[Congressional Record Volume 160, Number 116 (Wednesday, July 23, 2014)]
[Senate]
[Pages S4772-S4843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3582. Mr. WYDEN (for himself and Mr. Hatch) submitted an amendment 
intended to be proposed by him to the bill H.R. 5021, to provide an 
extension of Federal-aid highway, highway safety, motor carrier safety, 
transit, and other programs funded out of the Highway Trust Fund, and 
for other purposes; which was ordered to lie on the table; as follows:

       Strike title II and insert the following:

                      TITLE II--REVENUE PROVISIONS

     SEC. 2001. SHORT TITLE, ETC.

       (a) Short Title.--This title may be cited as the 
     ``Preserving America's Transit and Highways Act of 2014''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

       Subtitle A--Extension of Trust Fund Expenditure Authority

     SEC. 2011. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

       (a) Highway Trust Fund.--Section 9503 is amended--
       (1) by striking ``before October 1, 2014,'' in subsections 
     (b)(6)(B), (c)(1), and (e)(3), and
       (2) by striking ``MAP-21'' in subsections (c)(1) and (e)(3) 
     and inserting ``Highway and Transportation Funding Act of 
     2014''.
       (b) Sport Fish Restoration and Boating Trust Fund.--Section 
     9504 is amended--
       (1) by striking ``MAP-21'' each place it appears in 
     subsection (b)(2) and inserting ``Highway and Transportation 
     Funding Act of 2014'', and
       (2) by striking ``before October 1, 2014,'' in subsection 
     (d)(2).
       (c) Leaking Underground Storage Tank Trust Fund.--Paragraph 
     (2) of section 9508(e) is amended by striking ``before 
     October 1, 2014,''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 2012. FURTHER APPROPRIATIONS TO TRUST FUND.

       Subsection (f) of section 9503 is amended by redesignating 
     paragraph (5) as paragraph (6) and by inserting after 
     paragraph (4) the following new paragraph:
       ``(5) Further appropriations to trust fund.--For fiscal 
     year 2014, out of money in the Treasury not otherwise 
     appropriated, there is hereby appropriated, in addition to 
     any amounts under paragraph (4), to--
       ``(A) the Highway Account (as defined in subsection 
     (e)(5)(B)) in the Highway Trust Fund, $7,824,000,000, and
       ``(B) the Mass Transit Account of the Highway Trust Fund, 
     $2,000,000,000.''.

[[Page S4773]]

                  Subtitle B--Other Revenue Provisions

     SEC. 2021. ADDITIONAL INFORMATION ON RETURNS RELATING TO 
                   MORTGAGE INTEREST.

       (a) In General.--Paragraph (2) of section 6050H(b) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by redesignating subparagraph (D) as subparagraph (I), and by 
     inserting after subparagraph (C) the following new 
     subparagraphs:
       ``(D) the unpaid balance with respect to such mortgage at 
     the close of the calendar year,
       ``(E) the address of the property securing such mortgage,
       ``(F) information with respect to whether the mortgage is a 
     refinancing that occurred in such calendar year,
       ``(G) the amount of real estate taxes paid from an escrow 
     account with respect to the property securing such mortgage,
       ``(H) the date of the origination of such mortgage, and''.
       (b) Payee Statements.--Subsection (d) of section 6050H is 
     amended by striking ``and'' at the end of paragraph (1), by 
     striking the period at the end of paragraph (2) and inserting 
     ``, and'', and by inserting after paragraph (2) the following 
     new paragraph:
       ``(3) the information required to be included on the return 
     under subparagraphs (D), (E), (F), (G) and (H) of subsection 
     (b)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns and statements the due date for which 
     (determined without regard to extensions) is after December 
     31, 2015.

     SEC. 2022. CLARIFICATION OF 6-YEAR STATUTE OF LIMITATIONS IN 
                   CASE OF OVERSTATEMENT OF BASIS.

       (a) In General.--Subparagraph (B) of section 6501(e)(1) is 
     amended--
       (1) by striking ``and'' at the end of clause (i), by 
     redesignating clause (ii) as clause (iii), and by inserting 
     after clause (i) the following new clause:
       ``(ii) An understatement of gross income by reason of an 
     overstatement of unrecovered cost or other basis is an 
     omission from gross income; and'',
       (2) by inserting ``(other than in the case of an 
     overstatement of unrecovered cost or other basis)'' in clause 
     (iii) (as so redesignated) after ``In determining the amount 
     omitted from gross income'', and
       (3) by inserting ``amount omitted from'' after 
     ``Determination of'' in the heading thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) returns filed after the date of the enactment of this 
     Act, and
       (2) returns filed on or before such date if the period 
     specified in section 6501 of the Internal Revenue Code of 
     1986 (determined without regard to such amendments) for 
     assessment of the taxes with respect to which such return 
     relates has not expired as of such date.

     SEC. 2023. ADDITIONAL TRANSFER FROM THE LEAKING UNDERGROUND 
                   STORAGE TANK TRUST FUND TO THE HIGHWAY TRUST 
                   FUND.

       (a) In General.--Subsection (c) of section 9508 is 
     amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)'', and
       (2) by adding at the end the following new paragraph:
       ``(3) Additional transfer to highway trust fund.--Out of 
     amounts in the Leaking Underground Storage Tank Trust Fund 
     there is hereby appropriated $1,000,000,000 to be transferred 
     under section 9503(f)(3) to the Highway Account (as defined 
     in section 9503(e)(5)(B)) in the Highway Trust Fund.''.
       (b) Transfer to Highway Trust Fund.--Paragraph (3) of 
     section 9503(f) is amended by striking ``section 
     9508(c)(2).'' and inserting ``paragraphs (2) and (3) of 
     section 9508(c).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 2024. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NATURAL 
                   GAS AND LIQUEFIED PETROLEUM GAS.

       (a) Liquefied Petroleum Gas.--
       (1) In general.--Subparagraph (B) of section 4041(a)(2) is 
     amended by striking ``and'' at the end of clause (i), by 
     redesignating clause (ii) as clause (iii), and by inserting 
     after clause (i) the following new clause:
       ``(ii) in the case of liquefied petroleum gas, 18.3 cents 
     per energy equivalent of a gallon of gasoline, and''.
       (2) Energy equivalent of a gallon of gasoline.--Paragraph 
     (2) of section 4041(a) is amended by adding at the end the 
     following:
       ``(C) Energy equivalent of a gallon of gasoline.--For 
     purposes of this paragraph, the term `energy equivalent of a 
     gallon of gasoline' means, with respect to a liquefied 
     petroleum gas fuel, the amount of such fuel having a Btu 
     content of 115,400 (lower heating value).''.
       (b) Liquefied Natural Gas.--
       (1) In general.--Subparagraph (B) of section 4041(a)(2), as 
     amended by subsection (a)(1), is amended by striking ``and'' 
     at the end of clause (ii), by striking the period at the end 
     of clause (iii) and inserting ``, and' '' and by inserting 
     after clause (iii) the following new clause:
       ``(iv) in the case of liquefied natural gas, 24.3 cents per 
     energy equivalent of a gallon of diesel.''.
       (2) Energy equivalent of a gallon of diesel.--Paragraph (2) 
     of section 4041(a), as amended by subsection (a)(2), is 
     amended by adding at the end the following:
       ``(D) Energy equivalent of a gallon of diesel.--For 
     purposes of this paragraph, the term `energy equivalent of a 
     gallon of diesel' means, with respect to a liquefied natural 
     gas fuel, the amount of such fuel having a Btu content of 
     128,700 (lower heating value).''.
       (3) Conforming amendments.--Section 4041(a)(2)(B)(iv), as 
     redesignated by subsection (a)(1) and paragraph (1), is 
     amended--
       (A) by striking ``liquefied natural gas,'', and
       (B) by striking ``peat), and'' and inserting ``peat) and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any sale or use of fuel after September 30, 
     2014.

     SEC. 2025. CLARIFICATION OF THE NORMAL RETIREMENT AGE.

       (a) Amendments to the Employee Retirement Income Security 
     Act of 1974.--Section 204 of the Employee Retirement Income 
     Security Act of 1974 is amended by redesignating subsection 
     (k) as subsection (l) and by inserting after subsection (j) 
     the following new subsection:
       ``(k) Special Rule for Determining Normal Retirement Age 
     for Certain Existing Defined Benefit Plans.--
       ``(1) In general.--Notwithstanding section 3(24), an 
     applicable plan shall not be treated as failing to meet any 
     requirement of this title, or as failing to have a uniform 
     normal retirement age for purposes of this title, solely 
     because the plan provides for a normal retirement age 
     described in paragraph (2).
       ``(2) Applicable plan.--For purposes of this subsection--
       ``(A) In general.--The term `applicable plan' means a 
     defined benefit plan the terms of which, on or before June 
     25, 2014, provided for a normal retirement age which is the 
     earlier of--
       ``(i) an age otherwise permitted under section 3(24), or
       ``(ii) the age at which a participant completes the number 
     of years (not less than 30 years) of benefit accrual service 
     specified by the plan.

     A plan shall not fail to be treated as an applicable plan 
     solely because the normal retirement age described in the 
     preceding sentence only applied to certain participants or 
     only applied to employees of certain employers in the case of 
     a plan maintained by more than 1 employer.
       ``(B) Expanded application.--Subject to subparagraph (C), 
     if, after June 25, 2014, an applicable plan is amended to 
     expand the application of the normal retirement age described 
     in subparagraph (A) to additional participants or to 
     employees of additional employers maintaining the plan, such 
     plan shall also be treated as an applicable plan with respect 
     to such participants or employees.
       ``(C) Limitation on expanded application.--A defined 
     benefit plan shall be an applicable plan only with respect to 
     an individual who--
       ``(i) is a participant in the plan on or before January 1, 
     2017, or
       ``(ii) is an employee at any time on or before January 1, 
     2017, of any employer maintaining the plan, and who becomes a 
     participant in such plan after such date.''.
       (b) Amendment to the Internal Revenue Code of 1986.--
     Section 411 is amended by adding at the end the following new 
     subsection:
       ``(f) Special Rule for Determining Normal Retirement Age 
     for Certain Existing Defined Benefit Plans.--
       ``(1) In general.--Notwithstanding subsection (a)(8), an 
     applicable plan shall not be treated as failing to meet any 
     requirement of this subchapter, or as failing to have a 
     uniform normal retirement age for purposes of this 
     subchapter, solely because the plan provides for a normal 
     retirement age described in paragraph (2).
       ``(2) Applicable plan.--For purposes of this subsection--
       ``(A) In general.--The term `applicable plan' means a 
     defined benefit plan the terms of which, on or before June 
     25, 2014, provided for a normal retirement age which is the 
     earlier of--
       ``(i) an age otherwise permitted under subsection (a)(8), 
     or
       ``(ii) the age at which a participant completes the number 
     of years (not less than 30 years) of benefit accrual service 
     specified by the plan.

     A plan shall not fail to be treated as an applicable plan 
     solely because the normal retirement age described in the 
     preceding sentence only applied to certain participants or 
     only applied to employees of certain employers in the case of 
     a plan maintained by more than 1 employer.
       ``(B) Expanded application.--Subject to subparagraph (C), 
     if, after June 25, 2014, an applicable plan is amended to 
     expand the application of the normal retirement age described 
     in subparagraph (A) to additional participants or to 
     employees of additional employers maintaining the plan, such 
     plan shall also be treated as an applicable plan with respect 
     to such participants or employees.
       ``(C) Limitation on expanded application.--A defined 
     benefit plan shall be an applicable plan only with respect to 
     an individual who--
       ``(i) is a participant in the plan on or before January 1, 
     2017, or
       ``(ii) is an employee at any time on or before January 1, 
     2017, of any employer maintaining the plan, and who becomes a 
     participant in such plan after such date.''.

[[Page S4774]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to all periods before, on, and after the date of 
     enactment of this Act.

     SEC. 2026. PENALTY FOR FAILURE TO MEET DUE DILIGENCE 
                   REQUIREMENTS FOR THE CHILD TAX CREDIT.

       (a) In General.--Section 6695 is amended by adding at the 
     end the following new subsection:
       ``(h) Failure to Be Diligent in Determining Eligibility for 
     Child Tax Credit.--Any person who is a tax return preparer 
     with respect to any return or claim for refund who fails to 
     comply with due diligence requirements imposed by the 
     Secretary by regulations with respect to determining 
     eligibility for, or the amount of, the credit allowable by 
     section 24 shall pay a penalty of $500 for each such 
     failure.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

     SEC. 2027. FUNDING STABILIZATION.

       (a) Funding Stabilization Under the Internal Revenue Code 
     of 1986.--The table in subclause (II) of section 
     430(h)(2)(C)(iv) is amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, or 2015.............  90%..........................  110%
2016..................................  85%..........................  115%
2017..................................  80%..........................  120%
2018..................................  75%..........................  125%
After 2018............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

       (b) Funding Stabilization Under the Employee Retirement 
     Income Security Act of 1974.--
       (1) In general.--The table in subclause (II) of section 
     303(h)(2)(C)(iv) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read 
     as follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, or 2015.............  90%..........................  110%
2016..................................  85%..........................  115%
2017..................................  80%..........................  120%
2018..................................  75%..........................  125%
After 2018............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

       (2) Conforming amendments.--
       (A) In general.--Section 101(f)(2)(D) of such Act (29 
     U.S.C. 1021(f)(2)(D)) is amended--
       (i) in clause (i) by inserting ``and Preserving America's 
     Transit and Highways Act of 2014'' after ``MAP-21'' both 
     places it appears, and
       (ii) in clause (ii) by striking ``2015'' and inserting 
     ``2018''.
       (B) Statements.--The Secretary of Labor shall modify the 
     statements required under subclauses (I) and (II) of section 
     101(f)(2)(D)(i) of such Act to conform to the amendments made 
     by this section.
       (c) Stabilization Not to Apply for Purposes of Certain 
     Accelerated Benefit Distribution Rules.--
       (1) Internal revenue code of 1986.--The second sentence of 
     paragraph (2) of section 436(d) is amended by striking ``of 
     such plan'' and inserting ``of such plan (determined by not 
     taking into account any adjustment of segment rates under 
     section 430(h)(2)(C)(iv))''.
       (2) Employee retirement income security act of 1974.--The 
     second sentence of subparagraph (B) of section 206(g)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1056(g)(3)(B)) is amended by striking ``of such plan'' 
     and inserting ``of such plan (determined by not taking into 
     account any adjustment of segment rates under section 
     303(h)(2)(C)(iv))''.
       (3) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to plan 
     years beginning after December 31, 2014.
       (B) Collectively bargained plans.--In the case of a plan 
     maintained pursuant to 1 or more collective bargaining 
     agreements, the amendments made by this subsection shall 
     apply to plan years beginning after December 31, 2015.
       (4) Provisions relating to plan amendments.--
       (A) In general.--If this paragraph applies to any amendment 
     to any plan or annuity contract, such plan or contract shall 
     be treated as being operated in accordance with the terms of 
     the plan during the period described in subparagraph (B)(ii).
       (B) Amendments to which paragraph applies.--
       (i) In general.--This paragraph shall apply to any 
     amendment to any plan or annuity contract which is made--

       (I) pursuant to the amendments made by this subsection, or 
     pursuant to any regulation issued by the Secretary of the 
     Treasury or the Secretary of Labor under any provision as so 
     amended, and
       (II) on or before the last day of the first plan year 
     beginning on or after January 1, 2016, or such later date as 
     the Secretary of the Treasury may prescribe.

       (ii) Conditions.--This subsection shall not apply to any 
     amendment unless, during the period--

       (I) beginning on the date that the amendments made by this 
     subsection or the regulation described in clause (i)(I) takes 
     effect (or in the case of a plan or contract amendment not 
     required by such amendments or such regulation, the effective 
     date specified by the plan), and
       (II) ending on the date described in clause (i)(II) (or, if 
     earlier, the date the plan or contract amendment is adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect, and such plan or contract amendment 
     applies retroactively for such period.
       (C) Anti-cutback relief.--A plan shall not be treated as 
     failing to meet the requirements of section 204(g) of the 
     Employee Retirement Income Security Act of 1974 (29 U. S. C. 
     1054(g)) and section 411(d)(6) of the Internal Revenue Code 
     of 1986 solely by reason of a plan amendment to which this 
     paragraph applies.
       (d) Modification of Funding Target Determination Periods.--
       (1) Internal revenue code of 1986.--Clause (i) of section 
     430(h)(2)(B) is amended by striking ``the first day of the 
     plan year'' and inserting ``the valuation date for the plan 
     year''.
       (2) Employee retirement income security act of 1974.--
     Clause (i) of section 303(h)(2)(B) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(B)(i)) is 
     amended by striking ``the first day of the plan year'' and 
     inserting ``the valuation date for the plan year''.
       (e) Effective Date.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (d) shall apply with respect to plan years beginning 
     after December 31, 2012.
       (2) Elections.--A plan sponsor may elect not to have the 
     amendments made by subsections (a), (b), and (d) apply to any 
     plan year beginning before January 1, 2014, either (as 
     specified in the election)--
       (A) for all purposes for which such amendments apply, or
       (B) solely for purposes of determining the adjusted funding 
     target attainment percentage under sections 436 of the 
     Internal Revenue Code of 1986 and 206(g) of the Employee 
     Retirement Income Security Act of 1974 for such plan year.

     A plan shall not be treated as failing to meet the 
     requirements of section 204(g) of such Act (29 U. S. C. 
     1054(g)) and section 411(d)(6) of such Code solely by reason 
     of an election under this paragraph.

     SEC. 2028. MERCHANDISE PROCESSING FEES.

       (a) Rate Increase.--For the period beginning on July 1, 
     2021, and ending on September 30, 2024, section 13031(a)(9) 
     of the Consolidated Omnibus Budget Reconciliation Act of 1985 
     (19 U.S.C. 58c(a)(9)) shall be applied and administered by 
     substituting ``0.3464'' for ``0.21'' each place it appears.
       (b) Extension.--Section 13031(j)(3)(A) of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
     58c(j)(3)(A)) is amended by striking ``September 30, 2023'' 
     and inserting ``January 7, 2024''.

     SEC. 2029. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE 
                   PROVIDERS AND SUPPLIERS.

       (a) In General.--Paragraph (3) of section 6331(h) is 
     amended by striking the period at the end and inserting ``, 
     or to a Medicare provider or supplier under title XVIII of 
     the Social Security Act.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made on or after the date which is 6 
     months after the date of the enactment of this Act.

     SEC. 2030. MODIFICATION OF TAX EXEMPTION REQUIREMENTS FOR 
                   MUTUAL DITCH OR IRRIGATION COMPANIES.

       (a) In General.--Paragraph (12) of section 501(c) is 
     amended by adding at the end the following new subparagraph:
       ``(I) Treatment of mutual ditch irrigation companies.--
       ``(i) In general.--In the case of a mutual ditch or 
     irrigation company or of a like organization to a mutual 
     ditch or irrigation company, subparagraph (A) shall be 
     applied without taking into account any income received or 
     accrued--

       ``(I) from the sale, lease, or exchange of fee or other 
     interests in real property, including interests in water,

[[Page S4775]]

       ``(II) from the sale or exchange of stock in a mutual ditch 
     or irrigation company (or in a like organization to a mutual 
     ditch or irrigation company) or contract rights for the 
     delivery or use of water, or
       ``(III) from the investment of proceeds from sales, leases, 
     or exchanges under subclauses (I) and (II),

     except that any income received under subclause (I), (II), or 
     (III) which is distributed or expended for expenses (other 
     than for operations, maintenance, and capital improvements) 
     of the mutual ditch or irrigation company or of the like 
     organization to a mutual ditch or irrigation company (as the 
     case may be) shall be treated as nonmember income in the year 
     in which it is distributed or expended. For purposes of the 
     preceding sentence, expenses (other than for operations, 
     maintenance, and capital improvements) include expenses for 
     the construction of conveyances designed to deliver water 
     outside of the system of the mutual ditch or irrigation 
     company or of the like organization.
       ``(ii) Treatment of organizational governance.--In the case 
     of a mutual ditch or irrigation company or of a like 
     organization to a mutual ditch or irrigation company, where 
     State law provides that such a company or organization may be 
     organized in a manner that permits voting on a basis which is 
     pro rata to share ownership on corporate governance matters, 
     subparagraph (A) shall be applied without taking into account 
     whether its member shareholders have one vote on corporate 
     governance matters per share held in the corporation. Nothing 
     in this clause shall be construed to create any inference 
     about the requirements of this subsection for companies or 
     organizations not included in this clause.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 2031. SENSE OF THE SENATE RELATING TO THE NEED FOR LONG-
                   TERM TRANSPORTATION FUNDING BILL.

       (a) Findings.--The Senate finds the following:
       (1) The Highway Trust Fund is projected to become insolvent 
     before the end of fiscal year 2014.
       (2) The user-fee principle upon which the Highway Trust 
     Fund was established is eroding as demonstrated by the fact 
     that since 2008 Congress has transferred $54,000,000,000 from 
     the general fund to the Highway Trust Fund.
       (3) The gas tax and diesel tax, which are the primary 
     funding mechanisms for the Highway Trust Fund, have not been 
     increased since 1993 and are not indexed for inflation.
       (4) Highway Trust Fund revenues have not kept pace with the 
     infrastructure needs of the United States, in significant 
     part due to a decline in miles driven, a decline in the 
     purchasing power of highway excise taxes, and increased fuel 
     efficiency.
       (5) In 2013, according to the World Economic Forum Report 
     on Global Competitiveness, the United States was ranked 25th 
     globally in overall infrastructure quality.
       (6) Short-term surface transportation extensions increase 
     costs of transportation projects, limit the ability of State 
     and local governments to plan infrastructure improvement, and 
     ultimately have resulted in the degradation of infrastructure 
     of the United States.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) any long-term transportation reauthorization bill 
     should at a minimum fund infrastructure spending levels 
     established in Senate authorizing legislation through fiscal 
     year 2020; and
       (2) the Committee on Finance of the Senate and other 
     relevant committees of jurisdiction should work diligently to 
     produce long-term surface transportation reauthorization 
     legislation expeditiously.

                    Subtitle C--Budgetary Provisions

     SEC. 2041. UNUSED EARMARKS.

       (a) Definitions.--In this section--
       (1) the term ``earmark'' means--
       (A) a congressionally directed spending item, as defined in 
     rule XLIV of the Standing Rules of the Senate; and
       (B) a congressional earmark, as defined in rule XXI of the 
     Rules of the House of Representatives; and
       (2) the term ``unused DOT earmark'' means an earmark of 
     funds for the Department of Transportation for a Federal-aid 
     highway or highway safety construction program provided in an 
     Act other than an appropriation Act for which--
       (A) funds were first made available for any fiscal year 
     before fiscal year 2005;
       (B) as of September 30, 2014, more than 90 percent of the 
     dollar amount of the earmark of funds remains available for 
     obligation; and
       (C) no amounts from the earmark of funds were expended 
     during fiscal year 2013 or 2014.
       (b) Rescission of Unused DOT Earmarks.--
       (1) In general.--Except as provided in paragraph (2), 
     effective on September 30, 2014, all unobligated amounts made 
     available under an unused DOT earmark are rescinded.
       (2) Exceptions.--
       (A) Delay by secretary.--
       (i) In general.--The Secretary of Transportation may delay 
     the rescission of amounts made available under an unused DOT 
     earmark under paragraph (1) if the Secretary determines that 
     an additional obligation of amounts from the earmark of funds 
     is likely to occur during fiscal year 2015.
       (ii) Earmark funds not used.--For an unused DOT earmark for 
     which the Secretary of Transportation delayed rescission 
     under clause (i), if no amounts from the earmark of funds are 
     obligated during fiscal year 2015, effective on October 1, 
     2015, all unobligated amounts made available under the unused 
     DOT earmark are rescinded.
       (B) Written request by recipients.--Amounts made available 
     under an unused DOT earmark shall not be rescinded under 
     paragraph (1) if, before September 30, 2014, the recipient of 
     the unused DOT earmark notifies the Secretary of 
     Transportation in writing that--
       (i) the project to be carried out using the unused DOT 
     earmark is a priority project for the recipient; and
       (ii) the recipient intends to spend the amounts made 
     available for the project to be carried out using the unused 
     DOT earmark.
       (c) DOT Earmark Identification and Report.--
       (1) Identification.--The Secretary of Transportation shall 
     identify and submit to the Director of the Office of 
     Management and Budget an annual report regarding every 
     Federal-aid highway or highway safety construction program of 
     the Department of Transportation for which--
       (A) amounts are made available under an earmark provided in 
     an Act other than an appropriation Act; and
       (B) as of the end of a fiscal year, unobligated balances 
     remain available.
       (2) Annual report.--The Director of the Office of 
     Management and Budget shall submit to Congress and publically 
     post on the website of the Office of Management and Budget an 
     annual report that includes a listing and accounting for 
     earmarks for a Federal-aid highway or highway safety 
     construction program of the Department of Transportation 
     provided in an Act other than an appropriation Act for which 
     unobligated balances remain available, which shall include, 
     for each earmark--
       (A) the amount of funds made available under the original 
     earmark;
       (B) the amount of the unobligated balances that remain 
     available;
       (C) the fiscal year through which the funds are made 
     available, if applicable; and
       (D) recommendations and justifications for whether the 
     earmark should be rescinded or retained in the next fiscal 
     year.

     SEC. 2042. TREATMENT FOR PAYGO PURPOSES.

       (a) Paygo Scorecard.--The budgetary effects of this Act and 
     the amendments made by this Act shall not be entered on 
     either PAYGO scorecard maintained pursuant to section 4(d) of 
     the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
       (b) Senate Paygo Scorecard.--The budgetary effects of this 
     Act and the amendments made by this Act shall not be entered 
     on any PAYGO scorecard maintained for purposes of section 201 
     of S. Con. Res. 21 (110th Congress).
                                 ______
                                 
  SA 3583. Mr. CARPER (for himself, Mr. Corker, and Mrs. Boxer) 
submitted an amendment intended to be proposed by him to the bill H.R. 
5021, to provide an extension of Federal-aid highway, highway safety, 
motor carrier safety, transit, and other programs funded out of the 
Highway Trust Fund, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Highway 
     and Transportation Funding Act of 2014''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

           TITLE I--SURFACE TRANSPORTATION PROGRAM EXTENSION

                    Subtitle A--Federal-aid Highways

Sec. 1001. Extension of Federal-aid highway programs.

            Subtitle B--Extension of Highway Safety Programs

Sec. 1101. Extension of National Highway Traffic Safety Administration 
              highway safety programs.
Sec. 1102. Extension of Federal Motor Carrier Safety Administration 
              programs.
Sec. 1103. Dingell-Johnson Sport Fish Restoration Act.

               Subtitle C--Public Transportation Programs

Sec. 1201. Public transportation programs continuation.

                    Subtitle D--Hazardous Materials

Sec. 1301. Extension of hazardous materials programs.

                      TITLE II--REVENUE PROVISIONS

Sec. 2001. Extension of Highway Trust Fund expenditure authority.
Sec. 2002. Funding of Highway Trust Fund.
Sec. 2003. Additional information on returns relating to mortgage 
              interest.
Sec. 2004. Penalty for failure to meet due diligence requirements for 
              the child tax credit.
Sec. 2005. Clarification of 6-year statute of limitations in case of 
              overstatement of basis.
Sec. 2006. 100 percent continuous levy on payment to medicare providers 
              and suppliers.

[[Page S4776]]

Sec. 2007. Modification of tax exemption requirements for mutual ditch 
              or irrigation companies.
Sec. 2008. Equalization of excise tax on liquefied natural gas and 
              liquefied petroleum gas.
Sec. 2009. Extension of customs user fees.

                    TITLE III--BUDGETARY PROVISIONS

Sec. 301. Treatment for PAYGO purposes.

     SEC. 2. DEFINITIONS.

       In this Act and the amendments made by this Act:
       (1) MAP-21.--The term ``MAP-21'' means the Moving Ahead for 
     Progress in the 21st Century Act (Public Law 112-141; 126 
     Stat. 405).
       (2) Part-year extension period.--The term ``Part-Year 
     Extension Period'' means the period beginning on October 1, 
     2014, and ending on the Part-Year Funding Date.
       (3) Part-year funding date.--The term ``Part-Year Funding 
     Date'' means December 19, 2014.
       (4) Part-year ratio.--The term ``Part-Year Ratio'' means 
     the ratio calculated by dividing--
       (A) the number of days included in the period beginning on 
     October 1, 2014, and ending on the Part-Year Funding Date; by
       (B) 365.
       (5) SAFETEA-LU.--The term ``SAFETEA-LU'' means the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users (Public Law 109-59; 119 Stat. 1144).

           TITLE I--SURFACE TRANSPORTATION PROGRAM EXTENSION

                    Subtitle A--Federal-aid Highways

     SEC. 1001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.

       (a) In General.--Except as otherwise provided in this 
     subtitle, requirements, authorities, conditions, 
     eligibilities, limitations, and other provisions authorized 
     under divisions A and E of MAP-21 (Public Law 112-141), the 
     SAFETEA-LU Technical Corrections Act of 2008 (Public Law 110-
     244), titles I, V, and VI of SAFETEA-LU (Public Law 109-59), 
     titles I and V of the Transportation Equity Act for the 21st 
     Century (Public Law 105-178), the National Highway System 
     Designation Act of 1995 (Public Law 104-59), titles I and VI 
     of the Intermodal Surface Transportation Efficiency Act of 
     1991 (Public Law 102-240), and title 23, United States Code 
     (excluding chapter 4 of that title), that would otherwise 
     expire on or cease to apply after September 30, 2014, are 
     incorporated by reference and shall continue in effect 
     through the Part-Year Extension Period.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) for the Part-Year Extension Period 
     a sum equal to--
       (1) the total amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     for programs, projects, and activities for fiscal year 2014 
     under divisions A and E of MAP-21 and title 23, United States 
     Code (excluding chapter 4 of that title); multiplied by
       (2) the Part-Year Ratio.
       (c) Use of Funds.--
       (1) In general.--Except as otherwise expressly provided in 
     this title, funds authorized to be appropriated under 
     subsection (b) for the Part-Year Extension Period shall be 
     distributed, administered, limited, and made available for 
     obligation in the same manner and in the same amounts (as 
     calculated using the Part-Year Ratio) as the funds authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) for fiscal year 2014 to carry out 
     programs, projects, activities, eligibilities, and 
     requirements under--
       (A) MAP-21 (Public Law 112-141);
       (B) the SAFETEA-LU Technical Corrections Act of 2008 
     (Public Law 110-244);
       (C) SAFETEA-LU (Public Law 109-59);
       (D) the Transportation Equity Act for the 21st Century 
     (Public Law 105-178);
       (E) the National Highway System Designation Act of 1995 
     (Public Law 104-59);
       (F) the Intermodal Surface Transportation Efficiency Act of 
     1991 (Public Law 102-240); and
       (G) title 23, United States Code (excluding chapter 4 of 
     that title).
       (2) Contract authority.--Funds authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under this section shall be--
       (A) available for obligation and shall be administered in 
     the same manner as if the funds were apportioned under 
     chapter 1 of title 23, United States Code; and
       (B) for the Part-Year Extension Period, except as provided 
     in paragraph (3)(B), subject to the limitation on obligations 
     for Federal-aid highways and highway safety construction 
     programs for fiscal year 2015 in paragraph (3)(A) or an Act 
     making appropriations for fiscal year 2015 or a portion of 
     that fiscal year.
       (3) Obligation ceiling.--
       (A) In general.--In the absence of an Act making 
     appropriations for fiscal year 2015 or a portion of that 
     fiscal year--
       (i) the annual limitation on obligations for Federal-aid 
     highway and highway safety construction programs for fiscal 
     year 2015 shall be equal to that of fiscal year 2014; and
       (ii) the limitation on obligations shall be distributed and 
     funding shall be exempt from the limitation on obligations in 
     the same manner as for fiscal year 2014
       (B) Application during part-year extension period.--
       (i) Limitation on obligations.--During the Part-Year 
     Extension Period, obligations subject to the limitation 
     described in paragraph (2)(B) shall not exceed--

       (I) the annual limitation on obligations imposed under that 
     paragraph; multiplied by
       (II) the Part-Year Ratio.

       (ii) Exempt nhpp funds.--During the Part-Year Extension 
     Period, the amount of funds under section 119 of title 23, 
     United States Code, that is exempt from the limitation on 
     obligations imposed under paragraph (2)(B) shall be--

       (I) $639,000,000; multiplied by
       (II) the Part-Year Ratio.

       (C) Calculations for distribution of obligation 
     limitation.--The Secretary of Transportation shall, as 
     necessary for purposes of making the calculations for the 
     distribution of any obligation limitation during the Part-
     Year Extension Period--
       (i) annualize the amount of contract authority provided 
     under this Act for Federal-aid highways and highway safety 
     construction programs; and
       (ii) multiply the resulting distribution of obligation 
     limitation by either the Part-Year Ratio or the pro rata for 
     the period of an Act making appropriations for a portion of 
     fiscal year 2015, whichever is applicable.

            Subtitle B--Extension of Highway Safety Programs

     SEC. 1101. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
                   ADMINISTRATION HIGHWAY SAFETY PROGRAMS.

       (a) In General.--Except as otherwise provided in this 
     section, requirements, authorities, conditions, and other 
     provisions authorized under subtitle A of title I of division 
     C of MAP-21 (Public Law 112-141), section 2009 of SAFETEA-LU 
     (23 U.S.C. 402 note; Public Law 109-59), and chapter 4 of 
     title 23, United States Code, that would otherwise expire on 
     or cease to apply after September 30, 2014, are incorporated 
     by reference and shall continue in effect through the Part-
     Year Extension Period.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) for the Part-Year Extension Period 
     a sum equal to--
       (1) the total amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     for programs, projects, and activities for fiscal year 2014 
     under subtitle A of title I of division C of MAP-21 (Public 
     Law 112-141), section 2009 of SAFETEA-LU (23 U.S.C. 402 note; 
     Public Law 109-59), and chapter 4 of title 23, United States 
     Code; multiplied by
       (2) the Part-Year Ratio.
       (c) Use of Funds.--Funds authorized to appropriated or made 
     available for obligation under the authority of this section 
     shall be distributed, administered, and made available for 
     obligation in the same manner and at the same rate as funds 
     authorized to be appropriated or made available for fiscal 
     year 2014 to carry out programs, projects and activities 
     under--
       (1) subtitle A of title I of division C of MAP-21 (Public 
     Law 112-141);
       (2) section 2009 of SAFETEA-LU (23 U.S.C. 402 note; Public 
     Law 109-59); and
       (3) chapter 4 of title 23, United States Code.
       (d) Contract Authority.--Section 31101(c) of MAP-21 (126 
     Stat. 733) is amended by striking ``fiscal years 2013 and 
     2014'' and inserting ``fiscal years 2013, 2014, and 2015''.
       (e) Law Enforcement Campaigns.--Section 2009(a) of SAFETEA-
     LU (23 U.S.C. 402 note; Public Law 109-59) is amended by 
     striking ``fiscal years 2013 and 2014'' each place it appears 
     and inserting ``fiscal years 2013, 2014, and 2015''.

     SEC. 1102. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY 
                   ADMINISTRATION PROGRAMS.

       (a) Extension of Programs.--Except as otherwise provided in 
     this section, requirements, authorities, conditions, 
     eligibilities, limitations, and other provisions authorized 
     under title II of division C of MAP-21 (Public Law 112-141), 
     title IV of SAFETEA-LU (Public Law 109-59), and part B of 
     subtitle VI of title 49, United States Code, that would 
     otherwise expire on or cease to apply after September 30, 
     2014, are incorporated by reference and shall continue in 
     effect through the Part-Year Extension Period.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) for the period beginning October 1, 
     2014, and ending on the Part-Year Funding Date, a sum equal 
     to--
       (1) the total amount authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     programs, projects, and activities for fiscal year 2014 under 
     title II of division C of MAP-21 (Public Law 112-141), title 
     IV of SAFETEA-LU (Public Law 109-59), and part B of subtitle 
     VI of title 49, United States Code; multiplied by
       (2) the Part-Year Ratio.
       (c) Contract Authority.--Funds authorized to be 
     appropriated under this section shall be available for 
     obligation and shall be administered in the same manner as if 
     the funds were authorized by section 4101 of SAFETEA-LU 
     (Public Law 109-59) and amendments made by that section, as 
     amended by section 32603 of MAP-21 (Public Law 112-141), or 
     authorized by section 31104 of title 49, United States Code.
       (d) Use of Funds.--Funds authorized to be appropriated or 
     made available for obligation and expended under the 
     authority of this section shall be distributed, administered, 
     limited, and made available for obligation in the same manner 
     and at the same

[[Page S4777]]

     rate as funds authorized to be appropriated or made available 
     for fiscal year 2014 to carry out programs, projects, 
     activities, eligibilities, and requirements under--
       (1) title II of division C of MAP-21 (Public Law 112-141);
       (2) title IV of SAFETEA-LU (Public Law 109-59); and
       (3) part B of subtitle VI of title 49, United States Code.

     SEC. 1103. DINGELL-JOHNSON SPORT FISH RESTORATION ACT.

       Section 4 of the Dingell-Johnson Sport Fish Restoration Act 
     (16 U.S.C. 777c) is amended--
       (1) in subsection (a) in the matter preceding paragraph (1) 
     by striking ``2014'' and inserting ``2015''; and
       (2) in subsection (b)(1)(A) in the first sentence by 
     striking ``2014'' and inserting ``2015''.

               Subtitle C--Public Transportation Programs

     SEC. 1201. PUBLIC TRANSPORTATION PROGRAMS CONTINUATION.

       (a) Extension for Public Transportation Programs.--Except 
     as otherwise provided in this section, requirements, 
     authorities, conditions, eligibilities, limitations, and 
     other provisions authorized under division B of MAP-21 
     (Public Law 112-141) and chapter 53 of title 49, United 
     States Code, that would otherwise expire on or cease to apply 
     after September 30, 2014, are incorporated by reference and 
     shall continue in effect through the Part-Year Extension 
     Period.
       (b) Authorization of Appropriations.--
       (1) Mass transit account.--There shall be available from 
     the Mass Transit Account of the Highway Trust Fund for the 
     Part-Year Extension Period, a sum equal to--
       (A) the total amount authorized to be appropriated out of 
     the Mass Transit Account of the Highway Trust Fund for 
     programs, projects, and activities for fiscal year 2014 
     authorized under division B of MAP-21 (Public Law 112-141) 
     and under chapter 53 of title 49, United States Code; 
     multiplied by
       (B) the Part-Year Ratio.
       (2) General fund.--There is authorized to be appropriated 
     from the general fund of the Treasury for the period 
     beginning October 1, 2014, and ending on the Part-Year 
     Funding Date, a sum equal to--
       (A) the total amount authorized to be appropriated from the 
     general fund of the Treasury for programs, projects, and 
     activities for fiscal year 2014 under division B of MAP-21 
     (Public Law 112-141) and under chapter 53 of title 49, United 
     States Code; multiplied by
       (B) the Part-Year Ratio.
       (c) Contract Authority.--Funds made available under this 
     section from the Mass Transit Account of the Highway Trust 
     Fund shall be available for obligation in the same manner as 
     set forth in section 5338(j)(1) of title 49, United States 
     Code.
       (d) Use of Funds.--Funds authorized to appropriated or made 
     available for obligation and expended under the authority of 
     this section shall be distributed, administered, limited, and 
     made available for obligation in the same manner and at the 
     same rate as funds authorized to be appropriated or made 
     available for fiscal year 2014 to carry out programs, 
     projects, activities, eligibilities, and requirements under 
     division B of MAP-21 (Public Law 112-141) and chapter 53 of 
     title 49, United States Code.
       (e) Distribution of Funds Under Division B of MAP-21.--
     Funds authorized to be appropriated or made available for 
     programs continued under this section shall be distributed to 
     those programs in the same proportion as funds were allocated 
     for those programs for fiscal year 2014.

                    Subtitle D--Hazardous Materials

     SEC. 1301. EXTENSION OF HAZARDOUS MATERIALS PROGRAMS.

       (a) Extension of Programs.--Except as otherwise provided in 
     this section, requirements, authorities, conditions, 
     eligibilities, limitations, and other provisions authorized 
     under title III of division C of MAP-21 (Public Law 112-141) 
     and chapter 51 of title 49, United States Code, that would 
     otherwise expire on or cease to apply after September 30, 
     2014, are incorporated by reference and shall continue in 
     effect through the Part-Year Extension Period.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated from the general fund of the Treasury and 
     the Hazardous Materials Emergency Preparedness Fund 
     established under section 5116(i) of title 49, United States 
     Code, for the period beginning October 1, 2014, and ending on 
     the Part-Year Funding Date, an amount equal to--
       (1) the total amount authorized to be appropriated from the 
     general fund of the Treasury and the Hazardous Materials 
     Emergency Preparedness Fund for programs, projects, and 
     activities for fiscal year 2014 under title III of division C 
     of MAP-21 (Public Law 112-141) and chapter 51 of title 49, 
     United States Code; multiplied by
       (2) the Part-Year Ratio.
       (c) Use of Funds.--Funds authorized to be appropriated or 
     made available for obligation and expended under the 
     authority of this section shall be distributed, administered, 
     limited, and made available for obligation in the same manner 
     and at the same rate as funds authorized to be appropriated 
     or made available for fiscal year 2014 to carry out programs, 
     projects, activities, eligibilities, and requirements under 
     title III of division C of MAP-21 (Public Law 112-141) and 
     chapter 51 of title 49, United States Code.

                      TITLE II--REVENUE PROVISIONS

     SEC. 2001. EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE 
                   AUTHORITY.

       (a) Highway Trust Fund.--Section 9503 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``October 1, 2014'' in subsections 
     (b)(6)(B), (c)(1), and (e)(3) and inserting ``December 20, 
     2014'', and
       (2) by striking ``MAP-21'' in subsections (c)(1) and (e)(3) 
     and inserting ``Highway and Transportation Funding Act of 
     2014''.
       (b) Sport Fish Restoration and Boating Trust Fund.--Section 
     9504 of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``MAP-21'' each place it appears in 
     subsection (b)(2) and inserting ``Highway and Transportation 
     Funding Act of 2014'', and
       (2) by striking ``October 1, 2014'' in subsection (d)(2) 
     and inserting ``December 20, 2014''.
       (c) Leaking Underground Storage Tank Trust Fund.--Paragraph 
     (2) of section 9508(e) of the Internal Revenue Code of 1986 
     is amended by striking ``October 1, 2014'' and inserting 
     ``December 20, 2014''.

     SEC. 2002. FUNDING OF HIGHWAY TRUST FUND.

       (a) In General.--Subsection (f) of section 9503 of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraph (5) as paragraph (7) and by inserting after 
     paragraph (4) the following new paragraphs:
       ``(A) $5,633,000,000 to the Highway Account (as defined in 
     subsection (e)(5)(B)) in the Highway Trust Fund; and
       ``(B) $1,500,000,000 to the Mass Transit Account in the 
     Highway Trust Fund.
       ``(6) Additional increase in fund balance.--There is hereby 
     transferred to the Highway Account (as defined in subsection 
     (e)(5)(B)) in the Highway Trust Fund amounts appropriated 
     from the Leaking Underground Storage Tank Trust Fund under 
     section 9508(c)(3).''.
       (b) Appropriation From Leaking Underground Storage Tank 
     Trust Fund.--
       (1) In general.--Subsection (c) of section 9508 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(3) Additional transfer to highway trust fund.--Out of 
     amounts in the Leaking Underground Storage Tank Trust Fund 
     there is hereby appropriated $1,000,000,000 to be transferred 
     under section 9503(f)(6) to the Highway Account (as defined 
     in section 9503(e)(5)(B)) in the Highway Trust Fund.''.
       (2) Conforming amendment.--Section 9508(c)(1) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''.

     SEC. 2003. ADDITIONAL INFORMATION ON RETURNS RELATING TO 
                   MORTGAGE INTEREST.

       (a) In General.--Paragraph (2) of section 6050H(b) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of subparagraph (C), by redesignating subparagraph 
     (D) as subparagraph (I), and by inserting after subparagraph 
     (C) the following new subparagraphs:
       ``(D) the unpaid balance with respect to such mortgage at 
     the close of the calendar year,
       ``(E) the address of the property securing such mortgage,
       ``(F) information with respect to whether the mortgage is a 
     refinancing that occurred in such calendar year,
       ``(G) the amount of real estate taxes paid from an escrow 
     account with respect to the property securing such mortgage,
       ``(H) the date of the origination of such mortgage, and''.
       (b) Payee Statements.--Subsection (d) of section 6050H of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of paragraph (1), by striking the period 
     at the end of paragraph (2) and inserting ``, and'', and by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) the information required to be included on the return 
     under subparagraphs (D), (E), (F), (G) and (H) of subsection 
     (b)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns and statements the due date for which 
     (determined without regard to extensions) is after December 
     31, 2015.

     SEC. 2004. PENALTY FOR FAILURE TO MEET DUE DILIGENCE 
                   REQUIREMENTS FOR THE CHILD TAX CREDIT.

       (a) In General.--Section 6695 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(h) Failure to Be Diligent in Determining Eligibility for 
     Child Tax Credit.--Any person who is a tax return preparer 
     with respect to any return or claim for refund who fails to 
     comply with due diligence requirements imposed by the 
     Secretary by regulations with respect to determining 
     eligibility for, or the amount of, the credit allowable by 
     section 24 shall pay a penalty of $500 for each such 
     failure.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

     SEC. 2005. CLARIFICATION OF 6-YEAR STATUTE OF LIMITATIONS IN 
                   CASE OF OVERSTATEMENT OF BASIS.

       (a) In General.--Subparagraph (B) of section 6501(e)(1) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of clause (i), by 
     redesignating clause (ii) as clause (iii), and by inserting 
     after clause (i) the following new clause:

[[Page S4778]]

       ``(ii) An understatement of gross income by reason of an 
     overstatement of unrecovered cost or other basis is an 
     omission from gross income; and'',
       (2) by inserting ``(other than in the case of an 
     overstatement of unrecovered cost or other basis)'' in clause 
     (iii) (as so redesignated) after ``In determining the amount 
     omitted from gross income'', and
       (3) by inserting ``amount omitted from'' after 
     ``Determination of'' in the heading thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) returns filed after the date of the enactment of this 
     Act, and
       (2) returns filed on or before such date if the period 
     specified in section 6501 of the Internal Revenue Code of 
     1986 (determined without regard to such amendments) for 
     assessment of the taxes with respect to which such return 
     relates has not expired as of such date.

     SEC. 2006. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE 
                   PROVIDERS AND SUPPLIERS.

       (a) In General.--Paragraph (3) of section 6331(h) of the 
     Internal Revenue Code of 1986 is amended by striking the 
     period at the end and inserting ``, or to a Medicare provider 
     or supplier under title XVIII of the Social Security Act.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made on or after the date which is 6 
     months after the date of the enactment of this Act.

     SEC. 2007. MODIFICATION OF TAX EXEMPTION REQUIREMENTS FOR 
                   MUTUAL DITCH OR IRRIGATION COMPANIES.

       (a) In General.--Paragraph (12) of section 501(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(I) Treatment of mutual ditch irrigation companies.--
       ``(i) In general.--In the case of a mutual ditch or 
     irrigation company or of a like organization to a mutual 
     ditch or irrigation company, subparagraph (A) shall be 
     applied without taking into account any income received or 
     accrued--

       ``(I) from the sale, lease, or exchange of fee or other 
     interests in real property, including interests in water,
       ``(II) from the sale or exchange of stock in a mutual ditch 
     or irrigation company (or in a like organization to a mutual 
     ditch or irrigation company) or contract rights for the 
     delivery or use of water, or
       ``(III) from the investment of proceeds from sales, leases, 
     or exchanges under subclauses (I) and (II),

     except that any income received under subclause (I), (II), or 
     (III) which is distributed or expended for expenses (other 
     than for operations, maintenance, and capital improvements) 
     of the mutual ditch or irrigation company or of the like 
     organization to a mutual ditch or irrigation company (as the 
     case may be) shall be treated as nonmember income in the year 
     in which it is distributed or expended. For purposes of the 
     preceding sentence, expenses (other than for operations, 
     maintenance, and capital improvements) include expenses for 
     the construction of conveyances designed to deliver water 
     outside of the system of the mutual ditch or irrigation 
     company or of the like organization.
       ``(ii) Treatment of organizational governance.--In the case 
     of a mutual ditch or irrigation company or of a like 
     organization to a mutual ditch or irrigation company, where 
     State law provides that such a company or organization may be 
     organized in a manner that permits voting on a basis which is 
     pro rata to share ownership on corporate governance matters, 
     subparagraph (A) shall be applied without taking into account 
     whether its member shareholders have one vote on corporate 
     governance matters per share held in the corporation. Nothing 
     in this clause shall be construed to create any inference 
     about the requirements of this subsection for companies or 
     organizations not included in this clause.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 2008. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NATURAL 
                   GAS AND LIQUEFIED PETROLEUM GAS.

