the Federal Rebate
Processing System established under section 102(b).
(10) Gold star home energy retrofit program.--The term
``Gold Star Home Energy Retrofit Program'' means the Gold
Star Home Energy Retrofit Program established under section
107.
(11) Home.--The term ``home'' means a principal residential
dwelling unit in a building with no more than 4 dwelling
units that--
(A) is located in the United States; and
(B) was constructed before the date of enactment of this
Act.
(12) Homeowner.--The term ``homeowner'' means the resident
or non-resident owner of record of a home.
(13) Home star loan program.--The term ``Home Star loan
program'' means the Home Star energy efficiency loan program
established under section 114(a).
(14) Home star retrofit rebate program.--The term ``Home
Star Retrofit Rebate Program'' means the Home Star Retrofit
Rebate Program established under section 102(a).
(15) 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).
(16) Natural gas utility.--The term ``natural gas utility''
means any person or State agency that transports,
distributes, or sells natural gas at retail, including
nonregulated utilities and utilities that are subject to
State regulation.
(17) Qualified contractor.--The term ``qualified
contractor'' means a residential energy efficiency contractor
that meets minimum applicable requirements established under
section 103.
(18) Quality assurance framework.--The term ``quality
assurance framework'' means a policy adopted by a State to
develop high standards for ensuring quality in ongoing energy
efficiency retrofit activities in which the State has a role,
including operation of the quality assurance program and
creating significant employment opportunities, in particular
for targeted workers.
(19) Quality assurance program.--
(A) In general.--The term ``quality assurance program''
means a program established under this title or recognized by
the Secretary under this title, to oversee the delivery of
home efficiency retrofit programs to ensure that work is
performed in accordance with standards and criteria
established under this title.
(B) Inclusions.--For purposes of subparagraph (A), delivery
of retrofit programs includes delivery of quality assurance
reviews of rebate applications and field inspections for a
portion of customers receiving rebates and conducted by a
quality assurance provider, with the consent of participating
consumers and without delaying rebate payments to
participating contractors.
(20) Quality assurance provider.--The term ``quality
assurance provider'' means any entity that meets the minimum
applicable requirements established under section 105.
(21) Rebate aggregator.--The term ``rebate aggregator''
means an entity that meets the requirements of section 104.
(22) RESNET.--The term ``RESNET'' means the Residential
Energy Services Network, which is a nonprofit certification
and standard setting organization for home energy raters that
evaluate the energy performance of a home.
(23) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(24) Silver star home energy retrofit program.--The term
``Silver Star Home Energy Retrofit Program'' means the Silver
Star Home Energy Retrofit Program established under section
106.
(25) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana Islands;
(G) the United States Virgin Islands; and
(H) any other territory or possession of the United States.
(26) Vendor.--The term ``vendor'' means any retailer that
sells directly to homeowners and contractors the materials
used for the energy savings measures under section 106.
SEC. 102. HOME STAR RETROFIT REBATE PROGRAM.
(a) In General.--The Secretary shall establish the Home
Star Retrofit Rebate Program.
(b) Federal Rebate Processing System.--
(1) Requirements.--
(A) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary, in consultation with
the Secretary of the Treasury and the Administrator, shall--
(i) establish a Federal Rebate Processing System which
shall serve as a database and information technology system
that will allow rebate aggregators to submit claims for
reimbursement using standard data protocols;
(ii) establish a national retrofit website that provides
information on the Home Star Retrofit Rebate Program,
including--
(I) how to determine whether particular efficiency measures
are eligible for rebates; and
(II) how to participate in the program;
(iii) make available, on a designated website, model forms
for compliance with all applicable requirements of this
title, to be submitted by--
(I) each qualified contractor on completion of an eligible
home energy retrofit; and
(II) each quality assurance provider on completion of field
verification; and
(iv) subject to section 115, provide such administrative
and technical support to rebate aggregators and States as is
necessary to carry out this title.
(B) Distribution of funds.--Not later than 10 days after
the date of receipt of bundled rebate applications from a
rebate aggregator, the Secretary shall distribute funds to
the rebate aggregator on approved claims for reimbursement
made to the Federal Rebate Processing System.
(C) Funding availability.--The Secretary shall post, on a
weekly basis, on the national retrofit website established
under subparagraph (A)(ii) information on--
(i) the number of rebate claims approved for reimbursement;
and
(ii) the total amount of funds disbursed for rebates.
(D) Program adjustment or termination.--Based on the
information described in subparagraph (C), the Secretary
shall announce a termination date and reserve funding to
process the rebate applications that are in the Federal
Rebate Processing System prior to the termination date.
(2) Model forms.--In carrying out this section, the
Secretary shall consider the model forms developed by the
National Home Performance Council.
(c) Administrative and Technical Support.--Effective
beginning not later than 30 days after the date of enactment
of this Act, the Secretary shall provide such administrative
and technical support to rebate aggregators and States as is
necessary to carry out this title.
(d) Public Information Campaign.--Not later than 60 days
after the date of enactment of this Act, the Administrator
shall develop and implement a public education campaign that
describes, at a minimum--
(1) the benefits of home energy retrofits;
(2) the availability of rebates for--
(A) the installation of qualifying efficiency measures; and
(B) whole home efficiency improvements; and
(3) the requirements for qualified contractors and
accredited contractors.
[[Page S4533]]
(e) Limitation.--Silver Star rebates provided under section
106 and Gold Star rebates provided under section 107 may be
provided for the same home only if--
(1) Silver Star rebates are awarded prior to Gold Star
rebates;
(2) energy savings obtained from measures under the Silver
Star Home Energy Retrofit Program are not counted towards the
simulated energy savings that determine the value of a rebate
under the Gold Star Home Energy Retrofit Program; and
(3) the combined Silver Star and Gold Star rebates provided
to the individual homeowner do not exceed $8,000.
(f) Availability.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall ensure that Home
Star retrofit rebates are available to all homeowners in the
United States to the maximum extent practicable.
SEC. 103. CONTRACTORS.
(a) Contractor Qualifications for Silver Star Home Energy
Retrofit Program.--A contractor may perform retrofit work
under the Silver Star Home Energy Retrofit Program in a State
for which rebates are provided under this title only if the
contractor meets or provides--
(1) all applicable contractor licensing requirements
established by the State or, if none exist at the State
level, the Secretary;
(2) insurance coverage of at least $1,000,000 for general
liability, and for such other purposes and in such other
amounts as required by the State;
(3) warranties to homeowners that completed work will--
(A) be free of significant defects;
(B) be installed in accordance with the specifications of
the manufacturer; and
(C) perform properly for a period of at least 1 year after
the date of completion of the work;
(4) an agreement to provide the owner of a home, through a
discount, the full economic value of all rebates received
under this title with respect to the home; and
(5) an agreement to provide the homeowner, before a
contract is executed between the contractor and a homeowner
covering the eligible work, a notice of --
(A) the rebate amount the contractor intends to apply for
with respect to eligible work under this title; and
(B) the means by which the rebate will be passed through as
a discount to the homeowner.
(b) Contractor Qualifications for Gold Star Home Energy
Retrofit Program.--A contractor may perform retrofit work
under the Gold Star Home Energy Retrofit Program in a State
for which rebates are provided under this title only if the
contractor--
(1) meets the requirements for qualified contractors under
subsection (a); and
(2) is accredited--
(A) by the BPI; or
(B) under other standards approved by the Secretary, in
consultation with the Administrator.
(c) Health and Safety Requirements.--Nothing in this title
relieves any contractor from the obligation to comply with
applicable Federal, State, and local health and safety code
requirements.
SEC. 104. REBATE AGGREGATORS.
(a) In General.--The Secretary shall develop a network of
rebate aggregators that can facilitate the delivery of
rebates to participating contractors and vendors for
discounts provided to homeowners for energy efficiency
retrofit work.
(b) Responsibilities.--Rebate aggregators shall--
(1) review the proposed rebate application for completeness
and accuracy;
(2) review measures under the Silver Star Home Energy
Retrofit Program and energy savings under the Gold Star Home
Energy Retrofit Program for eligibility in accordance with
this title;
(3) provide data to the Federal Data Processing Center
consistent with data protocols established by the Secretary;
and
(4) distribute funds received from DOE to contractors,
vendors, or other persons.
(c) Processing Rebate Applications.--A rebate aggregator
shall--
(1) submit the rebate application to the Federal Rebate
Processing Center not later than 10 days after the date of
receipt of a rebate application from a contractor; and
(2) distribute funds to the contractor not later than 10
days after the date of receipt from the Federal Rebate
Processing System.
(d) Eligibility.--To be eligible to apply to the Secretary
for approval as a rebate aggregator, an entity shall be--
(1) a Home Performance with Energy Star partner;
(2) an entity administering a residential energy efficiency
retrofit program established or approved by a State;
(3) a Federal Power Marketing Administration, an electric
utility, or a natural gas utility that has--
(A) an approved residential energy efficiency retrofit
program; and
(B) an established quality assurance provider network; or
(4) an entity that demonstrates to the Secretary that the
entity can perform the functions of an rebate aggregator,
without disrupting existing residential retrofits in the
States that are incorporating the Home Star Program,
including demonstration of--
(A) corporate status or status as a State or local
government;
(B) the capability to provide electronic data to the
Federal Rebate Processing System;
(C) a financial system that is capable of tracking the
distribution of rebates to participating contractors; and
(D) coordination and cooperation by the entity with the
appropriate State energy office regarding participation in
the existing energy efficiency programs that will be
delivering the Home Star Program.
(e) Application to Become a Rebate Aggregator.--Not later
than 30 days after the date of receipt of an application of
an entity seeking to become a rebate aggregator, the
Secretary shall approve or deny the application on the basis
of the eligibility criteria under subsection (d).
(f) Application Priority.--In reviewing applications from
entities seeking to become rebate aggregators, the Secretary
shall give priority to entities that commit--
(1) to reviewing applications for participation in the
program from all qualified contractors within a defined
geographic region; and
(2) to processing rebate applications more rapidly than the
minimum requirements established under the program.
(g) Public Utility Commission Efficiency Targets.--The
Secretary shall--
(1) develop guidelines for States to use to allow utilities
participating as rebate aggregators to count the energy
savings from the participation of the utilities toward State-
level energy savings targets; and
(2) work with States to assist in the adoption of the
guidelines for the purposes and duration of the Home Star
Retrofit Rebate Program.
SEC. 105. QUALITY ASSURANCE PROVIDERS.
(a) In General.--An entity shall be considered a quality
assurance provider under this title if the entity--
(1) is independent of the contractor;
(2) confirms the qualifications of contractors or
installers of home energy efficiency retrofits;
(3) confirms compliance with the requirements of a
``certified workforce''; and
(4) performs field inspections and other measures required
to confirm the compliance of the retrofit work under the
Silver Star program, and the retrofit work and the simulated
energy savings under the Gold Star program, based on the
requirements of this title.
(b) Inclusions.--An entity shall be considered a quality
assurance provider under this title if the entity is
qualified through--
(1) the International Code Council;
(2) the BPI;
(3) the RESNET;
(4) a State;
(5) a State-approved residential energy efficiency retrofit
program; or
(6) any other entity designated by the Secretary, in
consultation with the Administrator.
SEC. 106. SILVER STAR HOME ENERGY RETROFIT PROGRAM.
(a) In General.--If the energy efficiency retrofit of a
home is carried out after the date of enactment of this Act
in accordance with this section, a rebate shall be awarded
for the energy retrofit of a home for the installation of
energy savings measures--
(1) selected from the list of energy savings measures
described in subsection (b);
(2) installed in the home by a qualified contractor not
later than 1 year after the date of enactment of this Act;
(3) carried out in compliance with this section; and
(4) subject to the maximum amount limitations established
under subsection (d)(4).
(b) Energy Savings Measures.--Subject to subsection (c), a
rebate shall be awarded under this section for the
installation of the following energy savings measures for a
home energy retrofit that meet technical standards
established under this section:
(1) Whole house air-sealing measures, in accordance with
BPI standards or other procedures approved by the Secretary.
(2) Attic insulation measures that--
(A) include sealing of air leakage between the attic and
the conditioned space, in accordance with BPI standards or
the attic portions of the DOE or EPA thermal bypass checklist
or other procedures approved by the Secretary;
(B) add at least R-19 insulation to existing insulation;
(C) result in at least R-38 insulation in DOE climate zones
1 through 4 and at least R-49 insulation in DOE climate zones
5 through 8, including existing insulation, within the limits
of structural capacity; and
(D) cover at least--
(i) 100 percent of an accessible attic; or
(ii) 75 percent of the total conditioned footprint of the
house.
(3) Duct seal or replacement that--
(A) is installed in accordance with BPI standards or other
procedures approved by the Secretary; and
(B) in the case of duct replacement, replaces and seals at
least 50 percent of a distribution system of the home.
(4) Wall insulation that--
(A) is installed in accordance with BPI standards or other
procedures approved by the Secretary;
(B) is to full-stud thickness; and
(C) covers at least 75 percent of the total external wall
area of the home.
(5) Crawl space insulation or basement wall and rim joist
insulation that is installed in accordance with BPI standards
or other procedures approved by the Secretary--
(A) covers at least 500 square feet of crawl space or
basement wall and adds at least--
[[Page S4534]]
(i) R-19 of cavity insulation or R-15 of continuous
insulation to existing crawl space insulation; or
(ii) R-13 of cavity insulation or R-10 of continuous
insulation to basement walls; and
(B) fully covers the rim joist with at least R-10 of new
continuous or R-13 of cavity insulation.
(6) Window replacement that replaces at least 8 exterior
windows, or 75 percent of the exterior windows in a home,
whichever is less, with windows that--
(A) are certified by the National Fenestration Rating
Council; and
(B) comply with criteria applicable to windows under
section 25(c) of the Internal Revenue Code of 1986.
(7) Door replacement that replaces at least 1 exterior door
with doors that comply with criteria applicable to doors
under the 2010 Energy Star specification for doors.
(8) Skylight replacement that replaces at least 1 skylight
with skylights that comply with criteria applicable to
skylights under the 2010 Energy Star specification for
skylights.
(9)(A) Heating system replacement with--
(i) a natural gas or propane furnace with an AFUE rating of
92 or greater;
(ii) a natural gas or propane boiler with an AFUE rating of
90 or greater;
(iii) an oil furnace with an AFUE rating of 86 or greater
and that uses an electrically commutated blower motor;
(iv) an oil boiler with an AFUE rating of 86 or greater and
that has temperature reset or thermal purge controls; or
(v) a wood or wood pellet furnace, boiler, or stove, if--
(I) the new system--
(aa) meets at least 75 percent of the heating demands of
the home; and
(bb) in the case of a wood stove, replaces an existing wood
stove with a stove that is EPA-certified, if a voucher is
provided by the installer or other responsible party
certifying that the old stove has been removed and made
inoperable;
(II) the home has a distribution system (such as ducts,
vents, blowers, or affixed fans) that allows heat from the
wood stove, furnace, or boiler to reach all or most parts of
the home; and
(III) an independent test laboratory approved by the
Secretary or the Administrator certifies that the new
system--
(aa) has thermal efficiency (with a lower heating value) of
at least 75 percent for stoves and 80 percent for furnaces
and boilers; and
(bb) has particulate emissions of less than 3.0 grams per
hour for wood stoves or pellet stoves, and less than 0.32 lbs
per million BTU for outdoor boilers and furnaces.
(B) A rebate may be provided under this section for the
replacement of a furnace or boiler described in clauses (i)
through (iv) of subparagraph (A) only if the new furnace or
boiler is installed in accordance with ANSI/ACCA Standard 5
QI - 2007.
(10) Automatic water temperature controllers that vary
boiler water temperature in response to changes in outdoor
temperature or the demand for heat, if the retrofit is to an
existing boiler and not in conjunction with a new boiler.
(11) Air-conditioner or heat-pump replacement with a new
unit that--
(A) is installed in accordance with ANSI/ACCA Standard 5
QI-2007; and
(B) meets or exceeds--
(i) in the case of an air-source conditioner, SEER 16 and
EER 13;
(ii) in the case of an air-source heat pump, SEER 15, EER
12.5, and HSPF 8.5; and
(iii) in the case of a geothermal heat pump, Energy Star
tier 2 efficiency requirements.
(12) Replacement of or with--
(A) a natural gas or propane water heater with a condensing
storage water heater with an energy factor of 0.80 or more or
a condensing storage water heater or tankless water heater
with a thermal efficiency of 90 percent or more;
(B) a tankless natural gas or propane water heater with an
energy factor of at least .82;
(C) a natural gas or propane storage water heater with an
energy factor of at least .67;
(D) an indirect water heater with an insulated storage tank
that--
(i) has a storage capacity of at least 30 gallons and is
insulated to at least R-16; and
(ii) is installed in conjunction with a qualifying boiler
described in paragraph (7);
(E) an electric water heater with an energy factor of 2.0
or more;
(F) a water heater with a solar hot water system that--
(i) is certified by the Solar Rating and Certification
Corporation under specification SRCC-OG-300; or
(ii) meets technical standards established by the State of
Hawaii; or
(G) a water heater installed in conjunction with a
qualifying geothermal heat pump described in paragraph (11)
that provides domestic water heating through the use of--
(i) year-round demand water heating capability; or
(ii) a desuperheater.
(13) Storm windows that--
(A) are installed on a least 5 single-glazed windows that
do not have storm windows;
(B) are installed in a home listed on or eligible for
listing in the National Register of Historic Places; and
(C) comply with any procedures that the Secretary may
establish for storm windows (including installation).
(14) Roof replacement that replaces at least 75 percent of
the roof area with energy-saving roof products certified
under the Energy Star program.
(15) Window films that are installed on at least 8 exterior
windows, doors, or skylights, or 75 percent of the total
exterior square footage of glass, whichever is more, in a
home with window films that--
(A) are certified by the National Fenestration Rating
Council;
(B) have a Solar Heat Gain Coefficient of 0.40 or less with
a visible light-to-solar heat gain ratio of at least 1.1 in
2009 International Energy Conservation Code climate zones 1
through 8; and
(C) are certified to reduce the U-factor of the National
Fenestration Rating Council dual pane reference window by
0.05 or greater and are only applied to nonmetal frame dual
pane windows in 2009 International Energy Conservation Code
climate zones 4 through 8.
(c) Installation Costs.--Measures described in paragraphs
(1) through (15) of subsection (b) shall include expenditures
for labor and other installation-related costs (including
venting system modification and condensate disposal) properly
allocable to the onsite preparation, assembly, or original
installation of the component.
(d) Amount of Rebate.--
(1) In general.--Except as provided in paragraphs (2)
through (4), the amount of a rebate provided under this
section shall be $1,000 per measure for the installation of
energy savings measures described in subsection (b)
(2) Higher rebate amount.--Except as provided in paragraph
(4), the amount of a rebate provided to the owner of a home
or designee under this section shall be $1,500 per measure
for--
(A) attic insulation and air sealing described in
subsection (b)(2);
(B) wall insulation described in subsection (b)(4);
(C) a heating system described in subsection (b)(9); and
(D) an air-conditioner or heat-pump replacement described
in subsection (b)(11).