       (a) Liquefied Petroleum Gas.--
       (1) In general.--Subparagraph (B) of section 4041(a)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (i), by redesignating clause 
     (ii) as clause (iii), and by inserting after clause (i) the 
     following new clause:
       ``(ii) in the case of liquefied petroleum gas, 18.3 cents 
     per energy equivalent of a gallon of gasoline, and''.
       (2) Energy equivalent of a gallon of gasoline.--Paragraph 
     (2) of section 4041(a) of such Code is amended by adding at 
     the end the following:
       ``(C) Energy equivalent of a gallon of gasoline.--For 
     purposes of this paragraph, the term `energy equivalent of a 
     gallon of gasoline' means, with respect to a liquefied 
     petroleum gas fuel, the amount of such fuel having a Btu 
     content of 115,400 (lower heating value).''.
       (b) Liquefied Natural Gas.--
       (1) In general.--Subparagraph (B) of section 4041(a)(2) of 
     the Internal Revenue Code of 1986, as amended by subsection 
     (a)(1), is amended by striking ``and'' at the end of clause 
     (ii), by striking the period at the end of clause (iii) and 
     inserting ``, and' '' and by inserting after clause (iii) the 
     following new clause:
       ``(iv) in the case of liquefied natural gas, 24.3 cents per 
     energy equivalent of a gallon of diesel.''.
       (2) Energy equivalent of a gallon of diesel.--Paragraph (2) 
     of section 4041(a) of such Code, as amended by subsection 
     (a)(2), is amended by adding at the end the following:
       ``(D) Energy equivalent of a gallon of diesel.--For 
     purposes of this paragraph, the term `energy equivalent of a 
     gallon of diesel' means, with respect to a liquefied natural 
     gas fuel, the amount of such fuel having a Btu content of 
     128,700 (lower heating value).''.
       (3) Conforming amendments.--Section 4041(a)(2)(B)(iv) of 
     the Internal Revenue Code of 1986, as redesignated by 
     subsection (a)(1) and paragraph (1), is amended--
       (A) by striking ``liquefied natural gas,'', and
       (B) by striking ``peat), and'' and inserting ``peat) and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any sale or use of fuel after September 30, 
     2014.

     SEC. 2009. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
       (1) in subparagraph (A), by striking ``September 30, 2023'' 
     and inserting ``January 7, 2024'', and
       (2) in subparagraph (B)(i), by striking ``September 30, 
     2023'' and inserting ``January 7, 2024''.

                    TITLE III--BUDGETARY PROVISIONS

     SEC. 301. TREATMENT FOR PAYGO PURPOSES.

       (a) Paygo Scorecard.--The budgetary effects of this Act and 
     the amendments made by this Act shall not be entered on 
     either PAYGO scorecard maintained pursuant to section 4(d) of 
     the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
       (b) Senate Paygo Scorecard.--The budgetary effects of this 
     Act and the amendments made by this Act shall not be entered 
     on any PAYGO scorecard maintained for purposes of section 201 
     of S. Con. Res. 21 (110th Congress).
                                 ______
                                 
  SA 3584. Mr. LEE submitted an amendment intended to be proposed by 
him to the bill H.R. 5021, to provide an extension of Federal-aid 
highway, highway safety, motor carrier safety, transit, and other 
programs funded out of the Highway Trust Fund, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                 TITLE ___--TRANSPORTATION EMPOWERMENT

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Transportation Empowerment 
     Act''.

     SEC. __02. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the objective of the Federal highway program has been 
     to facilitate the construction of a modern freeway system 
     that promotes efficient interstate commerce by connecting all 
     States;
       (2) the objective described in paragraph (1) has been 
     attained, and the Interstate System connecting all States is 
     near completion;
       (3) each State has the responsibility of providing an 
     efficient transportation network for the residents of the 
     State;
       (4) each State has the means to build and operate a network 
     of transportation systems, including highways, that best 
     serves the needs of the State;
       (5) each State is best capable of determining the needs of 
     the State and acting on those needs;
       (6) the Federal role in highway transportation has, over 
     time, usurped the role of the States by taxing motor fuels 
     used in the States and then distributing the proceeds to the 
     States based on the perceptions of the Federal Government on 
     what is best for the States;
       (7) the Federal Government has used the Federal motor fuels 
     tax revenues to force all States to take actions that are not 
     necessarily appropriate for individual States;
       (8) the Federal distribution, review, and enforcement 
     process wastes billions of dollars on unproductive 
     activities;
       (9) Federal mandates that apply uniformly to all 50 States, 
     regardless of the different circumstances of the States, 
     cause the States to waste billions of hard-earned tax dollars 
     on projects, programs, and activities that the States would 
     not otherwise undertake; and
       (10) Congress has expressed a strong interest in reducing 
     the role of the Federal Government by allowing each State to 
     manage its own affairs.
       (b) Purposes.--The purposes of this title are--
       (1) to return to the individual States maximum 
     discretionary authority and fiscal responsibility for all 
     elements of the national surface transportation systems that 
     are not within the direct purview of the Federal Government;
       (2) to preserve Federal responsibility for the Dwight D. 
     Eisenhower National System of Interstate and Defense 
     Highways;
       (3) to preserve the responsibility of the Department of 
     Transportation for--
       (A) design, construction, and preservation of 
     transportation facilities on Federal public land;
       (B) national programs of transportation research and 
     development and transportation safety; and

[[Page S4779]]

       (C) emergency assistance to the States in response to 
     natural disasters;
       (4) to eliminate to the maximum extent practicable Federal 
     obstacles to the ability of each State to apply innovative 
     solutions to the financing, design, construction, operation, 
     and preservation of Federal and State transportation 
     facilities; and
       (5) with respect to transportation activities carried out 
     by States, local governments, and the private sector, to 
     encourage--
       (A) competition among States, local governments, and the 
     private sector; and
       (B) innovation, energy efficiency, private sector 
     participation, and productivity.

     SEC. __03. FUNDING LIMITATION.

       Notwithstanding any other provision of law, if the 
     Secretary of Transportation determines for any of fiscal 
     years 2016 through 2020 that the aggregate amount required to 
     carry out transportation programs and projects under this 
     title and amendments made by this title exceeds the estimated 
     aggregate amount in the Highway Trust Fund available for 
     those programs and projects for the fiscal year, each amount 
     made available for that program or project shall be reduced 
     by the pro rata percentage required to reduce the aggregate 
     amount required to carry out those programs and projects to 
     an amount equal to that available for those programs and 
     projects in the Highway Trust Fund for the fiscal year.

     SEC. __04. FUNDING FOR CORE HIGHWAY PROGRAMS.

       (a) In General.--
       (1) Authorization of appropriations.--The following sums 
     are authorized to be appropriated out of the Highway Trust 
     Fund (other than the Mass Transit Account):
       (A) Federal-aid highway program.--For the national highway 
     performance program under section 119 of title 23, United 
     States Code, the surface transportation program under section 
     133 of that title, the metropolitan transportation planning 
     program under section 134 of that title, the highway safety 
     improvement program under section 148 of that title, and the 
     congestion mitigation and air quality improvement program 
     under section 149 of that title--
       (i) $37,592,576,000 for fiscal year 2016;
       (ii) $19,720,696,000 for fiscal year 2017;
       (iii) $13,147,130,000 for fiscal year 2018;
       (iv) $10,271,196,000 for fiscal year 2019; and
       (v) $7,600,685,000 for fiscal year 2020.
       (B) Emergency relief.--For emergency relief under section 
     125 of title 23, United States Code, $100,000,000 for each of 
     fiscal years 2016 through 2020.
       (C) Federal lands programs.--
       (i) Federal lands transportation program.--For the Federal 
     lands transportation program under section 203 of title 23, 
     United States Code, $300,000,000 for each of fiscal years 
     2016 through 2020, of which $240,000,000 of the amount made 
     available for each fiscal year shall be the amount for the 
     National Park Service and $30,000,000 of the amount made 
     available for each fiscal year shall be the amount for the 
     United States Fish and Wildlife Service.
       (ii) Federal lands access program.--For the Federal lands 
     access program under section 204 of title 23, United States 
     Code, $250,000,000 for each of fiscal years 2016 through 
     2020.
       (D) Administrative expenses.--Section 104(a) of title 23, 
     United States Code, is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to be made available to the Secretary for 
     administrative expenses of the Federal Highway 
     Administration--
       ``(A) $437,600,000 for fiscal year 2016;
       ``(B) $229,565,000 for fiscal year 2017;
       ``(C) $153,043,000 for fiscal year 2018;
       ``(D) $119,565,000 for fiscal year 2019; and
       ``(E) $88,478,000 for fiscal year 2020.''.
       (2) Transferability of funds.--Section 104 of title 23, 
     United States Code, is amended by striking subsection (f) and 
     inserting the following:
       ``(f) Transferability of Funds.--
       ``(1) In general.--To the extent that a State determines 
     that funds made available under this title to the State for a 
     purpose are in excess of the needs of the State for that 
     purpose, the State may transfer the excess funds to, and use 
     the excess funds for, any surface transportation (including 
     mass transit and rail) purpose in the State.
       ``(2) Enforcement.--If the Secretary determines that a 
     State has transferred funds under paragraph (1) to a purpose 
     that is not a surface transportation purpose as described in 
     paragraph (1), the amount of the improperly transferred funds 
     shall be deducted from any amount the State would otherwise 
     receive from the Highway Trust Fund for the fiscal year that 
     begins after the date of the determination.''.
       (3) Federal-aid system.--
       (A) In general.--Section 103(a) of title 23, United States 
     Code, is amended by striking ``the National Highway System, 
     which includes''.
       (B) Conforming amendments.--Chapter 1 of title 23, United 
     States Code, is amended--
       (i) in section 103 by striking the section designation and 
     heading and inserting the following:

     ``Sec. 103. Federal-aid system'';

     and
       (ii) in the analysis by striking the item relating to 
     section 103 and inserting the following:

``103. Federal-aid system.''.
       (4) Calculation of state amounts.--Section 104(c)(2) of 
     title 23, United States Code, is amended--
       (A) in the paragraph heading by striking ``For fiscal year 
     2014'' and inserting ``Subsequent fiscal years''; and
       (B) in subparagraph (A) by striking ``fiscal year 2014'' 
     and inserting ``fiscal year 2016 and each subsequent fiscal 
     year''.
       (5) National bridge and tunnel inventory and inspection 
     standards.--
       (A) In general.--Section 144 of title 23, United States 
     Code, is amended--
       (i) in subsection (e)(1) by inserting ``on the Federal-aid 
     system'' after ``any bridge''; and
       (ii) in subsection (f)(1) by inserting ``on the Federal-aid 
     system'' after ``construct any bridge''.
       (B) Repeal of historic bridges provisions.--Section 144(g) 
     of title 23, United States Code, is repealed.
       (6) Repeal of transportation alternatives program.--The 
     following provisions are repealed:
       (A) Section 213 of title 23, United States Code.
       (B) The item relating to section 213 in the analysis for 
     chapter 1 of title 23, United States Code.
       (7) National defense highways.--Section 311 of title 23, 
     United States Code, is amended--
       (A) in the first sentence, by striking ``under subsection 
     (a) of section 104 of this title'' and inserting ``to carry 
     out this section''; and
       (B) by striking the second sentence.
       (8) Federalization and defederalization of projects.--
     Notwithstanding any other provision of law, beginning on 
     October 1, 2015--
       (A) a highway construction or improvement project shall not 
     be considered to be a Federal highway construction or 
     improvement project unless and until a State expends Federal 
     funds for the construction portion of the project;
       (B) a highway construction or improvement project shall not 
     be considered to be a Federal highway construction or 
     improvement project solely by reason of the expenditure of 
     Federal funds by a State before the construction phase of the 
     project to pay expenses relating to the project, including 
     for any environmental document or design work required for 
     the project; and
       (C)(i) a State may, after having used Federal funds to pay 
     all or a portion of the costs of a highway construction or 
     improvement project, reimburse the Federal Government in an 
     amount equal to the amount of Federal funds so expended; and
       (ii) after completion of a reimbursement described in 
     clause (i), a highway construction or improvement project 
     described in that clause shall no longer be considered to be 
     a Federal highway construction or improvement project.
       (9) Reporting requirements.--No reporting requirement, 
     other than a reporting requirement in effect as of the date 
     of enactment of this Act, shall apply on or after October 1, 
     2016, to the use of Federal funds for highway projects by a 
     public-private partnership.
       (b) Expenditures From Highway Trust Fund.--
       (1) Expenditures for core programs.--Section 9503(c) of the 
     Internal Revenue Code of 1986 is amended--
       (A) in paragraph (1)--
       (i) by striking ``October 1, 2014'' and inserting ``October 
     1, 2021''; and
       (ii) by striking ``MAP-21'' and inserting ``Transportation 
     Empowerment Act'';
       (B) in paragraphs (3)(A)(i), (4)(A), and (5), by striking 
     ``October 1, 2016'' each place it appears and inserting 
     ``October 1, 2023''; and
       (C) in paragraph (2), by striking ``July 1, 2017'' and 
     inserting ``July 1, 2024''.
       (2) Amounts available for core program expenditures.--
     Section 9503 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following:
       ``(g) Core Programs Financing Rate.--
       ``(1) In general.--Except as provided in paragraph (2)--
       ``(A) in the case of gasoline and special motor fuels the 
     tax rate of which is the rate specified in section 
     4081(a)(2)(A)(i), the core programs financing rate is--
       ``(i) after September 30, 2015, and before October 1, 2016, 
     18.3 cents per gallon,
       ``(ii) after September 30, 2016, and before October 1, 
     2017, 9.6 cents per gallon,
       ``(iii) after September 30, 2017, and before October 1, 
     2018, 6.4 cents per gallon,
       ``(iv) after September 30, 2018, and before October 1, 
     2019, 5.0 cents per gallon, and
       ``(v) after September 30, 2019, 3.7 cents per gallon, and
       ``(B) in the case of kerosene, diesel fuel, and special 
     motor fuels the tax rate of which is the rate specified in 
     section 4081(a)(2)(A)(iii), the core programs financing rate 
     is--
       ``(i) after September 30, 2015, and before October 1, 2016, 
     24.3 cents per gallon,
       ``(ii) after September 30, 2016, and before October 1, 
     2017, 12.7 cents per gallon,
       ``(iii) after September 30, 2017, and before October 1, 
     2018, 8.5 cents per gallon,
       ``(iv) after September 30, 2018, and before October 1, 
     2019, 6.6 cents per gallon, and
       ``(v) after September 30, 2019 5.0 cents per gallon.
       ``(2) Application of rate.--In the case of fuels used as 
     described in paragraphs (3)(C), (4)(B), and (5) of subsection 
     (c), the core programs financing rate is zero.''.

[[Page S4780]]

       (c) Termination of Mass Transit Account.--Section 
     9503(e)(2) of the Internal Revenue Code of 1986 is amended--
       (1) in the first sentence, by inserting ``, and before 
     October 1, 2015'' after ``March 31, 1983''; and
       (2) by adding at the end the following:
       ``(6) Transfer to highway account.--On October 1, 2016, the 
     Secretary shall transfer all amounts in the Mass Transit 
     Account to the Highway Account.''.
       (d) Effective Date.--The amendments and repeals made by 
     this section take effect on October 1, 2015.

     SEC. __05. FUNDING FOR HIGHWAY RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out section 503(b) of 
     title 23, United States Code, $115,000,000 for each of fiscal 
     years 2016 through 2020.
       (b) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a) shall--
       (1) be available for obligation in the same manner as if 
     those funds were apportioned under chapter 1 of title 23, 
     United States Code, except that the Federal share of the cost 
     of a project or activity carried out using those funds shall 
     be 80 percent, unless otherwise expressly provided by this 
     title (including the amendments by this title) or otherwise 
     determined by the Secretary; and
       (2) remain available until expended and not be 
     transferable.

     SEC. __06. RETURN OF EXCESS TAX RECEIPTS TO STATES.

       (a) In General.--Section 9503(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following:
       ``(6) Return of excess tax receipts to states for surface 
     transportation purposes.--
       ``(A) In general.--On the first day of each of fiscal years 
     2017, 2018, 2019, and 2020, the Secretary, in consultation 
     with the Secretary of Transportation, shall--
       ``(i) determine the excess (if any) of--

       ``(I) the amounts appropriated in such fiscal year to the 
     Highway Trust Fund under subsection (b) which are 
     attributable to the taxes described in paragraphs (1) and (2) 
     thereof (after the application of paragraph (4) thereof) over 
     the sum of--
       ``(II) the amounts so appropriated which are equivalent 
     to--

       ``(aa) such amounts attributable to the core programs 
     financing rate for such year, plus
       ``(bb) the taxes described in paragraphs (3)(C), (4)(B), 
     and (5) of subsection (c), and
       ``(ii) allocate the amount determined under clause (i) 
     among the States (as defined in section 101(a) of title 23, 
     United States Code) for surface transportation (including 
     mass transit and rail) purposes so that--

       ``(I) the percentage of that amount allocated to each 
     State, is equal to
       ``(II) the percentage of the amount determined under clause 
     (i)(I) paid into the Highway Trust Fund in the latest fiscal 
     year for which such data are available which is attributable 
     to highway users in the State.

       ``(B) Enforcement.--If the Secretary determines that a 
     State has used amounts under subparagraph (A) for a purpose 
     which is not a surface transportation purpose as described in 
     subparagraph (A), the improperly used amounts shall be 
     deducted from any amount the State would otherwise receive 
     from the Highway Trust Fund for the fiscal year which begins 
     after the date of the determination.''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on October 1, 2015.

     SEC. __07. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, 
                   KEROSENE, AND SPECIAL FUELS FUNDING HIGHWAY 
                   TRUST FUND.

       (a) Reduction in Tax Rate.--
       (1) In general.--Section 4081(a)(2)(A) of the Internal 
     Revenue Code of 1986 is amended--
       (A) in clause (i), by striking ``18.3 cents'' and inserting 
     ``3.7 cents''; and
       (B) in clause (iii), by striking ``24.3 cents'' and 
     inserting ``5.0 cents''.
       (2) Conforming amendments.--
       (A) Section 4081(a)(2)(D) of such Code is amended--
       (i) by striking ``19.7 cents'' and inserting ``4.1 cents'', 
     and
       (ii) by striking ``24.3 cents'' and inserting ``5.0 
     cents''.
       (B) Section 6427(b)(2)(A) of such Code is amended by 
     striking ``7.4 cents'' and inserting ``1.5 cents''.
       (b) Additional Conforming Amendments.--
       (1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue 
     Code of 1986 is amended by striking ``7.3 cents per gallon 
     (4.3 cents per gallon after September 30, 2016)'' and 
     inserting ``1.4 cents per gallon (zero after September 30, 
     2022)''.
       (2) Section 4041(a)(2)(B)(ii) of such Code is amended by 
     striking ``24.3 cents'' and inserting ``5.0 cents''.
       (3) Section 4041(a)(3)(A) of such Code is amended by 
     striking ``18.3 cents'' and inserting ``3.7 cents''.
       (4) Section 4041(m)(1) of such Code is amended--
       (A) in subparagraph (A), by striking ``2016'' and inserting 
     ``2022,'';
       (B) in subparagraph (A)(i), by striking ``9.15 cents'' and 
     inserting ``1.8 cents'';
       (C) in subparagraph (A)(ii), by striking ``11.3 cents'' and 
     inserting ``2.3 cents''; and
       (D) by striking subparagraph (B) and inserting the 
     following:
       ``(B) zero after September 30, 2022.''.
       (5) Section 4081(d)(1) of such Code is amended by striking 
     ``4.3 cents per gallon after September 30, 2016'' and 
     inserting ``zero after September 30, 2022''.
       (6) Section 9503(b) of such Code is amended--
       (A) in paragraphs (1) and (2), by striking ``October 1, 
     2016'' both places it appears and inserting ``October 1, 
     2022'';
       (B) in the heading of paragraph (2), by striking ``October 
     1, 2016'' and inserting ``October 1, 2022'';
       (C) in paragraph (2), by striking ``after September 30, 
     2016, and before July 1, 2017'' and inserting ``after 
     September 30, 2021, and before July 1, 2023''; and
       (D) in paragraph (6)(B), by striking ``October 1, 2014'' 
     and inserting ``October 1, 2020''.
       (c) Floor Stock Refunds.--
       (1) In general.--If--
       (A) before October 1, 2020, tax has been imposed under 
     section 4081 of the Internal Revenue Code of 1986 on any 
     liquid; and
       (B) on such date such liquid is held by a dealer and has 
     not been used and is intended for sale;
     there shall be credited or refunded (without interest) to the 
     person who paid such tax (in this subsection referred to as 
     the ``taxpayer'') an amount equal to the excess of the tax 
     paid by the taxpayer over the amount of such tax which would 
     be imposed on such liquid had the taxable event occurred on 
     such date.
       (2) Time for filing claims.--No credit or refund shall be 
     allowed or made under this subsection unless--
       (A) claim therefor is filed with the Secretary of the 
     Treasury before April 1, 2021; and
       (B) in any case where liquid is held by a dealer (other 
     than the taxpayer) on October 1, 2020--
       (i) the dealer submits a request for refund or credit to 
     the taxpayer before January 1, 2021; and
       (ii) the taxpayer has repaid or agreed to repay the amount 
     so claimed to such dealer or has obtained the written consent 
     of such dealer to the allowance of the credit or the making 
     of the refund.
       (3) Exception for fuel held in retail stocks.--No credit or 
     refund shall be allowed under this subsection with respect to 
     any liquid in retail stocks held at the place where intended 
     to be sold at retail.
       (4) Definitions.--For purposes of this subsection, the 
     terms ``dealer'' and ``held by a dealer'' have the respective 
     meanings given to such terms by section 6412 of such Code; 
     except that the term ``dealer'' includes a producer.
       (5) Certain rules to apply.--Rules similar to the rules of 
     subsections (b) and (c) of section 6412 and sections 6206 and 
     6675 of such Code shall apply for purposes of this 
     subsection.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to fuel removed 
     after September 30, 2020.
       (2) Certain conforming amendments.--The amendments made by 
     subsections (b)(4) and (b)(6) shall apply to fuel removed 
     after September 30, 2017.

     SEC. __08. REPORT TO CONGRESS.

       Not later than 180 days after the date of enactment of this 
     Act, after consultation with the appropriate committees of 
     Congress, the Secretary of Transportation shall submit a 
     report to Congress describing such technical and conforming 
     amendments to titles 23 and 49, United States Code, and such 
     technical and conforming amendments to other laws, as are 
     necessary to bring those titles and other laws into 
     conformity with the policy embodied in this title and the 
     amendments made by this title.

     SEC. __09. EFFECTIVE DATE CONTINGENT ON CERTIFICATION OF 
                   DEFICIT NEUTRALITY.

       (a) Purpose.--The purpose of this section is to ensure 
     that--
       (1) this title will become effective only if the Director 
     of the Office of Management and Budget certifies that this 
     title is deficit neutral;
       (2) discretionary spending limits are reduced to capture 
     the savings realized in devolving transportation functions to 
     the State level pursuant to this title; and
       (3) the tax reduction made by this title is not scored 
     under pay-as-you-go and does not inadvertently trigger a 
     sequestration.
       (b) Effective Date Contingency.--Notwithstanding any other 
     provision of this title, this title and the amendments made 
     by this title shall take effect only if--
       (1) the Director of the Office of Management and Budget 
     (referred to in this section as the ``Director'') submits the 
     report as required in subsection (c); and
       (2) the report contains a certification by the Director 
     that, based on the required estimates, the reduction in 
     discretionary outlays resulting from the reduction in 
     contract authority is at least as great as the reduction in 
     revenues for each fiscal year through fiscal year 2021.
       (c) OMB Estimates and Report.--
       (1) Requirements.--Not later than 5 calendar days after the 
     date of enactment of this Act, the Director shall--
       (A) estimate the net change in revenues resulting from this 
     title for each fiscal year through fiscal year 2020;

[[Page S4781]]

       (B) estimate the net change in discretionary outlays 
     resulting from the reduction in contract authority under this 
     title for each fiscal year through fiscal year 2020;
       (C) determine, based on those estimates, whether the 
     reduction in discretionary outlays is at least as great as 
     the reduction in revenues for each fiscal year through fiscal 
     year 2021; and
       (D) submit to Congress a report setting forth the estimates 
     and determination.
       (2) Applicable assumptions and guidelines.--
       (A) Revenue estimates.--The revenue estimates required 
     under paragraph (1)(A) shall be predicated on the same 
     economic and technical assumptions and score keeping 
     guidelines that would be used for estimates made pursuant to 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 902(d)).
       (B) Outlay estimates.--The outlay estimates required under 
     paragraph (1)(B) shall be determined by comparing the level 
     of discretionary outlays resulting from this title with the 
     corresponding level of discretionary outlays projected in the 
     baseline under section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
       (d) Conforming Adjustment to Discretionary Spending 
     Limits.--On compliance with the requirements specified in 
     subsection (b), the Director shall adjust the adjusted 
     discretionary spending limits for each fiscal year through 
     fiscal year 2019 under section 601(a)(2) of the Congressional 
     Budget Act of 1974 (2 U.S.C. 665(a)(2)) by the estimated 
     reductions in discretionary outlays under subsection 
     (c)(1)(B).
       (e) PAYGO Interaction.--On compliance with the requirements 
     specified in subsection (b), no changes in revenues estimated 
     to result from the enactment of this Act shall be counted for 
     the purposes of section 252(d) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)).
                                 ______
                                 
  SA 3585. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill H.R. 5021, to provide an extension of Federal-aid 
highway, highway safety, motor carrier safety, transit, and other 
programs funded out of the Highway Trust Fund, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of subtitle A of title I, add the following:

     SEC. 10__. EMERGENCY EXEMPTIONS.

       Any road, highway, railway, bridge, or transit facility 
     that is damaged by an emergency that is declared by the 
     Governor of the State and concurred in by the Secretary of 
     Homeland Security or declared as an emergency by the 
     President pursuant to the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.) and 
     that is in operation or under construction on the date on 
     which the emergency occurs--
       (1) may be reconstructed in the same location with the same 
     capacity, dimensions, and design as before the emergency; and
       (2) shall be exempt from any environmental reviews, 
     approvals, licensing, and permit requirements under--
       (A) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (B) sections 402 and 404 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1342, 1344);
       (C) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       (D) the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.);
       (E) the Wild and Scenic Rivers Act (16 U.S.C. 1271 et 
     seq.);
       (F) the Fish and Wildlife Coordination Act (16 U.S.C. 661 
     et seq.);
       (G) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.), except when the reconstruction occurs in designated 
     critical habitat for threatened and endangered species;
       (H) Executive Order 11990 (42 U.S.C. 4321 note; relating to 
     the protection of wetland); and
       (I) any Federal law (including regulations) requiring no 
     net loss of wetland.
                                 ______
                                 
  SA 3586. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. HEALTH INSURANCE COVERAGE FOR CERTAIN CONGRESSIONAL 
                   STAFF AND MEMBERS OF THE EXECUTIVE BRANCH.

       Section 1312(d)(3)(D) of the Patient Protection and 
     Affordable Care Act (42 U.S.C. 18032(d)(3)(D)) is amended--
       (1) by striking the subparagraph heading and inserting the 
     following:
       ``(D) Members of congress, congressional staff, and 
     political appointees in the exchange.--'';
       (2) in clause (i), in the matter preceding subclause (I)--
       (A) by striking ``and congressional staff with'' and 
     inserting ``, congressional staff, the President, the Vice 
     President, and political appointees with''; and
       (B) by striking ``or congressional staff shall'' and 
     inserting ``, congressional staff, the President, the Vice 
     President, or a political appointee shall'';
       (3) in clause (ii)--
       (A) in subclause (II), by inserting after ``Congress,'' the 
     following: ``of a committee of Congress, or of a leadership 
     office of Congress,''; and
       (B) by adding at the end the following:

       ``(III) Political appointee.--In this subparagraph, the 
     term `political appointee' means any individual who--

       ``(aa) is employed in a position described under sections 
     5312 through 5316 of title 5, United States Code, (relating 
     to the Executive Schedule);
       ``(bb) is a limited term appointee, limited emergency 
     appointee, or noncareer appointee in the Senior Executive 
     Service, as defined under paragraphs (5), (6), and (7), 
     respectively, of section 3132(a) of title 5, United States 
     Code;
       ``(cc) is employed in a position in the executive branch of 
     the Government of a confidential or policy-determining 
     character under schedule C of subpart C of part 213 of title 
     5 of the Code of Federal Regulations; or
       ``(dd) is employed in or under the Executive Office of the 
     President in a position that is excluded from the competitive 
     service by reason of its confidential, policy-determining, 
     policy-making, or policy-advocating character.''; and
       (4) by adding at the end the following:
       ``(iii) Government contribution.--No Government 
     contribution under section 8906 of title 5, United States 
     Code, shall be provided on behalf of an individual who is a 
     Member of Congress, a congressional staff member, the 
     President, the Vice President, or a political appointees for 
     coverage under this paragraph.
       ``(iv) Limitation on amount of tax credit or cost-
     sharing.--An individual enrolling in health insurance 
     coverage pursuant to this paragraph shall not be eligible to 
     receive a tax credit under section 36B of the Internal 
     Revenue Code of 1986 or reduced cost sharing under section 
     1402 of this Act in an amount that exceeds the total amount 
     for which a similarly situated individual (who is not so 
     enrolled) would be entitled to receive under such sections.
       ``(v) Limitation on discretion for designation of staff.--
     Notwithstanding any other provision of law, a Member of 
     Congress shall not have discretion in determinations with 
     respect to which employees employed by the office of such 
     Member are eligible to enroll for coverage through an 
     Exchange.''.
                                 ______
                                 
  SA 3587. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Foreign Earnings 
     Reinvestment Act''.

     SEC. 2. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION 
                   FOR DIVIDENDS RECEIVED FROM A CONTROLLED 
                   FOREIGN CORPORATION.

       (a) Applicability of Provision.--
       (1) In general.--Subsection (f) of section 965 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Election; Election Year.--
       ``(1) In general.--The taxpayer may elect to apply this 
     section to--
       ``(A) the taxpayer's last taxable year which begins before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, or
       ``(B) the taxpayer's first taxable year which begins during 
     the 1-year period beginning on such date.
     Such election may be made for a taxable year only if made on 
     or before the due date (including extensions) for filing the 
     return of tax for such taxable year.
       ``(C) Election year.--For purposes of this section, the 
     term `election year' means the taxable year--
       ``(i) which begins after the date that is one year before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, and
       ``(ii) to which the taxpayer elects under paragraph (1) to 
     apply this section.''.
       (2) Conforming amendments.--
       (A) Extraordinary dividends.--Section 965(b)(2) of such 
     Code is amended--
       (i) by striking ``June 30, 2003'' and inserting ``June 30, 
     2014'', and
       (ii) by adding at the end the following new sentence: ``The 
     amounts described in clauses (i), (ii), and (iii) shall not 
     include any amounts which were taken into account in 
     determining the deduction under subsection (a) for any prior 
     taxable year.''.
       (B) Determinations relating to related party 
     indebtedness.--Section 965(b)(3)(B) of such Code is amended 
     by striking ``October 3, 2004'' and inserting ``June 30, 
     2014''.
       (C) Determinations relating to base period.--Section 
     965(c)(2) of such Code is amended by striking ``June 30, 
     2003'' and inserting ``June 30, 2014''.
       (b) Deduction Includes Current and Accumulated Foreign 
     Earnings.--
       (1) In general.--Paragraph (1) of section 965(b) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) In general.--The amount of dividends taken into 
     account under subsection (a) shall not exceed the sum of the 
     current and accumulated earnings and profits described in 
     section 959(c)(3) for the year a deduction is claimed under 
     subsection (a), without diminution by reason of any 
     distributions made during the election year, for all 
     controlled

[[Page S4782]]

     foreign corporations of the United States shareholder.''.
       (2) Conforming amendments.--
       (A) Section 965(c) of such Code, as amended by subsection 
     (a), is amended by striking paragraph (1) and by 
     redesignating paragraphs (2), (3), (4), and (5), as 
     paragraphs (1), (2), (3), and (4), respectively.
       (B) Paragraph (4) of section 965(c) of such Code, as 
     redesignated by subparagraph (A), is amended to read as 
     follows:
       ``(4) Controlled groups.--All United States shareholders 
     which are members of an affiliated group filing a 
     consolidated return under section 1501 shall be treated as 
     one United States shareholder.''.
       (c) Amount of Deduction.--
       (1) In general.--Paragraph (1) of section 965(a) of the 
     Internal Revenue Code of 1986 is amended by striking ``85 
     percent'' and inserting ``75 percent''.
       (2) Bonus deduction in subsequent taxable year for 
     increasing jobs.--Section 965 of such Code is amended by 
     adding at the end the following new subsection:
       ``(g) Bonus Deduction.--
       ``(1) In general.--In the case of any taxpayer who makes an 
     election to apply this section, there shall be allowed as a 
     deduction for the first taxable year following the election 
     year an amount equal to the applicable percentage of the cash 
     dividends which are taken into account under subsection (a) 
     with respect to such taxpayer for the election year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount which bears the 
     same ratio (not greater than 1) to 10 percent as--
       ``(A) the excess (if any) of--
       ``(i) the qualified payroll of the taxpayer for the 
     calendar year which begins with or within the first taxable 
     year following the election year, over
       ``(ii) the qualified payroll of the taxpayer for calendar 
     year 2013, bears to
       ``(B) 10 percent of the qualified payroll of the taxpayer 
     for calendar year 2013.
       ``(3) Qualified payroll.--For purposes of this paragraph:
       ``(A) In general.--The term `qualified payroll' means, with 
     respect to a taxpayer for any calendar year, the aggregate 
     wages (as defined in section 3121(a)) paid by the corporation 
     during such calendar year.
       ``(B) Exception for changes in ownership of trades or 
     businesses.--
       ``(i) Acquisitions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer acquires the trade or business of a 
     predecessor, then the qualified payroll of such taxpayer for 
     any calendar year shall be increased by so much of the 
     qualified payroll of the predecessor for such calendar year 
     as was attributable to the trade or business acquired by the 
     taxpayer.
       ``(ii) Dispositions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer disposes of a trade or business, 
     then--

       ``(I) the qualified payroll of such taxpayer for calendar 
     year 2013 shall be decreased by the amount of wages for such 
     calendar year as were attributable to the trade or business 
     which was disposed of by the taxpayer, and
       ``(II) if the disposition occurs after the beginning of the 
     first taxable year following the election year, the qualified 
     payroll of such taxpayer for the calendar year which begins 
     with or within such taxable year shall be decreased by the 
     amount of wages for such calendar year as were attributable 
     to the trade or business which was disposed of by the 
     taxpayer.

       ``(C) Special rule.--For purposes of determining qualified 
     payroll for any calendar year after calendar year 2014, such 
     term shall not include wages paid to any individual if such 
     individual received compensation from the taxpayer for 
     services performed--
       ``(i) after the date of the enactment of this paragraph, 
     and
       ``(ii) at a time when such individual was not an employee 
     of the taxpayer.''.
       (3) Reduction for failure to maintain employment levels.--
     Paragraph (4) of section 965(b) of such Code is amended to 
     read as follows:
       ``(4) Reduction in benefits for failure to maintain 
     employment levels.--
       ``(A) In general.--If, during the period consisting of the 
     calendar month in which the taxpayer first receives a 
     distribution described in subsection (a)(1) and the 
     succeeding 23 calendar months, the taxpayer does not maintain 
     an average employment level at least equal to the taxpayer's 
     prior average employment, an additional amount equal to 
     $75,000 multiplied by the number of employees by which the 
     taxpayer's average employment level during such period falls 
     below the prior average employment (but not exceeding the 
     aggregate amount allowed as a deduction pursuant to 
     subsection (a)(1)) shall be taken into income by the taxpayer 
     during the taxable year that includes the final day of such 
     period.
       ``(B) Average employment level.--For purposes of this 
     paragraph, the taxpayer's average employment level for a 
     period shall be the average number of full-time United States 
     employees of the taxpayer, measured at the end of each month 
     during the period.
       ``(C) Prior average employment.--For purposes of this 
     paragraph, the taxpayer's `prior average employment' shall be 
     the average number of full-time United States employees of 
     the taxpayer during the period consisting of the 24 calendar 
     months immediately preceding the calendar month in which the 
     taxpayer first receives a distribution described in 
     subsection (a)(1).
       ``(D) Full-time united states employee.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `full-time United States 
     employee' means an individual who provides services in the 
     United States as a full-time employee, based on the 
     employer's standards and practices; except that regardless of 
     the employer's classification of the employee, an employee 
     whose normal schedule is 40 hours or more per week is 
     considered a full-time employee.
       ``(ii) Exception for changes in ownership of trades or 
     businesses.--Such term does not include--

       ``(I) any individual who was an employee, on the date of 
     acquisition, of any trade or business acquired by the 
     taxpayer during the 24-month period referred to in 
     subparagraph (A), and
       ``(II) any individual who was an employee of any trade or 
     business disposed of by the taxpayer during the 24-month 
     period referred to in subparagraph (A) or the 24-month period 
     referred to in subparagraph (C).

       ``(E) Aggregation rules.--In determining the taxpayer's 
     average employment level and prior average employment, all 
     domestic members of a controlled group shall be treated as a 
     single taxpayer.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3588. Mr. TESTER (for himself, Mr. Walsh, and Mr. Pryor) submitted 
an amendment intended to be proposed by him to the bill S. 2410, to 
authorize appropriations for fiscal year 2015 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle D of title I, add the following:

     SEC. 141. AUTHORIZATION OF MODERNIZATION PROGRAMS FOR C-130 
                   AIRCRAFT.

       The Air Force may use programs in addition to the avionics 
     modernization program for C-130 aircraft to modernize such 
     aircraft.
                                 ______
                                 
  SA 3589. Mr. DURBIN (for himself, Mr. Brown, Mr. Reed, Mr. Sanders, 
Ms. Warren, and Ms. Baldwin) submitted an amendment intended to be 
proposed by him to the bill S. 2569, to provide an incentive for 
businesses to bring jobs back to America; which was ordered to lie on 
the table; as follows:

       At the end, add the following:

     SEC. _. PATRIOT EMPLOYER TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986, as amended by 
     this Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45T. PATRIOT EMPLOYER TAX CREDIT.

       ``(a) Determination of Amount.--
       ``(1) In general.--For purposes of section 38, the Patriot 
     employer credit determined under this section with respect to 
     any taxpayer who is a Patriot employer for any taxable year 
     shall be equal to 10 percent of the qualified wages paid or 
     incurred by the Patriot employer.
       ``(2) Limitation.--The amount of qualified wages which may 
     be taken into account under paragraph (1) with respect to any 
     employee for any taxable year shall not exceed $15,000.
       ``(b) Patriot Employer.--
       ``(1) In general.--For purposes of subsection (a), the term 
     `Patriot employer' means, with respect to any taxable year, 
     any taxpayer--
       ``(A) which--
       ``(i) maintains its headquarters in the United States if 
     the taxpayer (or any predecessor) has ever been headquartered 
     in the United States, and
       ``(ii) is not (and no predecessor of which is) an 
     expatriated entity (as defined in section 7874(a)(2)) for the 
     taxable year or any preceding taxable year ending after March 
     4, 2003,
       ``(B) with respect to which no assessable payment has been 
     imposed under section 4980H with respect to any month 
     occurring during the taxable year, and
       ``(C) in the case of--
       ``(i) a taxpayer which employs an average of more than 50 
     employees on business days during the taxable year, which--

       ``(I) provides compensation for at least 90 percent of its 
     employees for services provided by such employees during the 
     taxable year at an hourly rate (or equivalent thereof) not 
     less than an amount equal to 150 percent of the Federal 
     poverty level for a family of three for the calendar year in 
     which the taxable year begins divided by 2,080,
       ``(II) meets the retirement plan requirements of subsection 
     (c) with respect to at least 90 percent of its employees 
     providing services during the taxable year who are not highly 
     compensated employees, and
       ``(III) meets the additional requirements of subparagraphs 
     (A) and (B) of paragraph (2), or

       ``(ii) any other taxpayer, which meets the requirements of 
     either subclause (I) or (II) of clause (i) for the taxable 
     year.
       ``(2) Additional requirements for large employers.--

[[Page S4783]]

       ``(A) United states employment.--The requirements of this 
     subparagraph are met for any taxable year if--
       ``(i) in any case in which the taxpayer increases the 
     number of employees performing substantially all of their 
     services for the taxable year outside the United States, the 
     taxpayer either--

       ``(I) increases the number of employees performing 
     substantially all of their services inside the United States 
     by an amount not less than the increase in such number for 
     employees outside the United States, or
       ``(II) has a percentage increase in such employees inside 
     the United States which is not less than the percentage 
     increase in such employees outside the United States,

       ``(ii) in any case in which the taxpayer decreases the 
     number of employees performing substantially all of their 
     services for the taxable year inside the United States, the 
     taxpayer either--

       ``(I) decreases the number of employees performing 
     substantially all of their services outside the United States 
     by an amount not less than the decrease in such number for 
     employees inside the United States, or
       ``(II) has a percentage decrease in employees outside the 
     United States which is not less than the percentage decrease 
     in such employees inside the United States, and

       ``(iii) there is not a decrease in the number of employees 
     performing substantially all of their services for the 
     taxable year inside the United States by reason of the 
     taxpayer contracting out such services to persons who are not 
     employees of the taxpayer.
       ``(B) Treatment of individuals in the uniformed services 
     and the disabled.--The requirements of this subparagraph are 
     met for any taxable year if--
       ``(i) the taxpayer provides differential wage payments (as 
     defined in section 3401(h)(2)) to each employee described in 
     section 3401(h)(2)(A) for any period during the taxable year 
     in an amount not less than the difference between the wages 
     which would have been received from the employer during such 
     period and the amount of pay and allowances which the 
     employee receives for service in the uniformed services 
     during such period, and
       ``(ii) the taxpayer has in place at all times during the 
     taxable year a written policy for the recruitment of 
     employees who have served in the uniformed services or who 
     are disabled.
       ``(3) Special rules for applying the minimum wage and 
     retirement plan requirements.--
       ``(A) Minimum wage.--In determining whether the minimum 
     wage requirements of paragraph (1)(C)(i)(I) are met with 
     respect to 90 percent of a taxpayer's employees for any 
     taxable year--
       ``(i) a taxpayer may elect to exclude from such 
     determination apprentices or learners that an employer may 
     exclude under the regulations under section 14(a) of the Fair 
     Labor Standards Act of 1938, and
       ``(ii) if a taxpayer meets the requirements of paragraph 
     (2)(B)(i) with respect to providing differential wage 
     payments to any employee for any period (without regard to 
     whether such requirements apply to the taxpayer), the hourly 
     rate (or equivalent thereof) for such payments shall be 
     determined on the basis of the wages which would have been 
     paid by the employer during such period if the employee had 
     not been providing service in the uniformed services.
       ``(B) Retirement plan.--In determining whether the 
     retirement plan requirements of paragraph (1)(C)(i)(II) are 
     met with respect to 90 percent of a taxpayer's employees for 
     any taxable year, a taxpayer may elect to exclude from such 
     determination--
       ``(i) employees not meeting the age or service requirements 
     under section 410(a)(1) (or such lower age or service 
     requirements as the employer provides), and
       ``(ii) employees described in section 410(b)(3).
       ``(c) Retirement Plan Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met for any taxable year with respect to an employee of the 
     taxpayer who is not a highly compensated employee if the 
     employee is eligible to participate in 1 or more applicable 
     eligible retirement plans maintained by the employer for a 
     plan year ending with or within the taxable year.
       ``(2) Applicable eligible retirement plan.--For purposes of 
     this subsection, the term `applicable eligible retirement 
     plan' means an eligible retirement plan which, with respect 
     to the plan year described in paragraph (1), is either--
       ``(A) a defined contribution plan which--
       ``(i) requires the employer to make nonelective 
     contributions of at least 5 percent of the compensation of 
     the employee, or
       ``(ii) both--

       ``(I) includes an eligible automatic contribution 
     arrangement (as defined in section 414(w)(3)) under which the 
     uniform percentage described in section 414(w)(3)(B) is at 
     least 5 percent, and
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the elective deferrals (as defined in 
     section 414(u)(2)(C)) of the employee to the extent such 
     deferrals do not exceed the percentage specified by the plan 
     (not less than 5 percent) of the employee's compensation, or

       ``(B) a defined benefit plan--
       ``(i) with respect to which the accrued benefit of the 
     employee derived from employer contributions, when expressed 
     as an annual retirement benefit, is not less than the product 
     of--

       ``(I) the lesser of 2 percent multiplied by the employee's 
     years of service (determined under the rules of paragraphs 
     (4), (5), and (6) of section 411(a)) with the employer or 20 
     percent, multiplied by
       ``(II) the employee's final average pay, or

       ``(ii) which is an applicable defined benefit plan (as 
     defined in section 411(a)(13)(B))--

       ``(I) which meets the interest credit requirements of 
     section 411(b)(5)(B)(i) with respect to the plan year, and
       ``(II) under which the employee receives a pay credit for 
     the plan year which is not less than 5 percent of 
     compensation.

       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Eligible retirement plan.--The term `eligible 
     retirement plan' has the meaning given such term by section 
     402(c)(8)(B), except that in the case of an account or 
     annuity described in clause (i) or (ii) thereof, such term 
     shall only include an account or annuity which is a 
     simplified employee pension (as defined in section 408(k)).
       ``(B) Final average pay.--For purposes of paragraph 
     (2)(B)(i)(II), final average pay shall be determined using 
     the period of consecutive years (not exceeding 5) during 
     which the employee had the greatest compensation from the 
     taxpayer.
       ``(C) Alternative plan designs.--The Secretary may 
     prescribe regulations for a taxpayer to meet the requirements 
     of this subsection through a combination of defined 
     contribution plans or defined benefit plans described in 
     paragraph (1) or through a combination of both such types of 
     plans.
       ``(D) Plans must meet requirements without taking into 
     account social security and similar contributions and 
     benefits.--A rule similar to the rule of section 416(e) shall 
     apply.
       ``(d) Qualified Wages and Compensation.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified wages' means wages 
     (as defined in section 51(c), determined without regard to 
     paragraph (4) thereof) paid or incurred by the Patriot 
     employer during the taxable year to employees--
       ``(A) who perform substantially all of their services for 
     such Patriot employer inside the United States, and
       ``(B) with respect to whom--
       ``(i) in the case of a Patriot employer which employs an 
     average of more than 50 employees on business days during the 
     taxable year, the requirements of subclauses (I) and (II) of 
     subsection (b)(1)(C)(i) are met, and
       ``(ii) in the case of any other Patriot employer, the 
     requirements of either subclause (I) or (II) of subsection 
     (b)(1)(C)(i) are met.
       ``(2) Special rules for agricultural labor and railway 
     labor.--Rules similar to the rules of section 51(h) shall 
     apply.
       ``(3) Compensation.--For purposes of subsections 
     (b)(1)(C)(i)(I) and (c), the term `compensation' has the same 
     meaning as qualified wages, except that section 51(c)(2) 
     shall be disregarded in determining the amount of such wages.
       ``(e) Aggregation Rules.--For purposes of this section--
       ``(1) In general.--All persons treated as a single employer 
     under subsection (a) or (b) of section 52 shall be treated as 
     a single taxpayer.
       ``(2) Special rules for certain requirements.--For purposes 
     of applying paragraphs (1)(A) and (2)(A) of subsection (b)--
       ``(A) the determination under subsections (a) and (b) of 
     section 52 for purposes of paragraph (1) shall be made 
     without regard to section 1563(b)(2)(C) (relating to 
     exclusion of foreign corporations), and
       ``(B) if any person treated as a single taxpayer under this 
     subsection (after application of subparagraph (A)), or any 
     predecessor of such person, was an expatriated entity (as 
     defined in section 7874(a)(2)) for any taxable year ending 
     after March 4, 2003, then all persons treated as a single 
     taxpayer with such person shall be treated as expatriated 
     entities.
       ``(f) Election To Have Credit Not Apply.--
       ``(1) In general.--A taxpayer may elect to have this 
     section not apply for any taxable year.
       ``(2) Time for making election.--An election under 
     paragraph (1) for any taxable year may be made (or revoked) 
     at any time before the expiration of the 3-year period 
     beginning on the last date prescribed by law for filing the 
     return for such taxable year (determined without regard to 
     extensions).
       ``(3) Manner of making election.--An election under 
     paragraph (1) (or revocation thereof) shall be made in such 
     manner as the Secretary may by regulations prescribe.''.
       (b) Allowance as General Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986, as amended by this Act, is 
     amended by striking ``plus'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, plus'', and by adding at the end the following:
       ``(38) in the case of a Patriot employer (as defined in 
     section 45T(b)) for any taxable year, the Patriot employer 
     credit determined under section 45T(a).''.
       (c) Denial of Double Benefit.--Subsection (a) of section 
     280C of the Internal Revenue Code of 1986 is amended by 
     inserting ``45T(a),'' after ``45P(a)''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 the Internal 
     Revenue Code of 1986, as amended by this Act, is amended by 
     adding at the end the following new item:

``Sec. 45T. Patriot employer tax credit.''.


[[Page S4784]]


       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

     SEC. _. DEFER DEDUCTION OF INTEREST EXPENSE RELATED TO 
                   DEFERRED INCOME.

       (a) In General.--Section 163 of the Internal Revenue Code 
     of 1986 (relating to deductions for interest expense) is 
     amended by redesignating subsection (n) as subsection (o) and 
     by inserting after subsection (m) the following new 
     subsection:
       ``(n) Deferral of Deduction for Interest Expense Related to 
     Deferred Income.--
       ``(1) General rule.--The amount of foreign-related interest 
     expense of any taxpayer allowed as a deduction under this 
     chapter for any taxable year shall not exceed an amount equal 
     to the applicable percentage of the sum of--
       ``(A) the taxpayer's foreign-related interest expense for 
     the taxable year, plus
       ``(B) the taxpayer's deferred foreign-related interest 
     expense.
     For purposes of the paragraph, the applicable percentage is 
     the percentage equal to the current inclusion ratio.
       ``(2) Treatment of deferred deductions.--If, for any 
     taxable year, the amount of the limitation determined under 
     paragraph (1) exceeds the taxpayer's foreign-related interest 
     expense for the taxable year, there shall be allowed as a 
     deduction for the taxable year an amount equal to the lesser 
     of--
       ``(A) such excess, or
       ``(B) the taxpayer's deferred foreign-related interest 
     expense.
       ``(3) Definitions and special rule.--For purposes of this 
     subsection--
       ``(A) Foreign-related interest expense.--The term `foreign-
     related interest expense' means, with respect to any taxpayer 
     for any taxable year, the amount which bears the same ratio 
     to the amount of interest expense for such taxable year 
     allocated and apportioned under sections 861, 864(e), and 
     864(f) to income from sources outside the United States as--
       ``(i) the value of all stock held by the taxpayer in all 
     section 902 corporations with respect to which the taxpayer 
     meets the ownership requirements of subsection (a) or (b) of 
     section 902, bears to
       ``(ii) the value of all assets of the taxpayer which 
     generate gross income from sources outside the United States.
       ``(B) Deferred foreign-related interest expense.--The term 
     `deferred foreign-related interest expense' means the excess, 
     if any, of the aggregate foreign-related interest expense for 
     all prior taxable years beginning after December 31, 2014, 
     over the aggregate amount allowed as a deduction under 
     paragraphs (1) and (2) for all such prior taxable years.
       ``(C) Value of assets.--Except as otherwise provided by the 
     Secretary, for purposes of subparagraph (A)(ii), the value of 
     any asset shall be the amount with respect to such asset 
     determined for purposes of allocating and apportioning 
     interest expense under sections 861, 864(e), and 864(f).
       ``(D) Current inclusion ratio.--The term `current inclusion 
     ratio' means, with respect to any domestic corporation which 
     meets the ownership requirements of subsection (a) or (b) of 
     section 902 with respect to one or more section 902 
     corporations for any taxable year, the ratio (expressed as a 
     percentage) of--
       ``(i) the sum of all dividends received by the domestic 
     corporation from all such section 902 corporations during the 
     taxable year plus amounts includible in gross income under 
     section 951(a) from all such section 902 corporations, in 
     each case computed without regard to section 78, divided by
       ``(ii) the aggregate amount of post-1986 undistributed 
     earnings.
       ``(E) Aggregate amount of post-1986 undistributed 
     earnings.--The term `aggregate amount of post-1986 
     undistributed earnings' means, with respect to any domestic 
     corporation which meets the ownership requirements of 
     subsection (a) or (b) of section 902 with respect to one or 
     more section 902 corporations, the domestic corporation's pro 
     rata share of the post-1986 undistributed earnings (as 
     defined in section 902(c)(1)) of all such section 902 
     corporations.
       ``(F) Foreign currency conversion.--For purposes of 
     determining the current inclusion ratio, and except as 
     otherwise provided by the Secretary, the aggregate amount of 
     post-1986 undistributed earnings for the taxable year shall 
     be determined by translating each section 902 corporation's 
     post-1986 undistributed earnings into dollars using the 
     average exchange rate for such year.
       ``(G) Section 902 corporation.--The term `section 902 
     corporation' has the meaning given to such term by section 
     909(d)(5).
       ``(4) Treatment of affiliated groups.--The current 
     inclusion ratio of each member of an affiliated group (as 
     defined in section 864(e)(5)(A)) shall be determined as if 
     all members of such group were a single corporation.
       ``(5) Application to separate categories of income.--This 
     subsection shall be applied separately with respect to the 
     categories of income specified in section 904(d)(1).
       ``(6) Regulations.--The Secretary may prescribe such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this subsection, including 
     regulations or other guidance providing--
       ``(A) for the proper application of this subsection with 
     respect to changes in ownership of a section 902 corporation,
       ``(B) that certain corporations that otherwise would not be 
     members of the affiliated group will be treated as members of 
     the affiliated group for purposes of this subsection,
       ``(C) for the proper application of this subsection with 
     respect to the taxpayer's share of a deficit in earnings and 
     profits of a section 902 corporation,
       ``(D) for appropriate adjustments to the determination of 
     the value of stock in any section 902 corporation for 
     purposes of this subsection or to the foreign-related 
     interest expense to account for income that is subject to tax 
     under section 882(a)(1), and
       ``(E) for the proper application of this subsection with 
     respect to interest expense that is directly allocable to 
     income with respect to certain assets.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.
                                 ______
                                 
  SA 3590. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

               TITLE II--LYON COUNTY ECONOMIC DEVELOPMENT

     SEC. 201. LAND CONVEYANCE TO YERINGTON, NEVADA.

       (a) Definitions.--In this section:
       (1) City.--The term ``City'' means the city of Yerington, 
     Nevada.
       (2) Federal land.--The term ``Federal land'' means the land 
     located in Lyon County and Mineral County, Nevada, that is 
     identified on the map as ``City of Yerington Sustainable 
     Development Conveyance Lands''.
       (3) Map.--The term ``map'' means the map entitled 
     ``Yerington Land Conveyance'' and dated December 19, 2012.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Conveyances of Land to City of Yerington, Nevada.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, subject to valid existing rights and 
     to such terms and conditions as the Secretary determines to 
     be necessary and notwithstanding the land use planning 
     requirements of sections 202 and 203 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1712, 1713), the 
     Secretary shall convey to the City, subject to the agreement 
     of the City, all right, title, and interest of the United 
     States in and to the Federal land identified on the map.
       (2) Appraisal to determine fair market value.--The 
     Secretary shall determine the fair market value of the 
     Federal land to be conveyed--
       (A) in accordance with the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1701 et seq.); and
       (B) based on an appraisal that is conducted in accordance 
     with--
       (i) the Uniform Appraisal Standards for Federal Land 
     Acquisition; and
       (ii) the Uniform Standards of Professional Appraisal 
     Practice.
       (3) Availability of map.--The map shall be on file and 
     available for public inspection in the appropriate offices of 
     the Bureau of Land Management.
       (4) Applicable law.--Beginning on the date on which the 
     Federal land is conveyed to the City, the development of and 
     conduct of activities on the Federal land shall be subject to 
     all applicable Federal laws (including regulations).
       (5) Costs.--As a condition of the conveyance of the Federal 
     land under paragraph (1), the City shall pay--
       (A) an amount equal to the appraised value determined in 
     accordance with paragraph (2); and
       (B) all costs related to the conveyance, including all 
     surveys, appraisals, and other administrative costs 
     associated with the conveyance of the Federal land to the 
     City under paragraph (1).

     SEC. 202. WOVOKA WILDERNESS.

       (a) Findings.--Congress finds that--
       (1) the area designated as the Wovoka Wilderness by this 
     section contains unique and spectacular natural resources, 
     including--
       (A) priceless habitat for numerous species of plants and 
     wildlife;
       (B) thousands of acres of land that remain in a natural 
     state; and
       (C) habitat important to the continued survival of the 
     population of the greater sage grouse of western Nevada and 
     eastern California (referred to in this section as the ``Bi-
     State population of greater sage-grouse'');
       (2) continued preservation of those areas would benefit the 
     County and all of the United States by--
       (A) ensuring the conservation of ecologically diverse 
     habitat;
       (B) protecting prehistoric cultural resources;
       (C) conserving primitive recreational resources;
       (D) protecting air and water quality; and
       (E) protecting and strengthening the Bi-State population of 
     greater sage-grouse; and
       (3) the Secretary of Agriculture should collaborate with 
     the Lyon County Commission and the local community on 
     wildfire and forest management planning and implementation 
     with the goal of preventing catastrophic wildfire and 
     resource damage.
       (b) Definitions.--In this section:
       (1) County.--The term ``County'' means Lyon County, Nevada.

[[Page S4785]]

       (2) Map.--The term ``map'' means the map entitled ``Wovoka 
     Wilderness Area'' and dated December 18, 2012.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (4) State.--The term ``State'' means the State of Nevada.
       (5) Wilderness.--The term ``Wilderness'' means the Wovoka 
     Wilderness designated by subsection (c)(1).
       (c) Additions to National Wilderness Preservation System.--
       (1) Designation.--In furtherance of the purposes of the 
     Wilderness Act (16 U.S.C. 1131 et seq.), the Federal land 
     managed by the Forest Service, as generally depicted on the 
     Map, is designated as wilderness and as a component of the 
     National Wilderness Preservation System, to be known as the 
     ``Wovoka Wilderness''.
       (2) Boundary.--The boundary of any portion of the 
     Wilderness that is bordered by a road shall be 150 feet from 
     the centerline of the road.
       (3) Map and legal description.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall prepare a map and 
     legal description of the Wilderness.
       (B) Effect.--The map and legal description prepared under 
     subparagraph (A) shall have the same force and effect as if 
     included in this section, except that the Secretary may 
     correct any clerical and typographical errors in the map or 
     legal description.
       (C) Availability.--Each map and legal description prepared 
     under subparagraph (A) shall be on file and available for 
     public inspection in the appropriate offices of the Forest 
     Service.
       (4) Withdrawal.--Subject to valid existing rights, the 
     Wilderness is withdrawn from--
       (A) all forms of entry, appropriation, or disposal under 
     the public land laws;
       (B) location, entry, and patent under the mining laws; and
       (C) disposition under all laws relating to mineral and 
     geothermal leasing or mineral materials.
       (d) Administration.--
       (1) Management.--Subject to valid existing rights, the 
     Wilderness shall be administered by the Secretary in 
     accordance with the Wilderness Act (16 U.S.C. 1131 et seq.), 
     except that any reference in that Act to the effective date 
     shall be considered to be a reference to the date of 
     enactment of this Act.
       (2) Livestock.--The grazing of livestock in the Wilderness, 
     if established before the date of enactment of this Act, 
     shall be allowed to continue, subject to such reasonable 
     regulations, policies, and practices as the Secretary 
     considers to be necessary, in accordance with--
       (A) section 4(d)(4) of the Wilderness Act (16 U.S.C. 
     1133(d)(4)); and
       (B) the guidelines set forth in Appendix A of the report of 
     the Committee on Interior and Insular Affairs of the House of 
     Representatives accompanying H.R. 2570 of the 101st Congress 
     (House Report 101-405).
       (3) Incorporation of acquired land and interests.--Any land 
     or interest in land within the boundary of the Wilderness 
     that is acquired by the United States after the date of 
     enactment of this Act shall be added to and administered as 
     part of the Wilderness.
       (4) Adjacent management.--
       (A) In general.--Congress does not intend for the 
     designation of the Wilderness to create a protective 
     perimeter or buffer zone around the Wilderness.
       (B) Nonwilderness activities.--The fact that nonwilderness 
     activities or uses can be seen or heard from areas within the 
     Wilderness shall not preclude the conduct of the activities 
     or uses outside the boundary of the Wilderness.
       (5) Overflights.--
       (A) Military overflights.--Nothing in this title restricts 
     or precludes--
       (i) low-level overflights of military aircraft over the 
     Wilderness, including military overflights that can been seen 
     or heard within the Wilderness;
       (ii) flight testing and evaluation; or
       (iii) the designation or creation of new units of special 
     airspace, or the establishment of military flight training 
     routes, over the Wilderness.
       (B) Existing airstrips.--Nothing in this title restricts or 
     precludes low-level overflights by aircraft originating from 
     airstrips in existence on the date of enactment of this Act 
     that are located within 5 miles of the proposed boundary of 
     the Wilderness.
       (6) Wildfire, insect, and disease management.--In 
     accordance with section 4(d)(1) of the Wilderness Act (16 
     U.S.C. 1133(d)(1)), the Secretary may take any measures in 
     the Wilderness that the Secretary determines to be necessary 
     for the control of fire, insects, and diseases, including, as 
     the Secretary determines to be appropriate, the coordination 
     of the activities with a State or local agency.
       (7) Water rights.--
       (A) Findings.--Congress finds that--
       (i) the Wilderness is located--

       (I) in the semiarid region of the Great Basin; and
       (II) at the headwaters of the streams and rivers on land 
     with respect to which there are few--

       (aa) actual or proposed water resource facilities located 
     upstream; and
       (bb) opportunities for diversion, storage, or other uses of 
     water occurring outside the land that would adversely affect 
     the wilderness values of the land;
       (ii) the Wilderness is generally not suitable for use or 
     development of new water resource facilities; and
       (iii) because of the unique nature of the Wilderness, it is 
     possible to provide for proper management and protection of 
     the wilderness and other values of land in ways different 
     from those used in other laws.
       (B) Purpose.--The purpose of this paragraph is to protect 
     the wilderness values of the Wilderness by means other than a 
     federally reserved water right.
       (C) Statutory construction.--Nothing in this paragraph--
       (i) constitutes an express or implied reservation by the 
     United States of any water or water rights with respect to 
     the Wilderness;
       (ii) affects any water rights in the State (including any 
     water rights held by the United States) in existence on the 
     date of enactment of this Act;
       (iii) establishes a precedent with regard to any future 
     wilderness designations;
       (iv) affects the interpretation of, or any designation made 
     under, any other Act; or
       (v) limits, alters, modifies, or amends any interstate 
     compact or equitable apportionment decree that apportions 
     water among and between the State and other States.
       (D) Nevada water law.--The Secretary shall follow the 
     procedural and substantive requirements of State law in order 
     to obtain and hold any water rights not in existence on the 
     date of enactment of this Act with respect to the Wilderness.
       (E) New projects.--
       (i) Definition of water resource facility.--

       (I) In general.--In this subparagraph, the term ``water 
     resource facility'' means irrigation and pumping facilities, 
     reservoirs, water conservation works, aqueducts, canals, 
     ditches, pipelines, wells, hydropower projects, transmission 
     and other ancillary facilities, and other water diversion, 
     storage, and carriage structures.
       (II) Exclusion.--In this subparagraph, the term ``water 
     resource facility'' does not include wildlife guzzlers.

       (ii) Restriction on new water resource facilities.--

       (I) In general.--Except as otherwise provided in this 
     section, on or after the date of enactment of this Act, no 
     officer, employee, or agent of the United States shall fund, 
     assist, authorize, or issue a license or permit for the 
     development of any new water resource facility within the 
     Wilderness, any portion of which is located in the County.
       (II) Exception.--If a permittee within the Bald Mountain 
     grazing allotment submits an application for the development 
     of water resources for the purpose of livestock watering by 
     the date that is 10 years after the date of enactment of this 
     Act, the Secretary shall issue a water development permit 
     within the non-wilderness boundaries of the Bald Mountain 
     grazing allotment for the purposes of carrying out activities 
     under paragraph (2).

       (8) Nonwilderness roads.--Nothing in this title prevents 
     the Secretary from implementing or amending a final travel 
     management plan.
       (e) Wildlife Management.--
       (1) In general.--In accordance with section 4(d)(7) of the 
     Wilderness Act (16 U.S.C. 1133(d)(7)), nothing in this 
     section affects or diminishes the jurisdiction of the State 
     with respect to fish and wildlife management, including the 
     regulation of hunting, fishing, and trapping, in the 
     Wilderness.
       (2) Management activities.--In furtherance of the purposes 
     and principles of the Wilderness Act (16 U.S.C. 1131 et 
     seq.), the Secretary may conduct any management activities in 
     the Wilderness that are necessary to maintain or restore fish 
     and wildlife populations and the habitats to support the 
     populations, if the activities are carried out--
       (A) consistent with relevant wilderness management plans; 
     and
       (B) in accordance with--
       (i) the Wilderness Act (16 U.S.C. 1131 et seq.); and
       (ii) appropriate policies, such as those set forth in 
     Appendix B of the report of the Committee on Interior and 
     Insular Affairs of the House of Representatives accompanying 
     H.R. 2570 of the 101st Congress (House Report 101-405), 
     including the occasional and temporary use of motorized 
     vehicles and aircraft, if the use, as determined by the 
     Secretary, would promote healthy, viable, and more naturally 
     distributed wildlife populations that would enhance 
     wilderness values with the minimal impact necessary to 
     reasonably accomplish those tasks.
       (3) Existing activities.--Consistent with section 4(d)(1) 
     of the Wilderness Act (16 U.S.C. 1133(d)(1)) and in 
     accordance with appropriate policies such as those set forth 
     in Appendix B of House Report 101-405, the State may continue 
     to use aircraft, including helicopters, to survey, capture, 
     transplant, monitor, and provide water for wildlife 
     populations in the Wilderness.
       (4) Hunting, fishing, and trapping.--
       (A) In general.--The Secretary may designate areas in 
     which, and establish periods during which, for reasons of 
     public safety, administration, or compliance with applicable 
     laws, no hunting, fishing, or trapping will be permitted in 
     the Wilderness.
       (B) Consultation.--Except in emergencies, the Secretary 
     shall consult with the appropriate State agency and notify 
     the public before making any designation under paragraph (1).
       (5) Agreement.--The State, including a designee of the 
     State, may conduct wildlife management activities in the 
     Wilderness--

[[Page S4786]]

       (A) in accordance with the terms and conditions specified 
     in the cooperative agreement between the Secretary and the 
     State entitled ``Memorandum of Understanding: Intermountain 
     Region USDA Forest Service and the Nevada Department of 
     Wildlife State of Nevada'' and signed by the designee of the 
     State on February 6, 1984, and by the designee of the 
     Secretary on January 24, 1984, including any amendments, 
     appendices, or additions to the agreement agreed to by the 
     Secretary and the State or a designee; and
       (B) subject to all applicable laws (including regulations).
       (f) Wildlife Water Development Projects.--Subject to 
     subsection (d), the Secretary shall authorize structures and 
     facilities, including existing structures and facilities, for 
     wildlife water development projects (including guzzlers) in 
     the Wilderness if--
       (1) the structures and facilities will, as determined by 
     the Secretary, enhance wilderness values by promoting 
     healthy, viable, and more naturally distributed wildlife 
     populations; and
       (2) the visual impacts of the structures and facilities on 
     the Wilderness can reasonably be minimized.

     SEC. 203. WITHDRAWAL.

       (a) Definition of Withdrawal Area.--In this section, the 
     term ``Withdrawal Area'' means the land administered by the 
     Forest Service and identified as ``Withdrawal Area'' on the 
     map described in section 202(b)(2).
       (b) Withdrawal.--Subject to valid existing rights, all 
     Federal land within the Withdrawal Area is withdrawn from all 
     forms of--
       (1) entry, appropriation, or disposal under the public land 
     laws;
       (2) location, entry, and patent under the mining laws; and
       (3) operation of the mineral laws, geothermal leasing laws, 
     and mineral materials laws.
       (c) Motorized and Mechanical Vehicles.--
       (1) In general.--Subject to paragraph (2), use of motorized 
     and mechanical vehicles in the Withdrawal Area shall be 
     permitted only on roads and trails designated for the use of 
     those vehicles, unless the use of those vehicles is needed--
       (A) for administrative purposes; or
       (B) to respond to an emergency.
       (2) Exception.--Paragraph (1) does not apply to aircraft 
     (including helicopters).

     SEC. 204. NATIVE AMERICAN CULTURAL AND RELIGIOUS USES.

       Nothing in this title alters or diminishes the treaty 
     rights of any Indian tribe.
                                 ______
                                 
  SA 3591. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. ___. REVIEW OF CERTAIN FEDERAL REGISTER NOTICES.

       If, by the date that is 45 days after the date on which a 
     State Bureau of Land Management office has submitted a 
     Federal Register notice to the Washington, DC, office of the 
     Bureau of Land Management for Department of the Interior 
     review, the review has not been completed--
       (1) the notice shall consider to be approved; and
       (2) the State Bureau of Land Management office shall 
     immediately forward the notice to the Federal Register for 
     publication.
                                 ______
                                 
  SA 3592. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       On page 13, after line 3, add the following:

     SEC. 4. EMERGENCY FUEL REDUCTION.

       (a) Purposes.--The purposes of this section are--
       (1) to expedite wildfire prevention projects to reduce the 
     chances of wildfire on certain high-risk Federal land 
     adjacent to communities, private property, and critical 
     infrastructure;
       (2) to improve forest and wildland health; and
       (3) to promote the recovery of threatened and endangered 
     species, or other species under consideration for listing 
     under the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.), including sage-grouse, whose habitat is negatively 
     impacted by wildland fire.
       (b) Expedited Review of Projects on Federal Land.--Section 
     104 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 
     6514) is amended--
       (1) by redesignating subsections (e) through (h) as 
     subsections (f) through (i), respectively;
       (2) in subsection (c)(1)(C)(i), by striking ``subsection 
     (f)'' and inserting ``subsection (g)''; and
       (3) by inserting after subsection (d) the following:
       ``(e) Categorical Exclusion of Certain Projects.--
       ``(1) Definition of adjacent federal land.--In this 
     subsection, the term `adjacent Federal land' means an area of 
     Federal land--
       ``(A) that, while not located in the wildland-urban 
     interface, is located within not more than 5 miles of non-
     Federal land; and
       ``(B) on which the Secretary determines that conditions, 
     such as the risk of wildfire, an insect or disease epidemic, 
     or the presence of invasive species, pose a risk to the 
     adjacent non-Federal land.
       ``(2) Categorical exclusion of certain projects.--
       ``(A) In general.--An authorized hazardous fuel reduction 
     project shall be categorically excluded from the requirements 
     of the National Environmental Policy Act of 1969 (42 U.S.C. 
     4321 et seq.) if the project--
       ``(i) involves the removal of insect-infected trees, dead 
     or dying trees, trees presenting a threat to public safety or 
     electrical reliability, or the removal of other hazardous 
     fuels within 500 feet of utility or communications 
     infrastructure, a municipal water supply system, campground, 
     roadside, heritage site, recreation site, school, or other 
     infrastructure;
       ``(ii) is intended to treat 10,000 acres or less of public 
     land or National Forest System land that--

       ``(I) contains threatened and endangered species habitat; 
     or
       ``(II) provides conservation benefits to species that are 
     not listed as endangered or threatened under section 4 of the 
     Endangered Species Act of 1973 (16 U.S.C. 1533) but are a 
     State- listed species, a special concern species, or 
     candidates for a listing under the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.);

       ``(iii) is proposed to be conducted on adjacent Federal 
     land or is recommended in a community wildfire protection 
     plan if--

       ``(I) the Secretary determines that the project is 
     consistent with the applicable resource management plan; and
       ``(II) the decision to categorically exclude the project is 
     made in accordance with applicable extraordinary 
     circumstances procedures established pursuant to section 
     1508.4 of title 40, Code of Federal Regulations (or a 
     successor regulation).

       ``(B) Consultation.--In determining whether an area 
     contains trees or other hazardous fuels described in clause 
     (i), the Secretary shall consult with any utility or other 
     entity that manages the area.
       ``(C) Priority for certain projects.--In providing 
     categorical exclusions under subparagraph (A), the Secretary 
     shall give priority to authorized hazardous fuel reduction 
     projects and other projects recommended in a community 
     wildfire protection plan.
       ``(D) Exclusions.--National Forest System land or public 
     land eligible for treatment under this subsection shall not 
     include land--
       ``(i) that is a component of the National Wilderness 
     Preservation System;
       ``(ii) on which the removal of vegetation is specifically 
     prohibited by Federal law; or
       ``(iii) that is within a National Monument as of the date 
     of the enactment of the Bring Jobs Home Act.''.
                                 ______
                                 
  SA 3593. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

           TITLE II--PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT

                     Subtitle A--Geothermal Energy

     SEC. 201. EXTENSION OF FUNDING FOR IMPLEMENTATION OF ENERGY 
                   POLICY ACT OF 2005.

       (a) In General.--Section 234(a) of the Energy Policy Act of 
     2005 (42 U.S.C. 15873(a)) is amended by striking ``in the 
     first 5 fiscal years beginning after the date of enactment of 
     this Act'' and inserting ``through fiscal year 2020''.
       (b) Authorization.--Section 234(b) of the Energy Policy Act 
     of 2005 (42 U.S.C. 15873(b)) is amended--
       (1) by striking ``Amounts'' and inserting the following:
       ``(1) In general.--Amounts''; and
       (2) by adding at the end the following:
       ``(2) Authorization.--Effective for fiscal year [2015] and 
     each fiscal year thereafter, amounts deposited under 
     subsection (a) shall be available to the Secretary of the 
     Interior for expenditure, subject to appropriation and 
     without fiscal year limitation, to implement the Geothermal 
     Steam Act of 1970 (30 U.S.C. 1001 et seq.) and this Act.''.

     SEC. 202. CATEGORICAL EXCLUSION FOR GEOTHERMAL DRILLING.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of the Interior and the Secretary of 
     Agriculture shall establish a new categorical exclusion under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.) for geothermal drilling activities on any National 
     Forest System land or public land (as defined in section 103 
     of the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1702)) that were reviewed under the programmatic 
     environmental impact statement relating to the authorization 
     of geothermal leasing completed in October 2008.

  Subtitle B--Development of Wind and Solar Energy on Certain Federal 
                                  Land

     SEC. 211. DEFINITIONS.

       In this subtitle:
       (1) Covered land.--The term ``covered land'' means land 
     that is--
       (A)(i) public land administered by the Secretary; or
       (ii) National Forest System land administered by the 
     Secretary of Agriculture; and

[[Page S4787]]

       (B) not excluded from the development of solar or wind 
     energy under--
       (i) a final land use plan established under the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1701 et 
     seq.);
       (ii) a final land and resource management plan established 
     under the National Forest Management Act of 1976 (16 U.S.C. 
     1600 et seq.); or
       (iii) other Federal law.
       (2) Fund.--The term ``Fund'' means the Renewable Energy 
     Resource Conservation Fund established by section 214(b)(1).
       (3) Pilot program.--The term ``pilot program'' means the 
     wind and solar leasing pilot program established under 
     section 212(a)(1).
       (4) Public land.--The term ``public land'' has the meaning 
     given the term ``public lands'' in section 103 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1702).
       (5) Secretaries.--The term ``Secretaries'' means--
       (A) in the case of public land administered by the 
     Secretary, the Secretary; and
       (B) in the case of National Forest System land administered 
     by the Secretary of Agriculture, the Secretary of 
     Agriculture.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 212. DEVELOPMENT OF SOLAR AND WIND ENERGY ON COVERED 
                   LAND.

       (a) Pilot Program.--
       (1) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretaries each shall 
     establish a wind and solar leasing pilot program under which 
     the Secretaries shall conduct lease sales of certain sites 
     located on covered land for purposes of carrying out wind and 
     solar energy projects.
       (2) Selection of sites.--
       (A) In general.--Not later than 90 days after the date the 
     pilot program is established under paragraph (1), the 
     Secretaries shall each select from covered land--
       (i) 1 site for the development of a solar energy project; 
     and
       (ii) 1 site for the development of a wind energy project.
       (B) Site selection.--In selecting sites under subparagraph 
     (A), the Secretaries shall--
       (i) give a preference to sites that the Secretaries 
     determine--

       (I) are likely to attract a high level of wind and solar 
     energy industry interest;
       (II) have a comparatively low value for resources, other 
     than wind and solar energy; and
       (III) would serve as models for the expansion of the pilot 
     program to other locations, if the program is expanded under 
     subsection (c);

       (ii) take into consideration the value of the multiple 
     resources of the covered land on which the sites are located; 
     and
       (iii) not select any site for which a right-of-way or 
     special use permit for site testing or construction has been 
     issued under--

       (I) title V of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1761 et seq.); or
       (II) the National Forest Management Act of 1976 (16 U.S.C. 
     1600 et seq.).

       (3) Lease sales.--
       (A) In general.--Except as provided in paragraph (4)(B)(i), 
     not later than 180 days after the date on which sites are 
     selected under paragraph (2), the Secretaries shall offer 
     each site for competitive leasing to bidders that the 
     Secretaries determine to be qualified under subparagraph (C) 
     under such terms and conditions as are required by the 
     Secretaries.
       (B) Bidding systems.--
       (i) In general.--In offering the sites for lease, the 
     Secretaries may vary the bidding system selected by the 
     Secretaries, including--

       (I) cash bonus bids with a requirement for payment of the 
     royalty established under this subtitle;
       (II) variable royalty bids based on a percentage of the 
     gross proceeds from the sale of electricity produced from the 
     lease, except that the royalty shall not be less than the 
     royalty required under this subtitle, together with a fixed 
     cash bonus; or
       (III) such other bidding system as the Secretaries 
     determine will ensure a fair return to the public, consistent 
     with the royalty established under this subtitle.

       (ii) Round.--The Secretaries shall limit bidding to 1 round 
     in any lease sale.
       (C) Bidder qualifications.--Before conducting a lease sale 
     under this section, the Secretaries shall--
       (i) establish qualifications for bidders that ensure the 
     bidders--

       (I) are able to expeditiously develop a wind or solar 
     energy project on the site for lease;
       (II) possess--

       (aa) the financial resources necessary to complete a 
     project;
       (bb) knowledge of the technology needed to complete a 
     project; and
       (cc) such other qualifications as the Secretaries determine 
     to be necessary; and

       (III) meet eligibility requirements that are substantially 
     similar to the eligibility requirements for leasing that 
     apply under the first section of the Mineral Leasing Act (30 
     U.S.C. 181); and

       (ii) using the requirements established under clause (i), 
     determine whether a person is qualified to be a bidder on a 
     site offered for lease under this subsection.
       (D) Credit for bid preparation expenditures.--If more than 
     1 bid is submitted with respect to a site offered for lease 
     under this subsection on the date of the lease sale, the 
     Secretaries shall give credit to each person who submitted a 
     bid with respect to the site for expenditures the person 
     incurred in the preparation of the bid.
       (4) Lease terms.--
       (A) In general.--The Secretaries may establish such lease 
     terms and conditions with respect to any site offered for 
     lease under this subsection as the Secretaries consider 
     appropriate, including the duration of the lease.
       (B) Data collection.--As part of the pilot program, the 
     Secretaries shall--
       (i) offer on a noncompetitive basis a short-term lease with 
     respect to at least 1 site for data collection; and
       (ii) on the expiration of the short-term lease described in 
     clause (i), offer on a competitive basis a long-term lease, 
     giving credit toward the bonus bid to the holder of the 
     short-term lease for any qualified expenditures to collect 
     data or to develop the site during the short-term lease.
       (5) Revenues.--Subject to section 213, the Secretaries may 
     collect bonus bids, royalties, fees, or other payments 
     (except rental payments) with respect to sites offered for 
     lease under this subsection.
       (6) Report.--Not later than 90 days after the date on which 
     the Secretaries conduct the final lease sale under this 
     subsection, the Secretaries shall submit to the Committee on 
     Energy and Natural Resources and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate and the 
     Committee on Natural Resources and the Committee on 
     Agriculture of the House of Representatives a report that 
     describes the results of the pilot program, including--
       (A) the level of competitive interest;
       (B) a summary of bids and revenues received; and
       (C) any other factors that may have impacted the lease sale 
     process.
       (7) Other laws.--
       (A) Compliance with land management and environmental 
     laws.--In offering sites for lease under this subsection, the 
     Secretary concerned shall comply with--
       (i) all Federal laws applicable to public land or National 
     Forest System land;
       (ii) applicable Federal and State environmental laws; and
       (iii) any other relevant laws.
       (B) Applicability to wind and solar energy projects under 
     other federal law.--Nothing in this subsection prohibits the 
     Secretaries from issuing rights-of-way or special use permits 
     with respect to wind and solar energy projects in compliance 
     with other Federal laws (including regulations) in effect on 
     the date of enactment of this Act.
       (8) Enforcement of federal land policy management.--
       (A) In general.--Sections 302(c) and 303 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1732(c), 
     1733) shall apply to activities conducted on sites on covered 
     land offered for lease under this subsection.
       (B) Effect on enforcement authority under other federal 
     law.--Nothing in this subsection reduces or limits the 
     enforcement authority vested in the Secretaries or the 
     Attorney General on covered land under any other Federal law.
       (b) Temporary Extension of Pilot Program.--Until the date 
     on which final regulations are promulgated under subsection 
     (c)(4), the Secretaries--
       (1) shall continue to carry out the pilot program on the 
     sites offered for lease under subsection (a); and
       (2) as the Secretaries determine to be necessary, may 
     extend any lease issued under subsection (a) under the same 
     terms and conditions applicable to the lease on the date of 
     the lease sale.
       (c) Expansion of Pilot Program to All Covered Land.--
       (1) Joint determination required; expansion.--The 
     Secretaries shall--
       (A) not later than 5 years after the date of enactment of 
     this Act, jointly determine whether to expand the pilot 
     program to all covered land, including sites with respect to 
     which leases were issued under subsection (a); and
       (B) if the Secretaries determine to expand the pilot 
     program under subparagraph (A), expand the pilot program.
       (2) Consideration; consultation.--In making a determination 
     under paragraph (1)(A), the Secretaries shall--
       (A) take into consideration the results of the pilot 
     program;
       (B) consult with--
       (i) the heads of Federal agencies and relevant State 
     agencies (including State fish and wildlife agencies);
       (ii) interested States, Indian tribes, and local 
     governments;
       (iii) representatives of the solar and wind energy 
     industries;
       (iv) representatives of the environment, conservation, and 
     outdoor sporting communities; and
       (v) the public; and
       (C) consider whether the expansion of the pilot program--
       (i) provides an effective means of developing wind or solar 
     energy; and
       (ii) is in the public interest.
       (3) Report on joint determination.--Not later than 60 days 
     after the date on which the Secretaries make a determination 
     under paragraph (1)(A) to expand the pilot program, the 
     Secretaries jointly shall submit to the Committee on Energy 
     and Natural Resources and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate and

[[Page S4788]]

     the Committee on Natural Resources and the Committee on 
     Agriculture of the House of Representatives a report 
     describing the basis and findings for the determination.
       (4) Regulations to implement expansion.--Not later than 1 
     year after making a determination to expand the pilot program 
     under paragraph (1)(A), the Secretaries jointly shall 
     promulgate final regulations to implement this subtitle.
       (5) Applicability of provisions of pilot program to 
     expanded program.--
       (A) In general.--Except as provided in subparagraph (B), 
     paragraphs (3), (7), and (8) of subsection (a) shall apply to 
     covered land offered for lease under this subsection in the 
     same manner as those paragraphs apply to sites offered for 
     lease under subsection (a).
       (B) Competitive leasing not required under certain 
     circumstances.--The requirement under subsection (a)(3) that 
     a lease be sold on a competitive basis shall not apply to a 
     lease issued under this subsection if the Secretary or the 
     Secretary of Agriculture, as applicable, determines that--
       (i) no competitive interest exists for the covered land 
     offered for lease;
       (ii) the public interest would not be served by the 
     competitive issuance of a lease with respect to the covered 
     land; or
       (iii) the lease is for a purpose described in paragraph 
     (7)(A)(ii).
       (6) Payments.--
       (A) In general.--Subject to section 213, the Secretaries 
     jointly shall establish fees, bonuses, or other payments 
     (except rental payments) to ensure a fair return to the 
     United States for any lease issued under this subsection.
       (B) Bonus bids.--The Secretary concerned may grant credit 
     toward any bonus bid for a qualified expenditure by the 
     holder of a lease described in paragraph (7)(A)(ii) in any 
     competitive lease sale held for a long-term lease of the 
     covered land that is the subject of the lease described in 
     that paragraph.
       (7) Lease duration, administration, and readjustment.--
       (A) Duration.--
       (i) In general.--Except as provided in clause (ii), a lease 
     issued under this subsection shall be for--

       (I) an initial term of 30 years; and
       (II) any additional period after the initial 25-year term 
     during which electricity is being produced annually in 
     commercial quantities from the lease.

       (ii) Data collection leases.--In the case of a lease issued 
     under this subsection for the placement and operation of a 
     meteorological or data collection facility or for the 
     development or demonstration of a new wind or solar 
     technology, the lease shall have a term of not more than 5 
     years.
       (B) Administration.--The Secretaries jointly shall 
     establish terms and conditions for the issuance, transfer, 
     renewal, suspension, and cancellation of a lease issued under 
     this subsection.
       (C) Readjustment provision required.--Each lease issued 
     under this subsection shall provide for readjustment in 
     accordance with subparagraph (A).
       (8) Surface-disturbing activities.--The Secretaries jointly 
     shall promulgate regulations regarding surface-disturbing 
     activities conducted under any lease issued under this 
     subsection, including any reclamation and other actions 
     necessary to conserve and offset impacts to surface 
     resources.
       (9) Security.--
       (A) In general.--The Secretaries shall require that the 
     holder of a lease issued under this subsection shall--
       (i) furnish a surety bond or other form of security, as 
     prescribed by the Secretaries;
       (ii) provide for the reclamation and restoration of the 
     covered land that is the subject of the lease; and
       (iii) comply with such other requirements as the 
     Secretaries consider to be necessary to protect the interests 
     of the public and the United States.
       (B) Periodic review.--Not less frequently than once every 5 
     years, the Secretaries shall conduct a review of the adequacy 
     of a surety bond or other form of security provided by the 
     holder of a lease issued under this subsection.

     SEC. 213. ROYALTIES.

       (a) In General.--The Secretaries shall--
       (1) require as a term and condition of any lease issued 
     under section 212, the payment of a royalty; and
       (2) pursuant to a joint rulemaking, establish those 
     royalties as a percentage of the gross proceeds from the sale 
     of electricity produced on covered land that is the subject 
     of the lease at a rate that--
       (A) encourages production of solar or wind energy;
       (B) ensures a fair return to the public comparable to the 
     return that would be obtained on State or private land; and
       (C) encourages the maximum energy generation while 
     disturbing the least quantity of covered land and other 
     natural resources, including water.
       (b) Factor for Consideration.--In establishing the 
     royalties under subsection (a), the Secretaries shall take 
     into consideration the relative capacity factors of wind and 
     solar energy projects.
       (c) Exclusive Payment on Sale of Electricity.--The royalty 
     under subsection (a) shall be the only rent, royalty, or 
     similar payment to the Federal Government required with 
     respect to the sale of electricity produced under a lease 
     issued under section 212.
       (d) Royalty Relief.--The Secretaries may reduce the royalty 
     rate established under subsection (a) if the holder of a 
     lease issued under this subtitle demonstrates to the 
     satisfaction of the Secretaries by clear and convincing 
     evidence that--
       (1) collection of the full royalty would unreasonably 
     burden energy generation on covered land that is the subject 
     of the lease; and
       (2) the royalty reduction is in the public interest.
       (e) Enforcement.--
       (1) Auditing system.--The Secretaries jointly shall 
     establish a comprehensive inspection, collection, fiscal, and 
     production accounting and auditing system--
       (A) to accurately determine royalties, interest, fines, 
     penalties, fees, deposits, and other payments owed under this 
     subtitle; and
       (B) to collect and account for the payments in a timely 
     manner.
       (2) Applicability of federal oil and gas royalty management 
     act.--The Federal Oil and Gas Royalty Management Act of 1982 
     (30 U.S.C. 1701 et seq.) (including the civil and criminal 
     enforcement provisions of that Act) shall apply to leases 
     issued under this subtitle with respect to wind and solar 
     energy projects in the same manner as that Act applies to oil 
     and gas leases.
       (f) Report on Royalties.--Not later than 5 years after the 
     date of enactment of this Act and not less frequently than 
     once every 5 years thereafter, the Secretary, in consultation 
     with the Secretary of Agriculture, shall submit to the 
     Committee on Energy and Natural Resources and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate and the 
     Committee on Natural Resources and the Committee on 
     Agriculture of the House of Representatives a report that 
     includes a review of the collections and impacts of the 
     royalties and fees collected under this subtitle, including--
       (1) the total revenues received (expressed by category) on 
     an annual basis as royalties from wind, solar, and geothermal 
     development and production, specified by energy source, on 
     covered land;
       (2) whether the revenues received for the development of 
     wind, solar, and geothermal development are comparable to the 
     revenues received for similar development on State or private 
     land;
       (3) any impact on the development of wind, solar, or 
     geothermal development and production on covered land as a 
     result of the royalties; and
       (4) any recommendations with respect to changes in Federal 
     law (including regulations) relating to the amount or method 
     of collection (including auditing, compliance, and 
     enforcement) of the royalties.
       (g) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretaries jointly shall 
     promulgate final regulations to carry out this section.

     SEC. 214. DISPOSITION OF ROYALTY REVENUES.

       (a) Allocation of Revenue.--Effective beginning on the date 
     of enactment of this Act, all amounts collected by the 
     Secretaries as royalties or bonuses under subsection (a)(5) 
     or (c)(6) of section 212 shall be distributed as follows:
       (1) 25 percent shall be paid by the Secretary of the 
     Treasury to States within the boundaries of which the 
     royalties or bonuses are derived, to be allocated among those 
     States based on the percentage of covered land from which the 
     royalties or bonuses are derived in each State.
       (2) 25 percent shall be paid by the Secretary of the 
     Treasury to the counties within the boundaries of which the 
     royalties or bonuses are derived, to be allocated among those 
     counties based on the percentage of covered land from which 
     the royalties or bonuses are derived in each county.
       (3) 25 percent shall be deposited in the Fund.
       (4) For the 15-year period beginning on the date of 
     enactment of this Act, 15 percent shall be paid by the 
     Secretary of the Treasury directly to the State offices of 
     the Bureau of Land Management and the regional office of the 
     Forest Service with jurisdiction over the areas from which 
     the royalties or bonuses are derived for purposes of reducing 
     the number of renewable energy permits that have not been 
     processed before the date of enactment of this Act, to be 
     allocated among those offices based on the percentage of 
     covered land from which the royalties or bonuses are derived 
     in each State.
       (5) The remainder shall be deposited into the general fund 
     of the Treasury for purposes of reducing the annual Federal 
     budget deficit.
       (b) Renewable Energy Resource Conservation Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Renewable 
     Energy Resource Conservation Fund'', to be administered by 
     the Secretary, in consultation with the Secretary of 
     Agriculture, for use in regions impacted by the development 
     of wind or solar energy on public land.
       (2) Use of funds.--The Secretary shall use amounts in the 
     Fund to carry out activities and make payments to State 
     agencies, Federal agencies, or other interested persons in 
     regions described in paragraph (1) for--
       (A) protecting and restoring important fish and wildlife 
     habitat in the regions, including corridors, water resources, 
     and other sensitive land; and
       (B) ensuring and improving access to Federal land and water 
     in the regions for hunting, fishing, and other forms of 
     outdoor

[[Page S4789]]

     recreation in a manner consistent with the conservation of 
     fish and wildlife habitat.
       (3) Availability of amounts.--Amounts in the Fund shall be 
     available for expenditure, in accordance with this 
     subsection, without further appropriation and without fiscal 
     year limitation.
       (4) Investment.--
       (A) In general.--Amounts deposited in the Fund shall earn 
     interest in an amount determined by the Secretary of the 
     Treasury on the basis of the current average market yield on 
     outstanding marketable obligations of the United States of 
     comparable maturities.
       (B) Use.--Any interest earned under subparagraph (A) may be 
     expended in accordance with this subsection.
       (5) Mitigation requirements.--The expenditure of amounts 
     under this subsection shall be separate and distinct from any 
     mitigation requirement imposed pursuant to any law, 
     regulation, or term or condition of any lease, right-of-way, 
     or other authorization.
       (c) Allocation for Permitting After Expiration of 15-year 
     Period.--
       (1) Certification by secretary.--At the end of the 15-year 
     period described in paragraph (4) of subsection (a), the 
     Secretary shall certify whether the State offices referred to 
     in that paragraph have adequately reduced the renewable 
     energy permitting backlog referred to in that paragraph.
       (2) Allocation after certification.--If the Secretary 
     certifies under paragraph (1) that--
       (A) the State offices referred to in that paragraph have 
     not adequately reduced the backlog referred to in that 
     paragraph--
       (i) the 15-year period described in subsection (a)(4) shall 
     be extended by an additional 15-year period; and
       (ii) payments shall continue to be made during that period 
     as described in subsection (a)(4); or
       (B) the State offices referred to in that paragraph have 
     adequately reduced the backlog, of the amount otherwise 
     required to be paid under subsection (a)(4)--
       (i) \2/3\ shall be added to the amount deposited in the 
     Fund; and
       (ii) \1/3\ shall be deposited into the general fund of the 
     Treasury for purposes of reducing the annual Federal budget 
     deficit.
       (d) Payments to States and Counties.--
       (1) In general.--The amounts paid to States and counties 
     under this section shall be used in a manner that is 
     consistent with section 35 of the Mineral Leasing Act (30 
     U.S.C. 191).
       (2) Impacts.--Not less than 35 percent of the amounts paid 
     to a State under this section for each fiscal year shall be 
     used for the purposes described in subsection (b)(2) .
       (3) Addition to pilt payments.--A payment to a county under 
     this section shall be in addition to a payment received in 
     lieu of taxes under chapter 69 of title 31, United States 
     Code.

     SEC. 215. STUDY AND REPORT ON MITIGATION BANKING.

       (a) Study.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretaries shall carry out a 
     study to determine the feasibility of carrying out a 
     mitigation banking program on Federal land administered by 
     the Secretaries for purposes of fully offsetting the impacts 
     of wind or solar energy on that Federal land.
       (2) Contents.--The study under paragraph (1) shall--
       (A) identify areas in which--
       (i) privately owned land is not available to fully offset 
     the impacts of wind or solar energy development on Federal 
     land administered by the Secretaries; or
       (ii) mitigation investments on that Federal land are likely 
     to provide greater conservation value for the impacts of wind 
     or solar energy development on the Federal land; and
       (B) examine--
       (i) the effectiveness of laws (including regulations) and 
     policies in effect on the date of enactment of this Act in 
     facilitating the development and effective operation of 
     mitigation banks;
       (ii) the advantages and disadvantages of using mitigation 
     banks on Federal land administered by the Secretaries to 
     mitigate impacts to natural resources on private, State, and 
     tribal land; and
       (iii) any changes in Federal law (including regulations) or 
     policy necessary to advance development of a Federal 
     mitigation banking program.
       (b) Report to Congress.--Not later than 18 months after the 
     date of enactment of this Act, the Secretaries jointly shall 
     submit to Congress a report that includes--
       (1) the recommendations of the Secretaries relating to--
       (A) the most effective system for Federal land administered 
     by the Secretaries to meet the goals of facilitating the 
     development of a mitigation banking program on Federal land 
     administered by the Secretaries; and
       (B) any change to Federal law (including regulations) or 
     policy necessary to address more effectively the siting, 
     development, and management of mitigation banking programs on 
     that Federal land to mitigate impacts to natural resources on 
     private, State, and tribal land; and
       (2) a description of any administrative action to be taken 
     by the Secretaries in response to the recommendations.
       (c) Availability to the Public.--Not later than 30 days 
     after the date on which the report is submitted to Congress 
     under subsection (b), the Secretaries shall make the report 
     available to the public.