(3) Lower rebate amount.--Except as provided in paragraph
(4), the amount of a rebate provided under this section shall
be--
(A) $125 per door for the installation of up to a maximum
of 2 Energy Star doors described in subsection (b)(7) for
each home;
(B) $125 per skylight for the installation of up to a
maximum of 2 Energy Star skylights described in subsection
(b)(8) for each home;
(C) $750 for a maximum of 1 natural gas or propane tankless
water heater described in subsection (b)(12)(B) for each
home;
(D) $450 for a maximum of 1 natural gas or propane storage
water heater described in subsection (b)(12)(C) for each
home;
(E) $250 for rim joist insulation described in subsection
(b)(5)(B);
(F) $50 for each storm window described in subsection
(b)(13);
(G) $500 for a desuperheater described in subsection
(b)(12)(G)(ii);
(H) $500 for a wood or pellet stove that has a heating
capacity of at least 28,000 BTU per hour (using the upper end
of the range listed in the EPA list of Certified Wood Stoves)
and meets all of the requirements of subsection (b)(9)(v)
other than the requirements in items (aa) and (bb) of
subsection (b)(9)(v)(I);
(I) $250 for an automatic water temperature controller
described in subsection (b)(10);
(J) $500 for a roof described in subsection (b)(14); and
(K) $500 for window films described in subsection (b)(15).
(4) Maximum amount.--The total amount of a rebate provided
to the owner of a home or designee under this section shall
not exceed the lower of--
(A) $3,000;
(B) the sum of the amounts per measure specified in
paragraphs (1) through (3);
(C) 50 percent of the total cost of the installed measures;
or
(D) the reduction in the price paid by the owner of the
home, relative to the price of the installed measures in the
absence of the Silver Star Home Energy Retrofit Program.
(e) Insulation Products Purchased Without Installation
Services.--
(1) In general.--A rebate shall be awarded under this
section for attic, wall, or crawl space insulation or air
sealing product if--
(A) the product--
(i) qualifies for a credit under section 25C of the
Internal Revenue Code of 1986 but is not the subject of a
claim for the credit;
(ii) is purchased by a homeowner for installation by the
homeowner in a home identified by the address of the
homeowner;
(iii) is identified and attributed to a specific home in a
submission by the vendor to a rebate aggregator;
(iv) is not part of--
(I) an energy savings measure described in paragraphs (6)
through (11) of subsection (b); and
(II) a retrofit for which a rebate is provided under the
Gold Star Home Energy Retrofit Program; and
(v) is not part of an energy savings measure described in
paragraphs (1) through (5) in subsection (b) for which the
homeowner received or will receive contracting services; and
(B) educational material on proper installation of the
product is provided to the homeowner, including material on
air sealing while insulating.
(2) Amount.--A rebate under this subsection shall be
awarded in an amount equal to 50 percent of the total cost of
the products described in paragraph (1), but not to exceed
$250 per home.
[[Page S4535]]
(f) Qualification for Rebate Under Silver Star Home Energy
Retrofit Program.--On submission of a claim by a rebate
aggregator to the system established under section 104, the
Secretary shall provide reimbursement to the rebate
aggregator for reduced-cost energy-efficiency measures
installed in a home, if--
(1) the measures undertaken for the retrofit are--
(A) eligible measures described on the list established
under subsection (b);
(B) installed properly in accordance with applicable
technical specifications; and
(C) installed by a qualified contractor;
(2) the amount of the rebate does not exceed the maximum
amount described in subsection (d)(4);
(3) not less than--
(A) 20 percent of the retrofits performed by each qualified
contractor under this section are randomly subject to a
third-party field verification of all work associated with
the retrofit by a quality assurance provider; or
(B) in the case of qualified contractor that uses a
certified workforce, 10 percent of the retrofits performed
under this section are randomly subject to a third-party
field verification of all work associated with the retrofit
by a quality assurance provider; and
(4)(A) the installed measures will be brought into
compliance with the specifications and quality standards for
the Home Star Retrofit Rebate Program, by the installing
qualified contractor, at no additional cost to the homeowner,
not later than 14 days after the date of notification of a
defect, if a field verification by a quality assurance
provider finds that corrective work is needed;
(B) a subsequent quality assurance visit is conducted to
evaluate the remedy not later than 7 days after notification
by the contractor that the defect has been corrected; and
(C) notification of disposition of the visit occurs not
later than 7 days after the date of that visit.
(g) Homeowner Complaints.--
(1) In general.--During the 1-year warranty period, a
homeowner may make a complaint under the quality assurance
program that compliance with the quality assurance
requirements of this section has not been achieved.
(2) Verification.--
(A) In general.--The quality assurance program shall
provide that, on receiving a complaint under paragraph (1),
an independent quality assurance provider shall conduct field
verification on the retrofit work performed by the
contractor.
(B) Administration.--A verification under this paragraph
shall be--
(i) in addition to verifications conducted under subsection
(f)(3); and
(ii) corrected in accordance with subsection (f)(4).
(h) Audits.--
(1) In general.--On making payment for a submission under
this section, the Secretary shall review rebate requests to
determine whether program requirements were met in all
respects.
(2) Incorrect payment.--On a determination of the Secretary
under paragraph (1) that a payment was made incorrectly to a
party, the Secretary may--
(A) recoup the amount of the incorrect payment; or
(B) withhold the amount of the incorrect payment from the
next payment made to the party pursuant to a subsequent
request.
SEC. 107. GOLD STAR HOME ENERGY RETROFIT PROGRAM.
(a) In General.--If the energy efficiency retrofit of a
home is carried out after the date of enactment of this Act
by an accredited contractor in accordance with this section,
a rebate shall be awarded for retrofits that achieve whole
home energy savings.
(b) Amount of Rebate.--Subject to subsection (e), the
amount of a rebate provided to the owner of a home or a
designee of the owner under this section shall be--
(1) $3,000 for a 20-percent reduction in whole home energy
consumption; and
(2) an additional $1,000 for each additional 5-percent
reduction up to the lower of--
(A) $8,000; or
(B) 50 percent of the total retrofit cost (including the
cost of audit and diagnostic procedures).
(c) Energy Savings.--
(1) In general.--Reductions in whole home energy
consumption under this section shall be determined by a
comparison of the simulated energy consumption of the home
before and after the retrofit of the home.
(2) Documentation.--The percent improvement in energy
consumption under this section shall be documented through--
(A)(i) the use of a whole home simulation software program
that has been approved as a commercial alternative under the
Weatherization Assistance Program for Low-Income Persons
established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.); or
(ii) a equivalent performance test established by the
Secretary, in consultation with the Administrator; or
(B)(i) the use of a whole home simulation software program
that has been approved under RESNET Publication No. 06-001
(or a successor publication approved by the Secretary);
(ii) an equivalent performance test established by the
Secretary; or
(iii) a State-certified equivalent rating network, as
specified by IRS Notice 2008-35; or
(iv) a HERS rating system required by State law.
(3) Monitoring.--The Secretary--
(A) shall continuously monitor the software packages used
for determining rebates under this section; and
(B) may disallow the use of software programs that
improperly assess energy savings.
(4) Assumptions and testing.--The Secretary may--
(A) establish simulation tool assumptions for the
establishment of the pre-retrofit energy use;
(B) require compliance with software performance tests
covering--
(i) mechanical system performance;
(ii) duct distribution system efficiency;
(iii) hot water performance; or
(iv) other measures; and
(C) require the simulation of pre-retrofit energy usage to
be bounded by metered pre-retrofit energy usage.
(5) Recommended measures.--The simulation tool shall have
the ability at a minimum to assess the savings associated
with all the measures for which incentives are specifically
provided under the Silver Star Home Energy Retrofit Program.
(d) Qualification for Rebate Under Gold Star Home Energy
Retrofit Program.--On submission of a claim by a rebate
aggregator to the system established under section 104, the
Secretary shall provide reimbursement to the rebate
aggregator for reduced-cost whole-home retrofits, if--
(1) the retrofit is performed by an accredited contractor;
(2) the amount of the reimbursement is not more than the
amount described in subsection (b);
(3) documentation described in subsection (c) is
transmitted with the claim;
(4) a home receiving a whole-home retrofit is subject to
random third-party field verification by a quality assurance
provider in accordance with subsection (e); and
(5)(A) the installed measures will be brought into
compliance with the specifications and quality standards for
the Home Star Retrofit Rebate Program, by the installing
qualified contractor, at no additional cost to the homeowner,
not later than 14 days after the date of notification of a
defect if a field verification by a quality assurance
provider finds that corrective work is needed;
(B) a subsequent quality assurance visit is conducted to
evaluate the remedy not later than 7 days after notification
by the contractor that the defect has been corrected; and
(C) notification of disposition of the visit occurs not
later than 7 days after the date of that visit.
(e) Verification.--
(1) In general.--Subject to paragraph (2), all work
installed in a home receiving a whole-home retrofit by an
accredited contractor under this section shall be subject to
random third-party field verification by a quality assurance
provider at a rate of--
(A) 15 percent; or
(B) in the case of work performed by an accredited
contractor using a certified workforce, 10 percent.
(2) Verification not required.--A home shall not be subject
to random third-party field verification under this section
if--
(A) a post-retrofit home energy rating is conducted by an
eligible certifier in accordance with--
(i) RESNET Publication No. 06-001 (or a successor
publication approved by the Secretary);
(ii) a State-certified equivalent rating network, as
specified in IRS Notice 2008-35; or
(iii) a HERS rating system required by State law;
(B) the eligible certifier is independent of the qualified
contractor or accredited contractor in accordance with RESNET
Publication No. 06-001 (or a successor publication approved
by the Secretary); and
(C) the rating includes field verification of measures.
(f) Homeowner Complaints.--
(1) In general.--A homeowner may make a complaint under the
quality assurance program during the 1-year warranty period
that compliance with the quality assurance requirements of
this section has not been achieved.
(2) Verification.--
(A) In general.--The quality assurance program shall
provide that, on receiving a complaint under paragraph (1),
an independent quality assurance provider shall conduct field
verification on the retrofit work performed by the
contractor.
(B) Administration.--A verification under this paragraph
shall be--
(i) in addition to verifications conducted under subsection
(e)(1); and
(ii) corrected in accordance with subsection (e).
(g) Audits.--
(1) In general.--On making payment for a submission under
this section, the Secretary shall review rebate requests to
determine whether program requirements were met in all
respects.
(2) Incorrect payment.--On a determination of the Secretary
under paragraph (1) that a payment was made incorrectly to a
party, the Secretary may--
(A) recoup the amount of the incorrect payment; or
(B) withhold the amount of the incorrect payment from the
next payment made to the party pursuant to a subsequent
request.
[[Page S4536]]
SEC. 108. GRANTS TO STATES AND INDIAN TRIBES.
(a) In General.--A State or Indian tribe that receives a
grant under subsection (d) shall use the grant for--
(1) administrative costs;
(2) oversight of quality assurance plans;
(3) development of ongoing quality assurance framework;
(4) establishment and delivery of financing pilots in
accordance with this title;
(5) coordination with existing residential retrofit
programs and infrastructure development to assist deployment
of the Home Star program;
(6) assisting in the delivery of services to rental units;
and
(7) the costs of carrying out the responsibilities of the
State or Indian tribe under the Silver Star Home Energy
Retrofit Program and the Gold Star Home Energy Retrofit
Program.
(b) Initial Grants.--Not later than 30 days after the date
of enactment of this Act, the Secretary shall make the
initial grants available under this section.
(c) Indian Tribes.--The Secretary shall reserve an
appropriate amount of funding to be made available to carry
out this section for each fiscal year to make grants
available to Indian tribes under this section.
(d) State Allotments.--From the amounts made available to
carry out this section for each fiscal year remaining after
the reservation required under subsection (c), the Secretary
shall make grants available to States in accordance with
section 115.
(e) Quality Assurance Programs.--
(1) In general.--A State or Indian tribe may use a grant
made under this section to carry out a quality assurance
program that is--
(A) operated as part of a State energy conservation plan
established under part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.);
(B) managed by the office or the designee of the office
that is--
(i) responsible for the development of the plan under
section 362 of that Act (42 U.S.C. 6322); and
(ii) to the maximum extent practicable, conducting an
existing energy efficiency program; and
(C) in the case of a grant made to an Indian tribe, managed
by an entity designated by the Indian tribe to carry out a
quality assurance program or a national quality assurance
program manager.
(2) Noncompliance.--If the Secretary determines that a
State or Indian tribe has not provided or cannot provide
adequate oversight over a quality assurance program to ensure
compliance with this title, the Secretary may--
(A) withhold further quality assurance funds from the State
or Indian tribe; and
(B) require that quality assurance providers operating in
the State or by the Indian tribe be overseen by a national
quality assurance program manager selected by the Secretary.
(f) Implementation.--A State or Indian tribe that receives
a grant under this section may implement a quality assurance
program through the State, the Indian tribe, or a third party
designated by the State or Indian tribe, including--
(1) an energy service company;
(2) an electric utility;
(3) a natural gas utility;
(4) a third-party administrator designated by the State or
Indian tribe; or
(5) a unit of local government.
(g) Public-private Partnerships.--A State or Indian tribe
that receives a grant under this section are encouraged to
form partnerships with utilities, energy service companies,
and other entities--
(1) to assist in marketing a program;
(2) to facilitate consumer financing;
(3) to assist in implementation of the Silver Star Home
Energy Retrofit Program and the Gold Star Home Energy
Retrofit Program, including installation of qualified energy
retrofit measures; and
(4) to assist in implementing quality assurance programs.
(h) Coordination of Rebate and Existing State-sponsored
Programs.--
(1) In general.--A State or Indian tribe shall, to the
maximum extent practicable, prevent duplication through
coordination of a program authorized under this title with--
(A) the Energy Star appliance rebates program authorized
under the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 115); and
(B) comparable programs planned or operated by States,
political subdivisions, electric and natural gas utilities,
Federal power marketing administrations, and Indian tribes.
(2) Existing programs.--In carrying out this subsection, a
State or Indian tribe shall--
(A) give priority to--
(i) comprehensive retrofit programs in existence on the
date of enactment of this Act, including programs under the
supervision of State utility regulators; and
(ii) using Home Star funds made available under this title
to enhance and extend existing programs; and
(B) seek to enhance and extend existing programs by
coordinating with administrators of the programs.
SEC. 109. QUALITY ASSURANCE FRAMEWORK.
(a) In General.--Not later than 180 days after the date
that the Secretary initially provides funds to a State under
this title, the State shall submit to the Secretary a plan to
implement a quality assurance program that covers all
federally assisted residential efficiency retrofit work
administered, supervised, or sponsored by the State.
(b) Implementation.--The State shall--
(1) develop a quality assurance framework in consultation
with industry stakeholders, including representatives of
efficiency program managers, contractors, and environmental,
energy efficiency, and labor organizations; and
(2) implement the quality assurance framework not later
than 1 year after the date of enactment of this Act.
(c) Components.--The quality assurance framework
established under this section shall include--
(1) a requirement that contractors be prequalified in order
to be authorized to perform federally assisted residential
retrofit work;
(2) maintenance of a list of prequalified contractors
authorized to perform federally assisted residential retrofit
work; and
(3) minimum standards for prequalified contractors that
include--
(A) accreditation;
(B) legal compliance procedures;
(C) proper classification of employees; and
(D) maintenance of records needed to verify compliance;
(4) targets and realistic plans for--
(A) the recruitment of small minority or women-owned
business enterprises;
(B) the employment of graduates of training programs that
primarily serve low-income populations with a median income
that is below 200 percent of the poverty line (as defined in
section 673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2), including any revision required by that
section)) by participating contractors; and
(5) a plan to link workforce training for energy efficiency
retrofits with training for the broader range of skills and
occupations in construction or emerging clean energy
industries.
(d) Noncompliance.--If the Secretary determines that a
State has not taken the steps required under this section,
the Secretary shall provide to the State a period of at least
90 days to comply before suspending the participation of the
State in the program.
SEC. 110. REPORT.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and
the Committee on Energy and Commerce of the House of
Representatives a report on the use of funds under this
title.
(b) Contents.--The report shall include a description of--
(1) the energy savings produced as a result of this title;
(2) the direct and indirect employment created as a result
of the programs supported by the funds provided under this
title;
(3) the specific entities implementing the energy
efficiency programs;
(4) the beneficiaries who received the efficiency
improvements;
(5) the manner in which funds provided under this title
were used;
(6) the sources (such as mortgage lenders, utility
companies, and local governments) and types of financing used
by the beneficiaries to finance the retrofit expenses that
were not covered by grants provided under this title; and
(7) the results of verification requirements; and
(8) any other information the Secretary considers
appropriate
(c) Noncompliance.--If the Secretary determines that a
rebate aggregator, State, or Indian tribe has not provided
the information required under this section, the Secretary
shall provide to the rebate aggregator, State, or Indian
tribe a period of at least 90 days to provide any necessary
information, subject to penalties imposed by the Secretary
for entities other than States and Indian tribes, which may
include withholding of funds or reduction of future grant
amounts.
SEC. 111. ADMINISTRATION.
(a) In General.--Subject to section 115(b), not later than
30 days after the date of enactment of this Act, the
Secretary shall provide such administrative and technical
support to rebate aggregators, States, and Indian tribes as
is necessary to carry out the functions designated to States
under this title.
(b) Appointment of Personnel.--Notwithstanding the
provisions of title 5, United States Code, governing
appointments in the competitive service and General Schedule
classifications and pay rates, the Secretary may appoint such
professional and administrative personnel as the Secretary
considers necessary to carry out this title.
(c) Rate of Pay.--The rate of pay for a person appointed
under subsection (a) shall not exceed the maximum rate
payable for GS-15 of the General Schedule under chapter 53 of
title 5, United States Code.
(d) Consultants.--Notwithstanding section 303 of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253), the Secretary may retain such consultants on a
noncompetitive basis as the Secretary considers necessary to
carry out this title.
(e) Contracting.--In carrying out this title, the Secretary
may waive all or part of any provision of the Competition in
Contracting Act of 1984 (Public Law 98-369; 98 Stat. 1175),
an amendment made by that Act, or the Federal Acquisition
Regulation on a
[[Page S4537]]
determination that circumstances make compliance with the
provisions contrary to the public interest.
(f) Regulations.--
(1) In general.--Notwithstanding section 553 of title 5,
United States Code, the Secretary may issue regulations that
the Secretary, in the sole discretion of the Secretary,
determines necessary to carry out the Home Star Retrofit
Rebate Program.
(2) Deadline.--If the Secretary determines that regulations
described in paragraph (1) are necessary, the regulations
shall be issued not later than 60 days after the date of the
enactment of this Act.
(g) Information Collection.--Chapter 35 of title 44, United
States Code, shall not apply to any information collection
requirement necessary for the implementation of the Home Star
Retrofit Rebate Program.
(h) Adjustment of Rebate Amounts.--Effective beginning on
the date that is 180 days after the date of enactment of this
Act, the Secretary may, after not less than 30 days public
notice, prospectively adjust the rebate amounts provided in
this section based on--
(1) the use of the Silver Star Home Energy Retrofit Program
and the Gold Star Home Energy Retrofit Program; and
(2) other program data.
SEC. 112. TREATMENT OF REBATES.
(a) In General.--For purposes of the Internal Revenue Code
of 1986, rebates received for eligible measures under this
title--
(1) shall not be considered taxable income to a homeowner;
(2) shall prohibit the consumer from applying for a tax
credit allowed under section 25C, 25D, or 25E of that Code
for the same eligible measures performed in the home of the
homeowner; and
(3) shall be considered a credit allowed under section 25C,
25D, or 25E of that Code for purposes of any limitation on
the amount of the credit under that section.
(b) Notice.--
(1) In general.--A participating contractor shall provide
notice to a homeowner of the provisions of subsection (a)
before eligible work is performed in the home of the
homeowner.
(2) Notice in rebate form.--A homeowner shall be notified
of the provisions of subsection (a) in the appropriate rebate
form developed by the Secretary, in consultation with the
Secretary of the Treasury.
(3) Availability of rebate form.--A participating
contractor shall obtain the rebate form on a designated
website in accordance with section 102(b)(1)(A)(iii).