     SEC. 216. RENEWABLE ENERGY POTENTIAL AT MILITARY 
                   INSTALLATIONS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Defense, in 
     consultation with the Secretary, shall conduct, and prepare 
     for States that have not completed a comparable analysis a 
     report describing the results of, a study that--
       (1) identifies locations on land withdrawn from the public 
     domain and reserved for military purposes that--
       (A) exhibit a high potential for solar, wind, geothermal, 
     or other renewable energy production;
       (B) are disturbed or otherwise have comparatively low value 
     for other resources; and
       (C) could be developed for renewable energy production in a 
     manner consistent with all present and reasonably foreseeable 
     military training and operational missions and research, 
     development, testing, and evaluation requirements; and
       (2) describes the administration of public land withdrawn 
     for military purposes for the development of commercial-scale 
     renewable energy projects, including the legal authorities 
     governing authorization for that use.
       (b) Environmental Impact Analysis.--The Secretary of 
     Defense, in consultation with the Secretary, shall prepare 
     and publish in the Federal Register a notice of intent to 
     prepare an environmental impact analysis document to support 
     a program to develop renewable energy on withdrawn military 
     land identified in the study under subsection (a) as suitable 
     for the production.
       (c) Submission to Congress.--On completion of the report 
     under subsection (a), the Secretary and the Secretary of 
     Defense jointly shall submit the report to--
       (1) the Committee on Armed Services of the Senate;
       (2) the Committee on Energy and Natural Resources of the 
     Senate;
       (3) the Committee on Armed Services of the House 
     Representatives; and
       (4) the Committee on Natural Resources of the House of 
     Representatives.
                                 ______
                                 
  SA 3594. Mr. HELLER submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

     SEC. __. RELIEF FOR ENERGY CONSUMERS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Covered energy-related rule.--The term ``covered 
     energy-related rule'' means a rule of the Environmental 
     Protection Agency that--
       (A)(i) regulates any aspect of the production, supply, 
     distribution, or use of energy; or
       (ii) provides for the regulation described in clause (i) by 
     States or other governmental entities; and
       (B) is estimated by the Administrator or the Director of 
     the Office of Management and Budget to impose direct costs 
     and indirect costs, in the aggregate, of more than 
     $1,000,000,000.
       (3) Direct costs.--The term ``direct costs'' has the 
     meaning given the term in chapter 8 of the document of the 
     Environmental Protection Agency entitled ``Guidelines for 
     Preparing Economic Analyses'' and dated December 17, 2010.
       (4) Indirect costs.--The term ``indirect costs'' has the 
     meaning given the term in chapter 8 of the document of the 
     Environmental Protection Agency entitled ``Guidelines for 
     Preparing Economic Analyses'' and dated December 17, 2010.
       (5) Rule.--The term ``rule'' has the meaning given the term 
     in section 551 of title 5, United States Code.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Prohibition Against Finalizing Certain Energy-related 
     Rules That Will Cause Significant Adverse Effects to the 
     Economy.--Notwithstanding any other provision of law, the 
     Administrator shall not promulgate as final any covered 
     energy-related rule if the Secretary determines under 
     subsection (c)(4) that the covered energy-related rule will 
     result in significant adverse effects to the economy.
       (c) Reports and Determinations Prior to Promulgating as 
     Final Certain Energy-related Rules.--
       (1) In general.--Before promulgating as final any covered 
     energy-related rule, the Administrator shall carry out the 
     activities described in paragraphs (3) and (4).
       (2) Report to congress.--For each covered energy-related 
     rule, the Administrator shall submit to Congress and 
     Secretary a report containing--
       (A) a copy of the covered energy-related rule;
       (B) a concise general statement relating to the covered 
     energy-related rule;
       (C) an estimate of the total costs of the covered energy-
     related rule, including the direct costs and indirect costs 
     of the covered energy-related rule;
       (D) an estimate of--
       (i) the total benefits of the covered energy-related rule; 
     and
       (ii) when those benefits are expected to be realized;
       (E) a description of the modeling, the assumptions, and the 
     limitations due to uncertainty, speculation, or lack of 
     information

[[Page S4790]]

     associated with the estimates under subparagraph (D);
       (F) an estimate of the increases in energy prices, 
     including potential increases in gasoline or electricity 
     prices for consumers, that may result from implementation or 
     enforcement of the covered energy-related rule; and
       (G) a detailed description of the employment effects, 
     including potential job losses and shifts in employment, that 
     may result from implementation or enforcement of the covered 
     energy-related rule.
       (3) Initial determination on increases and impacts.--The 
     Secretary, in consultation with the Federal Energy Regulatory 
     Commission and the Administrator of the Energy Information 
     Administration, shall prepare an independent analysis to 
     determine whether the covered energy-related rule will 
     cause--
       (A) any increase in energy prices for consumers, including 
     low-income households, small businesses, and manufacturers;
       (B) any impact on fuel diversity of the electricity 
     generation portfolio of the United States or on national, 
     regional, or local electric reliability;
       (C) any adverse effect on energy supply, distribution, or 
     use due to the economic or technical infeasibility of 
     implementing the covered energy-related rule; or
       (D) any other adverse effect on energy supply, 
     distribution, or use (including a shortfall in supply and 
     increased use of foreign supplies).
       (4) Subsequent determination on adverse effects to the 
     economy.--If the Secretary determines, under paragraph (3), 
     that the covered energy-related rule will result in an 
     increase, impact, or effect described in that subsection, the 
     Secretary, in consultation with the Administrator, the 
     Secretary of Commerce, the Secretary of Labor, and the 
     Administrator of the Small Business Administration, shall--
       (A) determine whether the covered energy-related rule will 
     result in significant adverse effects to the economy, taking 
     into consideration--
       (i) the costs and benefits of the covered energy-related 
     rule and limitations in calculating those costs and benefits 
     due to uncertainty, speculation, or lack of information; and
       (ii) the positive and negative impacts of the covered 
     energy-related rule on economic indicators, including those 
     related to gross domestic product, unemployment, wages, 
     consumer prices, and business and manufacturing activity; and
       (B) publish the results of that determination in the 
     Federal Register.
                                 ______
                                 
  SA 3595. Mr. MORAN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

     SEC. 4. SUPPORTING NEW BUSINESSES.

       (a) Short Title.--This section may be cited as the 
     ``Startup Act 3.0''.
       (b) Findings.--Congress makes the following findings:
       (1) Achieving economic recovery will require the formation 
     and growth of new companies.
       (2) Between 1980 and 2005, companies less than 5 years old 
     accounted for nearly all net job creation in the United 
     States.
       (3) New firms in the United States create an average of 
     3,000,000 jobs per year.
       (4) To get Americans back to work, entrepreneurs must be 
     free to innovate, create new companies, and hire employees.
       (c) Conditional Permanent Resident Status for Immigrants 
     With an Advanced Degree in a STEM Field.--
       (1) In general.--Chapter 2 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1181 et seq.) is amended by 
     inserting after section 216A the following:

     ``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS 
                   WITH AN ADVANCED DEGREE IN A STEM FIELD.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary of Homeland Security may adjust the 
     status of not more than 50,000 aliens who have earned a 
     master's degree or a doctorate degree at an institution of 
     higher education in a STEM field to that of an alien 
     conditionally admitted for permanent residence and authorize 
     each alien granted such adjustment of status to remain in the 
     United States--
       ``(1) for up to 1 year after the expiration of the alien's 
     student visa under section 101(a)(15)(F)(i) if the alien is 
     diligently searching for an opportunity to become actively 
     engaged in a STEM field; and
       ``(2) indefinitely if the alien remains actively engaged in 
     a STEM field.
       ``(b) Application for Conditional Permanent Resident 
     Status.--Every alien applying for a conditional permanent 
     resident status under this section shall submit an 
     application to the Secretary of Homeland Security before the 
     expiration of the alien's student visa in such form and 
     manner as the Secretary shall prescribe by regulation.
       ``(c) Ineligibility for Federal Government Assistance.--An 
     alien granted conditional permanent resident status under 
     this section shall not be eligible, while in such status, 
     for--
       ``(1) any unemployment compensation (as defined in section 
     85(b) of the Internal Revenue Code of 1986); or
       ``(2) any Federal means-tested public benefit (as that term 
     is used in section 403 of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613)).
       ``(d) Effect on Naturalization Residency Requirement.--An 
     alien granted conditional permanent resident status under 
     this section shall be deemed to have been lawfully admitted 
     for permanent residence for purposes of meeting the 5-year 
     residency requirement set forth in section 316(a)(1).
       ``(e) Removal of Condition.--The Secretary of Homeland 
     Security shall remove the conditional basis of an alien's 
     conditional permanent resident status under this section on 
     the date that is 5 years after the date such status was 
     granted if the alien maintained his or her eligibility for 
     such status during the entire 5-year period.
       ``(f) Definitions.--In this section:
       ``(1) Actively engaged in a stem field.--The term `actively 
     engaged in a STEM field'--
       ``(A) means--
       ``(i) gainfully employed in a for-profit business or 
     nonprofit organization in the United States in a STEM field;
       ``(ii) teaching 1 or more STEM field courses at an 
     institution of higher education; or
       ``(iii) employed by a Federal, State, or local government 
     entity; and
       ``(B) includes any period of up to 6 months during which 
     the alien does not meet the requirement under subparagraph 
     (A) if such period was immediately preceded by a 1-year 
     period during which the alien met the requirement under 
     subparagraph (A).
       ``(2) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       ``(3) STEM field.--The term `STEM field' means any field of 
     study or occupation included on the most recent STEM-
     Designated Degree Program List published in the Federal 
     Register by the Department of Homeland Security (as described 
     in section 214.2(f)(11)(i)(C)(2) of title 8, Code of Federal 
     Regulations).''.
       (2) Clerical amendment.--The table of contents in the first 
     section of the Immigration and Nationality Act (8 U.S.C. 1101 
     et seq.) is amended by inserting after the item relating to 
     section 216A the following:

``Sec. 216B. Conditional permanent resident status for aliens with an 
              advanced degree in a STEM field.''.

       (d) Government Accountability Office Study.--
       (1) Definitions.--In this subsection, the terms 
     ``institution of higher education'' and ``STEM field'' have 
     the meanings given such terms in section 216B(f) of the 
     Immigration and Nationality Act, as added by subsection (c).
       (2) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to Congress on the alien college 
     graduates granted immigrant status under section 216B of the 
     Immigration and Nationality Act, as added by subsection (c).
       (3) Contents.--The report required under paragraph (2) 
     shall include--
       (A) the number of aliens described in paragraph (2) who 
     have earned a master's degree, broken down by the number of 
     such degrees in science, technology, engineering, and 
     mathematics;
       (B) the number of aliens described in paragraph (2) who 
     have earned a doctorate degree, broken down by the number of 
     such degrees in science, technology, engineering, and 
     mathematics;
       (C) the number of aliens described in paragraph (2) who 
     have founded a business in the United States in a STEM field;
       (D) the number of aliens described in paragraph (2) who are 
     employed in the United States in a STEM field, broken down by 
     employment sector (for profit, nonprofit, or government); and
       (E) the number of aliens described in paragraph (2) who are 
     employed by an institution of higher education.
       (e) Immigrant Entrepreneurs.--
       (1) Qualified alien entrepreneurs.--
       (A) Admission as immigrants.--Chapter 1 of title II of the 
     Immigration and Nationality Act (8 U.S.C. 1151 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS.

       ``(a) Admission as Immigrants.--The Secretary of Homeland 
     Security, in accordance with the provisions of this section 
     and section 216B, may issue a conditional immigrant visa to 
     not more than 75,000 qualified alien entrepreneurs.
       ``(b) Application for Conditional Permanent Resident 
     Status.--Every alien applying for a conditional immigrant 
     visa under this section shall submit an application to the 
     Secretary of Homeland Security in such form and manner as the 
     Secretary shall prescribe by regulation.
       ``(c) Revocation.--If, during the 4-year period beginning 
     on the date that an alien is granted a visa under this 
     section, the Secretary of Homeland Security determines that 
     such alien is no longer a qualified alien entrepreneur, the 
     Secretary shall--
       ``(1) revoke such visa; and
       ``(2) notify the alien that the alien--
       ``(A) may voluntarily depart from the United States in 
     accordance to section 240B; or

[[Page S4791]]

       ``(B) will be subject to removal proceedings under section 
     240 if the alien does not depart from the United States not 
     later than 6 months after receiving such notification.
       ``(d) Removal of Conditional Basis.--The Secretary of 
     Homeland Security shall remove the conditional basis of the 
     status of an alien issued an immigrant visa under this 
     section on that date that is 4 years after the date on which 
     such visa was issued if such visa was not revoked pursuant to 
     subsection (c).
       ``(e) Definitions.--In this section:
       ``(1) Full-time employee.--The term `full-time employee' 
     means a United States citizen or legal permanent resident who 
     is paid by the new business entity registered by a qualified 
     alien entrepreneur at a rate that is comparable to the median 
     income of employees in the region.
       ``(2) Qualified alien entrepreneur.--The term `qualified 
     alien entrepreneur' means an alien who--
       ``(A) at the time the alien applies for an immigrant visa 
     under this section--
       ``(i) is lawfully present in the United States; and
       ``(ii)(I) holds a nonimmigrant visa pursuant to section 
     101(a)(15)(H)(i)(b); or
       ``(II) holds a nonimmigrant visa pursuant to section 
     101(a)(15)(F)(i);
       ``(B) during the 1-year period beginning on the date the 
     alien is granted a visa under this section--
       ``(i) registers at least 1 new business entity in a State;
       ``(ii) employs, at such business entity in the United 
     States, at least 2 full-time employees who are not relatives 
     of the alien; and
       ``(iii) invests, or raises capital investment of, not less 
     than $100,000 in such business entity; and
       ``(C) during the 3-year period beginning on the last day of 
     the 1-year period described in paragraph (2), employs, at 
     such business entity in the United States, an average of at 
     least 5 full-time employees who are not relatives of the 
     alien.''.
       (B) Table of contents amendment.--The table of contents in 
     the first section of the Immigration and Nationality Act (8 
     U.S.C. 1101 et seq.) is amended by adding after the item 
     relating to section 210 the following:

``Sec. 210A. Qualified alien entrepreneurs.''.

       (2) Conditional permanent resident status.--Section 216A of 
     the Immigration and Nationality Act (8 U.S.C. 1186b) is 
     amended--
       (A) by striking ``Attorney General'' each place such term 
     appears and inserting ``Secretary of Homeland Security'';
       (B) in subsection (b)(1)(C), by striking ``203(b)(5),'' and 
     inserting ``203(b)(5) or 210A, as appropriate,'';
       (C) in subsection (c)(1), by striking ``alien entrepreneur 
     must'' each place such term appears and inserting ``alien 
     entrepreneur shall'';
       (D) in subsection (d)(1)(B), by striking the period at the 
     end and inserting ``or 210A, as appropriate.''; and
       (E) in subsection (f)(1), by striking the period at the end 
     and inserting ``or 210A.''.
       (f) Government Accountability Office Study.--
       (1) In general.--Not later than 3 years after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit a report to Congress on the 
     qualified alien entrepreneurs granted immigrant status under 
     section 210A of the Immigration and Nationality Act, as added 
     by subsection (e).
       (2) Contents.--The report described in paragraph (1) shall 
     include information regarding--
       (A) the number of qualified alien entrepreneurs who have 
     received immigrant status under section 210A of the 
     Immigration and Nationality Act, listed by country of origin;
       (B) the localities in which such qualified alien 
     entrepreneurs have initially settled;
       (C) whether such qualified alien entrepreneurs generally 
     remain in the localities in which they initially settle;
       (D) the types of commercial enterprises that such qualified 
     alien entrepreneurs have established; and
       (E) the types and number of jobs created by such qualified 
     alien entrepreneurs.
       (g) Elimination of the Per-country Numerical Limitation for 
     Employment-based Visas.--
       (1) In general.--Section 202(a)(2) of the Immigration and 
     Nationality Act (8 U.S.C. 1152(a)(2)) is amended--
       (A) in the paragraph heading, by striking ``and employment-
     based'';
       (B) by striking ``(3), (4), and (5),'' and inserting ``(3) 
     and (4),'';
       (C) by striking ``subsections (a) and (b) of section 203'' 
     and inserting ``section 203(a)'';
       (D) by striking ``7'' and inserting ``15''; and
       (E) by striking ``such subsections'' and inserting ``such 
     section''.
       (2) Conforming amendments.--Section 202 of the Immigration 
     and Nationality Act (8 U.S.C. 1152) is amended--
       (A) in subsection (a)--
       (i) in paragraph (3), by striking ``both subsections (a) 
     and (b) of section 203'' and inserting ``section 203(a)''; 
     and
       (ii) by striking paragraph (5); and
       (B) by amending subsection (e) to read as follows:
       ``(e) Special Rules for Countries at Ceiling.--If it is 
     determined that the total number of immigrant visas made 
     available under section 203(a) to natives of any single 
     foreign state or dependent area will exceed the numerical 
     limitation specified in subsection (a)(2) in any fiscal year, 
     in determining the allotment of immigrant visa numbers to 
     natives under section 203(a), visa numbers with respect to 
     natives of that state or area shall be allocated (to the 
     extent practicable and otherwise consistent with this section 
     and section 203) in a manner so that, except as provided in 
     subsection (a)(4), the proportion of the visa numbers made 
     available under each of paragraphs (1) through (4) of section 
     203(a) is equal to the ratio of the total number of visas 
     made available under the respective paragraph to the total 
     number of visas made available under section 203(a).''.
       (3) Country-specific offset.--Section 2 of the Chinese 
     Student Protection Act of 1992 (8 U.S.C. 1255 note) is 
     amended--
       (A) in subsection (a), by striking ``subsection (e))'' and 
     inserting ``subsection (d))''; and
       (B) by striking subsection (d) and redesignating subsection 
     (e) as subsection (d).
       (h) Transition Rules for Employment-Based Immigrants.--
       (1) In general.--Subject to paragraphs (2) and (4), and 
     notwithstanding title II of the Immigration and Nationality 
     Act (8 U.S.C. 1151 et seq.), the following rules shall apply:
       (A) For fiscal year 2014, 15 percent of the immigrant visas 
     made available under each of paragraphs (2) and (3) of 
     section 203(b) of such Act (8 U.S.C. 1153(b)) shall be 
     allotted to immigrants who are natives of a foreign state or 
     dependent area that was not 1 of the 2 states with the 
     largest aggregate numbers of natives obtaining immigrant 
     visas during fiscal year 2012 under such paragraphs.
       (B) For fiscal year 2015, 10 percent of the immigrant visas 
     made available under each of such paragraphs shall be 
     allotted to immigrants who are natives of a foreign state or 
     dependent area that was not 1 of the 2 states with the 
     largest aggregate numbers of natives obtaining immigrant 
     visas during fiscal year 2013 under such paragraphs.
       (C) For fiscal year 2016, 10 percent of the immigrant visas 
     made available under each of such paragraphs shall be 
     allotted to immigrants who are natives of a foreign state or 
     dependent area that was not 1 of the 2 states with the 
     largest aggregate numbers of natives obtaining immigrant 
     visas during fiscal year 2014 under such paragraphs.
       (2) Per-country levels.--
       (A) Reserved visas.--With respect to the visas reserved 
     under each of subparagraphs (A) through (C) of paragraph (1), 
     the number of such visas made available to natives of any 
     single foreign state or dependent area in the appropriate 
     fiscal year may not exceed 25 percent (in the case of a 
     single foreign state) or 2 percent (in the case of a 
     dependent area) of the total number of such visas.
       (B) Unreserved visas.--With respect to the immigrant visas 
     made available under each of paragraphs (2) and (3) of 
     section 203(b) of such Act (8 U.S.C. 1153(b)) and not 
     reserved under paragraph (1), for each of fiscal years 2013, 
     2014, and 2015, not more than 85 percent shall be allotted to 
     immigrants who are natives of any single foreign state.
       (3) Special rule to prevent unused visas.--If, with respect 
     to fiscal year 2014, 2015, or 2016, the operation of 
     paragraphs (1) and (2) would prevent the total number of 
     immigrant visas made available under paragraph (2) or (3) of 
     section 203(b) of such Act (8 U.S.C. 1153(b)) from being 
     issued, such visas may be issued during the remainder of such 
     fiscal year without regard to paragraphs (1) and (2).
       (4) Rules for chargeability.--Section 202(b) of the 
     Immigration and Nationality Act (8 U.S.C. 1152(b)) shall 
     apply in determining the foreign state to which an alien is 
     chargeable for purposes of this subsection.
       (i) Capital Gains Tax Exemption for Startup Companies.--
       (1) Permanent full exclusion.--
       (A) In general.--Section 1202(a) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(a) Exclusion.--In the case of a taxpayer other than a 
     corporation, gross income shall not include 100 percent of 
     any gain from the sale or exchange of qualified small 
     business stock held for more than 5 years.''.
       (B) Conforming amendments.--
       (i) The heading for section 1202 of such Code is amended by 
     striking ``partial''.
       (ii) The item relating to section 1202 in the table of 
     sections for part I of subchapter P of chapter 1 of such Code 
     is amended by striking ``Partial exclusion'' and inserting 
     ``Exclusion''.
       (iii) Section 1223(13) of such Code is amended by striking 
     ``1202(a)(2),''.
       (2) Repeal of minimum tax preference.--
       (A) In general.--Section 57(a) of the Internal Revenue Code 
     of 1986 is amended by striking paragraph (7).
       (B) Technical amendment.--Section 53(d)(1)(B)(ii)(II) of 
     such Code is amended by striking ``, (5), and (7)'' and 
     inserting ``and (5)''.
       (3) Repeal of 28 percent capital gains rate on qualified 
     small business stock.--
       (A) In general.--Section 1(h)(4)(A) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(A) collectibles gain, over''.
       (B) Conforming amendments.--
       (i) Section 1(h) of such Code is amended--

       (I) by striking paragraph (7); and
       (II) by redesignating paragraphs (8), (9), (10), (11), 
     (12), and (13) as paragraphs (7), (8), (9), (10), (11), and 
     (12), respectively.

       (ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D) of such 
     Code are each amended by striking ``section 1(h)(11)(B)'' and 
     inserting ``section 1(h)(10)(B)''.

[[Page S4792]]

       (iii) The following sections of such Code are each amended 
     by striking ``section 1(h)(11)'' and inserting ``section 
     1(h)(10)'':

       (I) Section 301(f)(4).
       (II) Section 306(a)(1)(D).
       (III) Section 584(c).
       (IV) Section 702(a)(5).
       (V) Section 854(a).
       (VI) Section 854(b)(2).

       (iv) The heading of section 857(c)(2) of such Code is 
     amended by striking ``1(h)(11)'' and inserting ``1(h)(10)''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to stock acquired after the date of the enactment 
     of this Act.
       (j) Research Credit for Startup Companies.--
       (1) In general.--
       (A) In general.--Section 41 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(i) Treatment of Credit to Qualified Small Businesses.--
       ``(1) In general.--At the election of a qualified small 
     business, the payroll tax credit portion of the credit 
     determined under subsection (a) shall be treated as a credit 
     allowed under section 3111(f) (and not under this section).
       ``(2) Payroll tax credit portion.--For purposes of this 
     subsection, the payroll tax credit portion of the credit 
     determined under subsection (a) for any taxable year is so 
     much of such credit as does not exceed $250,000.
       ``(3) Qualified small business.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified small business' 
     means, with respect to any taxable year--
       ``(i) a corporation, partnership, or S corporation if--

       ``(I) the gross receipts (as determined under subsection 
     (c)(7)) of such entity for the taxable year is less than 
     $5,000,000, and
       ``(II) such entity did not have gross receipts (as so 
     determined) for any period preceding the 5-taxable-year 
     period ending with such taxable year, and

       ``(ii) any person not described in subparagraph (A) if 
     clauses (i) and (ii) of subparagraph (A) applied to such 
     person, determined--

       ``(I) by substituting `person' for `entity' each place it 
     appears, and
       ``(II) in the case of an individual, by only taking into 
     account the aggregate gross receipts received by such 
     individual in carrying on trades or businesses of such 
     individual.

       ``(B) Limitation.--Such term shall not include an 
     organization which is exempt from taxation under section 501.
       ``(4) Election.--
       ``(A) In general.--In the case of a partnership or S 
     corporation, an election under this subsection shall be made 
     at the entity level.
       ``(B) Revocation.--An election under this subsection may 
     not be revoked without the consent of the Secretary.
       ``(C) Limitation.--A taxpayer may not make an election 
     under this subsection if such taxpayer has made an election 
     under this subsection for 5 or more preceding taxable years.
       ``(5) Aggregation rules.--For purposes of determining the 
     $250,000 limitation under paragraph (2) and determining gross 
     receipts under paragraph (3), all members of the same 
     controlled group of corporations (within the meaning of 
     section 267(f)) and all persons under common control (within 
     the meaning of section 52(b) but determined by treating an 
     interest of more than 50 percent as a controlling interest) 
     shall be treated as 1 person.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection, including--
       ``(A) regulations to prevent the avoidance of the purposes 
     of paragraph (3) through the use of successor companies or 
     other means,
       ``(B) regulations to minimize compliance and recordkeeping 
     burdens under this subsection for start-up companies, and
       ``(C) regulations for recapturing the benefit of credits 
     determined under section 3111(f) in cases where there is a 
     subsequent adjustment to the payroll tax credit portion of 
     the credit determined under subsection (a), including 
     requiring amended returns in the cases where there is such an 
     adjustment.''.
       (B) Conforming amendment.--Section 280C(c) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(5) Treatment of qualified small business credit.--For 
     purposes of determining the amount of any credit under 
     section 41(a) under this subsection, any election under 
     section 41(i) shall be disregarded.''.
       (2) Credit allowed against fica taxes.--
       (A) In general.--Section 3111 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Credit for Research Expenditures of Qualified Small 
     Businesses.--
       ``(1) In general.--In the case of a qualified small 
     business which has made an election under section 41(i), 
     there shall be allowed as a credit against the tax imposed by 
     subsection (a) on wages paid with respect to the employment 
     of all employees of the qualified small business for days in 
     an applicable calendar quarter an amount equal to the payroll 
     tax credit portion of the research credit determined under 
     section 41(a).
       ``(2) Carryover of unused credit.--In any case in which the 
     payroll tax credit portion of the research credit determined 
     under section 41(a) exceeds the tax imposed under subsection 
     (a) for an applicable calendar quarter--
       ``(A) the succeeding calendar quarter shall be treated as 
     an applicable calendar quarter, and
       ``(B) the amount of credit allowed under paragraph (1) 
     shall be reduced by the amount of credit allowed under such 
     paragraph for all preceding applicable calendar quarters.
       ``(3) Allocation of credit for controlled groups, etc.--In 
     determining the amount of the credit under this subsection--
       ``(A) all persons treated as a single taxpayer under 
     section 41 shall be treated as a single taxpayer under this 
     section, and
       ``(B) the credit (if any) allowable by this section to each 
     such member shall be its proportionate share of the qualified 
     research expenses, basic research payments, and amounts paid 
     or incurred to energy research consortiums, giving rise to 
     the credit allowable under section 41.
       ``(4) Definitions.--For purposes of this subsection--
       ``(A) Applicable calendar quarter.--The term `applicable 
     calendar quarter' means--
       ``(i) the first calendar quarter following the date on 
     which the qualified small business files a return under 
     section 6012 for the taxable year for which the payroll tax 
     credit portion of the research credit under section 41(a) is 
     determined, and
       ``(ii) any succeeding calendar quarter treated as an 
     applicable calendar quarter under paragraph (2)(A).
       ``For purposes of determining the date on which a return is 
     filed, rules similar to the rules of section 6513 shall 
     apply.
       ``(B) Other terms.--Any term used in this subsection which 
     is also used in section 41 shall have the meaning given such 
     term under section 41.''.
       (B) Transfers to federal old-age and survivors insurance 
     trust fund.--There are hereby appropriated to the Federal 
     Old-Age and Survivors Trust Fund and the Federal Disability 
     Insurance Trust Fund established under section 201 of the 
     Social Security Act (42 U.S.C. 401) amounts equal to the 
     reduction in revenues to the Treasury by reason of the 
     amendments made by paragraph (1). Amounts appropriated by the 
     preceding sentence shall be transferred from the general fund 
     at such times and in such manner as to replicate to the 
     extent possible the transfers which would have occurred to 
     such Trust Fund had such amendments not been enacted.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2012.
       (k) Accelerated Commercialization of Taxpayer-funded 
     Research.--
       (1) Definitions.--In this subsection:
       (A) Council.--The term ``Council'' means the Advisory 
     Council on Innovation and Entrepreneurship of the Department 
     of Commerce established pursuant to section 25(c) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3720(c)).
       (B) Extramural budget.--The term ``extramural budget'' 
     means the sum of the total obligations minus amounts 
     obligated for such activities by employees of the agency in 
     or through Government-owned, Government-operated facilities, 
     except that for the Department of Energy it shall not include 
     amounts obligated for atomic energy defense programs solely 
     for weapons activities or for naval reactor programs, and 
     except that for the Agency for International Development it 
     shall not include amounts obligated solely for general 
     institutional support of international research centers or 
     for grants to foreign countries.
       (C) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (D) Research or research and development.--The term 
     ``research'' or ``research and development'' means any 
     activity that is--
       (i) a systematic, intensive study directed toward greater 
     knowledge or understanding of the subject studied;
       (ii) a systematic study directed specifically toward 
     applying new knowledge to meet a recognized need; or
       (iii) a systematic application of knowledge toward the 
     production of useful materials, devices, and systems or 
     methods, including design, development, and improvement of 
     prototypes and new processes to meet specific requirements.
       (E) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (2) Grant program authorized.--
       (A) In general.--Each Federal agency that has an extramural 
     budget for research or research and development that is in 
     excess of $100,000,000 for each of the fiscal years 2015 
     through 2019, shall transfer 0.15 percent of such extramural 
     budget for each of such fiscal years to the Secretary to 
     enable the Secretary to carry out a grant program in 
     accordance with this paragraph.
       (B) Grants.--
       (i) Awarding of grants.--

       (I) In general.--From amounts transferred under 
     subparagraph (A), the Secretary shall use the criteria 
     developed by the Council to award grants to institutions of 
     higher education, including consortia of institutions of 
     higher education, for initiatives to improve 
     commercialization and transfer of technology.
       (II) Request for proposals.--Not later than 30 days after 
     the Council submits the

[[Page S4793]]

     recommendations for criteria to the Secretary under paragraph 
     (3)(B)(i), and annually thereafter for each fiscal year for 
     which the grant program is authorized, the Secretary shall 
     release a request for proposals.
       (III) Applications.--Each institution of higher education 
     that desires to receive a grant under this paragraph shall 
     submit an application to the Secretary not later than 90 days 
     after the Secretary releases the request for proposals under 
     subclause (II).
       (IV) Council review.--

       (aa) In general.--The Secretary shall submit each 
     application received under subclause (III) to the Council for 
     Council review.
       (bb) Recommendations.--The Council shall review each 
     application received under item (aa) and submit 
     recommendations for grant awards to the Secretary, including 
     funding recommendations for each proposal.
       (cc) Public release.--The Council shall publicly release 
     any recommendations made under item (bb).
       (dd) Consideration of recommendations.--In awarding grants 
     under this paragraph, the Secretary shall take into 
     consideration the recommendations of the Council under item 
     (bb)).
       (ii) Commercialization capacity building grants.--

       (I) In general.--The Secretary shall award grants to 
     support institutions of higher education pursuing specific 
     innovative initiatives to improve an institution's capacity 
     to commercialize faculty research that can be widely adopted 
     if the research yields measurable results.
       (II) Content of proposals.--Grants shall be awarded under 
     this clause to proposals demonstrating the capacity for 
     accelerated commercialization, proof-of-concept proficiency, 
     and translating scientific discoveries and cutting-edge 
     inventions into technological innovations and new companies. 
     Grant funds shall be expended to support innovative 
     approaches to achieving these goals that can be replicated by 
     other institutions of higher education if the innovative 
     approaches are successful.

       (iii) Commercialization accelerator grants.--The Secretary 
     shall award grants to support institutions of higher 
     education pursuing initiatives that allow faculty to directly 
     commercialize research in an effort to accelerate research 
     breakthroughs. The Secretary shall prioritize those 
     initiatives that have a management structure that encourages 
     collaboration between other institutions of higher education 
     or other entities with demonstrated proficiency in creating 
     and growing new companies based on verifiable metrics.
       (C) Assessment of success.--Grants awarded under this 
     paragraph shall use criteria for assessing the success of 
     programs through the establishment of benchmarks.
       (D) Termination.--The Secretary shall have the authority to 
     terminate grant funding to an institution of higher education 
     in accordance with the process and performance metrics 
     recommended by the Council.
       (E) Limitations.--
       (i) Project management costs.--A grant recipient may use 
     not more than 10 percent of grant funds awarded under this 
     paragraph for the purpose of funding project management costs 
     of the grant program.
       (ii) Supplement, not supplant.--An institution of higher 
     education that receives a grant under this paragraph shall 
     use the grant funds to supplement, and not supplant, non-
     Federal funds that would, in the absence of such grant funds, 
     be made available for activities described in this 
     subsection.
       (F) Unspent funds.--Any funds transferred to the Secretary 
     under subparagraph (A) for a fiscal year that are not 
     expended by the end of such fiscal year may be expended in 
     any subsequent fiscal year through fiscal year 2019. Any 
     funds transferred under subparagraph (A) that are remaining 
     at the end of the grant program's authorization under this 
     subsection shall be transferred to the Treasury for deficit 
     reduction.
       (3) Council.--
       (A) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Council shall convene and 
     develop recommendations for criteria in awarding grants to 
     institutions of higher education under paragraph (2).
       (B) Submission to secretary of commerce and public 
     release.--The Council shall--
       (i) submit the recommendations described in subparagraph 
     (A) to the Secretary; and
       (ii) release the recommendations to the public.
       (C) Majority vote.--The recommendations submitted by the 
     Council under subparagraph (A) shall be determined by a 
     majority vote of Council members.
       (D) Performance metrics.--The Council shall develop and 
     provide to the Secretary recommendations on performance 
     metrics to be used to evaluate grants awarded under paragraph 
     (2).
       (E)  Evaluation.--
       (i) In general.--Not later than 180 days before the date on 
     which the grant program authorized under paragraph (2) 
     expires, the Council shall conduct an evaluation of the 
     effect that the grant program is having on accelerating the 
     commercialization of faculty research.
       (ii) Inclusions.--The evaluation shall include--

       (I) the recommendation of the Council as to whether the 
     grant program should be continued or terminated;
       (II) quantitative data related to the effect, if any, that 
     the grant program has had on faculty research 
     commercialization; and
       (III) a description of lessons learned in administering the 
     grant program, and how those lessons could be applied to 
     future efforts to accelerate commercialization of faculty 
     research.

       (iii) Availability.--Upon completion of the evaluation, the 
     evaluation shall be made available on a public website and 
     submitted to Congress. The Secretary shall notify all 
     institutions of higher education when the evaluation is 
     published and how it can be accessed.
       (4) Construction.--Nothing in this subsection may be 
     construed to alter, modify, or amend any provision of chapter 
     18 of title 35, United States Code (commonly known as the 
     ``Bayh-Dole Act'').
       (l) Economic Impact of Significant Federal Agency Rules.--
     Section 553 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(f) Required Review Before Issuance of Significant 
     Rules.--
       ``(1) In general.--Before issuing a notice of proposed 
     rulemaking in the Federal Register regarding the issuance of 
     a proposed significant rule, the head of the Federal agency 
     or independent regulatory agency seeking to issue the rule 
     shall complete a review, to the extent permitted by law, 
     that--
       ``(A) analyzes the problem that the proposed rule intends 
     to address, including--
       ``(i) the specific market failure, such as externalities, 
     market power, or lack of information, that justifies such 
     rule; or
       ``(ii) any other specific problem, such as the failures of 
     public institutions, that justifies such rule;
       ``(B) analyzes the expected impact of the proposed rule on 
     the ability of new businesses to form and expand;
       ``(C) identifies the expected impact of the proposed rule 
     on State, local, and tribal governments, including the 
     availability of resources--
       ``(i) to carry out the mandates imposed by the rule on such 
     government entities; and
       ``(ii) to minimize the burdens that uniquely or 
     significantly affect such governmental entities, consistent 
     with achieving regulatory objectives;
       ``(D) identifies any conflicting or duplicative 
     regulations;
       ``(E) determines--
       ``(i) if existing laws or regulations created, or 
     contributed to, the problem that the new rule is intended to 
     correct; and
       ``(ii) if the laws or regulations referred to in clause (i) 
     should be modified to more effectively achieve the intended 
     goal of the rule; and
       ``(F) includes the cost-benefit analysis described in 
     paragraph (2).
       ``(2) Cost-benefit analysis.--A cost-benefit analysis 
     described in this paragraph shall include--
       ``(A)(i) an assessment, including the underlying analysis, 
     of benefits anticipated from the proposed rule, such as--
       ``(I) promoting the efficient functioning of the economy 
     and private markets;
       ``(II) enhancing health and safety;
       ``(III) protecting the natural environment; and
       ``(IV) eliminating or reducing discrimination or bias; and
       ``(ii) the quantification of the benefits described in 
     clause (i), to the extent feasible;
       ``(B)(i) an assessment, including the underlying analysis, 
     of costs anticipated from the proposed rule, such as--
       ``(I) the direct costs to the Federal Government to 
     administer the rule;
       ``(II) the direct costs to businesses and others to comply 
     with the rule; and
       ``(III) any adverse effects on the efficient functioning of 
     the economy, private markets (including productivity, 
     employment, and competitiveness), health, safety, and the 
     natural environment; and
       ``(ii) the quantification of the costs described in clause 
     (i), to the extent feasible;
       ``(C)(i) an assessment, including the underlying analysis, 
     of costs and benefits of potentially effective and reasonably 
     feasible alternatives to the proposed rule, which have been 
     identified by the agency or by the public, including taking 
     reasonably viable nonregulatory actions; and
       ``(ii) an explanation of why the proposed rule is 
     preferable to the alternatives identified under clause (i).
       ``(3) Report.--Before issuing a notice of proposed 
     rulemaking in the Federal Register regarding the issuance of 
     a proposed significant rule, the head of the Federal agency 
     or independent regulatory agency seeking to issue the rule 
     shall--
       ``(A) submit the results of the review conducted under 
     paragraph (1) to the appropriate congressional committees; 
     and
       ``(B) post the results of the review conducted under 
     paragraph (1) on a publicly available website.
       ``(4) Judicial review.--Any determinations made, or other 
     actions taken, by an agency or independent regulatory agency 
     under this subsection shall not be subject to judicial 
     review.
       ``(5) Defined term.--In this subsection the term 
     `significant rule' means a rule that is likely to--
       ``(A) have an annual effect on the economy of $100,000,000 
     or more;
       ``(B) adversely affect, in a material way, the economy, a 
     sector of the economy, productivity, competition, jobs, the 
     environment, public health or safety, or State, local, or 
     tribal governments or communities; or

[[Page S4794]]

       ``(C) create a serious inconsistency or otherwise interfere 
     with an action taken or planned by another agency.''.
       (m) Biennial State Startup Business Report.--
       (1) Data collection.--The Secretary of Commerce shall 
     regularly compile information from each of the 50 States and 
     the District of Columbia on State or District laws that 
     affect the formation and growth of new businesses within the 
     State or District.
       (2) Report.--Not later than 18 months after the date of the 
     enactment of this Act, and every 2 years thereafter, the 
     Secretary, using data compiled under paragraph (1), shall 
     prepare a report that--
       (A) analyzes the economic effect of State and District laws 
     that either encourage or inhibit business formation and 
     growth; and
       (B) ranks the States and the District based on the 
     effectiveness with which their laws foster new business 
     creation and economic growth.
       (3) Distribution.--The Secretary shall--
       (A) submit each report prepared under paragraph (1) to 
     Congress; and
       (B) make each report available to the public on the website 
     of the Department of Commerce.
       (4) Inclusion of large metropolitan areas.--Not later than 
     90 days after the submission of the first report under this 
     subsection, the Secretary of Commerce shall submit a study to 
     Congress on the feasibility and advisability of including, in 
     future reports, information about the effect of local laws 
     and ordinances on the formation and growth of new businesses 
     in large metropolitan areas within the United States.
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this subsection.
       (n) New Business Formation Report.--
       (1) In general.--The Secretary of Commerce shall regularly 
     compile quantitative and qualitative information on 
     businesses in the United States that are not more than 1 year 
     old.
       (2) Data collection.--The Secretary shall--
       (A) regularly compile information from the Bureau of the 
     Census' business register on new business formation in the 
     United States; and
       (B) conduct quarterly surveys of business owners who start 
     a business during the 1-year period ending on the date on 
     which such survey is conducted to gather qualitative 
     information about the factors that influenced their decision 
     to start the business.
       (3) Random sampling.--In conducting surveys under paragraph 
     (2)(B), the Secretary may use random sampling to identify a 
     group of business owners who are representative of all the 
     business owners described in paragraph (2)(B).
       (4) Benefits.--The Secretary shall inform business owners 
     selected to participate in a survey conducted under this 
     subsection of the benefits they would receive from 
     participating in the survey.
       (5) Voluntary participation.--Business owners selected to 
     participate in a survey conducted under this subsection may 
     decline to participate without penalty.
       (6) Report.--Not later than 18 months after the date of the 
     enactment of this Act, and every 3 months thereafter, the 
     Secretary shall use the data compiled under paragraph (2) to 
     prepare a report that--
       (A) lists the aggregate number of new businesses formed in 
     the United States;
       (B) lists the aggregate number of persons employed by new 
     businesses formed in the United States;
       (C) analyzes the payroll of new businesses formed in the 
     United States;
       (D) summarizes the data collected under paragraph (2); and
       (E) identifies the most effective means by which government 
     officials can encourage the formation and growth of new 
     businesses in the United States.
       (7) Distribution.--The Secretary shall--
       (A) submit each report prepared under paragraph (6) to 
     Congress; and
       (B) make each report available to the public on the website 
     of the Department of Commerce.
       (8) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this subsection.
       (o) Rescission of Unspent Federal Funds.--
       (1) In general.--Notwithstanding any other provision of 
     law, of all available unobligated funds for fiscal year 2014, 
     the amount necessary to carry out this section and the 
     amendments made by this section in appropriated discretionary 
     funds are hereby rescinded.
       (2) Implementation.--
       (A) Determination.--The Director of the Office of 
     Management and Budget shall determine and identify from which 
     appropriation accounts the rescission under paragraph (1) 
     shall apply and the amount of such rescission that shall 
     apply to each such account.
       (B) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the Director of the Office of 
     Management and Budget shall submit a report to the Secretary 
     of the Treasury and Congress of the accounts and amounts 
     determined and identified for rescission under subparagraph 
     (A).
                                 ______
                                 
  SA 3596. Mr. FLAKE submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end, insert the following:

     SEC. 4. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR 
                   SMALL BUSINESS.

       (a) In General.--
       (1) Dollar limitation.--Paragraph (1) of section 179(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``shall not exceed--'' and all that follows and inserting 
     ``shall not exceed $500,000.''.
       (2) Reduction in limitation.--Paragraph (2) of section 
     179(b) of such Code is amended by striking ``exceeds--'' and 
     all that follows and inserting ``exceeds $2,000,000.''.
       (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``, to which section 167 applies, and which is placed in 
     service in a taxable year beginning after 2002 and before 
     2014'' and inserting ``and to which section 167 applies''.
       (c) Election.--Paragraph (2) of section 179(c) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``may not be revoked'' and all that follows 
     through ``and before 2014'', and
       (2) by striking ``irrevocable'' in the heading thereof.
       (d) Air Conditioning and Heating Units.--Paragraph (1) of 
     section 179(d) of the Internal Revenue Code of 1986 is 
     amended by striking ``and shall not include air conditioning 
     or heating units''.
       (e) Qualified Real Property.--Subsection (f) of section 179 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
     in paragraph (1), and
       (2) by striking paragraphs (3) and (4).
       (f) Inflation Adjustment.--Subsection (b) of section 179 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2014, the dollar amounts in paragraphs (1) 
     and (2) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(c)(2)(A) for such calendar year, determined by 
     substituting `calendar year 2013' for `calendar year 2012' in 
     clause (ii) thereof.
       ``(B) Rounding.--The amount of any increase under 
     subparagraph (A) shall be rounded to the nearest multiple of 
     $10,000.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3597. Mr. FLAKE submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. AUTHORITY TO OFFER ADDITIONAL PLAN OPTIONS.

       (a) Catastrophic Plans.--Notwithstanding title I of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148), a catastrophic plan as described in section 1302(e) of 
     such Act shall be deemed to be a qualified health plan 
     (including for purposes of receiving tax credits under 
     section 36B of the Internal Revenue Code of 1986 and cost-
     sharing assistance under section 1402 of the Patient 
     Protection and Affordable Care Act), except that for purposes 
     of enrollment in such plans, the provisions of paragraph (2) 
     of such section 1302(e) shall not apply.
       (b) Individual Mandate.--Coverage under a catastrophic plan 
     under subsection (a) shall be deemed to be minimum essential 
     coverage for purposes of section 5000A of the Internal 
     Revenue Code of 1986.
                                 ______
                                 
  SA 3598. Mr. ENZI (for himself, Mr. Barrasso, and Mr. Portman) 
submitted an amendment intended to be proposed by him to the bill S. 
2569, to provide an incentive for businesses to bring jobs back to 
America; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. RESTRICTIONS ON APPLICATION OF EMPLOYER HEALTH 
                   INSURANCE MANDATE.

       (a) Exception for Small Business Concerns.--Section 
     4980H(c)(2) of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new subparagraph:
       ``(F) Exception for small business concerns.--The term 
     `applicable large employer' shall not include any employer 
     which is a small business concern (within the meaning of 
     section 3 of the Small Business Act).''.
       (b) Definition of Full-Time Employee.--Section 4980H(c) of 
     such Code is amended--
       (1) in paragraph (2)(E), by striking ``by 120'' and 
     inserting ``by 174'', and
       (2) in paragraph (4)(A), by striking ``30 hours'' and 
     inserting ``40 hours''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after December 31, 2013.
                                 ______
                                 
  SA 3599. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:


[[Page S4795]]


       At the end, add the following:

     TITLE _--TAX RETURN DUE DATE SIMPLIFICATION AND MODERNIZATION

     SEC. _01. SHORT TITLE; REFERENCE.

       (a) Short Title.--This title may be cited as the ``Tax 
     Return Due Date Simplification and Modernization Act of 
     2014''.
       (b) Reference.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.

     SEC. _02. NEW DUE DATE FOR PARTNERSHIP FORM 1065, S 
                   CORPORATION FORM 1120S, AND C CORPORATION FORM 
                   1120.

       (a) Partnerships.--
       (1) In general.--Section 6072 is amended by adding at the 
     end the following new subsection:
       ``(f) Returns of Partnerships.--Returns of partnerships 
     under section 6031 made on the basis of the calendar year 
     shall be filed on or before the 15th day of March following 
     the close of the calendar year, and such returns made on the 
     basis of a fiscal year shall be filed on or before the 15th 
     day of the third month following the close of the fiscal 
     year.''.
       (2) Conforming amendment.--Section 6072(a) is amended by 
     striking ``6017, or 6031'' and inserting ``or 6017''.
       (b) S Corporations.--
       (1) In general.--So much of subsection (b) of 6072 as 
     precedes the second sentence thereof is amended to read as 
     follows:
       ``(b) Returns of Certain Corporations.--Returns of S 
     corporations under sections 6012 and 6037 made on the basis 
     of the calendar year shall be filed on or before the 31st day 
     of March following the close of the calendar year, and such 
     returns made on the basis of a fiscal year shall be filed on 
     or before the last day of the third month following the close 
     of the fiscal year.''.
       (2) Conforming amendments.--
       (A) Section 1362(b) is amended--
       (i) by striking ``15th'' each place it appears and 
     inserting ``last'',
       (ii) by striking ``2\1/2\'' each place it appears and 
     inserting ``3'', and
       (iii) by striking ``2 months and 15 days'' in paragraph (4) 
     and inserting ``3 months''.
       (B) Section 1362(d)(1)(C)(i) is amended by striking 
     ``15th'' and inserting ``last''.
       (C) Section 1362(d)(1)(C)(ii) is amended by striking ``such 
     15th day'' and inserting ``the last day of the 3d month 
     thereof''.
       (c) Conforming Amendments Relating to C Corporations.--
       (1) Section 170(a)(2)(B) is amended by striking ``third 
     month'' and inserting ``4th month''.
       (2) Section 563 is amended by striking ``third month'' each 
     place it appears and inserting ``4th month''.
       (3) Section 1354(d)(1)(B)(i) is amended by striking ``3d 
     month'' and inserting ``4th month''.
       (4) Subsection (a) and (c) of section 6167 are each amended 
     by striking ``third month'' and inserting ``4th month''.
       (5) Section 6425(a)(1) is amended by striking ``third 
     month'' and inserting ``4th month''.
       (6) Subsections (b)(2)(A), (g)(3), and (h)(1) of section 
     6655 are each amended by striking ``3rd month'' and inserting 
     ``4th month''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2014.

     SEC. _03. MODIFICATION OF DUE DATES BY REGULATION.

       In the case of returns for taxable years beginning after 
     December 31, 2014, the Secretary of the Treasury or the 
     Secretary's delegate shall modify appropriate regulations to 
     provide as follows:
       (1) The maximum extension for the returns of partnerships 
     filing Form 1065 shall be a 6-month period beginning on the 
     due date for filing the return (without regard to any 
     extensions).
       (2) The maximum extension for the returns of trusts and 
     estates filing Form 1041 shall be a 5\1/2\-month period 
     beginning on the due date for filing the return (without 
     regard to any extensions).
       (3) The maximum extension for the returns of employee 
     benefit plans filing Form 5500 shall be an automatic 3\1/2\-
     month period beginning on the due date for filing the return 
     (without regard to any extensions).
       (4) The maximum extension for the Forms 990 (series) 
     returns of organizations exempt from income tax shall be an 
     automatic 6-month period beginning on the due date for filing 
     the return (without regard to any extensions).
       (5) The maximum extension for the returns of organizations 
     exempt from income tax that are required to file Form 4720 
     returns of excise taxes shall be an automatic 6-month period 
     beginning on the due date for filing the return (without 
     regard to any extensions).
       (6) The maximum extension for the returns of trusts 
     required to file Form 5227 shall be an automatic 6-month 
     period beginning on the due date for filing the return 
     (without regard to any extensions).
       (7) The maximum extension for the returns of Black Lung 
     Benefit Trusts required to file Form 6069 returns of excise 
     taxes shall be an automatic 6-month period beginning on the 
     due date for filing the return (without regard to any 
     extensions).
       (8) The maximum extension for a taxpayer required to file 
     Form 8870 shall be an automatic 6-month period beginning on 
     the due date for filing the return (without regard to any 
     extensions).
       (9) The due date of Form 3520-A, Annual Information Return 
     of a Foreign Trust with a United States Owner, shall be the 
     15th day of the 4th month after the close of the trust's 
     taxable year, and the maximum extension shall be a 6-month 
     period beginning on such day.
       (10) The due date of Form TD F 90-22.1 (relating to Report 
     of Foreign Bank and Financial Accounts) shall be April 15 
     with a maximum extension for a 6-month period ending on 
     October 15, and with provision for an extension under rules 
     similar to the rules of 26 C.F.R. 1.6081-5. For any taxpayer 
     required to file such form for the first time, the Secretary 
     of the Treasury may waive any penalty for failure to timely 
     request or file an extension.
       (11) Taxpayers filing Form 3520, Annual Return to Report 
     Transactions with Foreign Trusts and Receipt of Certain 
     Foreign Gifts, shall be allowed to extend the time for filing 
     such form separately from the income tax return of the 
     taxpayer, for an automatic 6-month period beginning on the 
     due date for filing the return (without regard to any 
     extensions).

     SEC. _04. CORPORATIONS PERMITTED STATUTORY AUTOMATIC 6-MONTH 
                   EXTENSION OF INCOME TAX RETURNS.

       (a) In General.--Section 6081(b) is amended by striking ``3 
     months'' and inserting ``6 months''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2014.
                                 ______
                                 
  SA 3600. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``United 
     States Job Creation and International Tax Reform Act of 
     2014''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

 TITLE I--PARTICIPATION EXEMPTION SYSTEM FOR TAXATION OF FOREIGN INCOME

Sec. 101. Deduction for dividends received by domestic corporations 
              from certain foreign corporations.
Sec. 102. Application of dividends received deduction to certain sales 
              and exchanges of stock.
Sec. 103. Deduction for foreign intangible income derived from trade or 
              business within the United States.
Sec. 104. Treatment of deferred foreign income upon transition to 
              participation exemption system of taxation.

               TITLE II--OTHER INTERNATIONAL TAX REFORMS

                 Subtitle A--Modifications of Subpart F

Sec. 201. Treatment of low-taxed foreign income as subpart F income.
Sec. 202. Permanent extension of look-thru rule for controlled foreign 
              corporations.
Sec. 203. Permanent extension of exceptions for active financing 
              income.
Sec. 204. Foreign base company income not to include sales or services 
              income.

        Subtitle B--Modifications Related to Foreign Tax Credit

Sec. 211. Modification of application of sections 902 and 960 with 
              respect to post-2014 earnings.
Sec. 212. Separate foreign tax credit basket for foreign intangible 
              income.
Sec. 213. Inventory property sales source rule exceptions not to apply 
              for foreign tax credit limitation.

         Subtitle C--Allocation of Interest on Worldwide Basis

Sec. 221. Acceleration of election to allocate interest on a worldwide 
              basis.

 TITLE I--PARTICIPATION EXEMPTION SYSTEM FOR TAXATION OF FOREIGN INCOME

     SEC. 101. DEDUCTION FOR DIVIDENDS RECEIVED BY DOMESTIC 
                   CORPORATIONS FROM CERTAIN FOREIGN CORPORATIONS.

       (a) Allowance of Deduction.--Part VIII of subchapter B of 
     chapter 1 is amended by inserting after section 245 the 
     following new section:

     ``SEC. 245A. DIVIDENDS RECEIVED BY DOMESTIC CORPORATIONS FROM 
                   CERTAIN FOREIGN CORPORATIONS.

       ``(a) In General.--In the case of any dividend received 
     from a controlled foreign corporation by a domestic 
     corporation which is a United States shareholder with respect 
     to such controlled foreign corporation, there

[[Page S4796]]

     shall be allowed as a deduction an amount equal to 95 percent 
     of the qualified foreign-source portion of the dividend.
       ``(b) Treatment of Electing Noncontrolled Section 902 
     Corporations as Controlled Foreign Corporations.--
       ``(1) In general.--If a domestic corporation elects the 
     application of this subsection for any noncontrolled section 
     902 corporation with respect to the domestic corporation, 
     then, for purposes of this title--
       ``(A) the noncontrolled section 902 corporation shall be 
     treated as a controlled foreign corporation with respect to 
     the domestic corporation, and
       ``(B) the domestic corporation shall be treated as a United 
     States shareholder with respect to the noncontrolled section 
     902 corporation.
       ``(2) Election.--
       ``(A) Time of election.--Any election under this subsection 
     with respect to any noncontrolled section 902 corporation 
     shall be made not later than the due date for filing the 
     return of tax for the first taxable year of the taxpayer with 
     respect to which the foreign corporation is a noncontrolled 
     section 902 corporation with respect to the taxpayer (or, if 
     later, the first taxable year of the taxpayer for which this 
     section is in effect).
       ``(B) Revocation of election.--Any election under this 
     subsection, once made, may be revoked only with the consent 
     of the Secretary.
       ``(C) Controlled groups.--If a domestic corporation making 
     an election under this subsection with respect to any 
     noncontrolled section 902 corporation is a member of a 
     controlled group of corporations (within the meaning of 
     section 1563(a), except that `more than 50 percent' shall be 
     substituted for `at least 80 percent' each place it appears 
     therein), then, except as otherwise provided by the 
     Secretary, such election shall apply to all members of such 
     group.
       ``(c) Qualified Foreign-Source Portion of Dividends.--For 
     purposes of this section--
       ``(1) Qualified foreign-source portion.--
       ``(A) In general.--The qualified foreign-source portion of 
     any dividend is an amount which bears the same ratio to such 
     dividend as--
       ``(i) the post-2014 undistributed qualified foreign 
     earnings, bears to
       ``(ii) the total post-2014 undistributed earnings.
       ``(B) Post-2014 undistributed earnings.--The term `post-
     2014 undistributed earnings' means the amount of the earnings 
     and profits of a controlled foreign corporation (computed in 
     accordance with sections 964(a) and 986) accumulated in 
     taxable years beginning after December 31, 2014--
       ``(i) as of the close of the taxable year of the controlled 
     foreign corporation in which the dividend is distributed, and
       ``(ii) without diminution by reason of dividends 
     distributed during such taxable years.
       ``(C) Post-2014 undistributed qualified foreign earnings.--
     The term `post-2014 undistributed qualified foreign earnings' 
     means the portion of the post-2014 undistributed earnings 
     which is attributable to income other than--
       ``(i) income described in section 245(a)(5)(A), or
       ``(ii) dividends described in section 245(a)(5)(B).
       ``(2) Ordering rule for distributions of earnings and 
     profits.--Distributions shall be treated as first made out of 
     earnings and profits of a controlled foreign corporation 
     which are not post-2014 undistributed earnings and then out 
     of post-2014 undistributed earnings.
       ``(d) Disallowance of Foreign Tax Credit, etc.--
       ``(1) In general.--No credit shall be allowed under section 
     901 for any taxes paid or accrued (or treated as paid or 
     accrued) with respect to the qualified foreign-source portion 
     of any dividend.
       ``(2) Denial of deduction.--No deduction shall be allowed 
     under this chapter for any tax for which credit is not 
     allowable under section 901 by reason of paragraph (1).
       ``(3) Coordination with section 78.--Section 78 shall not 
     apply to any tax for which credit is not allowable under 
     section 901 by reason of paragraph (1).
       ``(4) Treatment of nondeductible portion in applying 
     foreign tax credit limit.--For purposes of applying the 
     limitation under section 904(a), the remaining 5 percent of 
     the qualified foreign-source portion of any dividend with 
     respect to which a deduction is not allowable to the domestic 
     corporation under subsection (a) shall be treated as income 
     from sources within the United States.
       ``(e) Special Rules for Hybrid Dividends.--
       ``(1) In general.--Subsection (a) shall not apply to any 
     dividend received by a United States shareholder from a 
     controlled foreign corporation if the dividend is a hybrid 
     dividend.
       ``(2) Hybrid dividends of tiered controlled foreign 
     corporations.--If a controlled foreign corporation with 
     respect to which a domestic corporation is a United States 
     shareholder receives a hybrid dividend from any other 
     controlled foreign corporation with respect to which such 
     domestic corporation is also a United States shareholder, 
     then, notwithstanding any other provision of this title--
       ``(A) the hybrid dividend shall be treated for purposes of 
     section 951(a)(1)(A) as subpart F income of the receiving 
     controlled foreign corporation for the taxable year of the 
     controlled foreign corporation in which the dividend was 
     received, and
       ``(B) the United States shareholder shall include in gross 
     income an amount equal to the shareholder's pro rata share 
     (determined in the same manner as under section 951(a)(2)) of 
     the subpart F income described in subparagraph (A).
       ``(3) Denial of foreign tax credit, etc.--The rules of 
     subsection (d) shall apply to any hybrid dividend received 
     by, or any amount included under paragraph (2) in the gross 
     income of, a United States shareholder, except that, for 
     purposes of applying subsection (d)(4), all of such dividend 
     or amount shall be treated as income from sources within the 
     United States.
       ``(4) Hybrid dividend.--The term `hybrid dividend' means an 
     amount received from a controlled foreign corporation--
       ``(A) which is treated as a dividend for purposes of this 
     title, and
       ``(B) for which the controlled foreign corporation received 
     a deduction (or similar tax benefit) under the laws of the 
     country in which the controlled foreign corporation was 
     created or organized.
       ``(f) Definitions.--For purposes of this section--
       ``(1) United states shareholder.--The term `United States 
     shareholder' has the meaning given such term in section 
     951(b).
       ``(2) Controlled foreign corporation.--The term `controlled 
     foreign corporation' has the meaning given such term in 
     section 957(a).
       ``(3) Noncontrolled section 902 corporation.--The term 
     `noncontrolled section 902 corporation' has the meaning given 
     such term in section 904(d)(2)(E)(i).
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the provisions of this section.''.
       (b) Application of Holding Period Requirement.--Subsection 
     (c) of section 246 is amended--
       (1) by striking ``or 245'' in paragraph (1) and inserting 
     ``245, or 245A'', and
       (2) by adding at the end the following new paragraph:
       ``(5) Special rules for qualified foreign-source portion of 
     dividends received from controlled foreign corporations.--
       ``(A) 1-year holding period requirement.--For purposes of 
     section 245A--
       ``(i) paragraph (1)(A) shall be applied--

       ``(I) by substituting `365 days' for `45 days' each place 
     it appears, and
       ``(II) by substituting `731-day period' for `91-day 
     period', and

       ``(ii) paragraph (2) shall not apply.
       ``(B) Status must be maintained during holding period.--For 
     purposes of section 245A, the holding period requirement of 
     this subsection shall be treated as met only if--
       ``(i) the controlled foreign corporation referred to in 
     section 245A(a) is a controlled foreign corporation at all 
     times during such period, and
       ``(ii) the taxpayer is a United States shareholder (as 
     defined in section 951) with respect to such controlled 
     foreign corporation at all times during such period.
       ``(C) Special rules for electing noncontrolled section 902 
     corporations.--In the case of an election under section 
     245A(b) to treat a noncontrolled section 902 corporation as a 
     controlled foreign corporation, the requirements of 
     subparagraph (B) shall be treated as met for any continuous 
     period ending on the day before the effective date of the 
     election for which the taxpayer met the ownership 
     requirements of section 904(d)(2)(E) with respect to such 
     corporation.''.
       (c) Application of Rules Generally Applicable to Deductions 
     for Dividends Received.--
       (1) Treatment of dividends from tax-exempt corporations.--
     Paragraph (1) of section 246(a) is amended by striking ``and 
     245'' and inserting ``245, and 245A''.
       (2) Assets generating tax-exempt portion of dividend not 
     taken into account in allocating and apportioning deductible 
     expenses.--Paragraph (3) of section 864(e) is amended by 
     striking ``or 245(a)'' and inserting ``, 245(a), or 245A''.
       (3) Coordination with section 1059.--Subparagraph (B) of 
     section 1059(b)(2) is amended by striking ``or 245'' and 
     inserting ``245, or 245A''.
       (d) Conforming Amendments.--
       (1) Clause (vi) of section 56(g)(4)(C) is amended by 
     inserting ``245A or'' before ``965''.
       (2) Subsection (b) of section 951 is amended--
       (A) by striking ``subpart'' and inserting ``title'', and
       (B) by adding at the end the following: ``Such term shall 
     include, with respect to any entity treated as a controlled 
     foreign corporation under section 245A(b), any domestic 
     corporation treated as a United States shareholder with 
     respect to such entity under such section.''.
       (3) Subsection (a) of section 957 is amended--
       (A) by striking ``subpart'' in the matter preceding 
     paragraph (1) and inserting ``title'', and
       (B) by adding at the end the following: ``Such term shall 
     include any entity treated as a controlled foreign 
     corporation under section 245A(b).''.
       (4) The table of sections for part VIII of subchapter B of 
     chapter 1 is amended by inserting after the item relating to 
     section 245 the following new item:


[[Page S4797]]


``Sec. 245A. Dividends received by domestic corporations from certain 
              foreign corporations.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2014, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 102. APPLICATION OF DIVIDENDS RECEIVED DEDUCTION TO 
                   CERTAIN SALES AND EXCHANGES OF STOCK.

       (a) Sales by United States Persons of Stock in CFC.--
     Section 1248 is amended by redesignating subsection (j) as 
     subsection (k) and by inserting after subsection (i) the 
     following new subsection:
       ``(j) Coordination With Dividends Received Deduction.--
       ``(1) In general.--In the case of the sale or exchange by a 
     domestic corporation of stock in a foreign corporation held 
     for 1 year or more, any amount received by the domestic 
     corporation which is treated as a dividend by reason of this 
     section shall be treated as a dividend for purposes of 
     applying section 245A.
       ``(2) Losses disallowed.--If a domestic corporation--
       ``(A) sells or exchanges stock in a foreign corporation in 
     a taxable year of the domestic corporation with or within 
     which a taxable year of the foreign corporation beginning 
     after December 31, 2014, ends, and
       ``(B) met the ownership requirements of subsection (a)(2) 
     with respect to such stock,
     no deduction shall be allowed to the domestic corporation 
     with respect to any loss from the sale or exchange.''.
       (b) Sale by a CFC of a Lower Tier CFC.--Section 964(e) is 
     amended by adding at the end the following new paragraph:
       ``(4) Coordination with dividends received deduction.--
       ``(A) In general.--If, for any taxable year of a controlled 
     foreign corporation beginning after December 31, 2014, any 
     amount is treated as a dividend under paragraph (1) by reason 
     of a sale or exchange by the controlled foreign corporation 
     of stock in another foreign corporation held for 1 year or 
     more, then, notwithstanding any other provision of this 
     title--
       ``(i) the qualified foreign-source portion of such dividend 
     shall be treated for purposes of section 951(a)(1)(A) as 
     subpart F income of the selling controlled foreign 
     corporation for such taxable year,
       ``(ii) a United States shareholder with respect to the 
     selling controlled foreign corporation shall include in gross 
     income for the taxable year of the shareholder with or within 
     which such taxable year of the controlled foreign corporation 
     ends an amount equal to the shareholder's pro rata share 
     (determined in the same manner as under section 951(a)(2)) of 
     the amount treated as subpart F income under clause (i), and
       ``(iii) the deduction under section 245A(a) shall be 
     allowable to the United States shareholder with respect to 
     the subpart F income included in gross income under clause 
     (ii) in the same manner as if such subpart F income were a 
     dividend received by the shareholder from the selling 
     controlled foreign corporation.
       ``(B) Effect of loss on earnings and profits.--For purposes 
     of this title, in the case of a sale or exchange by a 
     controlled foreign corporation of stock in another foreign 
     corporation in a taxable year of the selling controlled 
     foreign corporation beginning after December 31, 2014, to 
     which this paragraph would apply if gain were recognized, the 
     earnings and profits of the selling controlled foreign 
     corporation shall not be reduced by reason of any loss from 
     such sale or exchange.
       ``(C) Qualified foreign-source portion.--For purposes of 
     this paragraph, the qualified foreign-source portion of any 
     amount treated as a dividend under paragraph (1) shall be 
     determined in the same manner as under section 245A(c).''.

     SEC. 103. DEDUCTION FOR FOREIGN INTANGIBLE INCOME DERIVED 
                   FROM TRADE OR BUSINESS WITHIN THE UNITED 
                   STATES.

       (a) In General.--Part VIII of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 250. FOREIGN INTANGIBLE INCOME DERIVED FROM TRADE OR 
                   BUSINESS WITHIN THE UNITED STATES.

       ``(a) In General.--In the case of a domestic corporation, 
     there shall be allowed as a deduction an amount equal to 50 
     percent of the qualified foreign intangible income of such 
     domestic corporation for the taxable year.
       ``(b) Qualified Foreign Intangible Income.--
       ``(1) In general.--The term `qualified foreign intangible 
     income' means, with respect to any domestic corporation, 
     foreign intangible income which is derived by the domestic 
     corporation from the active conduct of a trade or business 
     within the United States with respect to the intangible 
     property giving rise to the income.
       ``(2) Requirements relating to trade or business within the 
     united states.--For purposes of this section, foreign 
     intangible income shall be treated as derived by a domestic 
     corporation from the active conduct of a trade or business 
     within the United States only if--
       ``(A) the domestic corporation developed, created, or 
     produced within the United States the intangible property 
     giving rise to the income, or
       ``(B) in any case in which the domestic corporation 
     acquired such intangible property, the domestic corporation 
     added substantial value to the property through the active 
     conduct of such trade or business within the United States.
       ``(c) Foreign Intangible Income.--For purposes of this 
     section--
       ``(1) In general.--The term `foreign intangible income' 
     means any intangible income which is derived in connection 
     with--
       ``(A) property which is sold, leased, licensed, or 
     otherwise disposed of for use, consumption, or disposition 
     outside the United States, or
       ``(B) services provided with respect to persons or property 
     located outside the United States.
       ``(2) Exceptions for certain income.--The following amounts 
     shall not be taken into account in computing foreign 
     intangible income:
       ``(A) Any amount treated as received by the domestic 
     corporation under section 367(d)(2) with respect to any 
     intangible property.
       ``(B) Any payment under a cost-sharing arrangement entered 
     into under section 482.
       ``(C) Any amount received from a controlled foreign 
     corporation with respect to which the domestic corporation is 
     a United States shareholder to the extent such amount is 
     attributable or properly allocable to income which is--
       ``(i) effectively connected with the conduct of a trade or 
     business within the United States and subject to tax under 
     this chapter, or
       ``(ii) subpart F income.
     For purposes of clause (ii), amounts not otherwise treated as 
     subpart F income shall be so treated if the amount creates 
     (or increases) a deficit which under section 952(c) may 
     reduce the subpart F income of the payor or any other 
     controlled foreign corporation.
       ``(3) Intangible income.--The term `intangible income' 
     means gross income from--
       ``(A) the sale, lease, license, or other disposition of 
     property in which intangible property is used directly or 
     indirectly, or
       ``(B) the provision of services related to intangible 
     property or in connection with property in which intangible 
     property is used directly or indirectly,
     to the extent that such gross income is properly attributable 
     to such intangible property.
       ``(4) Deductions to be taken into account.--The gross 
     income of a domestic corporation taken into account under 
     this subsection shall be reduced, under regulations 
     prescribed by the Secretary, so as to take into account 
     deductions properly allocable to such income.
       ``(5) Intangible property.--The term `intangible property' 
     has the meaning given such term by section 936(h)(3)(B).
       ``(d) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the provisions of this section.''.
       (b) Conforming Amendment.--The table of sections for part 
     VIII of subchapter B of chapter 1 is amended by adding at the 
     end the following new item:

``Sec. 250. Foreign intangible income derived from trade or business 
              within the United States.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of domestic corporations 
     beginning after December 31, 2014.

     SEC. 104. TREATMENT OF DEFERRED FOREIGN INCOME UPON 
                   TRANSITION TO PARTICIPATION EXEMPTION SYSTEM OF 
                   TAXATION.

       (a) In General.--Section 965 is amended to read as follows:

     ``SEC. 965. TREATMENT OF DEFERRED FOREIGN INCOME UPON 
                   TRANSITION TO PARTICIPATION EXEMPTION SYSTEM OF 
                   TAXATION.

       ``(a) Deduction Allowed.--In the case of a domestic 
     corporation which elects the application of this section to 
     any controlled foreign corporation with respect to which it 
     is a United States shareholder, there shall be allowed as a 
     deduction for the taxable year of the United States 
     shareholder with or within which the first taxable year of 
     the controlled foreign corporation beginning after December 
     31, 2014, ends an amount equal to 70 percent of the amount 
     determined under subsection (b) for the taxable year.
       ``(b) Eligible Amount.--For purposes of subsection (a)--
       ``(1) In general.--The amount determined under this 
     subsection for a United States shareholder with respect to 
     any controlled foreign corporation for the taxable year of 
     the shareholder described in subsection (a) is the lesser 
     of--
       ``(A) the shareholder's pro rata share of the earnings and 
     profits of the controlled foreign corporation described in 
     section 959(c)(3) as of the close of the taxable year 
     preceding the first taxable year of the controlled foreign 
     corporation beginning after December 31, 2014, or
       ``(B) an amount equal to the sum of--
       ``(i) the dividends received by the shareholder during such 
     taxable year from the controlled foreign corporation which 
     are attributable to the earnings and profits described in 
     subparagraph (A), plus
       ``(ii) the increase in subpart F income required to be 
     included in gross income of the shareholder for the taxable 
     year by reason of the election under paragraph (2).
       ``(2) Election of deemed subpart f inclusion.--A United 
     States shareholder may

[[Page S4798]]

     elect for purposes of paragraph (1)(B)(ii) to treat all (or 
     any portion) of the shareholder's pro rata share of the 
     earnings and profits of a controlled foreign corporation 
     described in paragraph (1)(A) as subpart F income includible 
     in the gross income of the shareholder for the taxable year 
     of the shareholder described in subsection (a).
       ``(3) Ordering rule.--For purposes of paragraph (1)(B)(i), 
     distributions shall be treated as first made out of earnings 
     and profits of a controlled foreign corporation described in 
     paragraph (1)(A).
       ``(4) Dividend.--The term `dividend' shall not include 
     amounts includible in gross income as a dividend under 
     section 78.
       ``(c) Disallowance of Foreign Tax Credit, etc.--In the case 
     of a domestic corporation making an election under subsection 
     (a) with respect to any controlled foreign corporation--
       ``(1) In general.--No credit shall be allowed under section 
     901 for any taxes paid or accrued (or treated as paid or 
     accrued) with respect to the earnings and profits taken into 
     account in determining the amount under subsection (b).
       ``(2) Denial of deduction.--No deduction shall be allowed 
     under this chapter for any tax for which credit is not 
     allowable under section 901 by reason of paragraph (1).
       ``(3) Coordination with section 78.--Section 78 shall not 
     apply to any tax for which credit is not allowable under 
     section 901 by reason of paragraph (1).
       ``(4) Treatment of nondeductible portion in applying 
     foreign tax credit limit.--For purposes of applying the 
     limitation under section 904(a), the remaining 30 percent of 
     the amount determined under subsection (b) with respect to 
     which a deduction is not allowable under subsection (a) shall 
     be treated as income from sources within the United States.
       ``(d) Election To Pay Liability for Deemed Subpart F Income 
     in Installments.--
       ``(1) In general.--In the case of a United States 
     shareholder with respect to 1 or more controlled foreign 
     corporations to which elections under subsections (a) and 
     (b)(2) apply, such United States shareholder may elect to pay 
     the net tax liability determined with respect to its deemed 
     subpart F inclusions with respect to such corporations under 
     subsection (b)(2) for the taxable year described in 
     subsection (a) in 2 or more (but not exceeding 8) equal 
     installments.
       ``(2) Date for payment of installments.--If an election is 
     made under paragraph (1), the first installment shall be paid 
     on the due date (determined without regard to any extension 
     of time for filing the return) for the return of tax for the 
     taxable year for which the election was made and each 
     succeeding installment shall be paid on the due date (as so 
     determined) for the return of tax for the taxable year 
     following the taxable year with respect to which the 
     preceding installment was made.
       ``(3) Acceleration of payment.--If there is an addition to 
     tax for failure to pay timely assessed with respect to any 
     installment required under this subsection, a liquidation or 
     sale of substantially all the assets of the taxpayer 
     (including in a title 11 or similar case), a cessation of 
     business by the taxpayer, or any similar circumstance, then 
     the unpaid portion of all remaining installments shall be due 
     on the date of such event (or in the case of a title 11 or 
     similar case, the day before the petition is filed).
       ``(4) Proration of deficiency to installments.--If an 
     election is made under paragraph (1) to pay the net tax 
     liability described in paragraph (1) in installments and a 
     deficiency has been assessed which increases such net tax 
     liability, the increase shall be prorated to the installments 
     payable under paragraph (1). The part of the increase so 
     prorated to any installment the date for payment of which has 
     not arrived shall be collected at the same time as, and as a 
     part of, such installment. The part of the increase so 
     prorated to any installment the date for payment of which has 
     arrived shall be paid upon notice and demand from the 
     Secretary. This subsection shall not apply if the deficiency 
     is due to negligence, to intentional disregard of rules and 
     regulations, or to fraud with intent to evade tax.
       ``(5) Time for payment of interest.--Interest payable under 
     section 6601 on the unpaid portion of any amount of tax the 
     time for payment of which as been extended under this 
     subsection shall be paid annually at the same time as, and as 
     part of, each installment payment of such tax. In the case of 
     a deficiency to which paragraph (4) applies, interest with 
     respect to such deficiency which is assigned under the 
     preceding sentence to any installment the date for payment of 
     which has arrived on or before the date of the assessment of 
     the deficiency, shall be paid upon notice and demand from the 
     Secretary.
       ``(6) Net tax liability for deemed subpart f inclusions.--
     For purposes of this subsection--
       ``(A) In general.--The net tax liability described in 
     paragraph (1) with respect to any United States shareholder 
     for any taxable year is the excess (if any) of--
       ``(i) such taxpayer's net income tax for the taxable year, 
     over
       ``(ii) such taxpayer's net income tax for such taxable year 
     determined as if the elections under subsection (b)(2) with 
     respect to 1 or more controlled foreign corporations had not 
     been made.
       ``(B) Net income tax.--The term `net income tax' means the 
     net income tax (as defined in section 38(c)(1)) reduced by 
     the credit allowed under section 38.
       ``(e) Special Rules.--For purposes of this section--
       ``(1) Elections.--Any election under subsection (a), 
     (b)(2), or (d)(1) shall be made not later than the due date 
     (including extensions) for the return of tax for the taxable 
     year for which made and shall be made in such manner as the 
     Secretary may provide.
       ``(2) Section not to apply to noncontrolled section 902 
     corporations treated as cfcs.--No election may be made under 
     subsection (a) with respect to a controlled foreign 
     corporation which was a noncontrolled section 902 corporation 
     which a United States shareholder elected under section 
     245A(b) to treat as a controlled foreign corporation.
       ``(3) Pro rata share.--A shareholder's pro rata share of 
     any earnings and profits shall be determined in the same 
     manner as under section 951(a)(2).''.
       (b) Conforming Amendments.--
       (1) Clause (vi) of section 56(g)(4)(C), as amended by this 
     Act, is amended--
       (A) by striking ``965'' and inserting ``965(b)'', and
       (B) by inserting ``and inclusions'' after ``certain 
     distributions'' in the heading thereof.
       (2) Paragraph (2) of section 6601(b) is amended--
       (A) by striking ``section 6156(a)'' in the matter preceding 
     subparagraph (A) and inserting ``section 965(d)(1) or 
     6156(a)'', and
       (B) by striking ``section 6156(b)'' in subparagraph (A) and 
     inserting ``section 965(d)(2) or 6156(b), as the case may 
     be''.
       (3) The table of section for subpart F of part III of 
     subchapter N of chapter 1 is amended by striking the item 
     relating to section 965 and inserting the following:

``Sec. 965. Treatment of deferred foreign income upon transition to 
              participation exemption system of taxation.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2014, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

               TITLE II--OTHER INTERNATIONAL TAX REFORMS

                 Subtitle A--Modifications of Subpart F

     SEC. 201. TREATMENT OF LOW-TAXED FOREIGN INCOME AS SUBPART F 
                   INCOME.

       (a) In General.--Subsection (a) of section 952 is amended 
     by redesignating paragraphs (3), (4), and (5) as paragraphs 
     (4), (5), and (6), respectively, and by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) low-taxed income (as defined under subsection 
     (e)),''.
       (b) Low-Taxed Income.--Section 952 is amended by adding at 
     the end the following new subsection:
       ``(e) Low-Taxed Income.--
       ``(1) In general.--For purposes of subsection (a), except 
     as provided in paragraph (2), the term `low-taxed income' 
     means, with respect to any taxable year of a controlled 
     foreign corporation, the entire gross income of the 
     controlled foreign corporation unless the taxpayer 
     establishes to the satisfaction of the Secretary that such 
     income was subject to an effective rate of income tax 
     (determined under rules similar to the rules of section 
     954(b)(4)) imposed by a foreign country in excess of one-half 
     of the highest rate of tax under section 11(b) for taxable 
     years of United States corporations beginning in the same 
     calendar year as the taxable year of the controlled foreign 
     corporation begins.
       ``(2) Exception for qualified business income.--For 
     purposes of paragraph (1), qualified business income--
       ``(A) shall be taken into account in determining the 
     effective rate of income tax at which the entire gross income 
     of the controlled foreign corporation is taxed, but
       ``(B) the amount of gross income treated as low-taxed 
     income under paragraph (1) shall be reduced by the amount of 
     the qualified business income.
       ``(3) Qualified business income.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified business income' 
     means, with respect to any controlled foreign corporation, 
     income derived by the controlled foreign corporation in a 
     foreign country but only if--
       ``(i) such income is attributable to the active conduct of 
     a trade or business of such corporation in such foreign 
     country,
       ``(ii) the corporation maintains an office or fixed place 
     of business in such foreign country, and
       ``(iii) officers and employees of the corporation 
     physically located at such office or place of business in 
     such foreign country conducted (or significantly contributed 
     to the conduct of) activities within the foreign country 
     which are substantial in relation to the activities necessary 
     for the active conduct of the trade or business to which such 
     income is attributable.
       ``(B) Exception for intangible income.--For purposes of 
     subparagraph (A), qualified business income of a controlled 
     foreign corporation shall not include intangible income (as 
     defined in section 250(c)(3)).
       ``(4) Determination of effective rate of foreign income tax 
     and qualified business income.--

[[Page S4799]]

       ``(A) Country-by-country determination.--For purposes of 
     determining the effective rate of income tax imposed by any 
     foreign country under paragraph (1) and qualified business 
     income under paragraph (3), each such paragraph shall be 
     applied separately with respect to--
       ``(i) each foreign country in which a controlled foreign 
     corporation conducts any trade or business, and
       ``(ii) the entire gross income and qualified business 
     income derived with respect to such foreign country.
       ``(B) Treatment of losses.--For purposes of determining the 
     effective rate of income tax imposed by any foreign country 
     under paragraph (1)--
       ``(i) such effective rate shall be determined without 
     regard to any losses carried to the relevant taxable year, 
     and
       ``(ii) to the extent the income of the controlled foreign 
     corporation reduces losses in the relevant taxable year, such 
     effective rate shall be treated as being the effective rate 
     which would have been imposed on such income without regard 
     to such losses.
       ``(5) Deductions to be taken into account.--The gross 
     income of a controlled foreign corporation taken into account 
     under this subsection shall be reduced, under regulations 
     prescribed by the Secretary, so as to take into account 
     deductions (including taxes) properly allocable to such 
     income.''.
       (c) Conforming Amendments.--
       (1) Subsection (a) of section 952 is amended--
       (A) by striking ``paragraph (4)'' in the next to last 
     sentence and inserting ``paragraph (5)'', and
       (B) by striking ``paragraph (5)'' in the last sentence and 
     inserting ``paragraph (6)''.
       (2) Subsection (d) of section 952 is amended by striking 
     ``subsection (a)(5)'' and inserting ``subsection (a)(6)''.
       (3) Paragraphs (1) and (2) of section 999(c) are each 
     amended by striking ``section 952(a)(3)'' and inserting 
     ``section 952(a)(4)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2014, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 202. PERMANENT EXTENSION OF LOOK-THRU RULE FOR 
                   CONTROLLED FOREIGN CORPORATIONS.

       (a) In General.--Section 954(c)(6)(C) is amended by 
     striking ``and before January 1, 2014,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2013, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 203. PERMANENT EXTENSION OF EXCEPTIONS FOR ACTIVE 
                   FINANCING INCOME.

       (a) Exception From Insurance Income.--Section 953(e)(10) is 
     amended--
       (1) by striking ``and before January 1, 2014,'', and
       (2) by striking the last sentence.
       (b) Exception From Foreign Personal Holding Company 
     Income.--Section 954(h)(9) is amended by striking ``and 
     before January 1, 2014,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2013, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 204. FOREIGN BASE COMPANY INCOME NOT TO INCLUDE SALES OR 
                   SERVICES INCOME.

       (a) Repeal.--Paragraphs (2) and (3) of section 954(a) are 
     repealed.
       (b) Conforming Amendments.--
       (1) Section 954(d) is amended by adding at the end the 
     following new paragraph:
       ``(5) Termination.--This subsection shall not apply to 
     taxable years of foreign corporations beginning after 
     December 31, 2014, and to taxable years of United States 
     shareholders with or within which such taxable years of 
     foreign corporations end.''.
       (2) Section 954(e) is amended by adding at the end the 
     following new paragraph:
       ``(3) Termination.--This subsection shall not apply to 
     taxable years of foreign corporations beginning after 
     December 31, 2014, and to taxable years of United States 
     shareholders with or within which such taxable years of 
     foreign corporations end.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2014, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

        Subtitle B--Modifications Related to Foreign Tax Credit

     SEC. 211. MODIFICATION OF APPLICATION OF SECTIONS 902 AND 960 
                   WITH RESPECT TO POST-2014 EARNINGS.

       (a) Section 902 Not To Apply to Dividends From Post-2014 
     Earnings.--Section 902 is amended by redesignating subsection 
     (d) as subsection (e) and by inserting after subsection (c) 
     the following new subsection:
       ``(d) Section Not To Apply to Dividends From Post-2014 
     Earnings.--
       ``(1) In general.--This section shall not apply to the 
     portion of any dividend paid by a foreign corporation to the 
     extent such portion is made out of earnings and profits of 
     the foreign corporation (computed in accordance with sections 
     964(a) and 986) accumulated in taxable years beginning after 
     December 31, 2014.
       ``(2) Coordination with distributions from pre-2015 
     earnings and profits.--For purposes of this section--
       ``(A) Ordering rule.--Any distribution in a taxable year 
     beginning after December 31, 2014, shall be treated as first 
     made out of earnings and profits of the foreign corporation 
     (computed in accordance with sections 964(a) and 986) 
     accumulated in taxable years beginning before January 1, 
     2015.
       ``(B) Post-1986 undistributed earnings.--Post-1986 
     undistributed earnings shall not include earnings and profits 
     described in paragraph (1).''.
       (b) Determination of Section 960 Credit on Current Year 
     Basis.--Section 960 is amended by adding at the end the 
     following new subsection:
       ``(d) Deemed Paid Credit for Subpart F Inclusions 
     Attributable to Post-2014 Earnings.--
       ``(1) In general.--For purposes of this subpart, if there 
     is included in the gross income of a domestic corporation any 
     amount under section 951(a)--
       ``(A) with respect to any controlled foreign corporation 
     with respect to which such domestic corporation is a United 
     States shareholder, and
       ``(B) which is attributable to the earnings and profits of 
     the controlled foreign corporation (computed in accordance 
     with sections 964(a) and 986) accumulated in taxable years 
     beginning after December 31, 2014,
     then subsections (a), (b), and (c) shall not apply and such 
     domestic corporation shall be deemed to have paid so much of 
     such foreign corporation's foreign income taxes as are 
     properly attributable to the amount so included.
       ``(2) Foreign income taxes.--For purposes of this 
     subsection, the term `foreign income taxes' means any income, 
     war profits, or excess profits taxes paid or accrued by the 
     controlled foreign corporation to any foreign country or 
     possession of the United States.
       ``(3) Regulations.--The Secretary shall provide such 
     regulations as may be necessary or appropriate to carry out 
     the provisions of this subsection.''.

     SEC. 212. SEPARATE FOREIGN TAX CREDIT BASKET FOR FOREIGN 
                   INTANGIBLE INCOME.

       (a) In General.--Paragraph (1) of section 904(d) is amended 
     by striking ``and'' at the end of subparagraph (A), by 
     striking the period at the end of subparagraph (B) and 
     inserting ``, and'', and by adding at the end the following:
       ``(C) foreign intangible income (as defined in paragraph 
     (2)(J)).''.
       (b) Foreign Intangible Income.--
       (1) In general.--Section 904(d)(2) is amended by 
     redesignating subparagraphs (J) and (K) as subparagraphs (K) 
     and (L) and by inserting after subparagraph (I) the 
     following:
       ``(J) Foreign intangible income.--For purposes of this 
     section--
       ``(i) In general.--The term `foreign intangible income' has 
     the meaning given such term by section 250(c).
       ``(ii) Coordination.--Passive category income and general 
     category income shall not include foreign intangible 
     income.''.
       (2) General category income.--Section 904(d)(2)(A)(ii) is 
     amended by inserting ``or foreign intangible income'' after 
     ``passive category income''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2014.
       (2) Transitional rule.--For purposes of section 904(d)(1) 
     of the Internal Revenue Code of 1986 (as amended by this 
     Act)--
       (A) taxes carried from any taxable year beginning before 
     January 1, 2015, to any taxable year beginning on or after 
     such date, with respect to any item of income, shall be 
     treated as described in the subparagraph of such section 
     904(d)(1) in which such income would be described without 
     regard to the amendments made by this section, and
       (B) any carryback of taxes with respect to foreign 
     intangible income from a taxable year beginning on or after 
     January 1, 2015, to a taxable year beginning before such date 
     shall be allocated to the general income category.

     SEC. 213. INVENTORY PROPERTY SALES SOURCE RULE EXCEPTIONS NOT 
                   TO APPLY FOR FOREIGN TAX CREDIT LIMITATION.

       (a) In General.--Section 904 is amended by redesignating 
     subsection (l) as subsection (m) and by inserting after 
     subsection (k) the following new subsection:
       ``(l) Inventory Property Sales Source Rule Exceptions Not 
     To Apply.--Any amount which would be treated as derived from 
     sources without the United States by reason of the 
     application of section 862(a)(6) or 863(b)(2) for any taxable 
     year shall be treated as derived from sources within the 
     United States for purposes of this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

         Subtitle C--Allocation of Interest on Worldwide Basis

     SEC. 221. ACCELERATION OF ELECTION TO ALLOCATE INTEREST ON A 
                   WORLDWIDE BASIS.

       Section 864(f)(6) is amended by striking ``December 31, 
     2020'' and inserting ``December 31, 2014''.
                                 ______
                                 
  SA 3601. Mr. ALEXANDER submitted an amendment intended to be proposed

[[Page S4800]]

by him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                        TITLE __--IMPACT OF ACA

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Certify It Act of 2014''.

     SEC. _02. STUDY ON IMPACT ON SMALL BUSINESS JOBS.

       (a) Study and Report.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, and December 1 for each of the 4 
     consecutive years thereafter, the Comptroller General of the 
     United States, shall conduct a study on the impact of the 
     Affordable Care Act on small businesses, including--
       (A) the impact of any increased health insurance costs 
     resulting from the provisions of such Act on economic 
     indicators (including jobs lost, hours worked per employee, 
     and any resulting loss of wages); and
       (B) the impact of section 4980H of the Internal Revenue 
     Code of 1986 (relating to shared responsibility for employers 
     regarding health coverage) on economic indicators, including 
     any jobs lost.
       (2) Report.--The Comptroller General of the United States, 
     using data from the Office of the Actuary, Centers for 
     Medicare & Medicaid Services, under section _03 and economic 
     indicators data from other Federal agencies, shall submit to 
     the appropriate committees of Congress a report on the study 
     conducted under paragraph (1).
       (b) Appropriate Committees of Congress.--For purposes of 
     this section, the term ``appropriate committees of Congress'' 
     means the Committee on Ways and Means, the Committee on 
     Education and Labor, the Committee on Energy and Commerce, 
     and the Small Business Committee of the House of 
     Representatives and the Committee on Finance, the Committee 
     on Health, Education, Labor and Pensions, and the Small 
     Business and Entrepreneurship Committee of the Senate.
       (c) Definitions.--For purposes of this title:
       (1) Affordable care act.--The term ``Affordable Care Act'' 
     means the Patient Protection and Affordable Care Act (Public 
     Law 111-148) and title I and subtitle B of title II of the 
     Health Care and Education Reconciliation Act of 2010 (Public 
     law 111-152).
       (2) Small business.--The term ``small business'' means an 
     employer with 250 or fewer employees.

     SEC. _03. STUDY ON IMPACT ON SMALL BUSINESS HEALTH INSURANCE.

       (a) Study and Report.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, and December 1 for each of the 4 
     consecutive years thereafter, the Office of the Actuary, 
     Centers for Medicare & Medicaid Services, shall conduct a 
     study on the impact of the Affordable Care Act on small group 
     health insurance costs, including--
       (A) the impact of requirements and benefits pursuant to 
     such Act on the small group health insurance market, 
     including community rating requirements, minimum actuarial 
     value requirements, requirements to provide for essential 
     health benefits described in section 1302(b) of the Patient 
     Protection and Affordable Care Act (42 U.S.C. 18022(b)), 
     requirements related to cost-sharing, the prohibition on 
     annual and lifetime limits on benefits under section 2711 of 
     the Public Health Service Act (42 U.S.C. 300gg-11), 
     prohibitions on cost-sharing requirements for preventive 
     services, and the extension of dependent coverage under 
     section 2714 of the Public Health Service Act (42 U.S.C. 
     300gg-14); and
       (B) the impact of new taxes and fees on the small group 
     health insurance market costs, including the fee imposed 
     under section 9010 of the Patient Protection and Affordable 
     Care Act (relating to imposition of annual fee on health 
     insurance providers), the transitional reinsurance program 
     contributions, the fees imposed under subchapter B of chapter 
     34 of the Internal Revenue Code of 1986 (relating to the 
     Patient Centered Outcome Research Institute fees), and 
     Exchange assessments or user fees.
       (2) Report.--The Office of the Actuary, Centers for 
     Medicare & Medicaid Services, in consultation with the 
     Comptroller General for purposes of verifying the 
     methodology, assumptions, validity, and reasonableness of the 
     data used by the Actuary, shall submit to the appropriate 
     committees of Congress a report on the study conducted under 
     paragraph (1).
       (b) Appropriate Committees of Congress.--For purposes of 
     this section, the term ``appropriate committees of Congress'' 
     means the Committee on Ways and Means, the Committee on 
     Education and Labor, the Committee on Energy and Commerce, 
     and the Small Business Committee of the House of 
     Representatives and the Committee on Finance, the Committee 
     on Health, Education, Labor and Pensions, and the Small 
     Business and Entrepreneurship Committee of the Senate.

     SEC. _04. ONE-YEAR DELAY FOR EMPLOYER MANDATE IN CASE OF 
                   NEGATIVE IMPACT ON SMALL BUSINESS.

       (a) In General.--If the Comptroller General of the United 
     States or the Office of the Actuary, Centers for Medicare & 
     Medicaid Services, determines in any report submitted under 
     section _02 or _03 that the Affordable Care Act has caused 
     net employment loss amongst small businesses or caused small 
     group health insurance costs to rise, section 4980H of the 
     Internal Revenue Code of 1986 shall not apply for months 
     beginning during the 1-year period beginning on the date of 
     the submission of such report.
       (b) Failure to Submit.--If the Comptroller General of the 
     United States or the Office of the Actuary, Centers for 
     Medicare & Medicaid Services, fails to submit a report in 
     accordance with the timelines specified in this title, 
     section 4980H of the Internal Revenue Code of 1986 shall not 
     apply the following calendar year.
                                 ______
                                 
  SA 3602. Mr. McCONNELL submitted an amendment intended to be proposed 
by him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

                       TITLE II--SAVING COAL JOBS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Saving Coal Jobs Act of 
     2014''.

                 Subtitle A--Prohibition on Energy Tax

     SEC. 211. PROHIBITION ON ENERGY TAX.

       (a) Findings; Purposes.--
       (1) Findings.--Congress finds that--
       (A) on June 25, 2013, President Obama issued a Presidential 
     memorandum directing the Administrator of the Environmental 
     Protection Agency to issue regulations relating to power 
     sector carbon pollution standards for existing coal fired 
     power plants;
       (B) the issuance of that memorandum circumvents Congress 
     and the will of the people of the United States;
       (C) any action to control emissions of greenhouse gases 
     from existing coal fired power plants in the United States by 
     mandating a national energy tax would devastate major sectors 
     of the economy, cost thousands of jobs, and increase energy 
     costs for low-income households, small businesses, and 
     seniors on fixed income;
       (D) joblessness increases the likelihood of hospital 
     visits, illnesses, and premature deaths;
       (E) according to testimony on June 15, 2011, before the 
     Committee on Environment and Public Works of the Senate by 
     Dr. Harvey Brenner of Johns Hopkins University, ``The 
     unemployment rate is well established as a risk factor for 
     elevated illness and mortality rates in epidemiological 
     studies performed since the early 1980s. In addition to 
     influences on mental disorder, suicide and alcohol abuse and 
     alcoholism, unemployment is also an important risk factor in 
     cardiovascular disease and overall decreases in life 
     expectancy.'';
       (F) according to the National Center for Health Statistics, 
     ``children in poor families were four times as likely to be 
     in fair or poor health as children that were not poor'';
       (G) any major decision that would cost the economy of the 
     United States millions of dollars and lead to serious 
     negative health effects for the people of the United States 
     should be debated and explicitly authorized by Congress, not 
     approved by a Presidential memorandum or regulations; and
       (H) any policy adopted by Congress should make United 
     States energy as clean as practicable, as quickly as 
     practicable, without increasing the cost of energy for 
     struggling families, seniors, low-income households, and 
     small businesses.
       (2) Purposes.--The purposes of this section are--
       (A) to ensure that--
       (i) a national energy tax is not imposed on the economy of 
     the United States; and
       (ii) struggling families, seniors, low-income households, 
     and small businesses do not experience skyrocketing 
     electricity bills and joblessness;
       (B) to protect the people of the United States, 
     particularly families, seniors, and children, from the 
     serious negative health effects of joblessness;
       (C) to allow sufficient time for Congress to develop and 
     authorize an appropriate mechanism to address the energy 
     needs of the United States and the potential challenges posed 
     by severe weather; and
       (D) to restore the legislative process and congressional 
     authority over the energy policy of the United States.
       (b) Presidential Memorandum.--Notwithstanding any other 
     provision of law, the head of a Federal agency shall not 
     promulgate any regulation relating to power sector carbon 
     pollution standards or any substantially similar regulation 
     on or after June 25, 2013, unless that regulation is 
     explicitly authorized by an Act of Congress.