SEC. 113. PENALTIES.
(a) In General.--It shall be unlawful for any person to
violate this title (including any regulation issued under
this title), other than a violation as the result of a
clerical error.
(b) Civil Penalty.--Any person who commits a violation of
this title shall be liable to the United States for a civil
penalty in an amount that is not more than the higher of--
(1) $15,000 for each violation; or
(2) 3 times the value of any associated rebate under this
title.
(c) Administration.--The Secretary may--
(1) assess and compromise a penalty imposed under
subsection (b); and
(2) require from any entity the records and inspections
necessary to enforce this title.
(d) Fraud.--In addition to any civil penalty, any person
who commits a fraudulent violation of this title shall be
subject to criminal prosecution.
SEC. 114. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.
(a) Definitions.--In this section:
(1) Eligible participant.--The term ``eligible
participant'' means a homeowner who receives financial
assistance from a qualified financing entity to carry out
energy efficiency or renewable energy improvements to an
existing home or other residential building of the homeowner
in accordance with the Gold Star Home Energy Retrofit Program
or the Silver Star Home Energy Retrofit Program.
(2) Program.--The term ``program'' means the Home Star
Energy Efficiency Loan Program established under subsection
(b).
(3) Qualified financing entity.--The term ``qualified
financing entity'' means a State, political subdivision of a
State, tribal government, electric utility, natural gas
utility, nonprofit or community-based organization, energy
service company, retailer, or any other qualified entity
that--
(A) meets the eligibility requirements of this section; and
(B) is designated by the Governor of a State in accordance
with subsection (e).
(4) Qualified loan program mechanism.--The term ``qualified
loan program mechanism'' means a loan program that is--
(A) administered by a qualified financing entity; and
(B) principally funded--
(i) by funds provided by or overseen by a State; or
(ii) through the energy loan program of the Federal
National Mortgage Association.
(b) Establishment.--The Secretary shall establish a Home
Star Energy Efficiency Loan Program under which the Secretary
shall make funds available to States to support financial
assistance provided by qualified financing entities for
making, to existing homes, energy efficiency improvements
that qualify under the Gold Star Home Energy Retrofit Program
or the Silver Star Home Energy Retrofit Program.
(c) Eligibility of Qualified Financing Entities.--To be
eligible to participate in the program, a qualified financing
entity shall--
(1) offer a financing product under which eligible
participants may pay over time for the cost to the eligible
participant (after all applicable Federal, State, local, and
other rebates or incentives are applied) of making
improvements described in subsection (b);
(2) require all financed improvements to be performed by
contractors in a manner that meets minimum standards that are
at least as stringent as the standards provided under
sections 106 and 107; and
(3) establish standard underwriting criteria to determine
the eligibility of program applicants, which criteria shall
be consistent with--
(A) with respect to unsecured consumer loan programs,
standard underwriting criteria used under the energy loan
program of the Federal National Mortgage Association; or
(B) with respect to secured loans or other forms of
financial assistance, commercially recognized best practices
applicable to the form of financial assistance being provided
(as determined by the designated entity administering the
program in the State).
(d) Allocation.--In making funds available to States for
each fiscal year under this section, the Secretary shall use
the formula used to allocate funds to States to carry out
State energy conservation plans established under part D of
title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
(e) Qualified Financing Entities.--Before making funds
available to a State under this section, the Secretary shall
require the Governor of the State to provide to the Secretary
a letter of assurance that the State--
(1) has 1 or more qualified financing entities that meet
the requirements of this section;
(2) has established a qualified loan program mechanism
that--
(A) includes a methodology to ensure credible energy
savings or renewable energy generation;
(B) incorporates an effective repayment mechanism, which
may include--
(i) on-utility-bill repayment;
(ii) tax assessment or other form of property assessment
financing;
(iii) municipal service charges;
(iv) energy or energy efficiency services contracts;
(v) energy efficiency power purchase agreements;
(vi) unsecured loans applying the underwriting requirements
of the energy loan program of the Federal National Mortgage
Association; or
(vii) alternative contractual repayment mechanisms that
have been demonstrated to have appropriate risk mitigation
features; and
(C) will provide, in a timely manner, all information
regarding the administration of the program as the Secretary
may require to permit the Secretary to meet the reporting
requirements of subsection (h).
(f) Use of Funds.--Funds made available to States under the
program may be used to support financing products offered by
qualified financing entities to eligible participants for
eligible energy efficiency work, by providing--
(1) interest rate reductions;
(2) loan loss reserves or other forms of credit
enhancement;
(3) revolving loan funds from which qualified financing
entities may offer direct loans; or
(4) other debt instruments or financial products
necessary--
(A) to maximize leverage provided through available funds;
and
(B) to support widespread deployment of energy efficiency
finance programs.
(g) Use of Repayment Funds.--In the case of a revolving
loan fund established by a State described in subsection
(f)(3), a qualified financing entity may use funds repaid by
eligible participants under the program to provide financial
assistance for additional eligible participants to make
improvements described in subsection (b) in a manner that is
consistent with this section or other such criteria as are
prescribed by the State.
(h) Program Evaluation.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit to
Congress a program evaluation that describes--
(1) how many eligible participants have participated in the
program;
(2) how many jobs have been created through the program,
directly and indirectly;
(3) what steps could be taken to promote further deployment
of energy efficiency and renewable energy retrofits;
(4) the quantity of verifiable energy savings, homeowner
energy bill savings, and other benefits of the program; and
(5) the performance of the programs carried out by
qualified financing entities under this section, including
information on the rate of default and repayment.
(i) Credit Support for Financing Programs.--Section 1705 of
the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Energy efficiency projects, including projects to
retrofit residential, commercial, and industrial buildings,
facilities, and equipment, including financing programs that
finance the retrofitting of residential, commercial, and
industrial buildings, facilities, and equipment.''.
(2) by redesignating subsection (e) as subsection (f); and
[[Page S4538]]
(3) by inserting after subsection (d) the following:
``(e) Credit Support for Financing Programs.--
``(1) In general.--In the case of programs that finance the
retrofitting of residential, commercial, and industrial
buildings, facilities, and equipment described in subsection
(a)(4), the Secretary may--
``(A) offer loan guarantees for portfolios of debt
obligations; and
``(B) purchase or make commitments to purchase portfolios
of debt obligations.
``(2) Term.--Notwithstanding section 1702(f), the term of
any debt obligation that receives credit support under this
subsection shall require full repayment over a period not to
exceed the lesser of--
``(A) 30 years; and
``(B) the projected weighted average useful life of the
measure or system financed by the debt obligation or
portfolio of debt obligations (as determined by the
Secretary).
``(3) Underwriting.--The Secretary may--
``(A) delegate underwriting responsibility for portfolios
of debt obligations under this subsection to financial
institutions that meet qualifications determined by the
Secretary; and
``(B) determine an appropriate percentage of loans in a
portfolio to review in order to confirm sound underwriting.
``(4) Administration.--Subsections (c) and (d)(3) of
section 1702 and subsection (c) of this section shall not
apply to loan guarantees made under this subsection.''.
(j) Termination of Effectiveness.--The authority provided
by this section and the amendments made by this section
terminates effective on the date that is 2 years after the
date of enactment of this Act.
SEC. 115. FUNDING.
(a) Authorization of Appropriations.--
(1) In general.--Subject to subsection (j), there is
authorized to be appropriated to carry out this title
$5,000,000,000 for the period of fiscal years 2010 through
2012.
(2) Maintenance of funding.--Funds provided under this
section shall supplement and not supplant any Federal and
State funding provided to carry out energy efficiency
programs in existence on the date of enactment of this Act.
(b) Grants to States.--
(1) In general.--Of the amount provided under subsection
(a), $380,000,000 or not more than 6 percent, whichever is
less, shall be used to carry out section 108.
(2) Distribution to state energy offices.--
(A) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall--
(i) provide to State energy offices 25 percent of the funds
described in paragraph (1); and
(ii) determine a formula to provide the balance of funds to
State energy offices through a performance-based system.
(B) Allocation.--
(i) Allocation formula.--Funds described in subparagraph
(A)(i) shall be made available in accordance with the
allocation formula for State energy conservation plans
established under part D of title III of the Energy Policy
and Conservation Act (42 U.S.C.6321 et seq.).
(ii) Performance-based system.--The balance of the funds
described in subparagraph (A)(ii) shall be made available in
accordance with the performance-based system described in
subparagraph (A)(ii).
(c) Quality Assurance Costs.--
(1) In general.--Of the amount provided under subsection
(a), not more than 5 percent shall be used to carry out the
quality assurance provisions of this title.
(2) Management.--Funds provided under this subsection shall
be overseen by--
(A) State energy offices described in subsection (b)(2); or
(B) other entities determined by the Secretary to be
eligible to carry out quality assurance functions under this
title.
(3) Distribution to quality assurance providers or rebate
aggregators.--The Secretary shall use funds provided under
this subsection to compensate quality assurance providers, or
rebate aggregators, for services under the Silver Star Home
Energy Retrofit Program or the Gold Star Home Energy Retrofit
Program through the Federal Rebate Processing Center based on
the services provided to contractors under a quality
assurance program and rebate aggregation.
(4) Incentives.--The amount of incentives provided to
quality assurance providers or rebate aggregators shall be--
(A)(i) in the case of the Silver Star Home Energy Retrofit
Program--
(I) $25 per rebate review and submission provided under the
program; and
(II) $150 for each field inspection conducted under the
program; and
(ii) in the case of the Gold Star Home Energy Retrofit
Program--
(I) $35 for each rebate review and submission provided
under the program; and
(II) $300 for each field inspection conducted under the
program; or
(B) such other amounts as the Secretary considers necessary
to carry out the quality assurance provisions of this title.
(d) Tracking of Rebates and Expenditures.--Of the amount
provided under subsection (a), not more than $150,000,000
shall be used for costs associated with database systems to
track rebates and expenditures under this title and related
administrative costs incurred by the Secretary.
(e) Public Education and Coordination.--Of the amount
provided under subsection (a), not more than $10,000,000
shall be used for costs associated with public education and
coordination with the Federal Energy Star program incurred by
the Administrator.
(f) Indian Tribes.--Of the amount provided under subsection
(a), the Secretary shall reserve not more than 3 percent to
make grants available to Indian tribes under this section.
(g) Silver Star Home Energy Retrofit Program.--
(1) In general.--In the case of the Silver Star Home Energy
Retrofit Program, of the amount provided under subsection (a)
after funds are provided in accordance with subsections (b)
through (e), $2,751,000,000 for the 1-year period beginning
on the date of enactment of this Act (less any amounts
required under subsection (f)) shall be used by the Secretary
to provide rebates and incentives authorized under the Silver
Star Home Energy Retrofit Program.
(2) Products purchased without installation services.--Of
the amounts made available for the Silver Star Home Energy
Retrofit Program under this section, not more than
$250,000,000 shall be made available for rebates under
section 106(e).
(h) Gold Star Home Energy Retrofit Program.--In the case of
the Gold Star Home Energy Retrofit Program, of the amount
provided under subsection (a) after funds are provided in
accordance with subsections (b) through (e), $1,349,000,000
for the 2-year period beginning on the date of enactment of
this Act (less any amounts required under subsection (f))
shall be used by the Secretary to provide rebates and
incentives authorized under the Gold Star Home Energy
Retrofit Program.
(i) Program Review and Backstop Funding.--
(1) Review and analysis.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall perform a State-
by-State analysis and review the distribution of Home Star
retrofit rebates under this title.
(B) Rental units.--Not later than 120 days after the date
of enactment of this Act, the Secretary shall perform a
review and analysis, with input and review from the Secretary
of Housing and Urban Development, of the procedures for
delivery of services to rental units.
(2) Adjustment.--The Secretary may allocate technical
assistance funding to assist States that, as determined by
the Secretary--
(A) have not sufficiently benefitted from the Home Star
Retrofit Rebate Program; or
(B) in which rental units have not been adequately served.
(j) Return of Undisbursed Funds.--
(1) Silver star home energy retrofit program.--If the
Secretary has not disbursed all the funds available for
rebates under the Silver Star Home Energy Retrofit Program by
the date that is 1 year after the date of enactment of this
Act, any undisbursed funds shall be made available to the
Gold Star Home Energy Retrofit Program.
(2) Gold star home energy retrofit program.--If the
Secretary has not disbursed all the funds available for
rebates under the Gold Star Home Energy Retrofit Program by
the date that is 2 years after the date of enactment of this
Act, any undisbursed funds shall be returned to the Treasury.
(k) Financing.--Of the amounts allocated to the States
under subsection (b), not less than $200,000,000 shall be
used to carry out the financing provisions of this title in
accordance with section 114.
TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS
SEC. 201. PERFORMANCE BASED ENERGY IMPROVEMENTS FOR
NONBUSINESS PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.
``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to 50 percent of
the amount of qualified home energy efficiency expenditures
paid or incurred by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) Dollar limitation.--
``(A) In general.--The amount of the credit allowed under
subsection (a) with respect to any individual for any taxable
year shall not exceed the amount determined under
subparagraph (B) with respect to the principal residence of
such individual.
``(B) Amount determined.--
``(i) In general.--Subject to clause (iv), the amount
determined under this subparagraph is the base amount
increased by the amount determined under clause (iii).
``(ii) Base amount.--For purposes of this subparagraph, the
base amount is--
``(I) $3,000, in the case of a residence the construction
of which is completed before January 1, 2000, and
``(II) $2,000, in the case of a residence the construction
of which is completed after December 31, 1999.
``(iii) Increase amount.--The amount determined under this
clause is--
``(I) in the case of a residence described in clause
(ii)(I) which has a rating system score equal to the rating
system score which corresponds to the IECC Standard Reference
Design for a home of the size and in the climate zone of such
residence, $1,000, and
[[Page S4539]]
``(II) in the case of any residence with a rating system
score which is lower than that which corresponds to such IECC
Standard Reference Design by not less than 5 points, $500 for
each 5 points by which the rating system score which
corresponds to such IECC Standard Reference Design exceeds
the rating system score of such residence (in addition to the
amount provided under clause (i), if applicable).
``(iv) Limitation.--In no event shall the amount determined
under this subparagraph exceed $8,000 with respect to any
individual.
``(2) Limitation based on amount of tax.--In the case of
taxable years to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section and sections 23, 24, and 25B) and
section 27 for the taxable year.
``(c) Qualified Home Energy Efficiency Expenditures.--For
purposes of this section--
``(1) In general.--The term `qualified home energy
efficiency expenditures' means any amount paid or incurred
for a qualified whole home energy efficiency retrofit,
including the cost of audit diagnostic procedures, of a
principal residence of the taxpayer which is located in the
United States.
``(2) Qualified whole home energy efficiency retrofit.--
``(A) In general.--The term `qualified whole home energy
efficiency retrofit' means a retrofit of an existing
residence if, after such retrofit, such residence--
``(i) has a rating system score of not greater than--
``(I) 100, determined under the HERS Index, in the case of
a residence the construction of which is completed before
January 1, 2000, and
``(II) the rating system score which corresponds to the
IECC Standard Reference Design for a home of the size and in
the climate zone of such residence, in the case of a
residence the construction of which is completed after
December 31, 1999, or
``(ii) achieves a degree of energy efficiency improvement
which is equivalent to the standard applicable to such
residence under clause (i), as determined by the Secretary.
For purposes of the preceding sentence, the HERS Index is the
HERS Index established by the Residential Energy Services
Network, as in effect on January 1, 2011.
``(B) Accreditation rule.--A retrofit shall not be treated
as a qualified whole home energy efficiency retrofit unless
such retrofit is conducted by a company which is accredited
by the Building Performance Institute, or which fulfills an
equivalent standard as determined by the Secretary.
``(C) Determination of rating system score or equivalent.--
``(i) In general.--Subject to clause (ii), the rating
system score of a residence, or the equivalent described in
subparagraph (A)(ii), shall be determined by an auditor or
rater certified by the Residential Energy Services Network or
the Building Performance Institute.
``(ii) Secretarial determination.--At the discretion of the
Secretary, the Secretary may, in consultation with the
Secretary of Energy, determine an alternative standard for
certification of an auditor or rater for purposes of
determining the rating system score (or equivalent described
in subparagraph (A)(ii)) of a residence. If the Secretary
establishes such an alternative standard, clause (i) shall
cease to apply unless the Secretary determines otherwise.
``(D) Regulations.--Not later than December 31, 2011, in
consultation with the Secretary, the Secretary of Energy
shall prescribe regulations which specify the costs with
respect to energy improvements which may be taken into
account under this paragraph as part of a qualified whole
home energy efficiency retrofit.
``(3) No double benefit.--
``(A) In general.--No credit shall be allowed under this
section for any taxable year in which the taxpayer elects the
credit under section 25C.
``(B) No double benefit for certain expenditures.--The term
`qualified home energy efficiency expenditures' shall not
include any expenditure for which a deduction or credit is
otherwise allowed to the taxpayer under this chapter for the
taxable year or with respect to which the taxpayer receives
any Federal rebate.
``(4) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121, except
that--
``(A) no ownership requirement shall be imposed, and
``(B) the period for which a building is treated as used as
a principal residence shall also include the 60-day period
ending on the 1st day on which it would (but for this
subparagraph) first be treated as used as a principal
residence.
``(d) Rating System Score.--For purposes of this section--
``(1) In general.--Subject to paragraph (2), the rating
system score shall be the score assigned under the HERS Index
established by the Residential Energy Services Network.
``(2) Secretarial determination.--At the discretion of the
Secretary, the Secretary may, in consultation with the
Secretary of Energy, determine an alternative rating system
(including an alternative system based on the HERS Index
established by the Residential Energy Services Network). If
the Secretary establishes such an alternative rating system,
the rating system score with respect to any residence shall
be the score assigned under such alternative rating system.
``(e) IECC Standard Reference Design.--
``(1) In general.--The term `IECC Standard Reference
Design' means the Standard Reference Design determined under
the International Energy Conservation Code in effect for the
taxable year in which the credit under this section is
determined.
``(2) Limitation to residences constructed after effective
date of most recent code.--No credit shall be allowed under
this section with respect to a principal residence the
construction of which is completed after the effective date
of the International Energy Conservation Code in effect for
the taxable year for which such credit would otherwise be
determined.
``(f) Special Rules.--For purposes of this section, rules
similar to the rules under paragraphs (4), (5), (6), (7), and
(8) of section 25D(e) and section 25C(e)(2) shall apply.
``(g) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section with respect to any
expenditure with respect to any property, the increase in the
basis of such property which would (but for this subsection)
result from such expenditure shall be reduced by the amount
of the credit so allowed.
``(h) Election Not To Claim Credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.
``(i) Termination.--This section shall not apply with
respect to any costs paid or incurred after December 31,
2013.''.
(b) Conforming Amendments.--
(1) Section 26(a)(1) of the Internal Revenue Code of 1986
is amended by inserting ``25E,'' after ``25D''.
(2) Section 1016(a) of such Code 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 25E(g).''.
(3) Section 6501(m) of such Code is amended by inserting
``25E(h),'' after ``section''.
(4) The table of sections for subpart A of part IV of
subchapter A chapter 1 of such Code is amended by inserting
after the item relating to section 25D the following new
item:
``Sec. 25E. Performance based energy improvements.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2010.
______
By Mr. REID. (for himself, Mr. Ensign, Mr. Harkin, Mr. Tester,
Mr. Bennet, and Ms. Klobuchar):
S. 3438. A bill to promote clean energy infrastructure for rural
communities; to the Committee on Finance.
Mr. REID. Mr. President, in 1935, President Franklin Delano Roosevelt
signed the Rural Electrification Act to bring electricity to the
sparsely-populated rural areas of our vast Nation. Today, with advances
in renewable energy from the sun, the wind, water, and geothermal
energy beneath the Earth's surface, our rural communities are ready to
produce clean, renewable electricity and sell it to cities and towns.
Just as our national highway system grew out of the network of farm
roads to bring agricultural products to market, our electric
transmission system needs connections to rural areas to bring our
abundant rural renewable energy resources to load centers. For example,
Nye and Lincoln counties in Nevada have the potential to generate more
solar and wind energy than their small populations can use. Without
transmission to connect these rural areas to load centers, they cannot
fully develop their local renewable energy industry and are losing out
on important opportunities to create jobs and diversify their
economies.
That is why I am introducing two bills today to give rural
communities more options to finance the clean energy infrastructure we
need to develop our rich renewable resources. These two bills would
help rural communities fund clean energy infrastructure, which will
create many short and long term jobs and attract badly needed
investment in rural Nevada's struggling economy. While Nevada is in an
especially good position to benefit from this bill, I am pleased to be
joined by Senators Ensign, Harkin, Tester, Michael Bennet, and
Klobuchar whose states also have renewable energy resources stranded by
a lack of transmission.
Existing government loan and tax-exempt bond programs are available
to finance rural renewable generation, but not to finance the
connections between that generation and the high-voltage
[[Page S4540]]
transmission system that carries electricity to load centers. These
proposed bills would provide three ways to finance important
transmission for rural renewable generators--through the USDA Rural
Utilities Service, through modifications to the Clean Renewable Energy
Bond, CREB, program, and through modifications to the Exempt Facility
Bonds program.
As we have seen with the electric and telephone infrastructure
financed by the USDA Rural Utilities Service since 1935, energy
infrastructure is crucial to economic development for rural
communities. Natural gas pipelines crisscross rural communities, but
small towns near these pipelines lack natural gas today. Some of these
towns, including some in Nevada, have plans for natural gas
distribution systems and local economic development that depend on
access to natural gas. Federal programs to provide loans, loan
guarantees, or tax-exempt bonds do not fit these plans.
The USDA does not currently finance these types of projects. My bill
would allow the USDA to finance natural gas systems to connect rural
communities to natural gas pipelines. Access to natural gas will
provide these communities with a clean, efficient energy source, and
encourage economic development.
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. 3438
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 ``Clean Transmission for Rural
Communities Act of 2010''.
SEC. 2. TRANSMISSION FOR RENEWABLES.
(a) Clarification of Qualified Facilities for Clean
Renewable Energy Bonds.--
(1) In general.--Section 54C(d)(1) of the Internal Revenue
Code of 1986 is amended by inserting ``, or a facility
primarily for the purpose of interconnecting one or more such
qualified facilities to a high-voltage transmission line''
after ``electric company''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after the date of enactment of
this Act.
(b) Tax-exempt Financing of Certain Electric Transmission
Facilities.--
(1) In general.--Subsection (a) of section 142 of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``or'' at the end of paragraph (14),
(B) by striking the period at the end of paragraph (15) and
inserting ``, or'', and
(C) by adding at the end the following new paragraph:
``(16) qualified electric transmission facilities.''.
(2) Definition.--Section 142 of such Code is amended by
adding at the end the following new subsection:
``(n) Qualified Electric Transmission Facilities.--
``(1) In general.--For purposes of subsection (a)(16), the
term `qualified electric transmission facility' means any
electric transmission facility which is--
``(A) owned by--
``(i) a State or political subdivision of a State, or any
agency, authority, or instrumentality of any of the
foregoing, providing electric service, directly or indirectly
to the public, or
``(ii) a State or political subdivision of a State
expressly authorized under State law to finance and own
electric transmission facilities; and
``(B) primarily for the purpose of interconnecting one or
more renewable energy facilities to a high-voltage
transmission line.
``(2) Termination.--Subsection (a)(16) shall not apply with
respect to any bond issued after December 31, 2011.''.
(3) Effective date.--The amendments made by this subsection
shall apply to bonds issued after the date of enactment of
this Act.
______
By Mr. REID (for himself, Mr. Ensign, Mr. Harkin, Mr. Tester, Mr.
Bennet, and Ms. Klobuchar):
S. 3439. A bill to promote clean energy infrastructure for rural
communities; to the Committee on Agriculture, Nutrition, and Forestry.
Mr. REID. 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. 3439
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 ``Clean Energy Infrastructure
for Rural Communities Act of 2010''.
SEC. 2. ELECTRIC LOANS FOR RENEWABLE ENERGY.
Section 317 of the Rural Electrification Act of 1936 (7
U.S.C. 940g) is amended--
(1) in subsection (b)--
(A) by striking ``for electric generation'' and inserting
``for--
``(1) electric generation'';
(B) by striking the period at the end and inserting``;
and''; and
(C) by adding at the end the following:
``(2) transmission facilities primarily for the purpose of
interconnecting one or more renewable energy facilities to a
high-voltage transmission line.''; and
(2) by striking subsection (c).
SEC. 3. RURAL NATURAL GAS INFRASTRUCTURE.
Section 310B(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(a)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraph (B) as subparagraph (C);
and
(B) by inserting after subparagraph (A) the following:
``(B) Natural gas.--The term `natural gas' means --
``(i) unmixed natural gas; or
``(ii) any mixture of natural and artificial gas.''; and
(2) in paragraph (2)--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) by redesignating subparagraph (D) as subparagraph (E);
and
(C) by inserting after subparagraph (C) the following:
``(D) improving the economic and environmental climate by
encouraging the development and construction of
infrastructure to provide access to natural gas in rural
communities; and''.
______
By Mr. GRASSLEY:
S. 3440. A bill to amend the Internal Revenue Code of 1986 to extend
the incentives for biodiesel and renewable diesel; to the Committee on
Finance.
Mr. GRASSLEY. 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. 3440
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 ``Emergency Biodiesel Tax
Incentive Extension Act of 2010''.
SEC. 2. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A of the Internal Revenue
Code of 1986 is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) of the Internal
Revenue Code of 1986 is amended by striking ``December 31,
2009'' and inserting ``December 31, 2010''.
(2) Subparagraph (B) of section 6427(e)(6) of the Internal
Revenue Code of 1986 is amended by striking ``December 31,
2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2009.
______
By Mr. DURBIN (himself and Mr. Gregg):
S. 3441. A bill to provide high-quality public charter school options
for students by enabling such public charter schools to expand and
replicate; to the Committee on Health, Education, Labor, and Pensions.
Mr. DURBIN. Mr. President, I rise today to introduce legislation
designed to improve educational opportunities for struggling students.
The All Students Achieving Through Reform Act, or All-STAR Act, would
provide Federal resources to the most successful charter schools to
help them grow and replicate.
Last week, I visited the KIPP Ascend Charter School in Chicago. You
might have heard of the KIPP charter schools. The first KIPP school was
founded in Texas by two Teach for America teachers. Mike Feinberg and
Dave Levin wanted to start a school that would inspire high achievement
for students living in disadvantaged communities. The 82 KIPP schools
nationwide focus on high expectations, an intense academic curriculum,
expanded school days and years, parental involvement, and high quality
teachers. The results are impressive. While less than one in five low-
income students attends college nationally, KIPP's college
matriculation rate stands at more than 85 percent for students who
complete the 8th grade at KIPP. More than 90 percent of KIPP alumni go
on to college-preparatory high schools. Collectively, they have earned
millions of
[[Page S4541]]
dollars in scholarships and financial aid since 2000.
I saw this success when I visited Chicago's KIPP school. Students at
KIPP Ascend are actively engaged in learning and their teachers are
energetic and inspiring. The students there are outscoring their peers
in other Chicago Public Schools, and 100 percent of the 8th graders who
have graduated from KIPP Ascend have been accepted to college-
preparatory high schools.
Right now there is only one KIPP school in Chicago, but there should
be more. The bill I am introducing today with Senator Gregg would help
make that possible. Currently, federal funding for charter schools can
only be used to create new schools, not expand or replicate existing
schools. My bill would create new grants within the existing charter
school program to fund the expansion and replication of the most
successful charter schools. Schools in Chicago, like KIPP and Noble
Street, that have achieved amazing results with their students will be
able to apply for federal grants to expand their schools to additional
grades or replicate the model to a new school. Successful charters
across the country will be able to grow more easily, providing better
educational opportunities to thousands of students.
The bill also incentivizes the adoption of strong charter school
policies by states. We know that successful charter schools thrive when
they have autonomy, freedom to grow, and strong accountability based on
meeting performance targets. The bill would give grant priority to
States that provide that environment. The bill also requires new levels
of charter school authorizer reporting and accountability to ensure
that good charter schools are able to succeed while bad charter schools
are improved or shut down.
This bill will improve educational opportunities for students across
the Nation. Charter schools represent some of the brightest spots in
urban education today, and successful models have the full support of
the President and Secretary Duncan. We need to help these schools grow
and bring their best lessons into our regular public schools so that
all students can benefit. This bill has the support of more than 25
education organizations including some of the Nation's highest
performing charter networks like KIPP and Green Dot. Supporting the
growth of successful charter schools should be a part of the
conversation when we take up reauthorization of the Elementary and
Secondary Education Act. I thank Senator Gregg and Representative Polis
in the House for joining me in this effort.
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. 3441
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 ``All Students Achieving
through Reform Act of 2010'' or ``All-STAR Act of 2010''.
SEC. 2. CHARTER SCHOOL EXPANSION AND REPLICATION.
(a) In General.--Subpart 1 of part B of title V of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7221 et seq.) is amended--
(1) by striking section 5212;
(2) by redesignating section 5210 as section 5211; and
(3) by inserting after section 5209 the following:
``SEC. 5210. CHARTER SCHOOL EXPANSION AND REPLICATION.
``(a) Purpose.--It is the purpose of this section to
support State efforts to expand and replicate high-quality
public charter schools to enable such schools to serve
additional students, with a priority to serve those students
who attend identified schools or schools with a low
graduation rate.
``(b) Support for Proven Charter Schools and Increasing the
Supply of High-quality Charter Schools.--
``(1) Grants authorized.--From the amounts appropriated
under section 5200 for any fiscal year, the Secretary shall
award grants, on a competitive basis, to eligible entities to
enable the eligible entities to make subgrants to eligible
public charter schools under subsection (e)(1) and carry out
the other activities described in subsection (e), in order to
allow the eligible public charter schools to serve additional
students through the expansion and replication of such
schools.
``(2) Amount of grants.--In determining the grant amount to
be awarded under this subsection to an eligible entity, the
Secretary shall consider--
``(A) the number of eligible public charter schools under
the jurisdiction or in the service area of the eligible
entity that are operating;
``(B) the number of openings for new students that could be
created in such schools with such grant;
``(C) the number of students eligible for free or reduced
price lunches under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.) who are on waiting lists
for charter schools under the jurisdiction or in the service
area of the eligible entity, and other information with
respect to charter schools in such jurisdiction or the
service area that suggest the interest of parents in charter
school enrollment for their children;
``(D) the number of students attending identified schools
or schools with a low graduation rate in the State or area
where an eligible entity intends to replicate or expand
eligible public charter schools; and
``(E) the success of the eligible entity in overseeing
public charter schools and the likelihood of continued or
increased success because of the grant under this section.
``(3) Duration of grants.--A grant under this section shall
be for a period of not more than 5 years, except that an
eligible entity receiving such grant may, at the discretion
of the Secretary, continue to expend grant funds after the
end of the grant period.
``(c) Application Requirements.--
``(1) Application requirements.--To be considered for a
grant under this section, an eligible entity shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
``(2) Contents.--The application described in paragraph (1)
shall include, at a minimum, the following:
``(A) Record of success.--Documentation of the record of
success of the eligible entity in overseeing or operating
public charter schools, including--
``(i) the performance of public charter school students on
the academic assessments described in section 1111(b)(3) of
the State where such schools are located, disaggregated by--
``(I) economic disadvantage;
``(II) race and ethnicity;
``(III) disability status; and
``(IV) status as a student with limited English
proficiency;
``(ii) the status of such schools under section 1116 in
making adequate yearly progress or as identified schools; and
``(iii) in the case of public charter schools that are
secondary schools, the graduation rates and rates of college
acceptance, enrollment, and persistence of students, where
possible.
``(B) Plan.--A plan for--
``(i) replicating and expanding eligible public charter
schools operated or overseen by the eligible entity;
``(ii) identifying eligible public charter schools, or
networks of eligible public charter schools, to receive
subgrants under this section;
``(iii) increasing the number of openings in eligible
public charter schools for students attending identified
schools and schools with a low graduation rate;
``(iv) ensuring that eligible public charter schools
receiving a subgrant under this section enroll students
through a random lottery for admission, unless the charter
school is using the subgrant to expand the school to serve
additional grades, in which case such school may reserve
seats in the additional grades for--
``(I) each student enrolled in the grade preceding each
such additional grade;
``(II) siblings of students enrolled in the charter school,
if such siblings desire to enroll in such grade; and
``(III) children of the charter school's founders, staff,
or employees;
``(v)(I) in the case of an eligible entity described in
subparagraph (A) or (C) of subsection (k)(4), the manner in
which the eligible entity will work with identified schools
and schools with a low graduation rate that are eligible to
enroll students in a public charter school receiving a
subgrant under this section and that are under the eligible
entity's jurisdiction, and the local educational agencies
serving such schools, to--
``(aa) engage in community outreach, provide information in
a language that the parents can understand, and communicate
with parents of students at identified schools and schools
with a low graduation rate who are eligible to attend a
public charter school receiving a subgrant under this section
about the opportunity to enroll in or transfer to such
school, in a manner consistent with section 444 of the
General Education Provisions Act (commonly known as the
`Family Educational Rights and Privacy Act of 1974'); and
``(bb) ensure that a student can transfer to an eligible
public charter school if the public charter school such
student was attending in the previous school year is no
longer an eligible public charter school; and
``(II) in the case of an eligible entity described in
subparagraph (B) or (D) of subsection (k)(4), the manner in
which the eligible entity will work with the local
educational agency to carry out the activities described in
items (aa) and (bb) of subclause (I); and
``(vi) disseminating to public schools under the
jurisdiction or in the service area of the eligible entity,
in a manner consistent with section 444 of the General
Education Provisions Act (commonly known as the `Family
Educational Rights and Privacy Act of 1974'),
[[Page S4542]]
the best practices, programs, or strategies learned by
awarding subgrants to eligible public charter schools under
this section, with particular emphasis on the best practices
with respect to--
``(I) focusing on closing the achievement gap; or
``(II) successfully addressing the education needs of low-
income students.
``(C) Charter school information.--The number of--
``(i) eligible public charter schools that are operating in
the State in which the eligible entity intends to award
subgrants under this section;
``(ii) public charter schools approved to open or likely to
open during the grant period in such State;
``(iii) available openings in eligible public charter
schools in such State that could be created through the
replication or expansion of such schools if the grant is
awarded to the eligible entity;
``(iv) students on public charter school waiting lists (if
such lists are available) in--
``(I) the State in which the eligible entity intends to
award subgrants under this section; and
``(II) each local educational agency serving an eligible
public charter school that may receive a subgrant under this
section from the eligible entity; and
``(v) students, and the percentage of students, in a local
educational agency who are attending eligible public charter
schools that may receive a subgrant under this section from
the eligible entity.
``(D) Traditional public school information.--In the case
of an eligible entity that is a State educational agency or
local educational agency, a list of the following schools
under the jurisdiction of the eligible entity, including the
name and location of each such school, the number and
percentage of students under the jurisdiction of the eligible
entity who are attending such school, and such demographic
and socioeconomic information as the Secretary may require:
``(i) Identified schools.
``(ii) Schools with a low graduation rate.
``(E) Assurance.--In the case of an eligible entity
described in subsection (k)(4)(A), an assurance that the
eligible entity will include in the notifications provided
under section 1116(c)(6) to parents of each student enrolled
in a school served by a local educational agency identified
for school improvement or corrective action under paragraph
(1) or (7) of section 1116(c), information (in a language
that the parents can understand) about the eligible public
charter schools receiving subgrants under this section.
``(d) Priorities for Awarding Grants.--
``(1) In general.--In awarding grants under this section,
the Secretary shall give priority to an eligible entity
that--
``(A) serves or plans to serve a large percentage of low-
income students from identified schools or public schools
with a low graduation rate;
``(B) oversees or plans to oversee one or more eligible
public charter schools;
``(C) provides evidence of effective monitoring of the
academic success of students who attend public charter
schools under the jurisdiction of the eligible entity;
``(D) in the case of an eligible entity that is a local
educational agency under State law, has a cooperative
agreement under section 1116(b)(11); and
``(E) is under the jurisdiction of, or plans to award
subgrants under this section in, a State that--
``(i) ensures that all public charter schools (including
such schools served by a local educational agency and such
schools considered to be a local educational agency under
State law) receive, in a timely manner, the Federal, State,
and local funds to which such schools are entitled under
applicable law;
``(ii) does not have a cap that restricts the growth of
public charter schools in the State;
``(iii) provides funding (such as capital aid distributed
through a formula or access to revenue generated bonds, and
including funding for school facilities) on a per-pupil basis
to public charter schools commensurate with the amount of
funding (including funding for school facilities) provided to
traditional public schools;
``(iv) provides strong evidence of support for public
charter schools and has in place innovative policies that
support academically successful charter school growth;
``(v) authorizes public charter schools to offer early
childhood education programs, including prekindergarten, in
accordance with State law;
``(vi) ensures that each public charter school in the
State--
``(I) has a high degree of autonomy over the public charter
school's budget and expenditures;
``(II) has a written performance contract with an
authorized public chartering agency that ensures that the
school has an independent governing board with a high degree
of autonomy; and
``(III) in the case of an eligible public charter school
receiving a subgrant under this section, amends its charter
to reflect the growth activities described in subsection (e);
``(vii) has an appeals process for the denial of an
application for a charter school;
``(viii) provides that an authorized public chartering
agency that is not a local educational agency, such as a
State chartering board, is available for each individual or
entity seeking to operate a charter school pursuant to such
State law;
``(ix) allows any public charter school to be a local
educational agency in accordance with State law;
``(x) ensures that each authorized public chartering agency
in the State submits annual reports to the State educational
agency, and makes such reports available to the public, on
the performance of the schools authorized or approved by such
public chartering agency, which reports shall include--
``(I) the authorized public chartering agency's strategic
plan for authorizing or approving public charter schools and
any progress toward achieving the objectives of the strategic
plan;
``(II) the authorized public chartering agency's policies
for authorizing or approving public charter schools,
including how such policies examine a school's--
``(aa) financial plan and policies, including financial
controls and audit requirements;
``(bb) plan for identifying and successfully (in compliance
with all applicable laws and regulations) serving students
with disabilities, students who are English language
learners, students who are academically behind their peers,
and gifted students; and
``(cc) capacity and capability to successfully launch and
subsequently operate a public charter school, including the
backgrounds of the individuals applying to the agency to
operate such school and any record of such individuals
operating a school;
``(III) the authorized public chartering agency's policies
for renewing, not renewing, and revoking a charter school's
charter, including the role of student academic achievement
in such decisions;
``(IV) the authorized public chartering agency's
transparent, timely, and effective process for closing down
academically unsuccessful public charter schools;
``(V) the academic performance of each operating public
charter school authorized or approved by the authorized
public chartering agency, including the information reported
by the State in the State annual report card under section
1111(h)(1)(C) for such school;
``(VI) the status of the authorized public chartering
agency's charter school portfolio, by identifying all charter
schools served by the public chartering agency in each of the
following categories: approved (but not yet open), operating,
renewed, transferred, revoked, not renewed, voluntarily
closed, or never opened;
``(VII) the authorizing functions (such as approval,
monitoring, and oversight) performed by the authorized public
chartering agency to the public charter schools authorized or
approved by such agency, including an itemized accounting of
the actual costs of such functions; and
``(VIII) the services purchased (such as accounting,
transportation, and data management and analysis) from the
authorized public chartering agency by the public charter
schools authorized or approved by such agency, including an
itemized accounting of the actual costs of such services; and
``(xi) has or will have (within 1 year after receiving a
grant under this section) a State policy and process for
overseeing and reviewing the effectiveness and quality of the
State's authorized public chartering agencies, including--
``(I) a process for reviewing and evaluating the
performance of the authorized public chartering agencies in
authorizing or approving charter schools, including a process
that enables the authorized public chartering agencies to
respond to any State concerns; and
``(II) any other necessary policies to ensure effective
charter school authorizing in the State in accordance with
the principles of quality charter school authorizing, as
determined by the State in consultation with the charter
school community and stakeholders.