                          Subtitle B--Permits

     SEC. 221. NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM.

       (a) Applicability of Guidance.--Section 402 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1342) is amended by 
     adding at the end the following:
       ``(s) Applicability of Guidance.--
       ``(1) Definitions.--In this subsection:
       ``(A) Guidance.--
       ``(i) In general.--The term `guidance' means draft, 
     interim, or final guidance issued by the Administrator.
       ``(ii) Inclusions.--The term `guidance' includes--

       ``(I) the comprehensive guidance issued by the 
     Administrator and dated April 1, 2010;
       ``(II) the proposed guidance entitled `Draft Guidance on 
     Identifying Waters Protected by the Clean Water Act' and 
     dated April 28, 2011;

[[Page S4801]]

       ``(III) the final guidance proposed by the Administrator 
     and dated July 21, 2011; and
       ``(IV) any other document or paper issued by the 
     Administrator through any process other than the notice and 
     comment rulemaking process.

       ``(B) New permit.--The term `new permit' means a permit 
     covering discharges from a structure--
       ``(i) that is issued under this section by a permitting 
     authority; and
       ``(ii) for which an application is--

       ``(I) pending as of the date of enactment of this 
     subsection; or
       ``(II) filed on or after the date of enactment of this 
     subsection.

       ``(C) Permitting authority.--The term `permitting 
     authority' means--
       ``(i) the Administrator; or
       ``(ii) a State, acting pursuant to a State program that is 
     equivalent to the program under this section and approved by 
     the Administrator.
       ``(2) Permits.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, in making a determination whether to approve a new 
     permit or a renewed permit, the permitting authority--
       ``(i) shall base the determination only on compliance with 
     regulations issued by the Administrator or the permitting 
     authority; and
       ``(ii) shall not base the determination on the extent of 
     adherence of the applicant for the new permit or renewed 
     permit to guidance.
       ``(B) New permits.--If the permitting authority does not 
     approve or deny an application for a new permit by the date 
     that is 270 days after the date of receipt of the application 
     for the new permit, the applicant may operate as if the 
     application were approved in accordance with Federal law for 
     the period of time for which a permit from the same industry 
     would be approved.
       ``(C) Substantial completeness.--In determining whether an 
     application for a new permit or a renewed permit received 
     under this paragraph is substantially complete, the 
     permitting authority shall use standards for determining 
     substantial completeness of similar permits for similar 
     facilities submitted in fiscal year 2007.''.
       (b) State Permit Programs.--
       (1) In general.--Section 402 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1342) is amended by striking 
     subsection (b) and inserting the following:
       ``(b) State Permit Programs.--
       ``(1) In general.--At any time after the promulgation of 
     the guidelines required by section 304(a)(2), the Governor of 
     each State desiring to administer a permit program for 
     discharges into navigable waters within the jurisdiction of 
     the State may submit to the Administrator--
       ``(A) a full and complete description of the program the 
     State proposes to establish and administer under State law or 
     under an interstate compact; and
       ``(B) a statement from the attorney general (or the 
     attorney for those State water pollution control agencies 
     that have independent legal counsel), or from the chief legal 
     officer in the case of an interstate agency, that the laws of 
     the State, or the interstate compact, as applicable, provide 
     adequate authority to carry out the described program.
       ``(2) Approval.--The Administrator shall approve each 
     program for which a description is submitted under paragraph 
     (1) unless the Administrator determines that adequate 
     authority does not exist--
       ``(A) to issue permits that--
       ``(i) apply, and ensure compliance with, any applicable 
     requirements of sections 301, 302, 306, 307, and 403;
       ``(ii) are for fixed terms not exceeding 5 years;
       ``(iii) can be terminated or modified for cause, 
     including--

       ``(I) a violation of any condition of the permit;
       ``(II) obtaining a permit by misrepresentation or failure 
     to disclose fully all relevant facts; and
       ``(III) a change in any condition that requires either a 
     temporary or permanent reduction or elimination of the 
     permitted discharge; and

       ``(iv) control the disposal of pollutants into wells;
       ``(B)(i) to issue permits that apply, and ensure compliance 
     with, all applicable requirements of section 308; or
       ``(ii) to inspect, monitor, enter, and require reports to 
     at least the same extent as required in section 308;
       ``(C) to ensure that the public, and any other State the 
     waters of which may be affected, receives notice of each 
     application for a permit and an opportunity for a public 
     hearing before a ruling on each application;
       ``(D) to ensure that the Administrator receives notice and 
     a copy of each application for a permit;
       ``(E) to ensure that any State (other than the permitting 
     State), whose waters may be affected by the issuance of a 
     permit may submit written recommendations to the permitting 
     State and the Administrator with respect to any permit 
     application and, if any part of the written recommendations 
     are not accepted by the permitting State, that the permitting 
     State will notify the affected State and the Administrator in 
     writing of the failure of the State to accept the 
     recommendations, including the reasons for not accepting the 
     recommendations;
       ``(F) to ensure that no permit will be issued if, in the 
     judgment of the Secretary of the Army (acting through the 
     Chief of Engineers), after consultation with the Secretary of 
     the department in which the Coast Guard is operating, 
     anchorage and navigation of any of the navigable waters would 
     be substantially impaired by the issuance of the permit;
       ``(G) to abate violations of the permit or the permit 
     program, including civil and criminal penalties and other 
     means of enforcement;
       ``(H) to ensure that any permit for a discharge from a 
     publicly owned treatment works includes conditions to require 
     the identification in terms of character and volume of 
     pollutants of any significant source introducing pollutants 
     subject to pretreatment standards under section 307(b) into 
     the treatment works and a program to ensure compliance with 
     those pretreatment standards by each source, in addition to 
     adequate notice, which shall include information on the 
     quality and quantity of effluent to be introduced into the 
     treatment works and any anticipated impact of the change in 
     the quantity or quality of effluent to be discharged from the 
     publicly owned treatment works, to the permitting agency of--
       ``(i) new introductions into the treatment works of 
     pollutants from any source that would be a new source (as 
     defined in section 306(a)) if the source were discharging 
     pollutants;
       ``(ii) new introductions of pollutants into the treatment 
     works from a source that would be subject to section 301 if 
     the source were discharging those pollutants; or
       ``(iii) a substantial change in volume or character of 
     pollutants being introduced into the treatment works by a 
     source introducing pollutants into the treatment works at the 
     time of issuance of the permit; and
       ``(I) to ensure that any industrial user of any publicly 
     owned treatment works will comply with sections 204(b), 307, 
     and 308.
       ``(3) Administration.--Notwithstanding paragraph (2), the 
     Administrator may not disapprove or withdraw approval of a 
     program under this subsection on the basis of the following:
       ``(A) The failure of the program to incorporate or comply 
     with guidance (as defined in subsection (s)(1)).
       ``(B) The implementation of a water quality standard that 
     has been adopted by the State and approved by the 
     Administrator under section 303(c).''.
       (2) Conforming amendments.--
       (A) Section 309 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1319) is amended--
       (i) in subsection (c)--

       (I) in paragraph (1)(A), by striking ``402(b)(8)'' and 
     inserting ``402(b)(2)(H)''; and
       (II) in paragraph (2)(A), by striking ``402(b)(8)'' and 
     inserting ``402(b)(2)(H)''; and

       (ii) in subsection (d), in the first sentence, by striking 
     ``402(b)(8)'' and inserting ``402(b)(2)(H)''.
       (B) Section 402(m) of the Federal Water Pollution Control 
     Act (33 U.S.C. 1342(m)) is amended in the first sentence by 
     striking ``subsection (b)(8) of this section'' and inserting 
     ``subsection (b)(2)(H)''.
       (c) Suspension of Federal Program.--Section 402(c) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1342(c)) is 
     amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following:
       ``(4) Limitation on disapproval.--Notwithstanding 
     paragraphs (1) through (3), the Administrator may not 
     disapprove or withdraw approval of a State program under 
     subsection (b) on the basis of the failure of the following:
       ``(A) The failure of the program to incorporate or comply 
     with guidance (as defined in subsection (s)(1)).
       ``(B) The implementation of a water quality standard that 
     has been adopted by the State and approved by the 
     Administrator under section 303(c).''.
       (d) Notification of Administrator.--Section 402(d)(2) of 
     the Federal Water Pollution Control Act (33 U.S.C. 
     1342(d)(2)) is amended--
       (1) by striking ``(2)'' and all that follows through the 
     end of the first sentence and inserting the following:
       ``(2) Objection by administrator.--
       ``(A) In general.--Subject to subparagraph (C), no permit 
     shall issue if--
       ``(i) not later than 90 days after the date on which the 
     Administrator receives notification under subsection 
     (b)(2)(E), the Administrator objects in writing to the 
     issuance of the permit; or
       ``(ii) not later than 90 days after the date on which the 
     proposed permit of the State is transmitted to the 
     Administrator, the Administrator objects in writing to the 
     issuance of the permit as being outside the guidelines and 
     requirements of this Act.'';
       (2) in the second sentence, by striking ``Whenever the 
     Administrator'' and inserting the following:
       ``(B) Requirements.--If the Administrator''; and
       (3) by adding at the end the following:
       ``(C) Exception.--The Administrator shall not object to or 
     deny the issuance of a permit by a State under subsection (b) 
     or (s) based on the following:
       ``(i) Guidance, as that term is defined in subsection 
     (s)(1).

[[Page S4802]]

       ``(ii) The interpretation of the Administrator of a water 
     quality standard that has been adopted by the State and 
     approved by the Administrator under section 303(c).''.

     SEC. 222. PERMITS FOR DREDGED OR FILL MATERIAL.

       (a) In General.--Section 404 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1344) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 404. (a) The Secretary may issue'' and 
     inserting the following:

     ``SEC. 404. PERMITS FOR DREDGED OR FILL MATERIAL.

       ``(a) Permits.--
       ``(1) In general.--The Secretary may issue''; and
       (2) in subsection (a), by adding at the end the following:
       ``(2) Deadline for approval.--
       ``(A) Permit applications.--
       ``(i) In general.--Except as provided in clause (ii), if an 
     environmental assessment or environmental impact statement, 
     as appropriate, is required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Secretary 
     shall--

       ``(I) begin the process not later than 90 days after the 
     date on which the Secretary receives a permit application; 
     and
       ``(II) approve or deny an application for a permit under 
     this subsection not later than the latter of--

       ``(aa) if an agency carries out an environmental assessment 
     that leads to a finding of no significant impact, the date on 
     which the finding of no significant impact is issued; or
       ``(bb) if an agency carries out an environmental assessment 
     that leads to a record of decision, 15 days after the date on 
     which the record of decision on an environmental impact 
     statement is issued.
       ``(ii) Processes.--Notwithstanding clause (i), regardless 
     of whether the Secretary has commenced an environmental 
     assessment or environmental impact statement by the date 
     described in clause (i)(I), the following deadlines shall 
     apply:

       ``(I) An environmental assessment carried out under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) shall be completed not later than 1 year after the 
     deadline for commencing the permit process under clause 
     (i)(I).
       ``(II) An environmental impact statement carried out under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.) shall be completed not later than 2 years after the 
     deadline for commencing the permit process under clause 
     (i)(I).

       ``(B) Failure to act.--If the Secretary fails to act by the 
     deadline specified in clause (i) or (ii) of subparagraph 
     (A)--
       ``(i) the application, and the permit requested in the 
     application, shall be considered to be approved;
       ``(ii) the Secretary shall issue a permit to the applicant; 
     and
       ``(iii) the permit shall not be subject to judicial 
     review.''.
       (b) State Permitting Programs.--Section 404 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1344) is amended by 
     striking subsection (c) and inserting the following:
       ``(c) Authority of Administrator.--
       ``(1) In general.--Subject to paragraphs (2) through (4), 
     until the Secretary has issued a permit under this section, 
     the Administrator is authorized to prohibit the specification 
     (including the withdrawal of specification) of any defined 
     area as a disposal site, and deny or restrict the use of any 
     defined area for specification (including the withdrawal of 
     specification) as a disposal site, if the Administrator 
     determines, after notice and opportunity for public hearings, 
     that the discharge of the materials into the area will have 
     an unacceptable adverse effect on municipal water supplies, 
     shellfish beds or fishery areas (including spawning and 
     breeding areas), wildlife, or recreational areas.
       ``(2) Consultation.--Before making a determination under 
     paragraph (1), the Administrator shall consult with the 
     Secretary.
       ``(3) Findings.--The Administrator shall set forth in 
     writing and make public the findings of the Administrator and 
     the reasons of the Administrator for making any determination 
     under this subsection.
       ``(4) Authority of state permitting programs.--This 
     subsection shall not apply to any permit if the State in 
     which the discharge originates or will originate does not 
     concur with the determination of the Administrator that the 
     discharge will result in an unacceptable adverse effect as 
     described in paragraph (1).''.
       (c) State Programs.--Section 404(g)(1) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1344(g)(1)) is amended in 
     the first sentence by striking ``for the discharge'' and 
     inserting ``for all or part of the discharges''.

     SEC. 223. IMPACTS OF ENVIRONMENTAL PROTECTION AGENCY 
                   REGULATORY ACTIVITY ON EMPLOYMENT AND ECONOMIC 
                   ACTIVITY.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Covered action.--The term ``covered action'' means any 
     of the following actions taken by the Administrator under the 
     Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.):
       (A) Issuing a regulation, policy statement, guidance, 
     response to a petition, or other requirement.
       (B) Implementing a new or substantially altered program.
       (3) More than a de minimis negative impact.--The term 
     ``more than a de minimis negative impact'' means the 
     following:
       (A) With respect to employment levels, a loss of more than 
     100 jobs, except that any offsetting job gains that result 
     from the hypothetical creation of new jobs through new 
     technologies or government employment may not be used in the 
     job loss calculation.
       (B) With respect to economic activity, a decrease in 
     economic activity of more than $1,000,000 over any calendar 
     year, except that any offsetting economic activity that 
     results from the hypothetical creation of new economic 
     activity through new technologies or government employment 
     may not be used in the economic activity calculation.
       (b) Analysis of Impacts of Actions on Employment and 
     Economic Activity.--
       (1) Analysis.--Before taking a covered action, the 
     Administrator shall analyze the impact, disaggregated by 
     State, of the covered action on employment levels and 
     economic activity, including estimated job losses and 
     decreased economic activity.
       (2) Economic models.--
       (A) In general.--In carrying out paragraph (1), the 
     Administrator shall use the best available economic models.
       (B) Annual gao report.--Not later than December 31st of 
     each year, the Comptroller General of the United States shall 
     submit to Congress a report on the economic models used by 
     the Administrator to carry out this subsection.
       (3) Availability of information.--With respect to any 
     covered action, the Administrator shall--
       (A) post the analysis under paragraph (1) as a link on the 
     main page of the public Internet Web site of the 
     Environmental Protection Agency; and
       (B) request that the Governor of any State experiencing 
     more than a de minimis negative impact post the analysis in 
     the Capitol of the State.
       (c) Public Hearings.--
       (1) In general.--If the Administrator concludes under 
     subsection (b)(1) that a covered action will have more than a 
     de minimis negative impact on employment levels or economic 
     activity in a State, the Administrator shall hold a public 
     hearing in each such State at least 30 days prior to the 
     effective date of the covered action.
       (2) Time, location, and selection.--
       (A) In general.--A public hearing required under paragraph 
     (1) shall be held at a convenient time and location for 
     impacted residents.
       (B) Priority.--In selecting a location for such a public 
     hearing, the Administrator shall give priority to locations 
     in the State that will experience the greatest number of job 
     losses.
       (d) Notification.--If the Administrator concludes under 
     subsection (b)(1) that a covered action will have more than a 
     de minimis negative impact on employment levels or economic 
     activity in any State, the Administrator shall give notice of 
     such impact to the congressional delegation, Governor, and 
     legislature of the State at least 45 days before the 
     effective date of the covered action.

     SEC. 224. IDENTIFICATION OF WATERS PROTECTED BY THE CLEAN 
                   WATER ACT.

       (a) In General.--The Secretary of the Army and the 
     Administrator of the Environmental Protection Agency may 
     not--
       (1) finalize, adopt, implement, administer, or enforce the 
     proposed guidance described in the notice of availability and 
     request for comments entitled ``EPA and Army Corps of 
     Engineers Guidance Regarding Identification of Waters 
     Protected by the Clean Water Act'' (EPA-HQ-OW-2011-0409) (76 
     Fed. Reg. 24479 (May 2, 2011)); and
       (2) use the guidance described in paragraph (1), any 
     successor document, or any substantially similar guidance 
     made publicly available on or after December 3, 2008, as the 
     basis for any decision regarding the scope of the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.) or any 
     rulemaking.
       (b) Rules.--The use of the guidance described in subsection 
     (a)(1), or any successor document or substantially similar 
     guidance made publicly available on or after December 3, 
     2008, as the basis for any rule shall be grounds for vacating 
     the rule.

     SEC. 225. LIMITATIONS ON AUTHORITY TO MODIFY STATE WATER 
                   QUALITY STANDARDS.

       (a) State Water Quality Standards.--Section 303(c)(4) of 
     the Federal Water Pollution Control Act (33 U.S.C. 
     1313(c)(4)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and indenting appropriately;
       (2) by striking ``(4) The'' and inserting the following:
       ``(4) Promulgation of revised or new standards.--
       ``(A) In general.--The'';
       (3) by striking ``The Administrator shall promulgate'' and 
     inserting the following:
       ``(B) Deadline.--The Administrator shall promulgate;'' and
       (4) by adding at the end the following:
       ``(C) State water quality standards.--Notwithstanding any 
     other provision of this paragraph, the Administrator may not 
     promulgate a revised or new standard for a pollutant in any 
     case in which the State has submitted to the Administrator 
     and the Administrator has approved a water quality standard 
     for that pollutant, unless the State concurs with the 
     determination of the Administrator that the revised or new 
     standard is necessary to meet the requirements of this 
     Act.''.

[[Page S4803]]

       (b) Federal Licenses and Permits.--Section 401(a) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1341(a)) is 
     amended by adding at the end the following:
       ``(7) State or interstate agency determination.--With 
     respect to any discharge, if a State or interstate agency 
     having jurisdiction over the navigable waters at the point at 
     which the discharge originates or will originate determines 
     under paragraph (1) that the discharge will comply with the 
     applicable provisions of sections 301, 302, 303, 306, and 
     307, the Administrator may not take any action to supersede 
     the determination.''.

     SEC. 226. STATE AUTHORITY TO IDENTIFY WATERS WITHIN 
                   BOUNDARIES OF THE STATE.

       Section 303(d) of the Federal Water Pollution Control Act 
     (33 U.S.C. 1313(d)) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) State authority to identify waters within boundaries 
     of the state.--
       ``(A) In general.--Each State shall submit to the 
     Administrator from time to time, with the first such 
     submission not later than 180 days after the date of 
     publication of the first identification of pollutants under 
     section 304(a)(2)(D), the waters identified and the loads 
     established under subparagraphs (A), (B), (C), and (D) of 
     paragraph (1).
       ``(B) Approval or disapproval by administrator.--
       ``(i) In general.--Not later than 30 days after the date of 
     submission, the Administrator shall approve the State 
     identification and load or announce the disagreement of the 
     Administrator with the State identification and load.
       ``(ii) Approval.--If the Administrator approves the 
     identification and load submitted by the State under this 
     subsection, the State shall incorporate the identification 
     and load into the current plan of the State under subsection 
     (e).
       ``(iii) Disapproval.--If the Administrator announces the 
     disagreement of the Administrator with the identification and 
     load submitted by the State under this subsection. the 
     Administrator shall submit, not later than 30 days after the 
     date that the Administrator announces the disagreement of the 
     Administrator with the submission of the State, to the State 
     the written recommendation of the Administrator of those 
     additional waters that the Administrator identifies and such 
     loads for such waters as the Administrator believes are 
     necessary to implement the water quality standards applicable 
     to the waters.
       ``(C) Action by state.--Not later than 30 days after 
     receipt of the recommendation of the Administrator, the State 
     shall--
       ``(i) disregard the recommendation of the Administrator in 
     full and incorporate its own identification and load into the 
     current plan of the State under subsection (e);
       ``(ii) accept the recommendation of the Administrator in 
     full and incorporate its identification and load as amended 
     by the recommendation of the Administrator into the current 
     plan of the State under subsection (e); or
       ``(iii) accept the recommendation of the Administrator in 
     part, identifying certain additional waters and certain 
     additional loads proposed by the Administrator to be added to 
     the State's identification and load and incorporate the 
     State's identification and load as amended into the current 
     plan of the State under subsection (e).
       ``(D) Noncompliance by administrator.--
       ``(i) In general.--If the Administrator fails to approve 
     the State identification and load or announce the 
     disagreement of the Administrator with the State 
     identification and load within the time specified in this 
     subsection--

       ``(I) the identification and load of the State shall be 
     considered approved; and
       ``(II) the State shall incorporate the identification and 
     load that the State submitted into the current plan of the 
     State under subsection (e).

       ``(ii) Recommendations not submitted.--If the Administrator 
     announces the disagreement of the Administrator with the 
     identification and load of the State but fails to submit the 
     written recommendation of the Administrator to the State 
     within 30 days as required by subparagraph (B)(iii)--

       ``(I) the identification and load of the State shall be 
     considered approved; and
       ``(II) the State shall incorporate the identification and 
     load that the State submitted into the current plan of the 
     State under subsection (e).

       ``(E) Application.--This section shall apply to any 
     decision made by the Administrator under this subsection 
     issued on or after March 1, 2013.''.
                                 ______
                                 
  SA 3603. Mr. BARRASSO (for himself and Mr. Enzi) submitted an 
amendment intended to be proposed by him to the bill S. 2569, to 
provide an incentive for businesses to bring jobs back to America; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

              TITLE II--NATURAL GAS GATHERING ENHANCEMENT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Natural Gas Gathering 
     Enhancement Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) record volumes of natural gas production in the United 
     States as of the date of enactment of this Act are providing 
     enormous benefits to the United States, including by--
       (A) reducing the need for imports of natural gas, thereby 
     directly reducing the trade deficit;
       (B) strengthening trade ties among the United States, 
     Canada, and Mexico;
       (C) providing the opportunity for the United States to join 
     the emerging global gas trade through the export of liquefied 
     natural gas;
       (D) creating and supporting millions of new jobs across the 
     United States;
       (E) adding billions of dollars to the gross domestic 
     product of the United States every year;
       (F) generating additional Federal, State, and local 
     government tax revenues; and
       (G) revitalizing the manufacturing sector by providing 
     abundant and affordable feedstock;
       (2) large quantities of natural gas are lost due to venting 
     and flaring, primarily in areas where natural gas 
     infrastructure has not been developed quickly enough, such as 
     States with large quantities of Federal land and Indian land;
       (3) permitting processes can hinder the development of 
     natural gas infrastructure, such as pipeline lines and 
     gathering lines on Federal land and Indian land; and
       (4) additional authority for the Secretary of the Interior 
     to approve natural gas pipelines and gathering lines on 
     Federal land and Indian land would--
       (A) assist in bringing gas to market that would otherwise 
     be vented or flared; and
       (B) significantly increase royalties collected by the 
     Secretary of the Interior and disbursed to Federal, State, 
     and tribal governments and individual Indians.

     SEC. 203. AUTHORITY TO APPROVE NATURAL GAS PIPELINES.

       Section 1 of the Act of February 15, 1901 (31 Stat. 790, 
     chapter 372; 16 U.S.C. 79) is amended by inserting ``, for 
     natural gas pipelines'' after ``distribution of electrical 
     power''.

     SEC. 204. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON 
                   FEDERAL LAND AND INDIAN LAND.

       (a) In General.--Subtitle B of title III of the Energy 
     Policy Act of 2005 (Public Law 109-58; 119 Stat. 685) is 
     amended by adding at the end the following:

     ``SEC. 319. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON 
                   FEDERAL LAND AND INDIAN LAND.

       ``(a) Definitions.--In this section:
       ``(1) Gas gathering line and associated field compression 
     unit.--
       ``(A) In general.--The term `gas gathering line and 
     associated field compression unit' means--
       ``(i) a pipeline that is installed to transport natural gas 
     production associated with 1 or more wells drilled and 
     completed to produce crude oil; and
       ``(ii) if necessary, a compressor to raise the pressure of 
     that transported natural gas to higher pressures suitable to 
     enable the gas to flow into pipelines and other facilities.
       ``(B) Exclusions.--The term `gas gathering line and 
     associated field compression unit' does not include a 
     pipeline or compression unit that is installed to transport 
     natural gas from a processing plant to a common carrier 
     pipeline or facility.
       ``(2) Federal land.--
       ``(A) In general.--The term `Federal land' means land the 
     title to which is held by the United States.
       ``(B) Exclusions.--The term `Federal land' does not 
     include--
       ``(i) a unit of the National Park System;
       ``(ii) a unit of the National Wildlife Refuge System; or
       ``(iii) a component of the National Wilderness Preservation 
     System.
       ``(3) Indian land.--The term `Indian land' means land the 
     title to which is held by--
       ``(A) the United States in trust for an Indian tribe or an 
     individual Indian; or
       ``(B) an Indian tribe or an individual Indian subject to a 
     restriction by the United States against alienation.
       ``(b) Certain Natural Gas Gathering Lines.--
       ``(1) In general.--Subject to paragraph (2), the issuance 
     of a sundry notice or right-of-way for a gas gathering line 
     and associated field compression unit that is located on 
     Federal land or Indian land and that services any oil well 
     shall be considered to be an action that is categorically 
     excluded (as defined in section 1508.4 of title 40, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this Act)) for purposes of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.) if the gas gathering 
     line and associated field compression unit are--
       ``(A) within a field or unit for which an approved land use 
     plan or an environmental document prepared pursuant to the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) analyzed transportation of natural gas produced from 1 
     or more oil wells in that field or unit as a reasonably 
     foreseeable activity; and
       ``(B) located adjacent to an existing disturbed area for 
     the construction of a road or pad.
       ``(2) Applicability.--
       ``(A) Federal land.--Paragraph (1) shall not apply to 
     Federal land, or a portion of Federal land, for which the 
     Governor of the State in which the Federal land is located 
     submits to the Secretary of the Interior or the Secretary of 
     Agriculture, as applicable, a

[[Page S4804]]

     written request that paragraph (1) not apply to that Federal 
     land (or portion of Federal land).
       ``(B) Indian land.--Paragraph (1) shall apply to Indian 
     land, or a portion of Indian land, for which the Indian tribe 
     with jurisdiction over the Indian land submits to the 
     Secretary of the Interior a written request that paragraph 
     (1) apply to that Indian land (or portion of Indian land).
       ``(c) Effect on Other Law.--Nothing in this section affects 
     or alters any requirement--
       ``(1) relating to prior consent under--
       ``(A) section 2 of the Act of February 5, 1948 (25 U.S.C. 
     324); or
       ``(B) section 16(e) of the Act of June 18, 1934 (25 U.S.C. 
     476(e)) (commonly known as the `Indian Reorganization Act'); 
     or
       ``(2) under any other Federal law (including regulations) 
     relating to tribal consent for rights-of-way across Indian 
     land.''.
       (b) Assessments.--Title XVIII of the Energy Policy Act of 
     2005 (Public Law 109-58; 119 Stat. 1122) is amended by adding 
     at the end the following:

     ``SEC. 1841. NATURAL GAS GATHERING SYSTEM ASSESSMENTS.

       ``(a) Definition of Gas Gathering Line and Associated Field 
     Compression Unit.--In this section, the term `gas gathering 
     line and associated field compression unit' has the meaning 
     given the term in section 319.
       ``(b) Study.--Not later than 1 year after the date of 
     enactment of the Natural Gas Gathering Enhancement Act, the 
     Secretary of the Interior, in consultation with other 
     appropriate Federal agencies, States, and Indian tribes, 
     shall conduct a study to identify--
       ``(1) any actions that may be taken, under Federal law 
     (including regulations), to expedite permitting for gas 
     gathering lines and associated field compression units that 
     are located on Federal land or Indian land, for the purpose 
     of transporting natural gas associated with crude oil 
     production on any land to a processing plant or a common 
     carrier pipeline for delivery to markets; and
       ``(2) any proposed changes to Federal law (including 
     regulations) to expedite permitting for gas gathering lines 
     and associated field compression units that are located on 
     Federal land or Indian land, for the purpose of transporting 
     natural gas associated with crude oil production on any land 
     to a processing plant or a common carrier pipeline for 
     delivery to markets.
       ``(c) Report.--Not later than 180 days after the date of 
     enactment of the Natural Gas Gathering Enhancement Act, and 
     every 180 days thereafter, the Secretary of the Interior, in 
     consultation with other appropriate Federal agencies, States, 
     and Indian tribes, shall submit to Congress a report that 
     describes--
       ``(1) the progress made in expediting permits for gas 
     gathering lines and associated field compression units that 
     are located on Federal land or Indian land, for the purpose 
     of transporting natural gas associated with crude oil 
     production on any land to a processing plant or a common 
     carrier pipeline for delivery to markets; and
       ``(2) any issues impeding that progress.''.
       (c) Technical Amendments.--
       (1) Section 1(b) of the Energy Policy Act of 2005 (Public 
     Law 109-58; 119 Stat. 594) is amended by adding at the end of 
     subtitle B of title III the following:

``Sec. 319. Natural gas gathering lines located on Federal land and 
              Indian land.''.

       (2) Section 1(b) of the Energy Policy Act of 2005 (Public 
     Law 109-58; 119 Stat. 594) is amended by adding at the end of 
     title XXVIII the following:

``Sec. 1841. Natural gas gathering system assessments.''.

     SEC. 205. DEADLINES FOR PERMITTING NATURAL GAS GATHERING 
                   LINES UNDER THE MINERAL LEASING ACT.

       Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is 
     amended by adding at the end the following:
       ``(z) Natural Gas Gathering Lines.--The Secretary of the 
     Interior or other appropriate agency head shall issue a 
     sundry notice or right-of-way for a gas gathering line and 
     associated field compression unit (as defined in section 
     319(a) of the Energy Policy Act of 2005) that is located on 
     Federal lands--
       ``(1) for a gas gathering line and associated field 
     compression unit described in section 319(b) of the Energy 
     Policy Act of 2005, not later than 30 days after the date on 
     which the applicable agency head receives the request for 
     issuance; and
       ``(2) for all other gas gathering lines and associated 
     field compression units, not later than 60 days after the 
     date on which the applicable agency head receives the request 
     for issuance.''.

     SEC. 206. DEADLINES FOR PERMITTING NATURAL GAS GATHERING 
                   LINES UNDER THE FEDERAL LAND POLICY AND 
                   MANAGEMENT ACT OF 1976.

       Section 504 of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1764) is amended by adding at the end the 
     following:
       ``(k) Natural Gas Gathering Lines.--The Secretary concerned 
     shall issue a sundry notice or right-of-way for a gas 
     gathering line and associated field compression unit (as 
     defined in section 319(a) of the Energy Policy Act of 2005) 
     that is located on public lands--
       ``(1) for a gas gathering line and associated field 
     compression unit described in section 319(b) of the Energy 
     Policy Act of 2005, not later than 30 days after the date on 
     which the applicable agency head receives the request for 
     issuance; and
       ``(2) for all other gas gathering lines and associated 
     field compression units, not later than 60 days after the 
     date on which the applicable agency head receives the request 
     for issuance.''.
                                 ______
                                 
  SA 3604. Mr. BARRASSO (for himself, Mr. Inhofe, and Mr. Enzi) 
submitted an amendment intended to be proposed by him to the bill S. 
2569, to provide an incentive for businesses to bring jobs back to 
America; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. NATURAL GAS EXPORTS.

       (a) In General.--Section 3(c) of the Natural Gas Act (15 
     U.S.C. 717b(c)) is amended--
       (1) by striking ``(c) For purposes'' and inserting the 
     following:
       ``(c) Expedited Application and Approval Process.--
       ``(1) Definition of world trade organization member 
     country.--In this subsection, the term `World Trade 
     Organization member country' has the meaning given the term 
     `WTO member country' in section 2 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501).
       ``(2) Expedited application and approval process.--For 
     purposes''; and
       (2) in paragraph (2) (as so designated), by striking 
     ``nation with which there is in effect a free trade agreement 
     requiring national treatment for trade in natural gas'' and 
     inserting ``World Trade Organization member country''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to applications for the authorization to export 
     natural gas under section 3 of the Natural Gas Act (15 U.S.C. 
     717b) that are pending on, or filed on or after, the date of 
     enactment of this Act.
                                 ______
                                 
  SA 3605. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. FIDUCIARY EXCLUSION.

       Section 3(21)(A) of the Employee Retirement Income and 
     Security Act of 1974 (29 U.S.C. 1002(21)(A)) is amended by 
     inserting ``and except to the extent a person is providing an 
     appraisal or fairness opinion with respect to qualifying 
     employer securities (as defined in section 407(d)(5)) 
     included in an employee stock ownership plan (as defined in 
     section 407(d)(6)),'' after ``subparagraph (B),''.
                                 ______
                                 
  SA 3606. Mr. CRUZ submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                DIVISION _--AMERICAN ENERGY RENAISSANCE

     SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``American Energy Renaissance Act of 2014''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

Sec. 2001. Short title; table of contents.

               TITLE I--EXPANDING AMERICAN ENERGY EXPORTS

Sec. 2101. Finding.
Sec. 2102. Natural gas exports.
Sec. 2103. Crude oil exports.
Sec. 2104. Coal exports.

        TITLE II--IMPROVING NORTH AMERICAN ENERGY INFRASTRUCTURE

            Subtitle A--North American Energy Infrastructure

Sec. 2201. Finding.
Sec. 2202. Definitions.
Sec. 2203. Authorization of certain energy infrastructure projects at 
              the national boundary of the United States.
Sec. 2204. Transmission of electric energy to Canada and Mexico.
Sec. 2205. Effective date; rulemaking deadlines.

                Subtitle B--Keystone XL Permit Approval

Sec. 2211. Findings.
Sec. 2212. Keystone XL permit approval.

               TITLE III--OUTER CONTINENTAL SHELF LEASING

Sec. 3001. Finding.
Sec. 3002. Extension of leasing program.
Sec. 3003. Lease sales.
Sec. 3004. Applications for permits to drill.
Sec. 3005. Lease sales for certain areas.

            TITLE IV--UTILIZING AMERICA'S ONSHORE RESOURCES

Sec. 4001. Findings.
Sec. 4002. State option for energy development.

                Subtitle A--Energy Development by States

Sec. 4011. Definitions.
Sec. 4012. State programs.
Sec. 4013. Leasing, permitting, and regulatory programs.
Sec. 4014. Judicial review.
Sec. 4015. Administrative Procedure Act.

[[Page S4805]]

          Subtitle B--Onshore Oil and Gas Permit Streamlining

                 PART I--Oil and Gas Leasing Certainty

Sec. 4021. Minimum acreage requirement for onshore lease sales.
Sec. 4022. Leasing certainty.
Sec. 4023. Leasing consistency.
Sec. 4024. Reduce redundant policies.
Sec. 4025. Streamlined congressional notification.

        PART II--Application for Permits to Drill Process Reform

Sec. 4031. Permit to drill application timeline.
Sec. 4032. Administrative protest documentation reform.
Sec. 4033. Improved Federal energy permit coordination.
Sec. 4034. Administration.

                          PART III--Oil Shale

Sec. 4041. Effectiveness of oil shale regulations, amendments to 
              resource management plans, and record of decision.
Sec. 4042. Oil shale leasing.

          PART IV--National Petroleum Reserve in Alaska Access

Sec. 4051. Sense of Congress and reaffirming national policy for the 
              National Petroleum Reserve in Alaska.
Sec. 4052. National Petroleum Reserve in Alaska: lease sales.
Sec. 4053. National Petroleum Reserve in Alaska: planning and 
              permitting pipeline and road construction.
Sec. 4054. Issuance of a new integrated activity plan and environmental 
              impact statement.
Sec. 4055. Departmental accountability for development.
Sec. 4056. Deadlines under new proposed integrated activity plan.
Sec. 4057. Updated resource assessment.

                    PART V--Miscellaneous Provisions

Sec. 4061. Sanctions.
Sec. 4062. Internet-based onshore oil and gas lease sales.

                        PART VI--Judicial Review

Sec. 4071. Definitions.
Sec. 4072. Exclusive venue for certain civil actions relating to 
              covered energy projects.
Sec. 4073. Timely filing.
Sec. 4074. Expedition in hearing and determining the action.
Sec. 4075. Limitation on injunction and prospective relief.
Sec. 4076. Limitation on attorneys' fees and court costs.
Sec. 4077. Legal standing.

                 TITLE V--ADDITIONAL ONSHORE RESOURCES

       Subtitle A--Leasing Program for Land Within Coastal Plain

Sec. 5001. Finding.
Sec. 5002. Definitions.
Sec. 5003. Leasing program for land on the Coastal Plain.
Sec. 5004. Lease sales.
Sec. 5005. Grant of leases by the Secretary.
Sec. 5006. Lease terms and conditions.
Sec. 5007. Coastal Plain environmental protection.
Sec. 5008. Expedited judicial review.
Sec. 5009. Treatment of revenues.
Sec. 5010. Rights-of-way across the Coastal Plain.
Sec. 5011. Conveyance.

                   Subtitle B--Native American Energy

Sec. 5021. Findings.
Sec. 5022. Appraisals.
Sec. 5023. Standardization.
Sec. 5024. Environmental reviews of major Federal actions on Indian 
              land.
Sec. 5025. Judicial review.
Sec. 5026. Tribal resource management plans.
Sec. 5027. Leases of restricted lands for the Navajo Nation.
Sec. 5028. Nonapplicability of certain rules.

              Subtitle C--Additional Regulatory Provisions

           PART I--State Authority Over Hydraulic Fracturing

Sec. 5031. Finding.
Sec. 5032. State authority.

                   PART II--Miscellaneous Provisions

Sec. 5041. Environmental legal fees.
Sec. 5042. Master leasing plans.

        TITLE VI--IMPROVING AMERICA'S DOMESTIC REFINING CAPACITY

                 Subtitle A--Refinery Permitting Reform

Sec. 6001. Finding.
Sec. 6002. Definitions.
Sec. 6003. Streamlining of refinery permitting process.

             Subtitle B--Repeal of Renewable Fuel Standard

Sec. 6011. Findings.
Sec. 6012. Phase out of renewable fuel standard.

                   TITLE VII--STOPPING EPA OVERREACH

Sec. 7001. Findings.
Sec. 7002. Clarification of Federal regulatory authority to exclude 
              greenhouse gases from regulation under the Clean Air Act.
Sec. 7003. Jobs analysis for all EPA regulations.

                     TITLE VIII--DEBT FREEDOM FUND

Sec. 8001. Findings.
Sec. 8002. Debt freedom fund.

               TITLE I--EXPANDING AMERICAN ENERGY EXPORTS

     SEC. 2101. FINDING.

       Congress finds that opening up energy exports will 
     contribute to economic development, private sector job 
     growth, and continued growth in American energy production.

     SEC. 2102. NATURAL GAS EXPORTS.

       (a) Finding.--Congress finds that expanding natural gas 
     exports will lead to increased investment and development of 
     domestic supplies of natural gas that will contribute to job 
     growth and economic development.
       (b) Natural Gas Exports.--Section 3(c) of the Natural Gas 
     Act (15 U.S.C. 717b(c)) is amended--
       (1) by inserting ``or any other nation not excluded by this 
     section'' after ``trade in natural gas'';
       (2) by striking ``(c) For purposes'' and inserting the 
     following:
       ``(c) Expedited Application and Approval Process.--
       ``(1) In general.--For purposes''; and
       (3) by adding at the end the following:
       ``(2) Exclusions.--
       ``(A) In general.--Any nation subject to sanctions or trade 
     restrictions imposed by the United States is excluded from 
     expedited approval under paragraph (1).
       ``(B) Designation by president or congress.--The President 
     or Congress may designate nations that may be excluded from 
     expedited approval under paragraph (1) for reasons of 
     national security.
       ``(3) Order not required.--No order is required under 
     subsection (a) to authorize the export or import of any 
     natural gas to or from Canada or Mexico.''.

     SEC. 2103. CRUDE OIL EXPORTS.

       (a) Findings.--Congress finds that--
       (1) the restrictions on crude oil exports from the 1970s 
     are no longer necessary due to the technological advances 
     that have increased the domestic supply of crude oil; and
       (2) repealing restrictions on crude oil exports will 
     contribute to job growth and economic development.
       (b) Repeal of Presidential Authority to Restrict Oil 
     Exports.--
       (1) In general.--Section 103 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6212) is repealed.
       (2) Conforming amendments.--
       (A) Section 12 of the Alaska Natural Gas Transportation Act 
     of 1976 (15 U.S.C. 719j) is amended--
       (i) by striking ``and section 103 of the Energy Policy and 
     Conservation Act''; and
       (ii) by striking ``such Acts'' and inserting ``that Act''.
       (B) The Energy Policy and Conservation Act is amended--
       (i) in section 251 (42 U.S.C. 6271)--

       (I) by striking subsection (d); and
       (II) by redesignating subsection (e) as subsection (d); and

       (ii) in section 523(a)(1) (42 U.S.C. 6393(a)(1)), by 
     striking ``(other than section 103 thereof)''.
       (c) Repeal of Limitations on Exports of Oil.--
       (1) In general.--Section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) is amended--
       (A) by striking subsection (u); and
       (B) by redesignating subsections (v) through (y) as 
     subsection (u) through (x), respectively.
       (2) Conforming amendments.--
       (A) Section 1107(c) of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3167(c)) is amended by striking 
     ``(u) through (y)'' and inserting ``(u) through (x)''.
       (B) Section 23 of the Deep Water Port Act of 1974 (33 
     U.S.C. 1522) is repealed.
       (C) Section 203(c) of the Trans-Alaska Pipeline 
     Authorization Act (43 U.S.C. 1652(c)) is amended in the first 
     sentence by striking ``(w)(2), and (x))'' and inserting 
     ``(v)(2), and (w))''.
       (D) Section 509(c) of the Public Utility Regulatory 
     Policies Act of 1978 (43 U.S.C. 2009(c)) is amended by 
     striking ``subsection (w)(2)'' and inserting ``subsection 
     (v)(2)''.
       (d) Repeal of Limitations on Export of OCS Oil or Gas.--
     Section 28 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1354) is repealed.
       (e) Termination of Limitation on Exportation of Crude 
     Oil.--Section 7(d) of the Export Administration Act of 1979 
     (50 U.S.C. App. 2406(d)) (as in effect pursuant to the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.)) shall have no force or effect.
       (f) Clarification of Crude Oil Regulation.--
       (1) In general.--Section 754.2 of title 15, Code of Federal 
     Regulations (relating to crude oil) shall have no force or 
     effect.
       (2) Crude oil license requirements.--The Bureau of Industry 
     and Security of the Department of Commerce shall grant 
     licenses to export to a country crude oil (as the term is 
     defined in subsection (a) of the regulation referred to in 
     paragraph (1)) (as in effect on the date that is 1 day before 
     the date of enactment of this Act) unless--
       (A) the country is subject to sanctions or trade 
     restrictions imposed by the United States; or
       (B) the President or Congress has designated the country as 
     subject to exclusion for reasons of national security.

     SEC. 2104. COAL EXPORTS.

       (a) Findings.--Congress finds that--
       (1) increased international demand for coal is an 
     opportunity to support jobs and promote economic growth in 
     the United States; and

[[Page S4806]]

       (2) exports of coal should not be unreasonably restricted 
     or delayed.
       (b) NEPA Review for Coal Exports.--In completing an 
     environmental impact statement or similar analysis required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) for an approval or permit for coal 
     export terminals, or transportation of coal to coal export 
     terminals, the Secretary of the Army, acting through the 
     Chief of Engineers--
       (1) may only take into account domestic environmental 
     impacts; and
       (2) may not take into account any impacts resulting from 
     the final use overseas of the exported coal.

        TITLE II--IMPROVING NORTH AMERICAN ENERGY INFRASTRUCTURE

            Subtitle A--North American Energy Infrastructure

     SEC. 2201. FINDING.

       Congress finds that the United States should establish a 
     more efficient, transparent, and modern process for the 
     construction, connection, operation, and maintenance of oil 
     and natural gas pipelines and electric transmission 
     facilities for the import and export of oil, natural gas, and 
     electricity to and from Canada and Mexico, in pursuit of a 
     more secure and efficient North American energy market.

     SEC. 2202. DEFINITIONS.

       In this title:
       (1) Electric reliability organization.--The term ``Electric 
     Reliability Organization'' has the meaning given the term in 
     section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
       (2) Independent system operator.--The term ``Independent 
     System Operator'' has the meaning given the term in section 3 
     of the Federal Power Act (16 U.S.C. 796).
       (3) Natural gas.--The term ``natural gas'' has the meaning 
     given the term in section 2 of the Natural Gas Act (15 U.S.C. 
     717a).
       (4) Oil.--The term ``oil'' means petroleum or a petroleum 
     product.
       (5) Regional entity.--The term ``regional entity'' has the 
     meaning given the term in section 215(a) of the Federal Power 
     Act (16 U.S.C. 824o(a)).
       (6) Regional transmission organization.--The term 
     ``Regional Transmission Organization'' has the meaning given 
     the term in section 3 of the Federal Power Act (16 U.S.C. 
     796).

     SEC. 2203. AUTHORIZATION OF CERTAIN ENERGY INFRASTRUCTURE 
                   PROJECTS AT THE NATIONAL BOUNDARY OF THE UNITED 
                   STATES.

       (a) Authorization.--Except as provided in subsections (d) 
     and (e), no person may construct, connect, operate, or 
     maintain an oil or natural gas pipeline or electric 
     transmission facility at the national boundary of the United 
     States for the import or export of oil, natural gas, or 
     electricity to or from Canada or Mexico without obtaining 
     approval of the construction, connection, operation, or 
     maintenance under this section.
       (b) Approval.--
       (1) Requirement.--Not later than 120 days after receiving a 
     request for approval of construction, connection, operation, 
     or maintenance under this section, the relevant official 
     identified under paragraph (2), in consultation with 
     appropriate Federal agencies, shall approve the request 
     unless the relevant official finds that the construction, 
     connection, operation, or maintenance harms the national 
     security interests of the United States.
       (2) Relevant official.--The relevant official referred to 
     in paragraph (1) is--
       (A) the Secretary of Commerce with respect to oil 
     pipelines;
       (B) the Federal Energy Regulatory Commission with respect 
     to natural gas pipelines; and
       (C) the Secretary of Energy with respect to electric 
     transmission facilities.
       (3) Approval not major federal action.--An approval of 
     construction, connection, operation, or maintenance under 
     paragraph (1) shall not be considered a major Federal action 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (4) Additional requirement for electric transmission 
     facilities.--In the case of a request for approval of the 
     construction, connection, operation, or maintenance of an 
     electric transmission facility, the Secretary of Energy shall 
     require, as a condition of approval of the request under 
     paragraph (1), that the electric transmission facility be 
     constructed, connected, operated, or maintained consistent 
     with all applicable policies and standards of--
       (A) the Electric Reliability Organization and the 
     applicable regional entity; and
       (B) any Regional Transmission Organization or Independent 
     System Operator with operational or functional control over 
     the electric transmission facility.
       (c) No Other Approval Required.--No Presidential permit (or 
     similar permit) required under Executive Order 13337 (3 
     U.S.C. 301 note; 69 Fed. Reg. 25299 (April 30, 2004)), 
     Executive Order 11423 (3 U.S.C. 301 note; 33 Fed. Reg. 11741 
     (August 16, 1968)), section 301 of title 3, United States 
     Code, Executive Order 12038 (43 Fed. Reg. 3674 (January 26, 
     1978)), Executive Order 10485 (18 Fed. Reg. 5397 (September 
     9, 1953)), or any other Executive order shall be necessary 
     for construction, connection, operation, or maintenance to 
     which this section applies.
       (d) Exclusions.--This section shall not apply to--
       (1) any construction, connection, operation, or maintenance 
     of an oil or natural gas pipeline or electric transmission 
     facility at the national boundary of the United States for 
     the import or export of oil, natural gas, or electricity to 
     or from Canada or Mexico if--
       (A) the pipeline or facility is operating at the national 
     boundary for that import or export as of the date of 
     enactment of this Act;
       (B) a permit described in subsection (c) for the 
     construction, connection, operation, or maintenance has been 
     issued;
       (C) approval of the construction, connection, operation, or 
     maintenance has previously been obtained under this section; 
     or
       (D) an application for a permit described in subsection (c) 
     for the construction, connection, operation, or maintenance 
     is pending on the date of enactment of this Act, until the 
     earlier of--
       (i) the date on which the application is denied; and
       (ii) July 1, 2015; or
       (2) the construction, connection, operation, or maintenance 
     of the Keystone XL pipeline.
       (e) Modifications to Existing Projects.--No approval under 
     this section, or permit described in subsection (c), shall be 
     required for modifications to construction, connection, 
     operation, or maintenance described in subparagraphs (A), 
     (B), or (C) of subsection (d)(1), including reversal of flow 
     direction, change in ownership, volume expansion, downstream 
     or upstream interconnection, or adjustments to maintain flow 
     (such as a reduction or increase in the number of pump or 
     compressor stations).
       (f) Effect of Other Laws.--Nothing in this section affects 
     the application of any other Federal law to a project for 
     which approval of construction, connection, operation, or 
     maintenance is sought under this section.