``(2) Special rule.--In awarding grants under this section,
the Secretary may determine how the priorities described in
paragraph (1) will apply to the different types of eligible
entities defined in subsection (k)(4).
``(e) Use of Funds.--An eligible entity receiving a grant
under this section shall use the grant funds for the
following:
``(1) Subgrants.--
``(A) In general.--To award subgrants, in such amount as
the eligible entity determines is appropriate, to eligible
public charter schools to replicate or expand such schools.
``(B) Application.--An eligible public charter school
desiring to receive a subgrant under this subsection shall
submit an application to the eligible entity at such time, in
such manner, and containing such information as the eligible
entity may require.
``(C) Uses of funds.--An eligible public charter school
receiving a subgrant under this subsection shall use the
subgrant funds to provide for an increase in the school's
enrollment of students through the replication or expansion
of the school, which may include use of funds to--
``(i) support the physical expansion of school buildings,
including financing the development of new buildings and
campuses to meet increased enrollment needs;
``(ii) pay costs associated with hiring additional teachers
to serve additional students;
``(iii) provide transportation to additional students to
and from the school, including providing transportation to
students who transfer to the school under a cooperative
agreement established under section 1116(b)(11);
``(iv) purchase instructional materials, implement teacher
and principal professional development programs, and hire
additional non-teaching staff; and
[[Page S4543]]
``(v) support any necessary activities associated with the
school carrying out the purposes of this section.
``(D) Priority.--In awarding subgrants under this
subsection, an eligible entity shall give priority to an
eligible public charter school--
``(i) that has significantly closed any achievement gap on
the State academic assessments described in section
1111(b)(3) among the groups of students described in section
1111(b)(2)(C)(v) by improving scores;
``(ii) that--
``(I)(aa) ranks in at least the top 25th percentile of the
schools in the State, as ranked by the percentage of students
in the proficient or advanced level of achievement on the
State academic assessments in mathematics and reading or
language arts described in section 1111(b)(3); or
``(bb) has an average student score on an examination
(chosen by the Secretary) that is at least in the 60th
percentile in reading and at least in the 75th percentile in
mathematics; and
``(II) serves a high-need student population and is
eligible to participate in a schoolwide program under section
1114, with additional priority given to schools that serve,
as compared to other schools that have submitted an
application under this subsection--
``(aa) a greater percentage of low-income students; and
``(bb) a greater percentage of not less than 2 groups of
students described in section 1111(b)(2)(C)(v)(II); and
``(iii) that meets the criteria described in clause (i) and
serves low-income students who have transferred to such
school under a cooperative agreement described in section
1116(b)(11).
``(E) Duration of subgrant.--A subgrant under this
subsection shall be awarded for a period of not more than 5
years, except that an eligible public charter school
receiving a subgrant under this subsection may, at the
discretion of the eligible entity, continue to expend
subgrant funds after the end of the subgrant period.
``(2) Facility financing and revolving loan fund.--An
eligible entity may use not more than 25 percent of the
amount of the grant funds received under this section to
establish a reserve account described in subsection (f) to
facilitate public charter school facility acquisition and
development by--
``(A) conducting credit enhancement initiatives (as
referred to in subpart 2) in support of the development of
facilities for eligible public charter schools serving
students;
``(B) establishing a revolving loan fund for use by an
eligible public charter school receiving a subgrant under
this subsection from the eligible entity under such terms as
may be determined by the eligible entity to allow such school
to expand to serve additional students;
``(C) facilitating, through direct expenditure or
financing, the acquisition or development of public charter
school buildings by the eligible entity or an eligible public
charter school receiving a subgrant under this subsection
from the eligible entity, which may be used as both permanent
locations for eligible public charter schools or incubators
for growing charter schools; or
``(D) establishing a partnership with 1 or more community
development financial institutions (as defined in section 103
of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702)) or other mission-
based financial institutions to carry out the activities
described in subparagraphs (A), (B), and (C).
``(3) Administrative tasks, dissemination activities, and
outreach.--
``(A) In general.--An eligible entity may use not more than
7.5 percent of the grant funds awarded under this section to
cover administrative tasks, dissemination activities, and
outreach.
``(B) Nonprofit assistance.--In carrying out the
administrative tasks, dissemination activities, and outreach
described in subparagraph (A), an eligible entity may
contract with an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3))
and exempt from tax under section 501(a) of such Code (26
U.S.C. 501(a)).
``(f) Reserve Account.--
``(1) In general.--To assist eligible entities in the
development of new public charter school buildings or
facilities for eligible public charter schools, an eligible
entity receiving a grant under this section may, in
accordance with State and local law, directly or indirectly,
alone or in collaboration with others, deposit the amount of
funds described in subsection (e)(2) in a reserve account
established and maintained by the eligible entity.
``(2) Investment.--Funds received under this section and
deposited in the reserve account established under this
subsection shall be invested in obligations issued or
guaranteed by the United States or a State, or in other
similarly low-risk securities.
``(3) Reinvestment of earnings.--Any earnings on funds
received under this subsection shall be deposited in the
reserve account established under this section and used in
accordance with the purpose described in subsection (a).
``(4) Recovery of funds.--
``(A) In general.--The Secretary, in accordance with
chapter 37 of title 31, United States Code, shall collect--
``(i) all funds in a reserve account established by an
eligible entity under this subsection if the Secretary
determines, not earlier than 2 years after the date the
eligible entity first received funds under this section, that
the eligible entity has failed to make substantial progress
carrying out the purpose described in paragraph (1); or
``(ii) all or a portion of the funds in a reserve account
established by an eligible entity under this subsection if
the Secretary determines that the eligible entity has
permanently ceased to use all or a portion of funds in such
account to accomplish the purpose described in paragraph (1).
``(B) Exercise of authority.--The Secretary shall not
exercise the authority provided under subparagraph (A) to
collect from any eligible entity any funds that are being
properly used to achieve such purpose.
``(C) Procedures.--Sections 451, 452, and 458 of the
General Education Provisions Act shall apply to the recovery
of funds under subparagraph (A).
``(D) Construction.--This paragraph shall not be construed
to impair or affect the authority of the Secretary to recover
funds under part D of the General Education Provisions Act.
``(5) Reallocation.--Any funds collected by the Secretary
under paragraph (4) shall be awarded to eligible entities
receiving grants under this section in the next fiscal year.
``(g) Financial Responsibility.--The financial records of
each eligible entity and eligible public charter school
receiving a grant or subgrant, respectively, under this
section shall be maintained in accordance with generally
accepted accounting principles and shall be subject to an
annual audit by an independent public accountant.
``(h) National Evaluation.--
``(1) National evaluation.--From the amounts appropriated
under section 5200, the Secretary shall conduct an
independent, comprehensive, and scientifically sound
evaluation, by grant or contract and using the highest
quality research design available, of the impact of the
activities carried out under this section on--
``(A) student achievement; and
``(B) other areas, as determined by the Secretary.
``(2) Report.--Not later than 4 years after the date of the
enactment of the All Students Achieving through Reform Act of
2010, and biannually thereafter, the Secretary shall submit
to Congress a report on the results of the evaluation
described in paragraph (1).
``(i) Reports.--Each eligible entity receiving a grant
under this section shall prepare and submit to the Secretary
the following:
``(1) Report.--A report that contains such information as
the Secretary may require concerning use of the grant funds
by the eligible entity, including the academic achievement of
the students attending eligible public charter schools as a
result of the grant. Such report shall be submitted before
the end of the 4-year period beginning on the date of
enactment of the All Students Achieving through Reform Act of
2010 and every 2 years thereafter.
``(2) Performance information.--Such performance
information as the Secretary may require for the national
evaluation conducted under subsection (h)(1).
``(j) Inapplicability.--The provisions of sections 5201
through 5209 shall not apply to the program under this
section.
``(k) Definitions.--In this section:
``(1) Adequate yearly progress.--The term `adequate yearly
progress' has the meaning given such term in a State's plan
in accordance with section 1111(b)(2)(C).
``(2) Administrative tasks, dissemination activities, and
outreach.--The term `administrative tasks, dissemination
activities, and outreach' includes costs and activities
associated with--
``(A) recruiting and selecting students to attend eligible
public charter schools;
``(B) outreach to parents of students enrolled in
identified schools or schools with low graduation rates;
``(C) providing information to such parents and school
officials at such schools regarding eligible public charter
schools receiving subgrants under this section;
``(D) necessary oversight of the grant program under this
section; and
``(E) initiatives and activities to disseminate the best
practices, programs, or strategies learned in eligible public
charter schools to other public schools operating in the
State where the eligible entity intends to award subgrants
under this section.
``(3) Charter school.--The term `charter school' means--
``(A) a charter school, as defined in section 5211(1); or
``(B) a school that meets the requirements of such section,
except for subparagraph (D), and provides prekindergarten or
adult education services.
``(4) Eligible entity.--The term `eligible entity' means--
``(A) a State educational agency;
``(B) an authorized public chartering agency;
``(C) a local educational agency that has authorized or is
planning to authorize a public charter school; or
``(D) an organization that has an organizational mission
and record of success supporting the replication and
expansion of high-quality charter schools and is--
``(i) described in section 501(c)(3) of the Internal
Revenue Code of 1986 (26 U.S.C. 501(c)(3)); and
``(ii) exempt from tax under section 501(a) of such Code
(26 U.S.C. 501(a)).
``(5) Eligible public charter school.--The term `eligible
public charter school' means a charter school, including a
public charter
[[Page S4544]]
school that is being developed by a developer, that--
``(A) has made adequate yearly progress for the last 2
consecutive school years; and
``(B) in the case of a public charter school that is a
secondary school, has, for the most recent school year for
which data is available, met or exceeded the graduation rate
required by the State in order to make adequate yearly
progress for such year.
``(6) Identified school.--The term `identified school'
means a school identified for school improvement, corrective
action, or restructuring under paragraph (1), (7), or (8) of
section 1116(b).
``(7) Local educational agency.--The term `local
educational agency' includes any charter school that is a
local educational agency, as determined by State law.
``(8) Low-income student.--The term `low-income student'
means a student eligible for free or reduced price lunches
under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
``(9) Graduation rate.--The term `graduation rate' has the
meaning given the term in section 1111(b)(2)(C)(vi), as
clarified in section 200.19(b)(1) of title 34, Code of
Federal Regulations.
``(10) School year.--The term `school year' has the meaning
given such term in section 12(d) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1760(d)).
``(11) Traditional public school.--The term `traditional
public school' does not include any charter school, as
defined in section 5211.''.
(b) Authorization of Appropriations.--Part B of title V of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7221 et seq.) is amended--
(1) by striking section 5231; and
(2) by inserting before subpart 1 the following:
``SEC. 5200. AUTHORIZATION OF APPROPRIATIONS FOR SUBPARTS 1
AND 2.
``(a) In General.--There are authorized to be appropriated
to carry out subparts 1 and 2, $700,000,000 for fiscal year
2011 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(b) Allocation.--In allocating funds appropriated under
this section for any fiscal year, the Secretary shall
consider--
``(1) the relative need among the programs carried out
under sections 5202, 5205, 5210, and subpart 2; and
``(2) the quality of the applications submitted for such
programs.''.
(c) Conforming Amendments.--The Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
(1) in section 2102(2) (20 U.S.C. 6602(2)), by striking
``5210'' and inserting ``5211'';
(2) in section 5204(e) (20 U.S.C. 7221c(e)), by striking
``5210(1)'' and inserting ``5211(1)'';
(3) in section 5211(1) (as redesignated by subsection
(a)(1)) (20 U.S.C. 7221i(1)), by striking ``The term'' and
inserting ``Except as otherwise provided, the term'';
(4) in section 5230(1) (20 U.S.C. 7223i(1)), by striking
``5210'' and inserting ``5211''; and
(5) in section 5247(1) 20 U.S.C. 7225f(1)), by striking
``5210'' and inserting ``5211''.
(d) Table of Contents.--The table of contents of the
Elementary and Secondary Education Act of 1965 is amended--
(1) by inserting before the item relating to subpart 1 of
part B of title V the following:
``Sec. 5200. Authorization of appropriations for subparts 1 and 2.'';
(2) by striking the items relating to sections 5210 and
5211; and
(3) by inserting after the item relating to section 5209
the following:
``Sec. 5210. Charter school expansion and replication.
``Sec. 5211. Definitions.''.
______
By Ms. SNOWE (for herself, Mr. Cardin, and Ms. Landrieu):
S. 3444. A bill to require small business training for contracting
officers; to the Committee on Small Business and Entrepreneurship.
Ms. SNOWE. Mr. President, as Ranking Member of the Senate Committee
on Small Business and Entrepreneurship, I rise today, during National
Small business Week, along with my colleague Senator Cardin, to
introduce the Small Business Training in Federal Contracting
Certification Act. This vital piece of legislation builds upon the
Small Business Contracting Revitalization Act, S. 2989, which passed
unanimously out of the Small Business Committee on March 4, and would
require the development of small business training for contracting
officials. The bill we introduce today would take an additional step by
requiring contracting officials to successfully complete small business
training prior to receiving certification in Federal contracting.
During these devastating economic times, with small business owners
struggling to retain jobs, much less create new jobs, it is paramount
that small businesses have a fair opportunity to contract with Federal
Agencies, because the Federal Government is the largest buyer of goods
and services in the world, spending over $500 billion in fiscal year
2009 alone. I remain frankly dismayed by the myriad ways the Federal
Government has time and again egregiously failed to meet its statutory,
government-wide small business ``goaling'' requirements that 23 percent
of all Federal procurement dollars must be allocated to small
contracting firms. This legislation would help the Federal Government
to meet--and even exceed--its 23 percent goal, because it would require
investing time and training in contracting officials who make the
ultimate determination on contract awards be trained in small business
procurement issues.
Contracting officials have a great deal of responsibility. They
provide the Federal government with expertise when buying goods and
services to enable agencies to achieve their mission by fairly and
reasonably obligating taxpayer dollars while simultaneously addressing
our Nation's socio-economic needs. I have heard from constituents and
others in the contracting community that contracting officials do not
understand their duty to provide opportunities to small businesses to
the maximum extent practicable. So, it is imperative that we provide
contracting officials the tools they need to bolster small business
participation in Federal contracting--to include training on small
business government contracting set-aside programs, understanding size
standards and the North American Industry Classification System codes
and how they apply to the contract award process, conducting market
research, as well as all of the Small Business Administration's
resources and programs available to them.
Small businesses are the engine of our economy and in this time of
economic hardship, the Federal Government must provide our Nation's
entrepreneurs with every opportunity to succeed. Federal contracting
can be an instrumental part of a larger strategy for broadening small
businesses' customer base and creating jobs. In my leadership capacity
on the Senate Small Business Committee, I have long been a champion of
removing barriers to small businesses seeking entry into the Federal
marketplace. Through the years, I have introduced numerous bills that
combat contract bundling, mandate recurrent small business size
standard adjustments, ensure equal opportunity to compete for Federal
contracts among the various socio-economic small businesses groups, and
reduce fraud and abuse in SBA's small business contracting programs.
The Federal Government's inability to consistently meet all of its
small business contracting goals is unjustifiable. Only one category of
small business contracting goals--small disadvantaged businesses--has
been met, while the goals for the three other programs--historically
underutilized business zones, HUBZone, small businesses, women-owned
small businesses, and service-disabled veteran-owned small businesses--
has never been achieved. It is inconceivable as to why this remains a
problem year after year, especially since contracts awarded using
American Recovery and Reinvestment Act dollars have demonstrated that
attainment of these goals is possible.
In conclusion, I believe that requiring certification training for
Federal contracting officers will help the Government meet the
statutory small business contracting goals and will increase small
business access to Federal contracts.
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. 3444
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 ``Small Business Training in
Federal Contracting Certification Act of 2010''.
SEC. 2. SMALL BUSINESS TRAINING.
Section 37(f)(3) of the Office of Federal Procurement
Policy Act (41 U.S.C. 433(f)) is amended--
(1) by striking ``For each career path,'' and inserting the
following:
``(A) In general.--For each career path,''; and
(2) by adding at the end the following:
``(B) Certification program.--
``(i) In general.--The Administrator shall establish a
certification program for acquisition personnel. The
certification program shall be carried out through the
Federal Acquisition Institute.
``(ii) Small business training.--The certification program
under this subparagraph shall include training regarding--
[[Page S4545]]
``(I) small business government contracting set-aside
programs, including--
``(aa) programs for HUBZone small business concerns, small
business concerns owned and controlled by service-disabled
veterans, and small business concerns owned and controlled by
women (as those terms are defined in section 3 of the Small
Business Act (15 U.S.C. 632));
``(bb) programs for socially and economically disadvantaged
small business concerns (as defined in section 8(a) of the
Small Business Act (15 U.S.C. 637(a))); and
``(cc) contracting under the Small Business Innovation
Research Program and the Small Business Technology Transfer
Program (as those terms are defined in section 9(e) of the
Small Business Act (15 U.S.C. 638(e)));
``(II) determining small business size standards and using
North American Industry Classification System codes in
relation to contracting set-aside programs and subcontracting
goals; and
``(III) any other issue relating to contracting with small
business concerns (as defined under section 3 of the Small
Business Act (15 U.S.C. 632)) determined appropriate by the
Administrator.''.
______
By Mr. HATCH:
S. 3445. A bill to amend the Internal Revenue Code of 1986 to allow
an above-the-line deduction for certain professional development and
other expenses of elementary and secondary school teachers and for
certain certification expenses of individuals becoming science,
technology, engineering, or math teachers; to the Committee on Finance.
Mr. HATCH. Mr. President, I rise today to introduce legislation
designed to increase tax fairness for America's primary and secondary
school teachers.
Our public school teachers are some of the unheralded heroes of our
society. These women and men dedicate their careers to educating the
young people of America. School teachers labor in often difficult and
even dangerous circumstances. In most places, including in my home
state of Utah, the salary of the average public school teacher is
significantly below the national average.
For a variety of economic and organizational reasons, schools across
the nation are experiencing difficulties in recruiting teachers--
especially in the fields of math and science. There are at least two
sources to this problem. First, schools are experiencing high levels of
turnover related to retirement, relocation, and attrition. Second,
there is an insufficient supply of new qualified math and science
teachers coming in to the schools to compensate for the turnover.
As a result of these factors, 31 percent of secondary schools across
the nation report difficulties in filling math and science faculty
positions. This teacher recruitment problem is especially troubling
because it disproportionately affects small schools in urban and rural
areas, especially those with limited access to funding.
Unfortunately, the problems of retention and recruitment of public
school teachers are exacerbated by the unfair tax treatment these
professionals currently receive under our tax law. Specifically,
teachers are greatly disadvantaged by the lack of deductibility of the
total amount of out-of-pocket costs of classroom materials that
practically all teachers find themselves supplying, as well as by the
inability to deduct their professional development expenses. Let me
explain.
As with many other professionals, most elementary and secondary
school teachers regularly incur expenses to keep themselves current in
their fields of knowledge. These include subscriptions to journals and
other periodicals as well as the cost of courses and seminars designed
to improve their knowledge or teaching skills. For example, in order to
be certified by the National Board for Professional Teaching Standards,
NBPTS, a teacher must pay a fee of $2,500. Expenditures like these are
necessary to keep our teachers up to date on the latest ideas,
techniques, and trends so that they can provide our children with the
best education possible.
Furthermore, almost all teachers find themselves spending not
insignificant amounts of money to provide basic classroom materials for
their students. Because of tight education budgets, most schools do not
provide 100 percent of the material teachers need to adequately present
their lessons. New teachers in their first and second years are
especially susceptible to a large financial burden as they must start
from scratch in establishing a curriculum and classroom for their
students.
I realize that employees in many fields incur expenses for
professional development and out-of-pocket expenses. In many cases,
however, these costs are reimbursed by the employer. This is seldom the
case with school teachers. Other professionals who are self-employed
are generally able to fully deduct these types of expenses.
Under the current tax law, unreimbursed expenses for all employees
are deductible generally, but only as miscellaneous itemized
deductions. However, there are two practical hurdles that effectively
make these expenses non-deductible for most teachers. The first hurdle
is that the total amount of a taxpayer's deductible miscellaneous
deductions must exceed 2 percent of gross income before they begin to
be deductible.
The second hurdle is that the amount in excess of the 2 percent
floor, if any, combined with all other deductions of the taxpayer, must
exceed the standard deduction before the teacher can itemize. Only
about one-third of taxpayers have enough deductions to itemize. The
unfortunate effect of these two limitations is that, as a practical
matter, only a small proportion of teachers are able to deduct their
professional development and out-of-pocket supplies expenses.
Let me illustrate this unfair situation with an example. Let us
consider the case of a first-year teacher in Utah, whom we will refer
to as Michelle. Michelle is newly married. She and her husband together
expect to earn $48,000 this year. As a brand-new teacher, Michelle has
none of the classroom decorations, materials, or curriculum aides that
veteran teachers have accumulated. In an effort to quickly collect some
necessary items for her classroom, a new teacher like Michelle will
probably spend close to $1,500 of her own money. She will not be
reimbursed for any of these expenses by the school district.
Under current law, Michelle's expenditures are deductible, subject to
the two limitations I mentioned. The first limitation is that her
expenses must exceed 2 percent of her and her husband's joint income
before they begin to be deductible. Two percent of $48,000 is $960.
Thus, only $540 of her $1,500 total expense is potentially deductible--
that portion that exceeds $960.
As a married taxpayer, Michelle's standard deduction this year is
$11,400. Her total itemized deductions, including the $540 in qualified
miscellaneous deductions for her professional expenses and out-of-
pocket classroom supplies, will fall far short of the standard
deduction threshold. Therefore, not even the $540 of the original
$1,500 in out-of-pocket costs is deductible for Michelle. What the
first limitation did not block, the second one did, and Michelle gets
no deduction at all for these expenses under the current law.
The entry-level employees in the teaching field are the first- and
second-year teachers like Michelle, who receive the lowest relative
salary and yet often incur the greatest school-related expenses. These
expenses place a heavy burden on our teachers and can act as a
significant barrier to entry to the teaching profession. Many of these
new teachers are renting and fresh out of college, and are thus very
unlikely to be able to itemize their deductions. Therefore, without the
ability to itemize, the teachers with the greatest need of tax relief
are the ones least likely to receive it.
This problem is not isolated to first-year teachers. Veteran
educators, like Kristen Adamson, also an elementary school teacher in
Utah, have also expressed their concerns about this tax inequity.
Kristen is preparing for a class of 35 fifth-graders next year--the
most she's ever had. She, like most teachers, feels that it is her duty
to provide all of her students with the materials they will need to
successfully complete their school work. There are few careers that I
know of in which employees take similar initiative.
This year, due to limited state funding, Kristen will be forced to
choose between a class set of colored pencils or a class set of
crayons. Whatever the district does not provide, Kristen will be forced
to purchase herself. Further, the school district provides only one
[[Page S4546]]
notebook per student, but her pupils require a minimum of four each to
organize their work. With 35 students, these costs can add up very
quickly. Kristen typically does not have enough deductions to itemize
and therefore, like most teachers, will receive little or no tax
relief.
As you can see, public school educators are at a marked disadvantage
under the current tax law, and they deserve better treatment. Not only
is the situation morally unacceptable, it is aggravating to our teacher
retention and recruitment problems.
I have been fighting to pass legislation that will help alleviate
this long-standing problem for almost a decade. In 2001, I first
introduced the Tax Equity for School Teachers Act. This legislation
would have provided an unlimited tax deduction for the out-of-pocket
expenses school teachers incur to acquire necessary training and
materials.
Rather than being available only to those who are able to itemize
their deductions, this bill would have made these expenses ``above-the-
line'' deductions, meaning they would be deductible whether or not the
teacher itemized on their tax return.
Unfortunately, only a part of this bill was enacted. The 2001 tax act
included an above the-line deduction for $250 for the costs of
classroom expenses. While this was a step in the right direction, it
was essentially a symbolic gesture as teachers typically spend far more
than $250 on school-related expenses. This deduction has expired and
has been renewed several times, but it expired again at the end of last
year. It is not clear when Congress is going to extend it.
The bill I am introducing today would do three things. First, it
would reinstate the above-the-line deduction for teachers' out-of-
pocket expenses for classroom supplies, make it permanent, and remove
the $250 cap. Second, it would provide an unlimited deduction for the
professional development expenses for school teachers. Finally, to
assist in the recruitment of teachers in the most-needed fields, it
would provide an unlimited deduction for the cost of professionals in
the fields of math, science, and technology to certify to become public
school teachers.
Under my bill, first-year teacher Michelle would be allowed to deduct
all $1,500 of her professional development and classroom supplies
expenses, whether she itemized or not. Similarly, Kristen would be able
to deduct all of the expenses she incurred to provide materials for her
students. This would help provide tax equity and a measure of much-
needed tax relief for scores of underpaid professionals. It would also
help retain current public school teachers and attract new ones to the
field.
Some might argue that such a generous deduction would be giving
teachers preferential treatment. I disagree. Most organizations provide
training and supplies for their employees that are fully deductible to
the organization and non-taxable to the employee. Yet, public teachers
pay for training out of their own pocket, as is the case with NBPTS
certification.
Others may question the wisdom of my bill granting an unlimited tax
deduction. Why not place a limit or cap on the amount that may be
deducted, some might ask. Again, I respectfully disagree with such
critics. It is important to keep in mind the difference between a tax
deduction and a tax credit. My bill calls for tax deductions, which
essentially act as a cost-sharing arrangement between the teacher and
the government. Deductions reduce the amount of income that is subject
to tax. A credit, on the other hand, is a dollar-for-dollar reduction
in the amount of tax that is due.
With a tax deduction, a public school teacher is not receiving a cash
subsidy or reimbursement for his or her expenses. Rather, he or she is
merely obtaining a reduction in the amount of income that is taxed.
Thus, the most benefit a teacher would receive under my bill would be a
35 percent reduction in the cost of professional development, supplies,
or certification expenses. For the vast majority of teachers, the
amount would be far less than 35 percent, because they are in lower tax
brackets. This means that the teacher is still responsible for paying
for the biggest portion of these costs. In other words, this bill does
not provide an incentive for teachers to spend unnecessary funds; it
simply provides a discount for teachers who use their common sense and
spend their money appropriately. If anything, this deduction is not
generous enough, but it would go a long way toward providing help for
these dedicated professionals.
Support for mathematics and science education at all levels is
necessary to improve the global competitiveness of the United States in
science and energy technology. I endorse the efforts of some of my
colleagues to encourage more of our best and brightest students who
choose these fields of study. Sup ort for qualified STEM teachers,
Science, Technology, Engineering, and Mathematics, is equally
important. If we are successful in increasing the supply of STEM
students, we will need to take drastic measures to increase the already
strained supply of STEM teachers. This bill would provide incentives
for these professionals to enter the teaching profession by allowing
expenses in connection with teacher licensing and certification to be
fully deductible, above the line, the same as professional development
and supplies expenses of teaching professionals.
This bill would provide modest tax relief for teachers who, for too
long, have been treated unfairly under our tax laws. It would alleviate
significant barriers to entry to the teaching profession and would help
solve some of our teacher recruitment and retention problems. Our
teachers deserve whatever help we can provide. It is time that Congress
recognized this unfairness and corrected it. I thank the Senate for the
opportunity to address this issue today, and I urge my colleagues to
support this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3445
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 ``Tax Equity for School
Teachers Act of 2010''.
SEC. 2. DEDUCTION FOR CERTAIN PROFESSIONAL DEVELOPMENT
EXPENSES AND CLASSROOM SUPPLIES OF ELEMENTARY
AND SECONDARY SCHOOL TEACHERS AND FOR CERTAIN
CERTIFICATION EXPENSES OF SCIENCE, TECHNOLOGY,
ENGINEERING, OR MATH TEACHERS.
(a) Deduction Allowed Whether or Not Taxpayer Itemizes
Other Deductions.--Subparagraph (D) of section 62(a)(2) of
the Internal Revenue Code of 1986 (relating to certain
expenses of elementary and secondary school teachers) is
amended to read as follows:
``(D) Certain professional development expenses, classroom
supplies, and other expenses for elementary and secondary
teachers.--The sum of the deductions allowed by section 162
with respect to the following expenses:
``(i) Expenses paid or incurred by an eligible educator in
connection with books, supplies (other than nonathletic
supplies for courses of instruction in health or physical
education), computer equipment (including related software
and services) and other equipment, and supplementary
materials used by the eligible educator in the classroom.
``(ii) Expenses paid or incurred by an eligible educator
which constitute qualified professional development expenses.
``(iii) Expenses which are related to the initial
certification of an individual (in the individual's State
licensing system) as a qualified science, technology,
engineering or math teacher.''.
(b) Definitions and Special Rules.--Section 62(d) of the
Internal Revenue Code of 1986 (relating to definitions and
special rules is amended by redesignating paragraph (2) as
paragraph (5) and by adding after paragraph (1) the following
new paragraphs:
``(2) Qualified professional development expenses.--For
purposes of subsection (a)(2)(D)--
``(A) In general.--The term `qualified professional
development expenses' means expenses for tuition, fees,
books, supplies, equipment, and transportation required for
the enrollment or attendance of an individual in a qualified
course of instruction.
``(B) Qualified course of instruction.--The term `qualified
course of instruction' means a course of instruction which--
``(i) is--
``(I) directly related to the curriculum and academic
subjects in which an eligible educator provides instruction,
``(II) designed to enhance the ability of an eligible
educator to understand and use State standards for the
academic subjects in which such teacher provides instruction,
or
``(III) designed to enable an eligible educator to meet the
highly qualified teacher requirements under the No Child Left
Behind Act of 2001,
``(ii) may provide instruction to an eligible educator--
[[Page S4547]]
``(I) in how to teach children with different learning
styles, particularly children with disabilities and children
with special learning needs (including children who are
gifted and talented), or
``(II) in how best to discipline children in the classroom
and identify early and appropriate interventions to help
children described in subclause (I) to learn,
``(iii) is tied to the ability of an eligible educator to
enable students to meet challenging State or local content
standards and student performance standards,
``(iv) is tied to strategies and programs that demonstrate
effectiveness in assisting an eligible educator in increasing
student academic achievement and student performance, or
substantially increasing the knowledge and teaching skills of
an eligible educator, and
``(v) is part of a program of professional development for
eligible educators which is approved and certified by the
appropriate local educational agency as furthering the goals
of the preceding clauses.
``(C) Local educational agency.--The term `local
educational agency' has the meaning given such term by
section 14101 of the Elementary and Secondary Education Act
of 1965, as in effect on the date of the enactment of this
subsection.
``(3) Qualified science, technology, engineering, or math
teacher.--For purposes of subsection (a)(2)(D), the term
`qualified science, technology, engineering, or math teacher'
means, with respect to a taxable year, an individual who--
``(A) has a bachelor's degree or other advanced degree in a
field related to science, technology, engineering, or math,
``(B) was employed as a nonteaching professional in a field
related to science, technology, engineering, or math for not
less than 3 taxable years during the 10-taxable-year period
ending with the taxable year,
``(C) is certified as a teacher of science, technology,
engineering, or math in the individual's State licensing
system for the first time during such taxable year, and
``(D) is employed at least part-time as a teacher of
science, technology, engineering, or math in an elementary or
secondary school during such taxable year.
``(4) Exemption from minimum education or new trade or
business exception.--For purposes of applying subsection
(a)(2)(D) and this subsection, the determination as to
whether qualified professional development expenses, or
expenses for the initial certification described in
subsection (a)(2)(D)(iii), are deductible under section 162
shall be made without regard to any disallowance of such a
deduction under such section for such expenses because such
expenses are necessary to meet the minimum educational
requirements for qualification for employment or qualify the
individual for a new trade or business.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
______
By Mr. UDALL of New Mexico:
S. 3446. A bill to amend the Child Nutrition Act of 1966 to advance
the health and wellbeing of schoolchildren in the United States through
technical assistance, training, and support for healthy school foods,
local wellness policies, and nutrition promotion and education, and for
other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
Mr. UDALL of New Mexico. Mr. President, I rise today to express
support for S. 3307, the Healthy, Hunger-Free Kids Act of 2010, and to
introduce two pieces of legislation that I hope will be included in the
final reauthorization of the Child Nutrition Act that is passed by this
body.
I commend Chairman Lincoln and Ranking Member Chambliss for their
successful efforts to produce a bipartisan and fully paid for Child
Nutrition Reauthorization bill--a bill that won unanimous support in
the Agriculture Committee where it passed this past March.
The Healthy, Hunger-Free Kids Act of 2010 is critically important to
the health, well-being, and even education of our nation's children. It
seeks to confront the challenges of hunger and obesity that are
increasingly pervasive in our youth. Specifically, the act reauthorizes
our nation's major Federal child nutrition programs administered by the
U.S. Department of Agriculture, USDA, including the National School
Lunch and Breakfast Programs, the Special Supplemental Nutrition
Program for Women, Infants and Children, WIC, the Child and Adult Care
Food Program and the Summer Food Service Program.
Totaling $4.5 billion in additional funding over the next 10 years,
the Healthy, Hunger-Free Kids Act is the largest new investment in
child nutrition programs since their inception--and it is completely
paid for by off-sets in other USDA programs. This added funding will
allow for an increase in reimbursement rates for school meals, which is
an important provision since current reimbursement rates fall short of
the funding schools need in order to provide nutritious meals with
fresh fruits and vegetables to students. The bill also makes mandatory
the funding authorized in the Child Nutrition Act to help schools
establish school gardens and source local foods through ``farm to
cafeteria'' efforts.
Beyond funding, the Healthy, Hunger-Free Kids Act makes enrollment
into the free school meals program automatic for foster children and
for students already enrolled in Medicaid. The bill further promotes
the establishment of school wellness policies, and allows the USDA to
set school nutrition standards for all foods, including those sold a la
carte, in vending machines and during special events such as
afterschool sports.
While this bill, combined with the President's request of $10 billion
for child nutrition programs over the next 10 years, represents a huge
step toward a healthier population of young people, I believe there is
room for even more improvement. To this end, I am today introducing the
Child Nutrition Enhancement Act, and the Ensuring All Students Year-
Round, EASY, Access to Meals and Snacks Act. These two bills will help
schools ramp up their nutrition and health programs, and ensure that
kids have access to food, even on weekends and holidays when they
cannot get meals at school. These bills also enjoy House support, with
Representatives Polis and Larsen already having introduced companions
in that chamber.
The Child Nutrition Enhancement Act would expand the Team Nutrition
Networks program, a USDA program that provides grants to school
districts to support State Wellness and Nutrition Networks in schools
that conduct nutrition education and enhance school wellness. To allow
this expansion, the bill includes mandatory funding at a level of 1
cent per reimbursable meal through National School Lunch Program, Child
and Adult Care Food Program, and Summer Food Service Program, totaling
approximately $70 million per year. Such funding would be used for
State staff and programs, formula-based grants and USDA administration.
The Ensuring All Students Year-round Access to Meals and Snacks Act
would allow local government agencies and private nonprofit
organizations to feed children meals and snacks 365 days-a-year through
the Summer Food Service Program, whether it be after school, on
weekends and school holidays, or during the summer. School supplemental
food providers find that children often go hungry on weekends and
school holidays because their main source of nutrition is the free
school lunch program. This bill would allow food service programs to
fill in the gaps on holidays and weekends when kids are likely to miss
meals, and ease the administrative burden of food service programs by
allowing year round meals and snacks through the Summer Food Service
Program, rather the current requirement to switch back and forth
between the Summer Food Service Program and other child nutrition
programs such as the Child and Adult Care Food Program.
With September 30th as the looming deadline for reauthorization of
the Child Nutrition Act, I call on my colleagues and the leadership in
the Senate to expedite the debate and passage of the Healthy, Hunger-
Free Kids Act. I look forward to working with the Agriculture Committee
and the Senate leadership to include the Child Nutrition Enhancement
Act, and the EASY Access to Meals and Snacks Act in the final bill, and
to complete the legislative process for this important reauthorization.
______
By Mr. AKAKA:
S. 3447. A bill to amend title 38, United States Code, to improve
educational assistance for veterans who served in the Armed Forces
after September 11, 2001, and for other purposes; to the Committee on
Veterans' Affairs.
Mr. AKAKA. Mr. President, I am introducing today the proposed Post-9/
11 Veterans Educational Assistance Improvements Act of 2010. This
measure is designed to make a number of modifications to the new
program of educational assistance which became effective on August 1,
2009.
As one of three remaining Senators who benefited from the original GI
Bill
[[Page S4548]]
following World War II, I know firsthand the value of an education and
of the critical role that this important veterans benefit played in my
life. That was why I was especially pleased to join with the
distinguished Senator from Virginia, Mr. Webb, in achieving enactment
of the new Post-9/11 GI Bill in 2008.
Now, with ten months of experience under the new program, I believe
it is time to look at what improvements and modifications need to be
made in order for the program to reach its potential. I note at the
outset that this will not be a simple process. Nor will it be quickly
and easily accomplished. There are issues that we can readily see need
to be addressed. There are others, however, that are only just now
coming to our attention as the program is implemented and veterans,
servicemembers, and their families begin to receive benefits under the
program.
I will highlight some of the provisions that are contained in the
bill I am introducing today:
It would make members of the National Guard and Reserve programs who
were inadvertently omitted from inclusion fully eligible for benefits.
It would make all types of training--including vocational programs,
OJT and apprenticeship training, flight, all types of non-college
degree training and more--eligible for benefits under the new program.
By doing this, individuals would not need to make an irreversible
decision as to whether or not to receive benefits under the old
Montgomery GI Bill or under the new program.
It would eliminate the complicated, confusing and, in some cases,
inequitable calculation of State-by-State tuition and fee caps to
determine benefits for individuals enrolled in degree programs.
Basically, it would provide that eligible individuals enrolled in
degree-granting programs of study at public institutions anywhere in
the United States would pay little, if any, out of pocket costs for
their education. For students enrolled in other institutions of higher
learning, benefits would be paid based on a national average cost of
education which would be indexed and increased annually.