     SEC. 2204. TRANSMISSION OF ELECTRIC ENERGY TO CANADA AND 
                   MEXICO.

       (a) Repeal of Requirement To Secure Order.--Section 202 of 
     the Federal Power Act (16 U.S.C. 824a) is amended by striking 
     subsection (e).
       (b) Conforming Amendments.--
       (1) State regulations.--Section 202 of the Federal Power 
     Act (16 U.S.C. 824a) is amended--
       (A) by redesignating subsections (f) and (g) as subsection 
     (e) and (f), respectively; and
       (B) in subsection (e) (as so redesignated), by striking 
     ``insofar as such State regulation does not conflict with the 
     exercise of the Commission's powers under or relating to 
     subsection 202(e)''.
       (2) Seasonal diversity electricity exchange.--Section 
     602(b) of the Public Utility Regulatory Policies Act of 1978 
     (16 U.S.C. 824a-4(b)) is amended by striking ``the Commission 
     has conducted hearings and made the findings required under 
     section 202(e) of the Federal Power Act'' and all that 
     follows through the period at the end and inserting ``the 
     Secretary has conducted hearings and finds that the proposed 
     transmission facilities would not impair the sufficiency of 
     electric supply within the United States or would not impede 
     or tend to impede the coordination in the public interest of 
     facilities subject to the jurisdiction of the Secretary.''.

     SEC. 2205. EFFECTIVE DATE; RULEMAKING DEADLINES.

       (a) Effective Date.--Sections 2203 and 2204, and the 
     amendments made by those sections, shall take effect on July 
     1, 2015.
       (b) Rulemaking Deadlines.--Each relevant official described 
     in section 2203(b)(2) shall--
       (1) not later than 180 days after the date of enactment of 
     this Act, publish in the Federal Register notice of a 
     proposed rulemaking to carry out the applicable requirements 
     of section 2203; and
       (2) not later than 1 year after the date of enactment of 
     this Act, publish in the Federal Register a final rule to 
     carry out the applicable requirements of section 2203.

                Subtitle B--Keystone XL Permit Approval

     SEC. 2211. FINDINGS.

       Congress finds that--
       (1) building the Keystone XL pipeline will provide jobs and 
     economic growth to the United States; and
       (2) the Keystone XL pipeline should be approved 
     immediately.

     SEC. 2212. KEYSTONE XL PERMIT APPROVAL.

       (a) In General.--Notwithstanding Executive Order 13337 (3 
     U.S.C. 301 note ; 69 Fed. Reg. 25299 (April 30, 2004)), 
     Executive Order 11423 (3 U.S.C. 301 note; 33 Fed. Reg. 11741 
     (August 16, 1968)), section 301 of title 3, United States 
     Code, and any other Executive order or provision of law, no 
     presidential permit shall be required for the pipeline 
     described in the application filed on May 4, 2012, by 
     TransCanada Corporation to the Department of State for the 
     northern portion of the Keystone XL pipeline from the 
     Canadian border to the border between the States of South 
     Dakota and Nebraska.
       (b) Environmental Impact Statement.--The final 
     environmental impact statement issued by the Secretary of 
     State on January 31, 2014, regarding the pipeline referred to 
     in subsection (a), shall be considered to satisfy all 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
       (c) Critical Habitat.--No area necessary to construct or 
     maintain the Keystone XL pipeline shall be considered 
     critical habitat under the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.) or any other provision of law.
       (d) Permits.--Any Federal permit or authorization issued 
     before the date of enactment of this Act for the pipeline and 
     cross-

[[Page S4807]]

     border facilities described in subsection (a), and the 
     related facilities in the United States, shall remain in 
     effect.
       (e) Federal Judicial Review.--The pipeline and cross-border 
     facilities described in subsection (a), and the related 
     facilities in the United States, that are approved by this 
     section, and any permit, right-of-way, or other action taken 
     to construct or complete the project pursuant to Federal law, 
     shall only be subject to judicial review on direct appeal to 
     the United States Court of Appeals for the District of 
     Columbia Circuit.

               TITLE III--OUTER CONTINENTAL SHELF LEASING

     SEC. 3001. FINDING.

       Congress finds that the United States has enormous 
     potential for offshore energy development and that the people 
     of the United States should have access to the jobs and 
     economic benefits from developing those resources.

     SEC. 3002. EXTENSION OF LEASING PROGRAM.

       (a) In General.--Subject to subsection (c), the Draft 
     Proposed Outer Continental Shelf Oil and Gas Leasing Program 
     2010-2015 issued by the Secretary of the Interior (referred 
     to in this title as the ``Secretary'') under section 18 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1344) shall 
     be considered to be the final oil and gas leasing program 
     under that section for the period of fiscal years 2014 
     through 2019.
       (b) Final Environmental Impact Statement.--The Secretary is 
     considered to have issued a final environmental impact 
     statement for the program applicable to the period described 
     in subsection (a) in accordance with all requirements under 
     section 102(2)(C) of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4332(2)(C)).
       (c) Exceptions.--Lease Sales 214, 232, and 239 shall not be 
     included in the final oil and gas leasing program for the 
     period of fiscal years 2014 through 2019.

     SEC. 3003. LEASE SALES.

       (a) In General.--Except as otherwise provided in this 
     section, not later than 180 days after the date of enactment 
     of this Act and every 270 days thereafter, the Secretary 
     shall conduct a lease sale in each outer Continental Shelf 
     planning area for which the Secretary determines that there 
     is a commercial interest in purchasing Federal oil and gas 
     leases for production on the outer Continental Shelf.
       (b) Subsequent Determinations and Sales.--If the Secretary 
     determines that there is not a commercial interest in 
     purchasing Federal oil and gas leases for production on the 
     outer Continental Shelf in a planning area under this 
     section, not later than 2 years after the date of the 
     determination and every 2 years thereafter, the Secretary 
     shall--
       (1) make an additional determination on whether there is a 
     commercial interest in purchasing Federal oil and gas leases 
     for production on the outer Continental Shelf in the planning 
     area; and
       (2) if the Secretary determines that there is a commercial 
     interest under paragraph (1), conduct a lease sale in the 
     planning area.
       (c) Protection of State Interest.--In developing future 
     leasing programs, the Secretary shall give deference to 
     affected coastal States (as the term is used in the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)) in 
     determining leasing areas to be included in the leasing 
     program.
       (d) Petitions.--If a person petitions the Secretary to 
     conduct a lease sale for an outer Continental Shelf planning 
     area in which the person has a commercial interest, the 
     Secretary shall conduct a lease sale for the area in 
     accordance with subsection (a).

     SEC. 3004. APPLICATIONS FOR PERMITS TO DRILL.

       Section 5 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1334) is amended by adding at the end the following:
       ``(k) Applications for Permits To Drill.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall approve or disapprove an application for a permit to 
     drill submitted under this Act not later than 20 days after 
     the date on which the application is submitted to the 
     Secretary.
       ``(2) Disapproval.--If the Secretary disapproves an 
     application for a permit to drill under paragraph (1), the 
     Secretary shall--
       ``(A) provide to the applicant a description of the reasons 
     for the disapproval of the application;
       ``(B) allow the applicant to resubmit an application during 
     the 10-day period beginning on the date of the receipt of the 
     description described in subparagraph (A) by the applicant; 
     and
       ``(C) approve or disapprove any resubmitted application not 
     later than 10 days after the date on which the application is 
     submitted to the Secretary.''.

     SEC. 3005. LEASE SALES FOR CERTAIN AREAS.

       (a) In General.--As soon as practicable but not later than 
     1 year after the date of enactment of this Act, the Secretary 
     shall conduct Lease Sale 220 for areas offshore of the State 
     of Virginia.
       (b) Compliance With Other Laws.--For purposes of the lease 
     sale described in subsection (a), the environmental impact 
     statement prepared under section 3001 shall satisfy the 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
       (c) Energy Projects in Gulf of Mexico.--
       (1) Jurisdiction.--The United States Court of Appeals for 
     the Fifth Circuit shall have exclusive jurisdiction over 
     challenges to offshore energy projects and permits to drill 
     carried out in the Gulf of Mexico.
       (2) Filing deadline.--Any civil action to challenge a 
     project or permit described in paragraph (1) shall be filed 
     not later than 60 days after the date of approval of the 
     project or the issuance of the permit.

            TITLE IV--UTILIZING AMERICA'S ONSHORE RESOURCES

     SEC. 4001. FINDINGS.

       Congress finds that--
       (1) current policy has failed to take full advantage of the 
     natural resources on Federal land;
       (2) the States should be given the option to lead energy 
     development on all available Federal land in a State; and
       (3) the Federal Government should not inhibit energy 
     development on Federal land.

     SEC. 4002. STATE OPTION FOR ENERGY DEVELOPMENT.

       Notwithstanding any other provision of this title, a State 
     may elect to control energy development and production on 
     available Federal land in accordance with the terms and 
     conditions of subtitle A and the amendments made by subtitle 
     A in lieu of being subject to the Federal system established 
     under subtitle B and the amendments made by subtitle B.

                Subtitle A--Energy Development by States

     SEC. 4011. DEFINITIONS.

       In this subtitle:
       (1) Available federal land.--The term ``available Federal 
     land'' means any Federal land that, as of the date of 
     enactment of this Act--
       (A) is located within the boundaries of a State;
       (B) is not held by the United States in trust for the 
     benefit of a federally recognized Indian tribe;
       (C) is not a unit of the National Park System;
       (D) is not a unit of the National Wildlife Refuge System; 
     and
       (E) is not a congressionally designated wilderness area.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) State.--The term ``State'' means--
       (A) a State; and
       (B) the District of Columbia.

     SEC. 4012. STATE PROGRAMS.

       (a) In General.--A State--
       (1) may establish a program covering the leasing and 
     permitting processes, regulatory requirements, and any other 
     provisions by which the State would exercise the rights of 
     the State to develop all forms of energy resources on 
     available Federal land in the State; and
       (2) as a condition of certification under section 4013(b) 
     shall submit a declaration to the Departments of the 
     Interior, Agriculture, and Energy that a program under 
     paragraph (1) has been established or amended.
       (b) Amendment of Programs.--A State may amend a program 
     developed and certified under this subtitle at any time.
       (c) Certification of Amended Programs.--Any program amended 
     under subsection (b) shall be certified under section 
     4013(b).

     SEC. 4013. LEASING, PERMITTING, AND REGULATORY PROGRAMS.

       (a) Satisfaction of Federal Requirements.--Each program 
     certified under this section shall be considered to satisfy 
     all applicable requirements of Federal law (including 
     regulations), including--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       (3) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.).
       (b) Federal Certification and Transfer of Development 
     Rights.--Upon submission of a declaration by a State under 
     section 4012(a)(2)--
       (1) the program under section 4012(a)(1) shall be 
     certified; and
       (2) the State shall receive all rights from the Federal 
     Government to develop all forms of energy resources covered 
     by the program.
       (c) Issuance of Permits and Leases.--If a State elects to 
     issue a permit or lease for the development of any form of 
     energy resource on any available Federal land within the 
     borders of the State in accordance with a program certified 
     under subsection (b), the permit or lease shall be considered 
     to meet all applicable requirements of Federal law (including 
     regulations).

     SEC. 4014. JUDICIAL REVIEW.

       Activities carried out in accordance with this subtitle 
     shall not be subject to Federal judicial review.

     SEC. 4015. ADMINISTRATIVE PROCEDURE ACT.

       Activities carried out in accordance with this subtitle 
     shall not be subject to subchapter II of chapter 5, and 
     chapter 7, of title 5, United States Code (commonly known as 
     the ``Administrative Procedure Act'').

          Subtitle B--Onshore Oil and Gas Permit Streamlining

                 PART I--OIL AND GAS LEASING CERTAINTY

     SEC. 4021. MINIMUM ACREAGE REQUIREMENT FOR ONSHORE LEASE 
                   SALES.

       Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
     amended--
       (1) by striking ``Sec. 17. (a) All lands'' and inserting 
     the following:

     ``SEC. 17. LEASE OF OIL AND GAS LAND.

       ``(a) Authority of Secretary.--

[[Page S4808]]

       ``(1) In general.--All land''; and
       (2) in subsection (a), by adding at the end the following:
       ``(2) Minimum acreage requirement for onshore lease 
     sales.--
       ``(A) In general.--In conducting lease sales under 
     paragraph (1)--
       ``(i) there shall be a presumption that nominated land 
     should be leased; and
       ``(ii) the Secretary of the Interior shall offer for sale 
     all of the nominated acreage not previously made available 
     for lease, unless the Secretary demonstrates by clear and 
     convincing evidence that an individual lease should not be 
     granted.
       ``(B) Administration.--Acreage offered for lease pursuant 
     to this paragraph--
       ``(i) shall not be subject to protest; and
       ``(ii) shall be eligible for categorical exclusions under 
     section 390 of the Energy Policy Act of 2005 (42 U.S.C. 
     15942), except that the categorical exclusions shall not be 
     subject to the test of extraordinary circumstances or any 
     other similar regulation or policy guidance.
       ``(C) Availability.--In administering this paragraph, the 
     Secretary shall only consider leasing of Federal land that is 
     available for leasing at the time the lease sale occurs.''.

     SEC. 4022. LEASING CERTAINTY.

       Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)) 
     (as amended by section 4061) is amended by adding at the end 
     the following:
       ``(3) Leasing certainty.--
       ``(A) In general.--The Secretary of the Interior shall not 
     withdraw any covered energy project (as defined in section 
     4051 of the American Energy Renaissance Act of 2014 ) issued 
     under this Act without finding a violation of the terms of 
     the lease by the lessee.
       ``(B) Delay.--The Secretary shall not infringe on lease 
     rights under leases issued under this Act by indefinitely 
     delaying issuance of project approvals, drilling and seismic 
     permits, and rights-of-way for activities under the lease.
       ``(C) Availability for lease.--Not later than 18 months 
     after an area is designated as open under the applicable land 
     use plan, the Secretary shall make available nominated areas 
     for lease using the criteria established under section 2.
       ``(D) Last payment.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, the Secretary shall issue all leases sold not later than 
     60 days after the last payment is made.
       ``(ii) Cancellation.--The Secretary shall not cancel or 
     withdraw any lease parcel after a competitive lease sale has 
     occurred and a winning bidder has submitted the last payment 
     for the parcel.
       ``(E) Protests.--
       ``(i) In general.--Not later than the end of the 60-day 
     period beginning on the date a lease sale is held under this 
     Act, the Secretary shall adjudicate any lease protests filed 
     following a lease sale.
       ``(ii) Unsettled protest.--If, after the 60-day period 
     described in clause (i) any protest is left unsettled--

       ``(I) the protest shall be considered automatically denied; 
     and
       ``(II) the appeal rights of the protestor shall begin.

       ``(F) Additional lease stipulations.--No additional lease 
     stipulation may be added after the parcel is sold without 
     consultation and agreement of the lessee, unless the 
     Secretary considers the stipulation as an emergency action to 
     conserve the resources of the United States.''.

     SEC. 4023. LEASING CONSISTENCY.

       A Federal land manager shall follow existing resource 
     management plans and continue to actively lease in areas 
     designated as open when resource management plans are being 
     amended or revised, until such time as a new record of 
     decision is signed.

     SEC. 4024. REDUCE REDUNDANT POLICIES.

       Bureau of Land Management Instruction Memorandum 2010-117 
     shall have no force or effect.

     SEC. 4025. STREAMLINED CONGRESSIONAL NOTIFICATION.

       Section 31(e) of the Mineral Leasing Act (30 U.S.C. 188(e)) 
     is amended in the first sentence of the matter following 
     paragraph (4) by striking ``at least thirty days in advance 
     of the reinstatement'' and inserting ``in an annual report''.

        PART II--APPLICATION FOR PERMITS TO DRILL PROCESS REFORM

     SEC. 4031. PERMIT TO DRILL APPLICATION TIMELINE.

       Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) 
     is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Applications for permits to drill reform and 
     process.--
       ``(A) In general.--Not later than the end of the 30-day 
     period beginning on the date an application for a permit to 
     drill is received by the Secretary, the Secretary shall 
     decide whether to issue the permit.
       ``(B) Extension.--
       ``(i) In general.--The Secretary may extend the period 
     described in subparagraph (A) for up to 2 periods of 15 days 
     each, if the Secretary has given written notice of the delay 
     to the applicant.
       ``(ii) Notice.--The notice shall--

       ``(I) be in the form of a letter from the Secretary or a 
     designee of the Secretary; and
       ``(II) include--

       ``(aa) the names and titles of the persons processing the 
     application;
       ``(bb) the specific reasons for the delay; and
       ``(cc) a specific date a final decision on the application 
     is expected.
       ``(C) Notice of reasons for denial.--If the application is 
     denied, the Secretary shall provide the applicant--
       ``(i) a written statement that provides clear and 
     comprehensive reasons why the application was not accepted 
     and detailed information concerning any deficiencies; and
       ``(ii) an opportunity to remedy any deficiencies.
       ``(D) Application deemed approved.--
       ``(i) In general.--Except as provided in clause (ii), if 
     the Secretary has not made a decision on the application by 
     the end of the 60-day period beginning on the date the 
     application is received by the Secretary, the application 
     shall be considered approved.
       ``(ii) Exceptions.--Clause (i) shall not apply in cases in 
     which existing reviews under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) or Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.) are incomplete.
       ``(E) Denial of permit.--If the Secretary decides not to 
     issue a permit to drill under this paragraph, the Secretary 
     shall--
       ``(i) provide to the applicant a description of the reasons 
     for the denial of the permit;
       ``(ii) allow the applicant to resubmit an application for a 
     permit to drill during the 10-day period beginning on the 
     date the applicant receives the description of the denial 
     from the Secretary; and
       ``(iii) issue or deny any resubmitted application not later 
     than 10 days after the date the application is submitted to 
     the Secretary.
       ``(F) Fee.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, the Secretary shall collect a single $6,500 permit 
     processing fee per application from each applicant at the 
     time the final decision is made whether to issue a permit 
     under subparagraph (A).
       ``(ii) Resubmitted application.--The fee required under 
     clause (i) shall not apply to any resubmitted application.
       ``(iii) Treatment of permit processing fee.--Subject to 
     appropriation, of all fees collected under this paragraph for 
     each fiscal year, 50 percent shall be--

       ``(I) transferred to the field office at which the fees are 
     collected; and
       ``(II) used to process protests, leases, and permits under 
     this Act.''.

     SEC. 4032. ADMINISTRATIVE PROTEST DOCUMENTATION REFORM.

       Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) 
     (as amended by section 4031) is amended by adding at the end 
     the following:
       ``(4) Protest fee.--
       ``(A) In general.--The Secretary shall collect a $5,000 
     documentation fee to accompany each administrative protest 
     for a lease, right-of-way, or application for a permit to 
     drill.
       ``(B) Treatment of fees.--Subject to appropriation, of all 
     fees collected under this paragraph for each fiscal year, 50 
     percent shall--
       ``(i) remain in the field office at which the fees are 
     collected; and
       ``(ii) be used to process protests.''.

     SEC. 4033. IMPROVED FEDERAL ENERGY PERMIT COORDINATION.

       (a) Definitions.--In this section:
       (1) Energy project.--The term ``energy project'' includes 
     any oil, natural gas, coal, or other energy project, as 
     defined by the Secretary.
       (2) Project.--The term ``Project'' means the Federal Permit 
     Streamlining Project established under subsection (b).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (b) Establishment.--The Secretary shall establish a Federal 
     Permit Streamlining Project in each Bureau of Land Management 
     field office with responsibility for permitting energy 
     projects on Federal land.
       (c) Memorandum of Understanding.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall enter into a 
     memorandum of understanding for purposes of carrying out this 
     section with--
       (A) the Secretary of Agriculture;
       (B) the Administrator of the Environmental Protection 
     Agency; and
       (C) the Chief of Engineers.
       (2) State participation.--The Secretary may request that 
     the Governor of any State with energy projects on Federal 
     land to be a signatory to the memorandum of understanding.
       (d) Designation of Qualified Staff.--
       (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (c), each Federal signatory party shall, if 
     appropriate, assign to each Bureau of Land Management field 
     office an employee who has expertise in the regulatory issues 
     relating to the office in which the employee is employed, 
     including, as applicable, particular expertise in--
       (A) the consultations and the preparation of biological 
     opinions under section 7 of the Endangered Species Act of 
     1973 (16 U.S.C. 1536);
       (B) permits under section 404 of the Federal Water 
     Pollution Control Act (33 U.S.C. 1344);
       (C) regulatory matters under the Clean Air Act (42 U.S.C. 
     7401 et seq.);
       (D) planning under the National Forest Management Act of 
     1976 (16 U.S.C. 1600 et seq.); and
       (E) the preparation of analyses under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

[[Page S4809]]

       (2) Duties.--Each employee assigned under paragraph (1) 
     shall--
       (A) not later than 90 days after the date of assignment, 
     report to the Bureau of Land Management Field Managers in the 
     office to which the employee is assigned;
       (B) be responsible for all issues relating to the energy 
     projects that arise under the authorities of the home agency 
     of the employee; and
       (C) participate as part of the team of personnel working on 
     proposed energy projects, planning, and environmental 
     analyses on Federal land.
       (e) Additional Personnel.--The Secretary shall assign to 
     each Bureau of Land Management field office described in 
     subsection (b) any additional personnel that are necessary to 
     ensure the effective approval and implementation of energy 
     projects administered by the Bureau of Land Management field 
     office, including inspection and enforcement relating to 
     energy development on Federal land, in accordance with the 
     multiple use mandate of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1701 et seq.).
       (f) Funding.--Funding for the additional personnel shall 
     come from the Department of the Interior reforms under 
     paragraph (2) of section 17(p) of the Mineral Leasing Act (30 
     U.S.C. 226(p)) (as amended by section 4031 and section 4032).
       (g) Savings Provision.--Nothing in this section affects--
       (1) the operation of any Federal or State law; or
       (2) any delegation of authority made by the head of a 
     Federal agency any employee of which is participating in the 
     Project.

     SEC. 4034. ADMINISTRATION.

       Notwithstanding any other provision of law, the Secretary 
     of the Interior shall not require a finding of extraordinary 
     circumstances in administering section 390 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15942).

                          PART III--OIL SHALE

     SEC. 4041. EFFECTIVENESS OF OIL SHALE REGULATIONS, AMENDMENTS 
                   TO RESOURCE MANAGEMENT PLANS, AND RECORD OF 
                   DECISION.

       (a) Regulations.--
       (1) In general.--Notwithstanding any other provision of law 
     (including regulations), the final regulations regarding oil 
     shale management published by the Bureau of Land Management 
     on November 18, 2008 (73 Fed. Reg. 69414) shall be considered 
     to satisfy all legal and procedural requirements under any 
     law, including--
       (A) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.);
       (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       (C) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (2) Implementation.--The Secretary of the Interior shall 
     implement the regulations described in paragraph (1) 
     (including the oil shale leasing program authorized by the 
     regulations) without any other administrative action 
     necessary.
       (b) Amendments to Resource Management Plans and Record of 
     Decision.--
       (1) In general.--Notwithstanding any other provision of law 
     (including regulations) to the contrary, the Approved 
     Resource Management Plan Amendments/Record of Decision for 
     Oil Shale and Tar Sands Resources to Address Land Use 
     Allocations in Colorado, Utah, and Wyoming and the Final 
     Programmatic Environmental Impact Statement of the Bureau of 
     Land Management, as in effect on November 17, 2008, shall be 
     considered to satisfy all legal and procedural requirements 
     under any law, including--
       (A) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.);
       (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       (C) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (2) Implementation.--The Secretary of the Interior shall 
     implement the oil shale leasing program authorized by the 
     regulations described in paragraph (1) in those areas covered 
     by the resource management plans covered by the amendments, 
     and covered by the record of decision, described in paragraph 
     (1) without any other administrative action necessary.

     SEC. 4042. OIL SHALE LEASING.

       (a) Additional Research and Development Lease Sales.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Secretary of the Interior shall hold a lease sale 
     offering an additional 10 parcels for lease for research, 
     development, and demonstration of oil shale resources, under 
     the terms offered in the solicitation of bids for such leases 
     published on January 15, 2009 (74 Fed. Reg. 2611).
       (b) Commercial Lease Sales.--
       (1) In general.--Not later than January 1, 2016, the 
     Secretary of the Interior shall hold not less than 5 separate 
     commercial lease sales in areas considered to have the most 
     potential for oil shale development, as determined by the 
     Secretary, in areas nominated through public comment.
       (2) Administration.--Each lease sale shall be--
       (A) for an area of not less than 25,000 acres; ;and
       (B) in multiple lease blocs.

          PART IV--NATIONAL PETROLEUM RESERVE IN ALASKA ACCESS

     SEC. 4051. SENSE OF CONGRESS AND REAFFIRMING NATIONAL POLICY 
                   FOR THE NATIONAL PETROLEUM RESERVE IN ALASKA.

       It is the sense of Congress that--
       (1) the National Petroleum Reserve in Alaska remains 
     explicitly designated, both in name and legal status, for 
     purposes of providing oil and natural gas resources to the 
     United States; and
       (2) accordingly, the national policy is to actively advance 
     oil and gas development within the Reserve by facilitating 
     the expeditious exploration, production, and transportation 
     of oil and natural gas from and through the Reserve.

     SEC. 4052. NATIONAL PETROLEUM RESERVE IN ALASKA: LEASE SALES.

       Section 107 of the Naval Petroleum Reserves Production Act 
     of 1976 (42 U.S.C. 6506a) is amended by striking subsection 
     (a) and inserting the following
       ``(a) In General.--The Secretary shall conduct an 
     expeditious program of competitive leasing of oil and gas in 
     the Reserve--
       ``(1) in accordance with this Act; and
       ``(2) that shall include at least 1 lease sale annually in 
     the areas of the Reserve most likely to produce commercial 
     quantities of oil and natural gas for each of calendar years 
     2014 through 2023.''.

     SEC. 4053. NATIONAL PETROLEUM RESERVE IN ALASKA: PLANNING AND 
                   PERMITTING PIPELINE AND ROAD CONSTRUCTION.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary of the Interior, in consultation with 
     other appropriate Federal agencies, shall facilitate and 
     ensure permits, in a timely and environmentally responsible 
     manner, for all surface development activities, including for 
     the construction of pipelines and roads, necessary--
       (1) to develop and bring into production any areas within 
     the National Petroleum Reserve in Alaska that are subject to 
     oil and gas leases; and
       (2) to transport oil and gas from and through the National 
     Petroleum Reserve in Alaska in the most direct manner 
     possible to existing transportation or processing 
     infrastructure on the North Slope of Alaska.
       (b) Timeline.--The Secretary shall ensure that any Federal 
     permitting agency shall issue permits in accordance with the 
     following timeline:
       (1) Permits for the construction described in subsection 
     (a) for transportation of oil and natural gas produced under 
     existing Federal oil and gas leases with respect to which the 
     Secretary has issued a permit to drill shall be approved not 
     later than 60 days after the date of enactment of this Act.
       (2) Permits for the construction described in subsection 
     (a) for transportation of oil and natural gas produced under 
     Federal oil and gas leases shall be approved not later than 
     180 days after the date on which a request for a permit to 
     drill is submitted to the Secretary.
       (c) Plan.--To ensure timely future development of the 
     National Petroleum Reserve in Alaska, not later than 270 days 
     after the date of enactment of this Act, the Secretary of the 
     Interior shall submit to Congress a plan for approved rights-
     of-way for a plan for pipeline, road, and any other surface 
     infrastructure that may be necessary infrastructure that will 
     ensure that all leasable tracts in the Reserve are within 25 
     miles of an approved road and pipeline right-of-way that can 
     serve future development of the Reserve.

     SEC. 4054. ISSUANCE OF A NEW INTEGRATED ACTIVITY PLAN AND 
                   ENVIRONMENTAL IMPACT STATEMENT.

       (a) Issuance of New Integrated Activity Plan.--Not later 
     than 180 days after the date of enactment of this Act, the 
     Secretary of the Interior shall issue--
       (1) a new proposed integrated activity plan from among the 
     nonadopted alternatives in the National Petroleum Reserve 
     Alaska Integrated Activity Plan Record of Decision issued by 
     the Secretary of the Interior and dated February 21, 2013; 
     and
       (2) an environmental impact statement under section 
     102(2)(C) of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4332(2)(C)) for issuance of oil and gas leases in 
     the National Petroleum Reserve-Alaska to promote efficient 
     and maximum development of oil and natural gas resources of 
     the Reserve.
       (b) Nullification of Existing Record of Decision, IAP, and 
     EIS.--Except as provided in subsection (a), the National 
     Petroleum Reserve-Alaska Integrated Activity Plan Record of 
     Decision issued by the Secretary of the Interior and dated 
     February 21, 2013, including the integrated activity plan and 
     environmental impact statement referred to in that record of 
     decision, shall have no force or effect.

     SEC. 4055. DEPARTMENTAL ACCOUNTABILITY FOR DEVELOPMENT.

       The Secretary of the Interior shall promulgate regulations 
     not later than 180 days after the date of enactment of this 
     Act that establish clear requirements to ensure that the 
     Department of the Interior is supporting development of oil 
     and gas leases in the National Petroleum Reserve-Alaska.

     SEC. 4056. DEADLINES UNDER NEW PROPOSED INTEGRATED ACTIVITY 
                   PLAN.

       At a minimum, the new proposed integrated activity plan 
     issued under section 4054(a)(1) shall--
       (1) require the Department of the Interior to respond 
     within 5 business days to a person who submits an application 
     for a permit for development of oil and natural gas leases in 
     the National Petroleum Reserve-Alaska acknowledging receipt 
     of the application; and

[[Page S4810]]

       (2) establish a timeline for the processing of each 
     application that--
       (A) specifies deadlines for decisions and actions on permit 
     applications; and
       (B) provides that the period for issuing a permit after the 
     date on which the application is submitted shall not exceed 
     60 days without the concurrence of the applicant.

     SEC. 4057. UPDATED RESOURCE ASSESSMENT.

       (a) In General.--The Secretary of the Interior shall 
     complete a comprehensive assessment of all technically 
     recoverable fossil fuel resources within the National 
     Petroleum Reserve in Alaska, including all conventional and 
     unconventional oil and natural gas.
       (b) Cooperation and Consultation.--The assessment required 
     by subsection (a) shall be carried out by the United States 
     Geological Survey in cooperation and consultation with the 
     State of Alaska and the American Association of Petroleum 
     Geologists.
       (c) Timing.--The assessment required by subsection (a) 
     shall be completed not later than 2 years after the date of 
     enactment of this Act.
       (d) Funding.--In carrying out this section, the United 
     States Geological Survey may cooperatively use resources and 
     funds provided by the State of Alaska.

                    PART V--MISCELLANEOUS PROVISIONS

     SEC. 4061. SANCTIONS.

       Nothing in this title authorizes the issuance of a lease 
     under the Mineral Leasing Act (30 U.S.C. 181 et seq.) to any 
     person designated for the imposition of sanctions pursuant 
     to--
       (1) the Syria Accountability and Lebanese Sovereignty 
     Restoration Act of 2003 (22 U.S.C. 2151 note; Public Law 108-
     175);
       (2) the Comprehensive Iran Sanctions, Accountability, and 
     Divestiture Act of 2010 (22 U.S.C. 8501 et seq.);
       (3) section 1245 of the National Defense Authorization Act 
     for Fiscal Year 2012 (22 U.S.C. 8513a);
       (4) the Iran Threat Reduction and Syria Human Rights Act of 
     2012 (22 U.S.C. 8701 et seq.);
       (5) the Iran Freedom and Counter-Proliferation Act of 2012 
     (22 U.S.C. 8801 et seq.);
       (6) the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note; 
     Public Law 104-172);
       (7) Executive Order 13224 (50 U.S.C. 1701 note; relating to 
     blocking property and prohibiting transactions with persons 
     who commit, threaten to commit, or support terrorism);
       (8) Executive Order 13338 (50 U.S.C. 1701 note; relating to 
     blocking property of certain persons and prohibiting the 
     export of certain goods to Syria);
       (9) Executive Order 13622 (50 U.S.C. 1701 note; relating to 
     authorizing additional sanctions with respect to Iran);
       (10) Executive Order 13628 (50 U.S.C. 1701 note; relating 
     to authorizing additional sanctions with respect to Iran); or
       (11) Executive Order 13645 (50 U.S.C. 1701 note; relating 
     to authorizing additional sanctions with respect to Iran).

     SEC. 4062. INTERNET-BASED ONSHORE OIL AND GAS LEASE SALES.

       (a) Authorization.--Section 17(b)(1) of the Mineral Leasing 
     Act (30 U.S.C. 226(b)(1)) is amended--
       (1) in subparagraph (A), in the third sentence, by 
     inserting ``, except as provided in subparagraph (C)'' after 
     ``by oral bidding''; and
       (2) by adding at the end the following:
       ``(C) Internet-based Bidding.--
       ``(i) In general.--In order to diversify and expand the 
     onshore leasing program of the United States to ensure the 
     best return to the Federal taxpayer, reduce fraud, and secure 
     the leasing process, the Secretary may conduct onshore lease 
     sales through Internet-based bidding methods.
       ``(ii) Conclusion.--Each individual Internet-based lease 
     sale shall conclude not later than 7 days after the date on 
     which the sale begins.''.
       (b) Report.--Not later than 90 days after the date on which 
     the tenth Internet-based lease sale conducted under the 
     amendment made by subsection (a) concludes, the Secretary of 
     the Interior shall analyze the first 10 Internet-based lease 
     sales and report to Congress the findings of the analysis, 
     including--
       (1) estimates on increases or decreases in Internet-based 
     lease sales, compared to sales conducted by oral bidding, 
     in--
       (A) the number of bidders;
       (B) the average amount of bid;
       (C) the highest amount bid; and
       (D) the lowest bid;
       (2) an estimate on the total cost or savings to the 
     Department of the Interior as a result of Internet-based 
     lease sales, compared to sales conducted by oral bidding; and
       (3) an evaluation of the demonstrated or expected 
     effectiveness of different structures for lease sales which 
     may provide an opportunity to better--
       (A) maximize bidder participation;
       (B) ensure the highest return to the Federal taxpayers;
       (C) minimize opportunities for fraud or collusion; and
       (D) ensure the security and integrity of the leasing 
     process.

                        PART VI--JUDICIAL REVIEW

     SEC. 4071. DEFINITIONS.

       In this part:
       (1) Covered civil action.--The term ``covered civil 
     action'' means a civil action containing a claim under 
     section 702 of title 5, United States Code, regarding agency 
     action (as defined for the purposes of that section) 
     affecting a covered energy project on Federal land.
       (2) Covered energy project.--
       (A) In general.--The term ``covered energy project'' 
     means--
       (i) the leasing of Federal land for the exploration, 
     development, production, processing, or transmission of oil, 
     natural gas, wind, or any other source of energy; and
       (ii) any action under the lease.
       (B) Exclusion.--The term ``covered energy project'' does 
     not include any dispute between the parties to a lease 
     regarding the obligations under the lease, including any 
     alleged breach of the lease.

     SEC. 4072. EXCLUSIVE VENUE FOR CERTAIN CIVIL ACTIONS RELATING 
                   TO COVERED ENERGY PROJECTS.

       Venue for any covered civil action shall lie in the United 
     States district court in which the covered energy project or 
     lease exists or is proposed.

     SEC. 4073. TIMELY FILING.

       To ensure timely redress by the courts, a covered civil 
     action shall be filed not later than the end of the 90-day 
     period beginning on the date of the final Federal agency 
     action to which the covered civil action relates.

     SEC. 4074. EXPEDITION IN HEARING AND DETERMINING THE ACTION.

       The court shall endeavor to hear and determine any covered 
     civil action as expeditiously as practicable.

     SEC. 4075. LIMITATION ON INJUNCTION AND PROSPECTIVE RELIEF.

       (a) In General.--In a covered civil action, a court shall 
     not grant or approve any prospective relief unless the court 
     finds that the relief--
       (1) is narrowly drawn;
       (2) extends no further than necessary to correct the 
     violation of a legal requirement; and
       (3) is the least intrusive means necessary to correct the 
     violation.
       (b) Duration.--
       (1) In general.--A court shall limit the duration of 
     preliminary injunctions to halt covered energy projects to 
     not more than 60 days, unless the court finds clear reasons 
     to extend the injunction.
       (2) Administration.--In the case of an extension, the 
     extension shall--
       (A) only be in 30-day increments; and
       (B) require action by the court to renew the injunction.

     SEC. 4076. LIMITATION ON ATTORNEYS' FEES AND COURT COSTS.

       (a) In General.--Sections 504 of title 5 and 2412 of title 
     28, United States Code (commonly known as the ``Equal Access 
     to Justice Act''), shall not apply to a covered civil action.
       (b) Court Costs.--A party to a covered civil action shall 
     not receive payment from the Federal Government for the 
     attorneys' fees, expenses, or other court costs incurred by 
     the party.

     SEC. 4077. LEGAL STANDING.

       A challenger that files an appeal with the Department of 
     the Interior Board of Land Appeals shall meet the same 
     standing requirements as a challenger before a United States 
     district court.

                 TITLE V--ADDITIONAL ONSHORE RESOURCES

       Subtitle A--Leasing Program for Land Within Coastal Plain

     SEC. 5001. FINDING.

       Congress finds that development of energy reserves under 
     the Coastal Plain of Alaska, performed in an environmentally 
     responsible manner, will contribute to job growth and 
     economic development.

     SEC. 5002. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means the 
     area described in appendix I to part 37 of title 50, Code of 
     Federal Regulations.
       (2) Peer reviewed.--The term ``peer reviewed'' means 
     reviewed--
       (A) by individuals chosen by the National Academy of 
     Sciences with no contractual relationship with, or those who 
     have no application for a grant or other funding pending 
     with, the Federal agency with leasing jurisdiction; or
       (B) if individuals described in subparagraph (A) are not 
     available, by the top individuals in the specified biological 
     fields, as determined by the National Academy of Sciences.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 5003. LEASING PROGRAM FOR LAND ON THE COASTAL PLAIN.

       (a) In General.--The Secretary shall--
       (1) establish and implement, in accordance with this 
     subtitle and acting through the Director of the Bureau of 
     Land Management in consultation with the Director of the 
     United States Fish and Wildlife Service, a competitive oil 
     and gas leasing program that will result in the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) administer the provisions of this subtitle through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain do not result in any 
     significant adverse effect on fish and wildlife, the habitat 
     of fish and wildlife, subsistence resources, or the 
     environment, including, in furtherance of this goal, by 
     requiring the application of the best commercially available 
     technology for oil

[[Page S4811]]

     and gas exploration, development, and production to all 
     exploration, development, and production operations under 
     this subtitle in a manner that ensures the receipt of fair 
     market value by the public for the mineral resources to be 
     leased.
       (b) Repeal of Existing Restriction.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.), the oil and gas leasing program and activities 
     authorized by this section on the Coastal Plain are deemed to 
     be compatible with the purposes for which the Arctic National 
     Wildlife Refuge was established, and no further findings or 
     decisions are required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The document of 
     the Department of the Interior entitled ``Final Legislative 
     Environmental Impact Statement'' and dated April 1987 
     relating to the Coastal Plain prepared pursuant to section 
     1002 of the Alaska National Interest Lands Conservation Act 
     (16 U.S.C. 3142) and section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     that apply with respect to prelease activities under this 
     subtitle, including actions authorized to be taken by the 
     Secretary to develop and promulgate regulations for the 
     establishment of a leasing program authorized by this 
     subtitle before the conduct of the first lease sale.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Prior to conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to the actions authorized by this subtitle not 
     covered by paragraph (2).
       (B) Nonleasing alternatives not required.--Notwithstanding 
     any other provision of law, in preparing the environmental 
     impact statement under subparagraph (A), the Secretary--
       (i) shall--

       (I) only identify a preferred action for leasing and a 
     single leasing alternative; and
       (II) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives; and

       (ii) is not required--

       (I) to identify nonleasing alternative courses of action; 
     or
       (II) to analyze the environmental effects of nonleasing 
     alternative courses of action.

       (C) Deadline.--The identification under subparagraph 
     (B)(i)(I) for the first lease sale conducted under this 
     subtitle shall be completed not later than 18 months after 
     the date of enactment of this Act.
       (D) Public comment.--The Secretary shall only consider 
     public comments that--
       (i) specifically address the preferred action of the 
     Secretary; and
       (ii) are filed not later than 20 days after the date on 
     which the environmental analysis is published.
       (E) Compliance.--Notwithstanding any other provision of 
     law, compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this 
     subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits State or local regulatory 
     authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik and the North Slope 
     Borough of the State of Alaska, may designate not more than 
     45,000 acres of the Coastal Plain as a ``Special Area'' if 
     the Secretary determines that the area is of such unique 
     character and interest so as to require special management 
     and regulatory protection.
       (2) Sadlerochit spring area.--The Secretary shall designate 
     the Sadlerochit Spring area, consisting of approximately 
     4,000 acres, as a Special Area.
       (3) Management.--Each Special Area shall be managed to 
     protect and preserve the unique and diverse character of the 
     area, including the fish, wildlife, and subsistence resource 
     values of the area.
       (4) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any Special Area 
     from leasing.
       (B) No surface occupancy.--If the Secretary leases a 
     Special Area, or any part of a Special Area, for oil and gas 
     exploration, development, production, or related activities, 
     there shall be no surface occupancy of the land comprising 
     the Special Area.
       (5) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases tracts 
     located outside the Special Area.
       (f) Limitation on Closed Areas.--The authority of the 
     Secretary to close land on the Coastal Plain to oil and gas 
     leasing, exploration, development, or production shall be 
     limited to the authority provided under this subtitle.
       (g) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations necessary to carry out this subtitle, including 
     regulations relating to protection of fish and wildlife, the 
     habitat of fish and wildlife, subsistence resources, and 
     environment of the Coastal Plain.
       (2) Revision of regulations.--The Secretary shall, through 
     a rulemaking conducted in accordance with section 553 of 
     title 5, United States Code, periodically review and, if 
     appropriate, revise the regulations promulgated under 
     paragraph (1) to reflect a preponderance of the best 
     available scientific evidence that has been peer reviewed and 
     obtained by following appropriate, documented scientific 
     procedures, the results of which can be repeated using those 
     same procedures.

     SEC. 5004. LEASE SALES.

       (a) In General.--In accordance with the requirements of 
     this subtitle, the Secretary may lease land under this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation and not 
     later than 180 days after the date of enactment of this Act, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area of the Coastal Plain for inclusion in, or exclusion 
     from, a lease sale;
       (2) the holding of lease sales after the nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Lease sales under this subtitle may 
     be conducted through an Internet leasing program, if the 
     Secretary determines that the Internet leasing program will 
     result in savings to the taxpayer, an increase in the number 
     of bidders participating, and higher returns than oral 
     bidding or a sealed bidding system.
       (d) Sale Acreages and Schedule.--The Secretary shall--
       (1) offer for lease under this subtitle--
       (A) those tracts the Secretary considers to have the 
     greatest potential for the discovery of hydrocarbons, taking 
     into consideration nominations received under subsection 
     (b)(1); and
       (B)(i) not fewer than 50,000 acres by not later than 22 
     months after the date of the enactment of this Act; and
       (ii) not fewer than an additional 50,000 acres at 6-, 12-, 
     and 18-month intervals following the initial offering under 
     subclause (i);
       (2) conduct 4 additional lease sales under the same terms 
     and schedule as the last lease sale under paragraph 
     (1)(B)(ii) not later than 2 years after the date of that 
     sale, if sufficient interest in leasing exists to warrant, in 
     the judgment of the Secretary, the conduct of the sales; and
       (3) evaluate the bids in each lease sale under this 
     subsection and issue leases resulting from the sales not 
     later than 90 days after the date on which the sale is 
     completed.

     SEC. 5005. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted under 
     section 5004 any land to be leased on the Coastal Plain upon 
     payment by the bidder of any bonus as may be accepted by the 
     Secretary.
       (b) Subsequent Transfers.--No lease issued under this 
     subtitle may be sold, exchanged, assigned, sublet, or 
     otherwise transferred except with the approval of the 
     Secretary after the Secretary consults with, and gives due 
     consideration to the views of, the Attorney General.

     SEC. 5006. LEASE TERMS AND CONDITIONS.

       An oil or gas lease issued under this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     12.5 percent in amount or value of the production removed or 
     sold under the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife based on a preponderance 
     of the best available scientific evidence that has been peer 
     reviewed and obtained by following appropriate, documented 
     scientific procedures, the results of which can be repeated 
     using those same procedures;
       (3) require that the lessee of land on the Coastal Plain 
     shall be fully responsible and liable for the reclamation of 
     land on the Coastal Plain and any other Federal land that is 
     adversely affected in connection with exploration, 
     development, production, or transportation activities 
     conducted under the lease and on the Coastal Plain by the 
     lessee or by any of the subcontractors or agents of the 
     lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under

[[Page S4812]]

     this subtitle shall be, as nearly as practicable, a condition 
     capable of supporting the uses which the land was capable of 
     supporting prior to any exploration, development, or 
     production activities, or upon application by the lessee, to 
     a higher or better use as certified by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, the habitat of fish and wildlife, 
     subsistence resources, and the environment as required under 
     section 5003(a)(2);
       (7) provide that the lessee, agents of the lessee, and 
     contractors of the lessee use best efforts to provide a fair 
     share, as determined by the level of obligation previously 
     agreed to in the 1974 agreement implementing section 29 of 
     the Federal Agreement and Grant of Right of Way for the 
     Operation of the Trans-Alaska Pipeline, of employment and 
     contracting for Alaska Natives and Alaska Native corporations 
     from throughout the State; and
       (8) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with this subtitle 
     and the regulations issued pursuant to this subtitle.

     SEC. 5007. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 5003, administer 
     this subtitle through regulations, lease terms, conditions, 
     restrictions, prohibitions, stipulations, and other 
     provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain shall not result 
     in any significant adverse effect on fish and wildlife, the 
     habitat of fish and wildlife, or the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 10,000 acres on the 
     Coastal Plain for each 100,000 acres of area leased.
       (b) Site-Specific Assessment and Mitigation.--With respect 
     to any proposed drilling and related activities, the 
     Secretary shall require that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, the habitat of fish and wildlife, 
     subsistence resources, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations to Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Prior to 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and promulgate regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this subtitle are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require compliance with all applicable provisions of 
     Federal and State environmental law and compliance with the 
     following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the document of the 
     Department of the Interior entitled ``Final Legislative 
     Environmental Impact Statement'' and dated April 1987 
     relating to the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration 
     based on a preponderance of the best available scientific 
     evidence that has been peer reviewed and obtained by 
     following appropriate, documented scientific procedures, the 
     results of which can be repeated using those same procedures.
       (3) That exploration activities, except for surface 
     geological studies--
       (A) be limited to the period between approximately November 
     1 and May 1 each year; and
       (B) be supported, if necessary, by ice roads, winter trails 
     with adequate snow cover, ice pads, ice airstrips, and air 
     transport methods, except that exploration activities may 
     occur at other times if the Secretary finds that the 
     exploration will have no significant adverse effect on the 
     fish and wildlife, the habitat of fish and wildlife, and the 
     environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that minimize, to 
     the maximum extent practicable, adverse effects on--
       (A) the passage of migratory species such as caribou; and
       (B) the flow of surface water by requiring the use of 
     culverts, bridges, and other structural devices.
       (5) Prohibitions on general public access and use on all 
     pipeline access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this subtitle, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.
       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on the use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river systems, the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats, and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or minimization of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law (including 
     regulations).
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions determined necessary by 
     the Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations; and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land that are set forth in appendix 2 of 
     the August 9, 1983, agreement between Arctic Slope Regional 
     Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:
       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, the 
     habitat of fish and wildlife, and the environment.
       (D) Using existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain subject to 
     section 811 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3121); and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. 5008. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaint.--
       (1) Deadline.--Subject to paragraph (2), any complaint 
     seeking judicial review of--
       (A) any provision of this subtitle shall be filed by not 
     later than 1 year after the date of enactment of this Act; or
       (B) any action of the Secretary under this subtitle shall 
     be filed--
       (i) except as provided in clause (ii), during the 90-day 
     period beginning on the date on which the action is 
     challenged; or
       (ii) in the case of a complaint based solely on grounds 
     arising after the period described

[[Page S4813]]

     in clause (i), not later than 90 days after the date on which 
     the complainant knew or reasonably should have known of the 
     grounds for the complaint.
       (2) Venue.--Any complaint seeking judicial review of any 
     provision of this subtitle or any action of the Secretary 
     under this subtitle may be filed only in the United States 
     Court of Appeals for the District of Columbia.
       (3) Limitation on scope of certain review.--
       (A) In general.--Judicial review of a decision by the 
     Secretary to conduct a lease sale under this subtitle, 
     including an environmental analysis, shall be--
       (i) limited to whether the Secretary has complied with this 
     subtitle; and
       (ii) based on the administrative record of that decision.
       (B) Presumption.--The identification by the Secretary of a 
     preferred course of action to enable leasing to proceed and 
     the analysis by the Secretary of environmental effects under 
     this subtitle is presumed to be correct unless shown 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Actions of the Secretary 
     with respect to which review could have been obtained under 
     this section shall not be subject to judicial review in any 
     civil or criminal proceeding for enforcement.
       (c) Limitation on Attorneys' Fees and Court Costs.--
       (1) In general.--Sections 504 of title 5 and 2412 of title 
     28, United States Code (commonly known as the ``Equal Access 
     to Justice Act''), shall not apply to any action under this 
     subtitle.
       (2) Court costs.--A party to any action under this subtitle 
     shall not receive payment from the Federal Government for the 
     attorneys' fees, expenses, or other court costs incurred by 
     the party.