It would provide for a modified living allowance to be paid in the
case of an individual pursuing a program of education solely through
distance learning. Individuals who currently are studying through a
combination of distance and classroom training would continue to
receive benefits as they do now.
It would make a book allowance award of up to $1,000 available to
individuals enrolled while on active duty and their spouses.
It would allow individuals enrolled in VA's program of rehabilitation
and training under chapter 31 of title 38 who also have eligibility for
the new chapter 33 program to elect the program from which to receive
their subsistence allowance. This would mean that a service-connected
disabled OEF/OIF veteran would not need to elect to training under the
new GI Bill and forego the valuable counseling and support services
available under chapter 31 in order to receive an increased living
allowance.
It would modify the manner in which the living allowance is
calculated to reflect the rate at which training is pursued.
It would ensure that the same period of active duty cannot be used to
establish eligibility for more than one program of education.
This is not a complete recitation of all the provisions contained in
the measure I am introducing today. In addition, I do not expect that
every provision of the measure will necessarily be supported by all the
stakeholders involved in this important issue. Indeed, I imagine there
could be some who will be critical of some provisions in the proposal
and will come forward to offer improvements and modifications.
What my measure is intended to do, is to serve as a starting point to
move forward in this important yet very complicated and complex
endeavor. I strongly believe that whatever is done in this connection
must not be done in a piecemeal manner. We need a full and deliberative
consideration of all the issues in order to craft the best possible
approach to delivering these important benefits to our Nation's
veterans and those who are serving in uniform.
I look forward to working with all our colleagues and others on these
issues in the days ahead. As I noted, this will not be done quickly or
easily but this measure will serve as a focus for our discussions and
decisions.
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. 3447
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 ``Post-9/11 Veterans
Educational Assistance Improvements Act of 2010''.
SEC. 2. MODIFICATION OF ENTITLEMENT TO EDUCATIONAL
ASSISTANCE.
(a) Modification of Definitions That Concern Eligibility
for Educational Assistance.--
(1) Modification of definition of active duty with respect
to members of reserve components generally.--Paragraph (1)(B)
of section 3301 of title 38, United States Code, is amended
by striking ``of title 10.'' and inserting the following:
``of title 10--
``(i) for the purpose of organizing, administering,
recruiting, instructing, or training the reserve components
of the Armed Forces; or
``(ii) in support of a contingency operation (as defined in
section 101(a) of title 10).''.
(2) Expansion of definition of active duty to include
service in national guard for certain purposes.--Paragraph
(1) of such section is amended by adding at the end the
following new subparagraph:
``(C) In the case of a member of the Army National Guard of
the United States or Air National Guard of the United States,
in addition to service described in subparagraph (B), full-
time service--
``(i) in the National Guard of a State for the purpose of
organizing, administering, recruiting, instructing, or
training the National Guard; and
``(ii) in the National Guard under section 502(f) of title
32 when authorized by the President or Secretary of Defense
for the purpose of responding to a national emergency
declared by the President and supported by Federal funds.'';
and
(3) Expansion of definition of entry level and skill
training to include one station unit training.--Paragraph
(2)(A) of such section is amended by inserting ``or One
Station Unit Training'' before the period at the end.
(b) Clarification of Applicability of Honorable Service
Requirement for Certain Discharges and Releases From the
[[Page S4549]]
Armed Forces as Basis for Entitlement to Educational
Assistance.--Section 3311(c)(4) of such title is amended in
the matter preceding subparagraph (A) by striking ``A
discharge or release from active duty in the Armed Forces''
and inserting ``A discharge or release from active duty in
the Armed Forces after service on active duty in the Armed
Forces characterized by the Secretary concerned as honorable
service''.
(c) Exclusion of Period of Service on Active Duty of
Periods of Service in Connection With Attendance at the Coast
Guard Academy.--Section 3311(d)(2) of such title is amended
by inserting ``or section 182 of title 14'' before the period
at the end.
SEC. 3. MODIFICATION OF AMOUNT OF ASSISTANCE AND TYPES OF
APPROVED PROGRAMS OF EDUCATION.
(a) Amount of Educational Assistance for Programs of
Education Pursued at Public, Non-public, and Foreign
Institutions of Higher Learning.--Section 3313(c) of title
38, United States Code, is amended--
(1) by striking the subsection heading and inserting the
following: ``Programs of Education at Institutions of Higher
Learning Pursued at More Than Half-time Basis.--'';
(2) in the matter preceding paragraph (1) by inserting ``at
an institution of higher learning (as defined in section
3452(f) of this title)'' after ``program of education''; and
(3) in paragraph (1), by amending subparagraph (A) to read
as follows:
``(A) An amount equal to--
``(i) in the case that such institution is a public
institution of higher learning, the established charges for
the program of education; and
``(ii) in the case that such institution is a non-public or
foreign institution of higher learning, the lesser of--
``(I) the established charges for the program of education;
or
``(II) the amount of the average of the established charges
at all institutions of higher learning in the United States
for a program of education leading to a baccalaureate degree
as determined by the National Center for Education Statistics
of the Department of Education for the most recent academic
year.''.
(b) Modification of Amount of Monthly Stipends, Including
Stipends for Part-time Study, Distance Learning, and Pursuit
of Programs of Education at Foreign Institutions of Higher
Learning.--Subparagraph (B) of section 3313(c)(1) of such
title is amended--
(1) by redesignating clause (ii) as clause (iv); and
(2) by striking clause (i) and inserting the following new
clauses:
``(i) Except as provided in clauses (ii) and (iii), for
each month the individual pursues the program of education, a
monthly housing stipend amount equal to the product of--
``(I) the monthly amount of the basic allowance for housing
payable under section 403 of title 37 for a member with
dependents in pay grade E-5 residing in the military housing
area that encompasses all or the majority portion of the ZIP
code area in which is located the institution of higher
learning at which the individual is enrolled, multiplied by
``(II) the lesser of one or the quotient of--
``(aa) the number of course hours borne by the individual
in pursuit of the program of education involved, divided by
``(bb) the minimum number of course hours required for
full-time pursuit of such program of education.
``(ii) In the case of an individual pursuing a program of
education at a foreign institution of higher learning, for
each month the individual pursues the program of education, a
monthly housing stipend amount equal to the product of--
``(I) the national average of the monthly amount of the
basic allowance for housing payable under section 403 of
title 37 for a member with dependents in pay grade E-5,
multiplied by
``(II) the lesser of one or the quotient of--
``(aa) the number of course hours borne by the individual
in pursuit of the program of education involved, divided by
``(bb) the minimum number of course hours required for
full-time pursuit of such program of education.
``(iii) In the case of an individual pursuing a program of
education through distance learning on more than a half-time
basis, a monthly housing stipend amount in an amount equal to
50 percent of the amount payable under clause (ii) if the
individual were otherwise entitled to a monthly housing
stipend under that clause for pursuit of the program of
education.''.
(c) Educational Assistance for Approved Programs of
Education at Institutions Other Than Institutions of Higher
Learning.--
(1) Approved programs of education at institutions other
than institutions of higher learning.--Subsection (b) of
section 3313 of such title is amended by striking ``is
offered by an institution of higher learning (as that term is
defined in section 3452(f)) and''.
(2) Assistance for pursuit of programs of education at
institutions other than institutions of higher learning.--
Such section is further amended--
(A) by redesignating subsections (g) and (h) as subsections
(h) and (i), respectively; and
(B) by inserting after subsection (f) the following new
subsection (g):
``(g) Programs of Education Pursued at Institutions Other
Than Institutions of Higher Learning.--
``(1) In general.--Educational assistance is payable under
this chapter for pursuit of an approved program of education
at an institution other than an institution of higher
learning.
``(2) Amount of assistance.--The amounts of educational
assistance payable under this chapter to each individual
entitled to educational assistance under this chapter who is
pursuing an approved program of education at an institution
other than an institution of higher learning (as defined in
section 3452(f) of this title) are amounts as follows:
``(A) In the case of an individual enrolled in a program of
education (other than a program described in subparagraphs
(B) through (D)) in pursuit of a certificate or other non-
college degree, amounts as follows:
``(i) The lesser of--
``(I) the established charges for the program of education;
or
``(II) the amount of the average of the established charges
at all institutions of higher learning in the United States
for a program of education leading to a baccalaureate degree
as determined by the National Center for Education Statistics
of the Department of Education for the most recent academic
year.
``(ii) A monthly stipend in an amount equal to the monthly
amount of the basic allowance for housing payable under
section 403 of title 37 for a member with dependents in pay
grade E-5 residing in the military housing area that
encompasses all or the majority portion of the ZIP code area
in which is located the institution at which the individual
is enrolled.
``(B) In the case of an individual enrolled in a program of
education consisting of on-job training or a program of
apprenticeship, amounts as follows:
``(i) For each month the individual pursues the program--
``(I) in the first six-month period of the program, an
amount equal to 75 percent of 1/12 of the amount of the
average of the established charges at all institutions of
higher learning in the United States for a program of
education leading to a baccalaureate degree as determined by
the National Center for Education Statistics of the
Department of Education for the most recent academic year;
``(II) in the second six-month period of the program, an
amount equal to 55 percent of 1/12 of the amount of such
average; and
``(III) in any month after the first 12 months of such
program, an amount equal to 35 percent of 1/12 of the amount
of such average.
``(ii) A monthly stipend in an amount equal to the lesser
of--
``(I) the monthly amount of the basic allowance for housing
payable under section 403 of title 37 for a member with
dependents in pay grade E-5 residing in the military housing
area that encompasses all or the majority portion of the ZIP
code area in which is located the employer at which the
individual pursues such program; or
``(II) the national average of the monthly amount of the
basic allowance for housing payable under section 403 of
title 37 for a member with dependents in pay grade E-5.
``(C) In the case of an individual enrolled in a program of
education consisting of flight training, an amount equal to
the lesser of--
``(i) the established charges for the program of education;
or
``(ii) 60 percent of the amount of the average of the
established charges at all institutions of higher learning in
the United States for a program of education leading to a
baccalaureate degree as determined by the National Center for
Education Statistics of the Department of Education for the
most recent academic year.
``(D) In the case of an individual enrolled in a program of
education that is pursued exclusively by correspondence, an
amount equal to the lesser of--
``(i) the established charges for the program of education;
or
``(ii) 55 percent of the amount of the average of the
established charges at all institutions of higher learning in
the United States for a program of education leading to a
baccalaureate degree as determined by the National Center for
Education Statistics of the Department of Education for the
most recent academic year.
``(3) Charge against entitlement.--The entitlement of an
individual to educational assistance under this chapter shall
be charged at the rate of one month for each month of
assistance provided under this subsection.''.
(3) Conforming amendment.--Subsection (h) of such section
3313, as redesignated by paragraph (2) of this subsection, is
amended by striking ``(e)(2), and (f)(2)(A)'' and inserting
``subsections (e)(2) and (f)(2)(A), and subparagraphs (A)(i),
(B)(i), (C), and (D) of subsection (g)(2)''.
(d) Programs of Education Pursued on Active Duty.--
(1) In general.--Subsection (e)(2) of such section is
amended--
(A) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(B) in the matter preceding clause (i), as redesignated by
subparagraph (A)--
(i) by striking ``The amount'' and inserting ``The
amounts''; and
(ii) by striking ``is the lesser of--'' and inserting ``are
the amounts as follows:
``(A) An amount equal to the lesser of--''; and
[[Page S4550]]
(C) by adding at the end the following new subparagraph
(B):
``(B) For the first month of each quarter, semester, or
term, as applicable, of the program of education pursued by
the individual, a lump sum amount for books, supplies,
equipment, and other educational costs with respect to such
quarter, semester, or term in the amount equal to--
``(i) $1,000, multiplied by
``(ii) the fraction which is the portion of a complete
academic year under the program of education that such
quarter, semester, or term constitutes.''.
(2) Technical amendment.--Clause (ii) of subsection
(e)(2)(A) of such section, as redesignated by paragraph
(1)(A) of this subsection, is amended by adding a period at
the end.
SEC. 4. MODIFICATION OF ASSISTANCE FOR LICENSURE AND
CERTIFICATION TESTS.
(a) Repeal of Limitation on Number of Reimbursable Tests.--
Subsection (a) of section 3315 of title 38, United States
Code, is amended by striking ``one licensing or certification
test'' and inserting ``licensing or certification tests''.
(b) Charge of Entitlement for Receipt of Assistance.--Such
section is further amended by striking subsection (c) and
inserting the following new subsection (c):
``(c) Charge Against Entitlement.--The charge against
entitlement of an individual under this chapter for payment
for a licensing or certification test under subsection (a)
shall be charged at the rate of one month for each amount
equal to 1/12 of the amount of the average of the established
charges at all institutions of higher learning in the United
States for a program of education leading to a baccalaureate
degree as determined by the National Center for Education
Statistics of the Department of Education for the most recent
academic year.''.
SEC. 5. TRANSFER OF ENTITLEMENT TO SUPPLEMENTAL EDUCATIONAL
ASSISTANCE TO POST-9/11 EDUCATIONAL ASSISTANCE.
(a) In General.--Section 3316 of title 38, United States
Code, is amended--
(1) by redesignating subsection (c) as subsection (e); and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) Transfer of Supplemental Educational Assistance.--
``(1) In general.--An individual entitled to supplemental
educational assistance under subchapter III of chapter 30 of
this title may transfer such entitlement to entitlement for
supplemental educational assistance under this section. Such
individual shall receive entitlement to one month of
supplemental educational assistance under this section for
each month of entitlement to supplemental educational
assistance so transferred.
``(2) Rate.--The monthly rate of supplemental educational
assistance payable to an individual who transfers entitlement
under paragraph (1) shall be payable at the same rate as such
entitlement would otherwise be payable to such individual
under subchapter III of chapter 30 of this title.
``(3) Nature of transferred entitlement.--An amount of
supplemental educational assistance transferred under
paragraph (1) shall be payable as an increase in the monthly
amount of educational assistance otherwise payable to the
individual under paragraph (1)(B) of section 3313(c) of this
title, or under paragraphs (2) through (7) of such section
3313(c) (as applicable).''.
(b) Clarification on Reimbursement of Increased or
Supplemental Assistance.--Such section is further amended by
inserting after subsection (c), as added by subsection (a)(2)
of this section, the following new subsection (d):
``(d) Reimbursement.--Any expense incurred by the Secretary
for the provision of increased assistance or supplemental
assistance to an individual under this section shall be
reimbursed by the Secretary concerned.''.
SEC. 6. TRANSFER OF UNUSED EDUCATION BENEFITS TO FAMILY
MEMBERS.
(a) Administration of Transfers of Entitlement by
Individuals No Longer Members of the Armed Forces.--Section
3319(h) of title 38, United States Code, is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following new
paragraph (7):
``(7) Administration for individuals no longer members of
the armed forces.--The Secretary of Defense shall administer
the provisions of this section with respect to individuals
who are discharged or released from the Armed Forces,
including the making of any determinations of eligibility of
such individuals for transfers of entitlement under this
section and the processing of applications to transfer,
modify, or revoke entitlement under this section.''.
(b) Applicability of Entitlement Authority to Members of
Public Health Service and National Oceanic and Atmospheric
Administration.--Section 3319 of such title is amended by
striking subsection (k).
(c) Reimbursement of Expenses of Secretary of Veterans
Affairs by Secretary Concerned.--Such section is further
amended by adding at the end the following new subsection
(k):
``(k) Reimbursement of Expenses of Secretary of Veterans
Affairs by Secretary Concerned.--Any expense incurred by the
Secretary for the provision of educational assistance under
subsection (a) to a dependent described in such subsection
shall be reimbursed by the Secretary concerned.''.
(d) Technical Correction.--Subsection (b)(2) of such
section is amended by striking ``to section (k)'' and
inserting ``to subsection (j)''.
SEC. 7. LIMITATIONS ON RECEIPT OF EDUCATIONAL ASSISTANCE
UNDER NATIONAL CALL TO SERVICE AND OTHER
PROGRAMS OF EDUCATIONAL ASSISTANCE.
(a) Bar to Duplication of Educational Assistance
Benefits.--Section 3322(a) of title 38, United States Code,
is amended by inserting ``or section 510'' after ``or 1607''.
(b) Limitation on Concurrent Receipt of Educational
Assistance.--Section 3681(b)(2) of such title is amended by
inserting ``and section 510'' after ``and 107''.
SEC. 8. APPROVAL OF PROGRAMS OF EDUCATION CONSISTING OF
DISTANCE LEARNING.
(a) Nonaccredited Courses Pursued by Distance Learning.--
Section 3676(e) of title 38, United States Code, is amended
by inserting ``or distance learning'' after ``independent
study''.
(b) Disapproval of Enrollment in Nonaccredited Courses of
Distance Learning.--Section 3680A(a)(4) of such title is
amended by inserting ``or distance learning'' after
``independent study'' each place it appears.
(c) Rulemaking.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall prescribe regulations under section 3323(c) of such
title for the administration and approval of programs of
education that consist of distance learning.
(d) Distance Learning Defined.--In this section, the term
``distance learning'' has the meaning given the term
``distance education'' in section 103 of the Higher Education
Act of 1965 (20 U.S.C. 1003).
SEC. 9. INCREASE IN AMOUNT OF REPORTING FEE.
Section 3684(c) of title 38, United States Code, is
amended--
(1) by striking ``multiplying $7'' and inserting
``multiplying $12''; and
(2) by striking ``or $11'' and inserting ``or $15''.
SEC. 10. AMOUNT OF SUBSISTENCE ALLOWANCE FOR VETERANS WITH
SERVICE-CONNECTED DISABILITIES.
Section 3108(b) of title 38, United States Code, is amended
by adding at the end the following new paragraph:
``(4) A veteran entitled to subsistence allowance under
this chapter may elect to receive payment from the Secretary,
in lieu of an amount otherwise determined by the Secretary
under this subsection, an amount equal to the national
average of the monthly amount of basic allowance for housing
payable under section 403 of title 37 for a member with
dependents in pay grade E-5.''.
SEC. 11. REPEAL OF AUTHORITY TO MAKE CERTAIN INTERVAL
PAYMENTS.
Section 3680(a) of title 38, United States Code, is amended
after the flush matter--
(1) in subparagraph (A), by adding ``or'' at the end;
(2) in subparagraph (B), by striking ``; or'' and inserting
a period; and
(3) by striking subparagraph (C).
______
By Mr. ROCKEFELLER (for himself and Mr. Byrd):
S. 3450. A bill to require publicly traded coal companies to include
certain safety records in their reports to the Commission, and for
other purposes; to the Committee on Health, Education, Labor, and
Pensions.
Mr. ROCKEFELLER. Mr. President, it is time to take mining companies'
safety records out of the darkness and bring some much-needed
transparency and accountability to the industry.
Today, I am introducing legislation that would require any publicly-
traded mining company to include critical mine safety information in
its annual and quarterly filings with the Securities and Exchange
Commission, SEC.
Shareholders have a direct interest in the safety record of any
company they invest in--because safety has as much of an impact on a
company's long-term financial health as its mining production.
But today, this safety information is not uniformly reported across
the industry. My bill fixes this inconsistency and gives investors the
information they need to hold corporate management responsible for the
safety record of a company.
That is what my bill is all about: providing shareholders with
standard information that can be used to measure and compare safety
records across the industry. Specifically, my legislation would require
any publicly-traded mine company to report the following information in
their annual and quarterly filings with the SEC:
The total number of significant and substantial violations of
mandatory health or safety standards;
The total number of failure to abate orders issued under section
104(b) of the Mine Act;
The total number of citations and orders for unwarrantable failure of
the
[[Page S4551]]
mine operator to comply with mandatory health or safety standards under
section 104(d) of the Mine Act;
The total number of flagrant violations under section 110 of the Mine
Act;
The total number of imminent danger orders issued under section
107(a) of the Mine Act;
The total dollar value of Mine Safety and Health Administration,
MSHA, proposed penalties and fines;
A list of the regulated worksites that have been notified by MSHA of
a Pattern of Violation or a Potential to have a Pattern of Violations
under section 104(e) of the Mine Act;
Any pending legal action before the Federal Mine Safety and Health
Review Commission.
Any mining related fatalities.
In addition, any publicly-traded mining company must immediately
disclose to the SEC if it receives a shutdown order under section
107(a) of the Mine Act, imminent danger, or receives notice that a mine
site has a potential or actual pattern of violations.
I have always said that, first and foremost, this is about a company
doing the right thing to develop a true culture of safety. That
includes everyone, from the miner at the coal face to the Chairman of
the Board.
If we are serious about making that culture a reality, shareholders
need to be informed about safety too.
______
By Mr. BINGAMAN (for himself and Mr. Udall of New Mexico):
S. 3452. A bill to designate the Valles Caldera National Preserve as
a unit of the National Park System, and for other purposes; to the
Committee on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, I rise today to introduce legislation
that would transfer administrative jurisdiction of the Valles Caldera
National Preserve from the Valles Caldera Trust to the National Park
Service. I am pleased that my colleague from New Mexico, Tom Udall, is
cosponsoring the bill.
Between the New Mexico communities of Jemez Springs and Los Alamos,
lies the Valle Grande, a magnificent valley surrounded by foothills and
forested mountains. When standing in this valley, visitors begin to
realize they are actually inside a larger bowl-shaped formation. This
is the Valles Caldera--one of only three supervolcanoes in the United
States. The oldest of the three--having formed 1.25 million years ago--
the Valles Caldera is also the smallest. Yet the caldera rim spans more
than 100,000 acres in area whose violent eruption created a volcanic
ash plume that stretched from northern Utah to central Kansas. Because
of its relatively small size as compared to the two other
supervolcanoes in the U.S.--Yellowstone, WY, and Long Valley, CA, the
Valles Caldera provides visitors with excellent opportunities to learn
about large volcanic eruptions and their impacts on surrounding
landscapes while they stand in a single space to experience one of the
world's best examples of an intact resurgent caldera. In 1975, the
Valles Caldera received formal recognition as an outstanding and
nationally significant geologic resource when it was designated a
National Natural Landmark.
As is the case in many parts of New Mexico, the geologic history of
the Valles Caldera is inextricably linked to our State's cultural
history. For example, the people of Jemez Pueblo chose the area as the
best site to establish their community. The Valles Caldera and the
adjacent Jemez Mountains provided the Pueblo with an ample food and
water supply, natural defenses, and weapon-making materials present in
the many obsidian quarries found in the area. In fact, the obsidian was
of such high quality that spearheads made from these quarries have been
discovered as far away as eastern Mississippi and northern Mexico.
Needless to say, the Valles Caldera and the peaks that formed within it
are sacred and highly revered by Jemez Pueblo and many other nearby
tribes and pueblos.
The volcanic ash dispersed by the volcano's eruption also had a
lasting impact on the history of migration and settlement by Ancestral
Puebloan people in the region. As the ash and pumice settled, it formed
layers of sediment, and over time, rivers helped to carve these layers
into deep canyons. Archeologists have found evidence of nomadic tribes
following large mammals into the region, and Ancestral Puebloans built
homes alongside and into the soft canyon walls. Many of these awe-
inspiring settlements are protected in Bandelier National Monument,
where the National Park Service educates visitors about how the unique
volcanic history of the Valles Caldera made these settlements possible.
There is no question that this area is worthy of Federal protection,
and efforts to preserve this area were proposed as early as 1899.
However, it was only ten years ago that the Federal government was
finally able to acquire this property for the American people. At that
time, Senator Domenici and I were successful in passing the Valles
Caldera Preservation Act which authorized the acquisition of the
property and established an experimental framework for the management
of the Preserve for a period of 20 years. The legislation established
the Valles Caldera Trust, composed of a nine-member board of trustees,
whose members are appointed by the President and have particular
expertise in fields important to the management of the Preserve. The
bill also directed the Trust to manage the Preserve in a manner that
would achieve financial self-sustainability after fifteen years. Five
years thereafter, the Trust would be Although the individual members
have done their best to fulfill the original legislative directives,
time has shown in my opinion that this management framework is not the
best suited for the long-term management of the Preserve.
Part of the experimental management framework was a requirement that
the Valles Caldera Trust manage the Preserve in a manner that would
achieve financial self-sustainability while providing for public access
and protection of the Preserve's natural and cultural resources. This
has proved to be a virtually impossible mandate to satisfy. Since its
inception, the Preserve has not received adequate funding under the
current arrangement and is unlikely to in the foreseeable future. In
addition, most members of the board and outside observers believe the
Trust will be unable to achieve the financial self-sustainability
requirements called for by the original Act. The Trust has also
indicated an infusion of approximately $15 million may be necessary to
complete construction and deferred maintenance costs on the Preserve. I
do not believe this funding will be forthcoming under the current
management and budgetary framework. Moreover, much of the funding
responsibility has been laid on the shoulders of Congress to provide
the necessary annual funding that is not included in the President's
annual budget. This arrangement is not sustainable in my opinion, and
the existing statutory termination of the trust is looming.
With that said, the trust and its executive staff have made valuable
progress in various areas of management. One prime example is the
science and education program established by the Trust. Through the
scientific activities on the preserve, the trust has been able to adapt
its management based on the ecological demands of the caldera. The
trust has promoted the scientific research of flora and fauna on the
preserve and the impacts of climate change in the Jemez Mountains to
cite a few of their ongoing activities. It is my belief that the
transition in management should allow for the retention of the best
management practices that the Trust has achieved.
Many New Mexicans have told me that they would like the preserve to
be managed by an agency that will expand visitation and recreational
opportunities while also ensuring the protection of the preserve's
unique resources. Simply put, while my constituents eagerly want more
access, they have stated clearly and directly--``Don't overrun it.''
I believe the National Park Service is best suited to manage the
preserve while ensuring its long-term conservation.
The National Park Service's mission supports the activities called
for most by my constituents, including expanded recreational
opportunities, scientific study, and the interpretation of the natural
and cultural resources in the preserve. As I discussed earlier, the
Preserve provides a world-class opportunity for the interpretation of
the geologic history of this unique area and of the fascinating
geologic and cultural history that binds the Valles
[[Page S4552]]
Caldera and Bandelier National Monument.
Under our proposed legislation, management of the Valles Caldera
National Preserve will be transferred to the National Park Service to
be administered as a unit of the National Park System. The bill directs
the Park Service to manage the Preserve to protect and preserve its
natural and cultural resources, including its nationally significant
geologic resources. Hunting and fishing would continue to be allowed,
and grazing would also continue to be permitted. The National Park
Service would also be directed to establish a science and education
program utilizing the best practices created by the trust, as I
discussed earlier.
The legislation would maintain the existing character of the preserve
while strengthening protections for tribal, cultural, and religious
sites and providing access by pueblos to the preserve. In addition, in
consultation with the surrounding pueblos, restrictions will be put in
place on the development and motorized vehicle use on the sacred
volcanic domes within the preserve, similar to the current restrictions
on Redondo Peak, the highest peak within the preserve.
I would like to emphasize that in no way is this legislation a
criticism of the good work and valuable accomplishments made by the
Board Members of the Valles Caldera Trust and the preserve staff.
However, I believe having the preserve managed by the National Park
Service--an agency with a mission protecting natural, historic, and
cultural resources while also providing for public enjoyment of those
resources--is more appropriate for the long-term future of the Valles
Caldera. In my view, the desire for increased public access, balanced
with the need to protect and interpret the Preserve's unique cultural
and natural resources, would be best served by National Park Service
management of the preserve.
It is my strong belief that transferring management of the Valles
Caldera National Preserve to the National Park Service will be the best
way to ensure the protection and enjoyment of the preserve over the
long term. I urge my colleagues to support the bill as it is considered
in the Senate.
The Los Alamos County Council and Los Alamos Chamber of Commerce have
submitted resolutions in support of National Park Service management of
the preserve. Mr. President, I ask unanimous consent that these
resolutions be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Incorporated County of Los Alamos Resolution No. 10-05
A resolution supporting congressional actions to facilitate
the transfer of management of the Valles Caldera National
Preserve from the Valles Caldera Trust to the National Park
Service under the U.S. Department of the Interior to be
managed as a preserve, per the findings of the December 2009
updated report on the NPS 1979 new area, study that confirmed
the Valles Caldera National Preserve's ability to meet the
feasibility requirements of the National Park System.
Whereas, the enabling legislation PL106-248 created the
Valles Caldera National Preserve (VCNP) from a unique parcel
of land in north-central New Mexico, and by creating the
Valles Calderas Trust as a wholly-owned government
corporation to manage the preserve, the Valles Caldera
Preservation Act of 2000 established a 20-year public-private
experiment to operate the preserve without continued federal
funding; and
Whereas, the Trust is charged with protecting and
preserving the scientific, scenic, geologic, watershed, fish,
wildlife, historic, cultural, and recreational values of the
Preserve and achieving financial self-sufficiency by 2015,
while operating the Preserve as a ``working ranch;'' and
Whereas, the GAO analyzed documents and financial records,
and interviewed staff and stakeholders to determine the
Trust's progress since 2000, the extent to which the Trust
has fulfilled its obligations as a government corporation,
and the challenges the Trust faces to achieve the
Preservation Act goals, the results of which are published in
an October 2009 Report to Congressional Committees,
concluding that ``The Trust Has Made Progress but Faces
Significant Challenges to Achieve Goals of the Preservation
Act;'' and
Whereas, the national significance of the geological
resources of the Valles Caldera was formally recognized in
1975 when the area was designated a National Natural
Landmark; and
Whereas, the National Park Service (NPS) has existed since
1916 and has a proven record for successfully managing 89
million acres of sensitive and historically important public
lands in America; and
Whereas, Senator Jeff Bingaman and Senator Tom Udall, on
June 24, 2009 requested that the NPS undertake a
reconnaissance study of the Valles Caldera National Preserve
to assess its potential for inclusion in the NPS as a
National Preserve; and
Whereas, the NPS completed ``An Updated Report on the NPS
1979 New Area Study'' published on December 15, 2009 which
includes the following conclusion based on the findings: ``.
. . the feasibility of the Valles Caldera for inclusion in
the national park system has been enhanced since 1979. The
national significance and suitability of the site for
inclusion in the system is confirmed;'' and
Whereas, the report concludes that ``current uses within
the VCNP are generally compatible with those in other
preserves or parks in the national park system, and there is
untapped potential for enhancing public enjoyment;'' and
Whereas, the report further concludes that ``a single
management entity for Valles Caldera and Bandelier would
enhance communication, and integration of management programs
that require a regional approach, such as fire management,
law enforcement, and emergency response would facilitate
comprehensive management of resource issues that affect both
the Preserve and Bandelier National Monument;'' and
Whereas, the report states that ``the national information
system and audience for sites within the National Park System
would [result in] increases in regional and national public
use of the area . . . [and] result in increased retail sales
for recreation and convenience goods locally, as well as
increased volume of recreational, tourist, and other
services; and
Whereas, the VCNP adjoins Los Alamos County lands and is
treasured by residents and visitors as a valuable natural,
historical, recreational and educational resource; and
Whereas, Los Alamos County is recognized and marketed as
the primary gateway to the VCNP, providing support services
such as lodging, restaurants, shopping and additional
cultural and recreational experiences to tourists from around
the world who seek out this unique, north-central New Mexico
attraction; and
Whereas, management of this resource directly affects Los
Alamos County's economic development initiatives,
particularly in the area of tourism marketing; and
Whereas, the majority of the members of public who
submitted comment via meeting and e-mail expressed their
desire for the National Park Service to assume land
management and operations for the Valles Caldera National
Preserve; and
Whereas, the National Park Service policies require a
general management plan process that engages the public in a
collaborative effort to identify preferred uses, restrictions
and management practices, while allowing temporary public
access to the Valles Caldera National Preserve; and
Whereas, the County respectfully requests that the enabling
legislation include language to expedite the management plan
process, where possible, in order to move from planning and
temporary access to implementation. Now, therefore, be it
Resolved, by the Council of the Incorporated County of Los
Alamos, That the County of Los Alamos supports the transfer
of the Valles Caldera National Preserve to the U.S.
Department of the Interior's National Park Service to be
managed as a preserve. Los Alamos County requests to be
notified and involved in the process at every opportunity; be
it further
Resolved, That if legislation to transfer the Preserve is
not enacted in 2010 Congress consider action to modify the
year 2000 enabling legislation to remove obstacles
restricting the Valles Caldera Trust's ability to effectively
manage the Preserve to meet the public's access priorities
____
Los Alamos Commerce &
Development Corp.,
Los Alamos, NM, April 27, 2010.
Subject: Comment Concerning Future Management of Valles
Caldera.
Senator Jeff Bingaman,
Senate Office Building, Washington, DC.
Dear Senator Bingaman: Please accept our organization's
comment on the question of the future management of the
Valles Caldera property. Our organization operates several
programs having strong interest in this matter. The Los
Alamos Chamber of Commerce is an association of about 300
businesses, organizations, and individuals interested in
positive community and economic development and our Los
Alamos Meeting and Visitor Bureau program operates visitor
centers in Los Alamos and White Rock and is an important
resource for understanding visitation and tourism in our
area.
We believe that the most desirable management option
coinciding with the interests of the Los Alamos community is
for the Valles Caldera to become a National Park managed by
the National Park Service. This option presents several
advantages:
The National Park Service option is by far the best from
the standpoint of promoting visitation and tourism to the
area. The NPS ``arrowhead'' is a powerful brand that far
exceeds those of forest service and the Valles Caldera Trust
in terms of attracting interest and visitation.
The NPS mission of ``safeguarding America's special
places'' stands in contrast with the role of the Forest
Service in consumptive use of resources. In contrast with the
VCNP Trust, the NPS works with small businesses
[[Page S4553]]
to provide concession opportunities whereas the VCNP is
motivated to develop captive services that do not provide
such opportunities. These attributes of the NPS are best
aligned among the three management options with our
community's interests in realizing economic benefit from
visitation and tourism.
In our experience in Los Alamos County, the involvement of
the NPS in our community has far exceeded that of the other
proposed management entities. Based on this experience, we
believe that it is more likely that the NPS would be
interested in working closely with our community for mutual
benefit.
Please note that we do not expect the Valles Caldera to
become ``Los Alamos-centric'' in any of the scenarios. We
think that Los Alamos is a natural eastern gateway to the
Valles and the Jemez Mountains just as we recognize that
Jemez Pueblo and Jemez Springs are natural western gateway
communities. We understand that it will be important for
whatever management entity that is selected to reach out in
both of these directions. We encourage that as general input
regardless of the choice that is made.
We think that there is an opportunity to collaborate with
the selected entity on a joint visitor center (or centers) in
Los Alamos County. Such a facility would be a natural first
stop for visitors to Los Alamos and would feature not only
the Valles Caldera, but also Bandelier National Monument, the
Bradbury Science Museum, the Los Alamos Historical Museum,
the Pajarito Environmental Education Center, area Pueblos,
and area recreational attractions. We are currently the
operator of the visitor center here and we would welcome the
opportunity to collaborate on a joint visitor center. We
believe that this would enhance the visitor experience as
well as enable economies of operation.
Thank you for listening to and accepting our input. Our
organization stands ready to assist the selected management
entity for the Valles Caldera.
Sincerely,
Kevin Holsapple,
Executive Director.
On behalf of the Board of Directors of LACDC.
Mr. UDALL of New Mexico. Mr. President, today I join Senator Bingaman
in introducing a bill to designate the Valles Caldera National Preserve
as a unit of the National Park System. Known as the Valle Grande, this
icon of the Jemez Mountains is one of the largest volcanic calderas in
the world. The vast grass-filled valleys, forested hillsides, and
numerous volcanic peaks make the Valles Caldera a treasure to New
Mexico, and a landscape of national significance millions of years in
the making.
Volcanic activity began in the Jemez Mountains about 10 million years
ago. This activity reached a climax about 1.5 million years ago with a
series of explosive rhyolitic eruptions that dropped hundreds of meters
of volcanic ash for miles surrounding the caldera, and gave the
surrounding area its distinctive landscapes of pink and white tuff
overlaying the black basalts of the Rio Grande Rift. In the millennia
following the Caldera's explosive creation, natural processes of
erosion and weathering carved vibrant canyons and left pinion topped
mesa stretching like fingers away from the massive caldera. As the
great valley was drained of magma, and later a caldera lake, it filled
with the diversity of plants and wildlife that makes the area so
valuable to biologists and ecologists today. With such resources and
natural beauty, it is no wonder that for millennia people have also
been an integral part Valle Grande.
For generations innumerable, the Valles Caldera has been a part of
life for the Pueblo Tribes of northern New Mexico. Today, the caldera
continues to have important cultural and religious significance,
something that must and will be respected and protected as the preserve
moves into the management of the National Park Service.
In recent centuries, the Valles Caldera has been often in private
ownership beginning with Spanish settlers who introduced livestock to
the grassy valleys that continue to fatten elk and cattle in the summer
months. Recognizing the unique national significance of the caldera,
the Federal Government finally purchased the area in 2000 through the
Valles Caldera Preservation Act, which I was proud to help shepherd
through Congress with Senator Bingaman and then-Senator Domenici. The
subsequent creation of the Valles Caldera National Preserve included
the creation of a board of directors and the Valles Caldera Trust to
manage the area. The legislation also included mandates for stakeholder
involvement and eventual financial self-sufficiency of the preserve.
As Senator Bingaman and I take steps today to begin a transition of
the Valles Caldera into the National Park System, I want to applaud the
decade of work that both the Board of Trustees and the Valles Caldera
Trust have dedicated to the preserve. I especially want to highlight
the contributions of individual employees who have been on the ground
in the caldera, day after day, developing research programs that
utilize the unmatched natural resources of the caldera, managing cattle
grazing and expanding the livestock program to include cutting edge
scientific research, and extending educational opportunities in the
caldera to students from across state and the country.
With the heavy mandate of self-sufficiency looming and the annual
struggle to get sufficient funding for the caldera, Senator Bingaman
and I are proposing a new direction forward. As a new unit of the
National Park Service, the National Preserve will have a sustainable
future with greater access to the public.
Since 1939, the National Park Service has conducted numerous studies
of the Valles Caldera. In each, the Park Service consistently deemed
the area of significant national value because of its unique and
unaltered geology, and its singular setting, which are conducive to
public recreation, reflection, education, and research. With this
legislation the Secretary of Interior is directed to continue the
longstanding grazing, education, and hunting programs that so many New
Mexicans value as a once-ina-lifetime opportunity. By utilizing the
resources and skills within the National Park Service, I believe the
Valles Caldera National Preserve will continue to prosper as a natural
wonder full of significant geology, ecology, history, and culture.
The Valle Grande is truly that: a great valley that so very many New
Mexicans value and feel connected to. The future of the preserve is of
utmost importance to us in New Mexico, and also has significance
nationally. I look forward to working with Senator Bingaman and all of
the stakeholders who care about the future of this preserve to ensure
that this legislation emerges from the legislative process with
improvements that are supported by my colleagues in the Senate and--
most importantly--by the people of New Mexico.
____________________