     SEC. 5009. TREATMENT OF REVENUES.

       Notwithstanding any other provision of law, 90 percent of 
     the amount of bonus, rental, and royalty revenues from 
     Federal oil and gas leasing and operations authorized under 
     this subtitle shall be deposited in the Treasury.

     SEC. 5010. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) In General.--The Secretary shall issue rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas produced under leases under this subtitle--
       (1) except as provided in paragraph (2), under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
     title XI of the Alaska National Interest Lands Conservation 
     Act (16 U.S.C. 3161 et seq.); and
       (2) under title XI of the Alaska National Interest Lands 
     Conservation Act (30 U.S.C. 3161 et seq.), for access 
     authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
     3170, 3171).
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement issued under subsection (a) such 
     terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, the 
     habitat of fish and wildlife, subsistence resources, or the 
     environment of the Coastal Plain, including requirements that 
     facilities be sited or designed so as to avoid unnecessary 
     duplication of roads and pipelines.
       (c) Regulations.--The Secretary shall include in 
     regulations promulgated under section 5003(g) provisions 
     granting rights-of-way and easements described in subsection 
     (a).

     SEC. 5011. CONVEYANCE.

       In order to maximize Federal revenues by removing clouds on 
     titles to land and clarifying land ownership patterns on the 
     Coastal Plain, and notwithstanding section 1302(h)(2) of the 
     Alaska National Interest Lands Conservation Act (16 U.S.C. 
     3192(h)(2)), the Secretary shall convey--
       (1) to the Kaktovik Inupiat Corporation, the surface estate 
     of the land described in paragraph 1 of Public Land Order 
     6959, to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613) in accordance with the terms and conditions of the 
     Agreement between the Department of the Interior, the United 
     States Fish and Wildlife Service, the Bureau of Land 
     Management, and the Kaktovik Inupiat Corporation dated 
     January 22, 1993; and
       (2) to the Arctic Slope Regional Corporation the remaining 
     subsurface estate to which the Arctic Slope Regional 
     Corporation is entitled pursuant to the August 9, 1983, 
     agreement between the Arctic Slope Regional Corporation and 
     the United States of America.

                   Subtitle B--Native American Energy

     SEC. 5021. FINDINGS.

       Congress finds that--
       (1) the Federal Government has unreasonably interfered with 
     the efforts of Indian tribes to develop energy resources on 
     tribal land; and
       (2) Indian tribes should have the opportunity to gain the 
     benefits of the jobs, investment, and economic development to 
     be gained from energy development.

     SEC. 5022. APPRAISALS.

       (a) Amendment.--Title XXVI of the Energy Policy Act of 1992 
     (25 U.S.C. 3501 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 2607. APPRAISAL REFORMS.

       ``(a) Options to Indian Tribes.--With respect to a 
     transaction involving Indian land or the trust assets of an 
     Indian tribe that requires the approval of the Secretary, any 
     appraisal or other estimates of value relating to fair market 
     value required to be conducted under applicable law, 
     regulation, or policy may be completed by--
       ``(1) the Secretary;
       ``(2) the affected Indian tribe; or
       ``(3) a certified, third-party appraiser pursuant to a 
     contract with the Indian tribe.
       ``(b) Time Limit on Secretarial Review and Action.--Not 
     later than 30 days after the date on which the Secretary 
     receives an appraisal conducted by or for an Indian tribe 
     pursuant to paragraphs (2) or (3) of subsection (a), the 
     Secretary shall--
       ``(1) review the appraisal; and
       ``(2) provide to the Indian tribe a written notice of 
     approval or disapproval of the appraisal.
       ``(c) Failure of Secretary to Approve or Disapprove.--If 
     the Secretary has failed to approve or disapprove any 
     appraisal by the date that is 60 days after the date on which 
     the appraisal is received, the appraisal shall be deemed 
     approved.
       ``(d) Option of Indian Tribes to Waive Appraisal.--An 
     Indian tribe may waive the requirements of subsection (a) if 
     the Indian tribe provides to the Secretary a written 
     resolution, statement, or other unambiguous indication of 
     tribal intent to waive the requirements that--
       ``(1) is duly approved by the governing body of the Indian 
     tribe; and
       ``(2) includes an express waiver by the Indian tribe of any 
     claims for damages the Indian tribe might have against the 
     United States as a result of the waiver.
       ``(e) Regulations.--The Secretary shall promulgate 
     regulations to implement this section, including standards 
     the Secretary shall use for approving or disapproving an 
     appraisal under subsection (b).''.
       (b) Conforming Amendment.--The table of contents of the 
     Energy Policy Act of 1992 (42 U.S.C. 13201 note) is amended 
     by adding at the end of the items relating to title XXVI the 
     following:

``Sec. 2607. Appraisal reforms.''.

     SEC. 5023. STANDARDIZATION.

       As soon as practicable after the date of enactment of this 
     Act, the Secretary of the Interior shall implement procedures 
     to ensure that each agency within the Department of the 
     Interior that is involved in the review, approval, and 
     oversight of oil and gas activities on Indian land shall use 
     a uniform system of reference numbers and tracking systems 
     for oil and gas wells.

     SEC. 5024. ENVIRONMENTAL REVIEWS OF MAJOR FEDERAL ACTIONS ON 
                   INDIAN LAND.

       Section 102 of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4332) is amended--
       (1) in the matter preceding paragraph (1) by inserting 
     ``(a) In General.--'' before ``The Congress authorizes''; and
       (2) by adding at the end the following:
       ``(b) Review of Major Federal Actions on Indian Land.--
       ``(1) Definitions of indian land and indian tribe.--In this 
     subsection, the terms `Indian land' and `Indian tribe' have 
     the meaning given those terms in section 2601 of the Energy 
     Policy Act of 1992 (25 U.S.C. 3501).
       ``(2) In general.--For any major Federal action on Indian 
     land of an Indian tribe requiring the preparation of a 
     statement under subsection (a)(2)(C), the statement shall 
     only be available for review and comment by--
       ``(A) the members of the Indian tribe; and
       ``(B) any other individual residing within the affected 
     area.
       ``(3) Regulations.--The Chairman of the Council on 
     Environmental Quality, in consultation with Indian tribes, 
     shall develop regulations to implement this section, 
     including descriptions of affected areas for specific major 
     Federal actions.''.

     SEC. 5025. JUDICIAL REVIEW.

       (a) Definitions.--In this section:
       (1) Agency action.--The term ``agency action'' has the 
     meaning given the term in section 551 of title 5, United 
     States Code.
       (2) Energy related action.--The term ``energy-related 
     action'' means a civil action that--
       (A) is filed on or after the date of enactment of this Act; 
     and
       (B) seeks judicial review of a final agency action relating 
     to the issuance of a permit, license, or other form of agency 
     permission allowing--
       (i) any person or entity to conduct on Indian Land 
     activities involving the exploration, development, 
     production, or transportation of oil, gas, coal, shale gas, 
     oil shale, geothermal resources, wind or solar resources, 
     underground coal gasification, biomass, or the generation of 
     electricity; or
       (ii) any Indian Tribe, or any organization of 2 or more 
     entities, not less than 1 of which is an Indian tribe, to 
     conduct activities involving the exploration, development, 
     production, or transportation of oil, gas, coal, shale gas, 
     oil shale, geothermal resources, wind or solar resources, 
     underground coal gasification, biomass, or the generation of 
     electricity, regardless of where such activities are 
     undertaken.
       (3) Indian land.--
       (A) In general.--The term ``Indian land'' has the meaning 
     given the term in section 2601 of the Energy Policy Act of 
     1992 (25 U.S.C. 3501).
       (B) Inclusion.--The term ``Indian land'' includes land 
     owned by a Native Corporation (as that term is defined in 
     section 3 of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1602)) under that Act (43 U.S.C. 1601 et seq.).

[[Page S4814]]

       (4) Ultimately prevail.--
       (A) In general.--The term ``ultimately prevail'' means, in 
     a final enforceable judgment that the court rules in the 
     party's favor on at least 1 civil claim that is an underlying 
     rationale for the preliminary injunction, administrative 
     stay, or other relief requested by the party.
       (B) Exclusion.--The term ``ultimately prevail'' does not 
     include circumstances in which the final agency action is 
     modified or amended by the issuing agency unless the 
     modification or amendment is required pursuant to a final 
     enforceable judgment of the court or a court-ordered consent 
     decree.
       (b) Time for Filing Complaint.--
       (1) In general.--Any energy related action shall be filed 
     not later than the end of the 60-day period beginning on the 
     date of the action or decision by a Federal official that 
     constitutes the covered energy project concerned.
       (2) Prohibition.--Any energy related action that is not 
     filed within the time period described in paragraph (1) shall 
     be barred.
       (c) District Court Venue and Deadline.--An energy related 
     action--
       (1) may only be brought in the United States District Court 
     for the District of Columbia; and
       (2) shall be resolved as expeditiously as possible, and in 
     any event not more than 180 days after the energy related 
     action is filed.
       (d) Appellate Review.--An interlocutory order or final 
     judgment, decree or order of the district court in an energy 
     related action--
       (1) may be appealed to the United States Court of Appeals 
     for the District of Columbia Circuit; and
       (2) if the court described in paragraph (1) undertakes the 
     review, the court shall resolve the review as expeditiously 
     as possible, and in any event by not later than 180 days 
     after the interlocutory order or final judgment, decree or 
     order of the district court was issued.
       (e) Limitation on Certain Payments.--Notwithstanding 
     section 1304 of title 31, United States Code, no award may be 
     made under section 504 of title 5, United States Code, or 
     under section 2412 of title 28, United States Code, and no 
     amounts may be obligated or expended from the Claims and 
     Judgment Fund of the United States Treasury to pay any fees 
     or other expenses under such sections, to any person or party 
     in an energy related action.
       (f) Limitation on Attorneys' Fees and Court Costs.--
       (1) In general.--Sections 504 of title 5 and 2412 of title 
     28, United States Code (commonly known as the ``Equal Access 
     to Justice Act''), shall not apply to an energy related 
     action.
       (2) Court costs.--A party to a covered civil action shall 
     not receive payment from the Federal Government for the 
     attorneys' fees, expenses, or other court costs incurred by 
     the party.

     SEC. 5026. TRIBAL RESOURCE MANAGEMENT PLANS.

       Unless otherwise explicitly exempted by Federal law enacted 
     after the date of enactment of this Act, any activity 
     conducted or resources harvested or produced pursuant to a 
     tribal resource management plan or an integrated resource 
     management plan approved by the Secretary of the Interior 
     under the National Indian Forest Resources Management Act (25 
     U.S.C. 3101 et seq.) or the American Indian Agricultural 
     Resource Management Act (25 U.S.C. 3701 et seq.), shall be 
     considered a sustainable management practice for purposes of 
     any Federal standard, benefit, or requirement that requires a 
     demonstration of such sustainability.

     SEC. 5027. LEASES OF RESTRICTED LANDS FOR THE NAVAJO NATION.

       Subsection (e)(1) of the first section of the Act of August 
     9, 1955 (25 U.S.C. 415) (commonly known as the ``Long-Term 
     Leasing Act''), is amended--
       (1) by striking ``, except a lease for'' and inserting ``, 
     including leases for'';
       (2) in subparagraph (A), by striking ``25 years, except'' 
     and all that follows through ``; and'' and inserting ``99 
     years;'';
       (3) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(C) in the case of a lease for the exploration, 
     development, or extraction of mineral resources, including 
     geothermal resources, 25 years, except that the lease may 
     include an option to renew for 1 additional term not to 
     exceed 25 years.''.

     SEC. 5028. NONAPPLICABILITY OF CERTAIN RULES.

       No rule promulgated by the Secretary of the Interior 
     regarding hydraulic fracturing used in the development or 
     production of oil or gas resources shall affect any land held 
     in trust or restricted status for the benefit of Indians 
     except with the express consent of the beneficiary on behalf 
     of which the land is held in trust or restricted status.

              Subtitle C--Additional Regulatory Provisions

           PART I--STATE AUTHORITY OVER HYDRAULIC FRACTURING

     SEC. 5031. FINDING.

       Congress finds that given variations in geology, land use, 
     and population, the States are best placed to regulate the 
     process of hydraulic fracturing occurring on any land within 
     the boundaries of the individual State.

     SEC. 5032. STATE AUTHORITY.

       (a) Definition of Federal Land.--In this section, the term 
     ``Federal land'' means--
       (1) public lands (as defined in section 103 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1702));
       (2) National Forest System land;
       (3) land under the jurisdiction of the Bureau of 
     Reclamation; and
       (4) land under the jurisdiction of the Corps of Engineers.
       (b) State Authority.--
       (1) In general.--Notwithstanding any other provision of 
     law, a State shall have the sole authority to promulgate or 
     enforce any regulation, guidance, or permit requirement 
     regarding the treatment of a well by the application of 
     fluids under pressure to which propping agents may be added 
     for the expressly designed purpose of initiating or 
     propagating fractures in a target geologic formation in order 
     to enhance production of oil, natural gas, or geothermal 
     production activities on or under any land within the 
     boundaries of the State.
       (2) Federal land.--Notwithstanding any other provision of 
     law, the treatment of a well by the application of fluids 
     under pressure to which propping agents may be added for the 
     expressly designed purpose of initiating or propagating 
     fractures in a target geologic formation in order to enhance 
     production of oil, natural gas, or geothermal production 
     activities on Federal land shall be subject to the law of the 
     State in which the land is located.

                   PART II--MISCELLANEOUS PROVISIONS

     SEC. 5041. ENVIRONMENTAL LEGAL FEES.

       Section 504 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(g) Environmental Legal Fees.--Notwithstanding section 
     1304 of title 31, no award may be made under this section and 
     no amounts may be obligated or expended from the Claims and 
     Judgment Fund of the Treasury to pay any legal fees of a 
     nongovernmental organization related to an action that (with 
     respect to the United States)--
       ``(1) prevents, terminates, or reduces access to or the 
     production of--
       ``(A) energy;
       ``(B) a mineral resource;
       ``(C) water by agricultural producers;
       ``(D) a resource by commercial or recreational fishermen; 
     or
       ``(E) grazing or timber production on Federal land;
       ``(2) diminishes the private property value of a property 
     owner; or
       ``(3) eliminates or prevents 1 or more jobs.''.

     SEC. 5042. MASTER LEASING PLANS.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary of the Interior, acting through the Bureau 
     of Land Management, shall not establish a master leasing plan 
     as part of any guidance issued by the Secretary.
       (b) Existing Master Leasing Plans.--Instruction Memorandum 
     No. 2010-117 and any other master leasing plan described in 
     subsection (a) issued on or before the date of enactment of 
     this Act shall have no force or effect.

        TITLE VI--IMPROVING AMERICA'S DOMESTIC REFINING CAPACITY

                 Subtitle A--Refinery Permitting Reform

     SEC. 6001. FINDING.

       Congress finds that the domestic refining industry is an 
     important source of jobs and economic growth and whose growth 
     should not be limited by an excessively drawn out permitting 
     and approval process.

     SEC. 6002. DEFINITIONS.

       In this subtitle:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Expansion.--The term ``expansion'' means a physical 
     change that results in an increase in the capacity of a 
     refinery.
       (3) 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).
       (4) Permit.--The term ``permit'' means any permit, license, 
     approval, variance, or other form of authorization that a 
     refiner is required to obtain--
       (A) under any Federal law; or
       (B) from a State or tribal government agency delegated 
     authority by the Federal Government, or authorized under 
     Federal law, to issue permits.
       (5) Refiner.--The term ``refiner'' means a person that--
       (A) owns or operates a refinery; or
       (B) seeks to become an owner or operator of a refinery.
       (6) Refinery.--
       (A) In general.--The term ``refinery'' means--
       (i) a facility at which crude oil is refined into 
     transportation fuel or other petroleum products; and
       (ii) a coal liquification or coal-to-liquid facility at 
     which coal is processed into synthetic crude oil or any other 
     fuel.
       (B) Inclusion.--The term ``refinery'' includes an expansion 
     of a refinery.
       (7) Refinery permitting agreement.--The term ``refinery 
     permitting agreement'' means an agreement entered into 
     between the Administrator and a State or Indian tribe under 
     subsection (c).
       (8) State.--The term ``State'' means--
       (A) a State; and
       (B) the District of Columbia.

     SEC. 6003. STREAMLINING OF REFINERY PERMITTING PROCESS.

       (a) In General.--At the request of the Governor of a State 
     or the governing body of

[[Page S4815]]

     an Indian tribe, the Administrator shall enter into a 
     refinery permitting agreement with the State or Indian tribe 
     under which the process for obtaining all permits necessary 
     for the construction and operation of a refinery shall be 
     streamlined using a systematic, interdisciplinary multimedia 
     approach, as provided in this section.
       (b) Authority of Administrator.--Under a refinery 
     permitting agreement, the Administrator shall have the 
     authority, as applicable and necessary--
       (1) to accept from a refiner a consolidated application for 
     all permits that the refiner is required to obtain to 
     construct and operate a refinery;
       (2) in consultation and cooperation with each Federal, 
     State, or tribal government agency that is required to make 
     any determination to authorize the issuance of a permit, to 
     establish a schedule under which each agency shall--
       (A) concurrently consider, to the maximum extent 
     practicable, each determination to be made; and
       (B) complete each step in the permitting process; and
       (3) to issue a consolidated permit that combines all 
     permits issued under the schedule established under paragraph 
     (2).
       (c) Refinery Permitting Agreements.--Under a refinery 
     permitting agreement, a State or governing body of an Indian 
     tribe shall agree that--
       (1) the Administrator shall have each of the authorities 
     described in subsection (b); and
       (2) the State or tribal government agency shall--
       (A) in accordance with State law, make such structural and 
     operational changes in the agencies as are necessary to 
     enable the agencies to carry out consolidated, project-wide 
     permit reviews concurrently and in coordination with the 
     Environmental Protection Agency and other Federal agencies; 
     and
       (B) comply, to the maximum extent practicable, with the 
     applicable schedule established under subsection (b)(2).
       (d) Deadlines.--
       (1) New refineries.--In the case of a consolidated permit 
     for the construction of a new refinery, the Administrator and 
     the State or governing body of an Indian tribe shall approve 
     or disapprove the consolidated permit not later than--
       (A) 365 days after the date of receipt of an 
     administratively complete application for the consolidated 
     permit; or
       (B) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 90 days 
     after the expiration of the deadline described in 
     subparagraph (A).
       (2) Expansion of existing refineries.--In the case of a 
     consolidated permit for the expansion of an existing 
     refinery, the Administrator and the State or governing body 
     of an Indian tribe shall approve or disapprove the 
     consolidated permit not later than--
       (A) 120 days after the date of receipt of an 
     administratively complete application for the consolidated 
     permit; or
       (B) on agreement of the applicant, the Administrator, and 
     the State or governing body of the Indian tribe, 30 days 
     after the expiration of the deadline described in 
     subparagraph (A).
       (e) Federal Agencies.--Each Federal agency that is required 
     to make any determination to authorize the issuance of a 
     permit shall comply with the applicable schedule established 
     under subsection (b)(2).
       (f) Judicial Review.--Any civil action for review of a 
     permit determination under a refinery permitting agreement 
     shall be brought exclusively in the United States district 
     court for the district in which the refinery is located or 
     proposed to be located.
       (g) Efficient Permit Review.--In order to reduce the 
     duplication of procedures, the Administrator shall use State 
     permitting and monitoring procedures to satisfy substantially 
     equivalent Federal requirements under this subtitle.
       (h) Severability.--If 1 or more permits that are required 
     for the construction or operation of a refinery are not 
     approved on or before an applicable deadline under subsection 
     (d), the Administrator may issue a consolidated permit that 
     combines all other permits that the refiner is required to 
     obtain, other than any permits that are not approved.
       (i) Consultation With Local Governments.--The 
     Administrator, States, and tribal governments shall consult, 
     to the maximum extent practicable, with local governments in 
     carrying out this section.
       (j) Effect of Section.--Nothing in this section affects--
       (1) the operation or implementation of any otherwise 
     applicable law regarding permits necessary for the 
     construction and operation of a refinery;
       (2) the authority of any unit of local government with 
     respect to the issuance of permits; or
       (3) any requirement or ordinance of a local government 
     (such as a zoning regulation).

             Subtitle B--Repeal of Renewable Fuel Standard

     SEC. 6011. FINDINGS.

       Congress finds that the mandates under the renewable fuel 
     standard contained in section 211(o) of the Clean Air Act (42 
     U.S.C. 7545(o))--
       (1) impose significant costs on American citizens and the 
     American economy, without offering any benefit; and
       (2) should be repealed.

     SEC. 6012. PHASE OUT OF RENEWABLE FUEL STANDARD.

       (a) In General.--Section 211(o) of the Clean Air Act (42 
     U.S.C. 7545(o)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking clause (ii); and
       (ii) by redesignating clauses (iii) and (iv) as clauses 
     (ii) and (iii), respectively; and
       (B) in subparagraph (B), by striking clauses (ii) through 
     (v) and inserting the following:
       ``(ii) Calendar years 2014 through 2018.--Notwithstanding 
     clause (i), for purposes of subparagraph (A), the applicable 
     volumes of renewable fuel for each of calendar years 2014 
     through 2018 shall be determined as follows:

       ``(I) For calendar year 2014, in accordance with the table 
     entitled `I-2--Proposed 2014 Volume Requirements' of the 
     proposed rule published at pages 71732 through 71784 of 
     volume 78 of the Federal Register (November 29, 2013).
       ``(II) For calendar year 2015, the applicable volumes 
     established under subclause (I), reduced by 20 percent.
       ``(III) For calendar year 2016, the applicable volumes 
     established under subclause (I), reduced by 40 percent.
       ``(IV) For calendar year 2017, the applicable volumes 
     established under subclause (I), reduced by 60 percent.
       ``(V) For calendar year 2018, the applicable volumes 
     established under subclause (I), reduced by 80 percent.'';

       (2) in paragraph (3)--
       (A) by striking ``2021'' and inserting ``2017'' each place 
     it appears; and
       (B) in subparagraph (B)(i), by inserting ``, subject to the 
     condition that the renewable fuel obligation determined for a 
     calendar year is not more than the applicable volumes 
     established under paragraph (2)(B)(ii)'' before the period; 
     and
       (3) by adding at the end the following:
       ``(13) Sunset.--The program established under this 
     subsection shall terminate on December 31, 2018.''.
       (b) Regulations.--Effective beginning on January 1, 2019, 
     the regulations contained in subparts K and M of part 80 of 
     title 40, Code of Federal Regulations (as in effect on that 
     date of enactment), shall have no force or effect.

                   TITLE VII--STOPPING EPA OVERREACH

     SEC. 7001. FINDINGS.

       Congress finds that--
       (1) the Environmental Protection Agency has exceeded its 
     statutory authority by promulgating regulations that were not 
     contemplated by Congress in the authorizing language of the 
     statutes enacted by Congress;
       (2) no Federal agency has the authority to regulate 
     greenhouse gases under current law; and
       (3) no attempt to regulate greenhouse gases should be 
     undertaken without further Congressional action.

     SEC. 7002. CLARIFICATION OF FEDERAL REGULATORY AUTHORITY TO 
                   EXCLUDE GREENHOUSE GASES FROM REGULATION UNDER 
                   THE CLEAN AIR ACT.

       (a) Repeal of Federal Climate Change Regulation.--
       (1) Greenhouse gas regulation under clean air act.--Section 
     302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is amended--
       (A) by striking ``(g) The term'' and inserting the 
     following:
       ``(g) Air Pollutant.--
       ``(1) In general.--The term''; and
       (B) by adding at the end the following:
       ``(2) Exclusion.--The term `air pollutant' does not include 
     carbon dioxide, water vapor, methane, nitrous oxide, 
     hydrofluorocarbons, perfluorocarbons, or sulfur 
     hexafluoride.''.
       (2) No regulation of climate change.--Notwithstanding any 
     other provision of law, nothing in any of the following Acts 
     or any other law authorizes or requires the regulation of 
     climate change or global warming:
       (A) The Clean Air Act (42 U.S.C. 7401 et seq.).
       (B) The Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.).
       (C) The National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (D) The Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).
       (E) The Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).
       (b) Effect on Proposed Rules of the EPA.--In accordance 
     with this section, the following proposed or contemplated 
     rules (or any similar or successor rules) of the 
     Environmental Protection Agency shall be void and have no 
     force or effect:
       (1) The proposed rule entitled ``Standards of Performance 
     for Greenhouse Gas Emissions From New Stationary Sources: 
     Electric Utility Generating Units'' (published at 79 Fed. 
     Reg. 1430 (January 8, 2014)).
       (2) The contemplated rules on carbon pollution for existing 
     power plants.
       (3) Any other contemplated or proposed rules proposed to be 
     issued pursuant to the purported authority described in 
     subsection (a)(2).

     SEC. 7003. JOBS ANALYSIS FOR ALL EPA REGULATIONS.

       (a) In General.--Before proposing or finalizing any 
     regulation, rule, or policy, the Administrator of the 
     Environmental Protection Agency shall provide an analysis of 
     the regulation, rule, or policy and describe the direct and 
     indirect net and gross impact of the regulation, rule, or 
     policy on employment in the United States.
       (b) Limitation.--No regulation, rule, or policy described 
     in subsection (a) shall take effect if the regulation, rule, 
     or policy has a

[[Page S4816]]

     negative impact on employment in the United States unless the 
     regulation, rule, or policy is approved by Congress and 
     signed by the President.

                     TITLE VIII--DEBT FREEDOM FUND

     SEC. 8001. FINDINGS.

       Congress finds that--
       (1) the national debt being over $17,000,000,000,000 in 
     2014--
       (A) threatens the current and future prosperity of the 
     United States;
       (B) undermines the national security interests of the 
     United States; and
       (C) imposes a burden on future generations of United States 
     citizens; and
       (2) revenue generated from the development of the natural 
     resources in the United States should be used to reduce the 
     national debt.

     SEC. 8002. DEBT FREEDOM FUND.

       Notwithstanding any other provision of law, in accordance 
     with all revenue sharing arrangement with States in effect on 
     the date of enactment of this Act, an amount equal to the 
     additional amount of Federal funds generated by the programs 
     and activities under this division (and the amendments made 
     by this division)--
       (1) shall be deposited in a special trust fund account in 
     the Treasury, to be known as the ``Debt Freedom Fund''; and
       (2) shall not be withdrawn for any purpose other than to 
     pay down the national debt of the United States, for which 
     purpose payments shall be made expeditiously.
                                 ______
                                 
  SA 3607. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:
       At the appropriate place, insert the following:

                          TITLE __--REINS ACT

     SECTION _01. SHORT TITLE.

       This title may be cited as the ``Regulations From the 
     Executive in Need of Scrutiny Act of 2014'' or the ``REINS 
     Act''.

     SEC. _02. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Section 1 of article I of the United States 
     Constitution grants all legislative powers to Congress.
       (2) Over time, Congress has excessively delegated its 
     constitutional charge while failing to conduct appropriate 
     oversight and retain accountability for the content of the 
     laws it passes.
       (3) By requiring a vote in Congress, the REINS Act will 
     result in more carefully drafted and detailed legislation, an 
     improved regulatory process, and a legislative branch that is 
     truly accountable to the people of the United States for the 
     laws imposed upon them.
       (b) Purpose.--The purpose of this title is to increase 
     accountability for and transparency in the Federal regulatory 
     process.

     SEC. _03. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.

       Chapter 8 of title 5, United States Code, is amended to 
     read as follows:

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

``Sec.
``801. Congressional review.
``802. Congressional approval procedure for major rules.
``803. Congressional disapproval procedure for nonmajor rules.
``804. Definitions.
``805. Judicial review.
``806. Exemption for monetary policy.
``807. Effective date of certain rules.

     ``Sec. 801. Congressional review

       ``(a)(1)(A) Before a rule may take effect, the Federal 
     agency promulgating such rule shall submit to each House of 
     Congress and to the Comptroller General a report containing--
       ``(i) a copy of the rule;
       ``(ii) a concise general statement relating to the rule;
       ``(iii) a classification of the rule as a major or nonmajor 
     rule, including an explanation of the classification 
     specifically addressing each criteria for a major rule 
     contained within sections 804(2)(A), 804(2)(B), and 
     804(2)(C);
       ``(iv) a list of any other related regulatory actions 
     intended to implement the same statutory provision or 
     regulatory objective as well as the individual and aggregate 
     economic effects of those actions; and
       ``(v) the proposed effective date of the rule.
       ``(B) On the date of the submission of the report under 
     subparagraph (A), the Federal agency promulgating the rule 
     shall submit to the Comptroller General and make available to 
     each House of Congress--
       ``(i) a complete copy of the cost-benefit analysis of the 
     rule, if any;
       ``(ii) the actions of the agency pursuant to sections 603, 
     604, 605, 607, and 609 of title 5, United States Code;
       ``(iii) the actions of the agency pursuant to sections 
     1532, 1533, 1534, and 1535 of title 2, United States Code; 
     and
       ``(iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders.
       ``(C) Upon receipt of a report submitted under subparagraph 
     (A), each House shall provide copies of the report to the 
     chairman and ranking member of each standing committee with 
     jurisdiction under the rules of the House of Representatives 
     or the Senate to report a bill to amend the provision of law 
     under which the rule is issued.
       ``(2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction by the end 
     of 15 calendar days after the submission or publication date 
     as provided in section 802(b)(2). The report of the 
     Comptroller General shall include an assessment of compliance 
     by the agency with procedural steps required by paragraph 
     (1)(B).
       ``(B) Federal agencies shall cooperate with the Comptroller 
     General by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       ``(3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect upon enactment of a joint 
     resolution of approval described in section 802 or as 
     provided for in the rule following enactment of a joint 
     resolution of approval described in section 802, whichever is 
     later.
       ``(4) A nonmajor rule shall take effect as provided by 
     section 803 after submission to Congress under paragraph (1).
       ``(5) If a joint resolution of approval relating to a major 
     rule is not enacted within the period provided in subsection 
     (b)(2), then a joint resolution of approval relating to the 
     same rule may not be considered under this chapter in the 
     same Congress by either the House of Representatives or the 
     Senate.
       ``(b)(1) A major rule shall not take effect unless the 
     Congress enacts a joint resolution of approval described 
     under section 802.
       ``(2) If a joint resolution described in subsection (a) is 
     not enacted into law by the end of 70 session days or 
     legislative days, as applicable, beginning on the date on 
     which the report referred to in section 801(a)(1)(A) is 
     received by Congress (excluding days either House of Congress 
     is adjourned for more than 3 days during a session of 
     Congress), then the rule described in that resolution shall 
     be deemed not to be approved and such rule shall not take 
     effect.
       ``(c)(1) Notwithstanding any other provision of this 
     section (except subject to paragraph (3)), a major rule may 
     take effect for one 90-calendar-day period if the President 
     makes a determination under paragraph (2) and submits written 
     notice of such determination to the Congress.
       ``(2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the major rule should take 
     effect because such rule is--
       ``(A) necessary because of an imminent threat to health or 
     safety or other emergency;
       ``(B) necessary for the enforcement of criminal laws;
       ``(C) necessary for national security; or
       ``(D) issued pursuant to any statute implementing an 
     international trade agreement.
       ``(3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 802.
       ``(d)(1) In addition to the opportunity for review 
     otherwise provided under this chapter, sections 802 and 803 
     shall apply, in the succeeding session of Congress, to any 
     rule for which a report was submitted in accordance with 
     subsection (a)(1)(A) during the period beginning on the date 
     occurring--
       ``(A) in the case of the Senate, 60 session days before the 
     date the Congress is scheduled to adjourn a session of 
     Congress through the date on which the same or succeeding 
     Congress first convenes its next session; or
       ``(B) in the case of the House of Representatives, 60 
     legislative days before the date the Congress is scheduled to 
     adjourn a session of Congress through the date on which the 
     same or succeeding Congress first convenes its next session.
       ``(2)(A) In applying sections 802 and 803 for purposes of 
     such additional review, a rule described under paragraph (1) 
     shall be treated as though--
       ``(i) such rule were published in the Federal Register on--
       ``(I) in the case of the Senate, the 15th session day after 
     the succeeding session of Congress first convenes; or
       ``(II) in the case of the House of Representatives, the 
     15th legislative day after the succeeding session of Congress 
     first convenes; and
       ``(ii) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(B) Nothing in this paragraph shall be construed to 
     affect the requirement under subsection (a)(1) that a report 
     shall be submitted to Congress before a rule can take effect.
       ``(3) A rule described under paragraph (1) shall take 
     effect as otherwise provided by law (including other 
     subsections of this section).

     ``Sec. 802. Congressional approval procedure for major rules

       ``(a)(1) For purposes of this section, the term `joint 
     resolution' means only a joint resolution addressing a report 
     classifying a rule as major pursuant to section 
     801(a)(1)(A)(iii) that--
       ``(A) bears no preamble;
       ``(B) bears the following title: `Approving the rule 
     submitted by ___ relating to ___.' (The blank spaces being 
     appropriately filled in);
       ``(C) includes after its resolving clause only the 
     following: `That Congress approves the rule submitted by ___ 
     relating to ___.' (The blank spaces being appropriately 
     filled in); and
       ``(D) is introduced pursuant to paragraph (2).

[[Page S4817]]

       ``(2) After a House of Congress receives a report 
     classifying a rule as major pursuant to section 
     801(a)(1)(A)(iii), the majority leader of that House (or the 
     designee of the majority leader) shall introduce (by request, 
     if appropriate) a joint resolution described in paragraph 
     (1)--
       ``(A) in the case of the House of Representatives, within 3 
     legislative days; and
       ``(B) in the case of the Senate, within 3 session days.
       ``(3) A joint resolution described in paragraph (1) shall 
     not be subject to amendment at any stage of proceeding.
       ``(b) A joint resolution described in subsection (a) shall 
     be referred in each House of Congress to the committees 
     having jurisdiction over the provision of law under which the 
     rule is issued.
       ``(c) In the Senate, if the committee or committees to 
     which a joint resolution described in subsection (a) has been 
     referred have not reported it at the end of 15 session days 
     after its introduction, such committee or committees shall be 
     automatically discharged from further consideration of the 
     resolution and it shall be placed on the calendar. A vote on 
     final passage of the resolution shall be taken on or before 
     the close of the 15th session day after the resolution is 
     reported by the committee or committees to which it was 
     referred, or after such committee or committees have been 
     discharged from further consideration of the resolution.
       ``(d)(1) In the Senate, when the committee or committees to 
     which a joint resolution is referred have reported, or when a 
     committee or committees are discharged (under subsection (c)) 
     from further consideration of a joint resolution described in 
     subsection (a), it is at any time thereafter in order (even 
     though a previous motion to the same effect has been 
     disagreed to) for a motion to proceed to the consideration of 
     the joint resolution, and all points of order against the 
     joint resolution (and against consideration of the joint 
     resolution) are waived. The motion is not subject to 
     amendment, or to a motion to postpone, or to a motion to 
     proceed to the consideration of other business. A motion to 
     reconsider the vote by which the motion is agreed to or 
     disagreed to shall not be in order. If a motion to proceed to 
     the consideration of the joint resolution is agreed to, the 
     joint resolution shall remain the unfinished business of the 
     Senate until disposed of.
       ``(2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 2 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       ``(3) In the Senate, immediately following the conclusion 
     of the debate on a joint resolution described in subsection 
     (a), and a single quorum call at the conclusion of the debate 
     if requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       ``(4) Appeals from the decisions of the Chair relating to 
     the application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       ``(e) In the House of Representatives, if the committee or 
     committees to which a joint resolution described in 
     subsection (a) has been referred has not reported it to the 
     House at the end of 15 legislative days after its 
     introduction, such committee or committees shall be 
     discharged from further consideration of the joint 
     resolution, and it shall be placed on the appropriate 
     calendar. On the second and fourth Thursdays of each month it 
     shall be in order at any time for the Speaker to recognize a 
     Member who favors passage of a joint resolution that has 
     appeared on the calendar for not fewer than 5 legislative 
     days to call up the joint resolution for immediate 
     consideration in the House without intervention of any point 
     of order. When so called up, a joint resolution shall be 
     considered as read and shall be debatable for 1 hour equally 
     divided and controlled by the proponent and an opponent, and 
     the previous question shall be considered as ordered to its 
     passage without intervening motion. It shall not be in order 
     to reconsider the vote on passage. If a vote on final passage 
     of the joint resolution has not been taken by the third 
     Thursday on which the Speaker may recognize a Member under 
     this subsection, such vote shall be taken on that day.
       ``(f)(1) For purposes of this subsection, the term 
     `identical joint resolution' means a joint resolution of the 
     first House that proposes to approve the same major rule as a 
     joint resolution of the second House.
       ``(2) If the second House receives from the first House a 
     joint resolution, the Chair shall determine whether the joint 
     resolution is an identical joint resolution.
       ``(3) If the second House receives an identical joint 
     resolution--
       ``(A) the identical joint resolution shall not be referred 
     to a committee; and
       ``(B) the procedure in the second House shall be the same 
     as if no joint resolution had been received from the first 
     house, except that the vote on final passage shall be on the 
     identical joint resolution.
       ``(4) This subsection shall not apply to the House of 
     Representatives if the joint resolution received from the 
     Senate is a revenue measure.
       ``(g) If either House has not taken a vote on final passage 
     of the joint resolution by the last day of the period 
     described in section 801(b)(2), then such vote shall be taken 
     on that day.
       ``(h) This section and section 803 are enacted by 
     Congress--
       ``(1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such is 
     deemed to be part of the rules of each House, respectively, 
     but applicable only with respect to the procedure to be 
     followed in that House in the case of a joint resolution 
     described in subsection (a) and superseding other rules only 
     where explicitly so; and
       ``(2) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner 
     and to the same extent as in the case of any other rule of 
     that House.

     ``Sec. 803. Congressional disapproval procedure for nonmajor 
       rules

       ``(a) For purposes of this section, the term `joint 
     resolution' means only a joint resolution introduced in the 
     period beginning on the date on which the report referred to 
     in section 801(a)(1)(A) is received by Congress and ending 60 
     days thereafter (excluding days either House of Congress is 
     adjourned for more than 3 days during a session of Congress), 
     the matter after the resolving clause of which is as follows: 
     `That Congress disapproves the nonmajor rule submitted by the 
     ___ relating to ___, and such rule shall have no force or 
     effect.' (The blank spaces being appropriately filled in).
       ``(b)(1) A joint resolution described in subsection (a) 
     shall be referred to the committees in each House of Congress 
     with jurisdiction.
       ``(2) For purposes of this section, the term `submission or 
     publication date' means the later of the date on which--
       ``(A) the Congress receives the report submitted under 
     section 801(a)(1); or
       ``(B) the nonmajor rule is published in the Federal 
     Register, if so published.
       ``(c) In the Senate, if the committee to which is referred 
     a joint resolution described in subsection (a) has not 
     reported such joint resolution (or an identical joint 
     resolution) at the end of 15 session days after the date of 
     introduction of the joint resolution, such committee may be 
     discharged from further consideration of such joint 
     resolution upon a petition supported in writing by 30 Members 
     of the Senate, and such joint resolution shall be placed on 
     the calendar.
       ``(d)(1) In the Senate, when the committee to which a joint 
     resolution is referred has reported, or when a committee is 
     discharged (under subsection (c)) from further consideration 
     of a joint resolution described in subsection (a), it is at 
     any time thereafter in order (even though a previous motion 
     to the same effect has been disagreed to) for a motion to 
     proceed to the consideration of the joint resolution, and all 
     points of order against the joint resolution (and against 
     consideration of the joint resolution) are waived. The motion 
     is not subject to amendment, or to a motion to postpone, or 
     to a motion to proceed to the consideration of other 
     business. A motion to reconsider the vote by which the motion 
     is agreed to or disagreed to shall not be in order. If a 
     motion to proceed to the consideration of the joint 
     resolution is agreed to, the joint resolution shall remain 
     the unfinished business of the Senate until disposed of.
       ``(2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       ``(3) In the Senate, immediately following the conclusion 
     of the debate on a joint resolution described in subsection 
     (a), and a single quorum call at the conclusion of the debate 
     if requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       ``(4) Appeals from the decisions of the Chair relating to 
     the application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       ``(e) In the Senate the procedure specified in subsection 
     (c) or (d) shall not apply to the consideration of a joint 
     resolution respecting a nonmajor rule--
       ``(1) after the expiration of the 60 session days beginning 
     with the applicable submission or publication date, or
       ``(2) if the report under section 801(a)(1)(A) was 
     submitted during the period referred to in section 801(d)(1), 
     after the expiration of the 60 session days beginning on the 
     15th session day after the succeeding session of Congress 
     first convenes.
       ``(f) If, before the passage by one House of a joint 
     resolution of that House described in subsection (a), that 
     House receives from the other House a joint resolution 
     described in subsection (a), then the following procedures 
     shall apply:
       ``(1) The joint resolution of the other House shall not be 
     referred to a committee.
       ``(2) With respect to a joint resolution described in 
     subsection (a) of the House receiving the joint resolution--
       ``(A) the procedure in that House shall be the same as if 
     no joint resolution had been received from the other House; 
     but

[[Page S4818]]

       ``(B) the vote on final passage shall be on the joint 
     resolution of the other House.

     ``Sec. 804. Definitions

       ``For purposes of this chapter--
       ``(1) the term `Federal agency' means any agency as that 
     term is defined in section 551(1);
       ``(2) the term `major rule' means any rule, including an 
     interim final rule, that the Administrator of the Office of 
     Information and Regulatory Affairs of the Office of 
     Management and Budget finds has resulted in or is likely to 
     result in--
       ``(A) an annual effect on the economy of $100,000,000 or 
     more;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions; or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets;
       ``(3) the term `nonmajor rule' means any rule that is not a 
     major rule; and
       ``(4) the term `rule' has the meaning given such term in 
     section 551, except that such term does not include--
       ``(A) any rule of particular applicability, including a 
     rule that approves or prescribes for the future rates, wages, 
     prices, services, or allowances therefore, corporate or 
     financial structures, reorganizations, mergers, or 
     acquisitions thereof, or accounting practices or disclosures 
     bearing on any of the foregoing;
       ``(B) any rule relating to agency management or personnel; 
     or
       ``(C) any rule of agency organization, procedure, or 
     practice that does not substantially affect the rights or 
     obligations of non-agency parties.

     ``Sec. 805. Judicial review

       ``(a) No determination, finding, action, or omission under 
     this chapter shall be subject to judicial review.
       ``(b) Notwithstanding subsection (a), a court may determine 
     whether a Federal agency has completed the necessary 
     requirements under this chapter for a rule to take effect.
       ``(c) The enactment of a joint resolution of approval under 
     section 802 shall not--
       ``(1) be interpreted to serve as a grant or modification of 
     statutory authority by Congress for the promulgation of a 
     rule;
       ``(2) extinguish or affect any claim, whether substantive 
     or procedural, against any alleged defect in a rule; and
       ``(3) form part of the record before the court in any 
     judicial proceeding concerning a rule except for purposes of 
     determining whether or not the rule is in effect.

     ``Sec. 806. Exemption for monetary policy

       ``Nothing in this chapter shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.

     ``Sec. 807. Effective date of certain rules

       ``Notwithstanding section 801--
       ``(1) any rule that establishes, modifies, opens, closes, 
     or conducts a regulatory program for a commercial, 
     recreational, or subsistence activity related to hunting, 
     fishing, or camping; or
       ``(2) any rule other than a major rule which an agency for 
     good cause finds (and incorporates the finding and a brief 
     statement of reasons therefore in the rule issued) that 
     notice and public procedure thereon are impracticable, 
     unnecessary, or contrary to the public interest,

     shall take effect at such time as the Federal agency 
     promulgating the rule determines.''.

     SEC. _04. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 802 
                   OF TITLE 5, UNITED STATES CODE.

       Section 257(b)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 907(b)(2)) is amended 
     by adding at the end the following:
       ``(E) Any rules subject to the congressional approval 
     procedure set forth in section 802 of chapter 8 of title 5, 
     United States Code, affecting budget authority, outlays, or 
     receipts shall be assumed to be effective unless it is not 
     approved in accordance with such section.''.
                                 ______
                                 
  SA 3608. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF 
                   GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

       (a) In General.--Notwithstanding section 714 of title 31, 
     United States Code, or any other provision of law, an audit 
     of the Board of Governors of the Federal Reserve System and 
     the Federal reserve banks under subsection (b) of such 
     section 714 shall be completed within 12 months of the date 
     of enactment of this Act.
       (b) Report.--
       (1) In general.--A report on the audit required under 
     subsection (a) shall be submitted by the Comptroller General 
     to the Congress before the end of the 90-day period beginning 
     on the date on which such audit is completed and made 
     available to the Speaker of the House, the majority and 
     minority leaders of the House of Representatives, the 
     majority and minority leaders of the Senate, the Chairman and 
     Ranking Member of the committee and each subcommittee of 
     jurisdiction in the House of Representatives and the Senate, 
     and any other Member of Congress who requests it.
       (2) Contents.--The report under paragraph (1) shall include 
     a detailed description of the findings and conclusion of the 
     Comptroller General with respect to the audit that is the 
     subject of the report, together with such recommendations for 
     legislative or administrative action as the Comptroller 
     General may determine to be appropriate.
       (c) Repeal of Certain Limitations.--Subsection (b) of 
     section 714 of title 31, United States Code, is amended by 
     striking all after ``in writing.''.
       (d) Technical and Conforming Amendment.--Section 714 of 
     title 31, United States Code, is amended by striking 
     subsection (f).

     SEC. ___. AUDIT OF LOAN FILE REVIEWS REQUIRED BY ENFORCEMENT 
                   ACTIONS.

       (a) In General.--The Comptroller General of the United 
     States shall conduct an audit of the review of loan files of 
     homeowners in foreclosure in 2009 or 2010, required as part 
     of the enforcement actions taken by the Board of Governors of 
     the Federal Reserve System against supervised financial 
     institutions.
       (b) Content of Audit.--The audit carried out pursuant to 
     subsection (a) shall consider, at a minimum--
       (1) the guidance given by the Board of Governors of the 
     Federal Reserve System to independent consultants retained by 
     the supervised financial institutions regarding the 
     procedures to be followed in conducting the file reviews;
       (2) the factors considered by independent consultants when 
     evaluating loan files;
       (3) the results obtained by the independent consultants 
     pursuant to those reviews;
       (4) the determinations made by the independent consultants 
     regarding the nature and extent of financial injury sustained 
     by each homeowner as well as the level and type of 
     remediation offered to each homeowner; and
       (5) the specific measures taken by the independent 
     consultants to verify, confirm, or rebut the assertions and 
     representations made by supervised financial institutions 
     regarding the contents of loan files and the extent of 
     financial injury to homeowners.
       (c) Report.--Not later than the end of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General shall issue a report to the Congress 
     containing all findings and determinations made in carrying 
     out the audit required under subsection (a).
                                 ______
                                 
  SA 3609. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. NATIONAL RIGHT-TO-WORK.

       (a) Amendments to the National Labor Relations Act.--
       (1) Rights of employees.--Section 7 of the National Labor 
     Relations Act (29 U.S.C. 157) is amended by striking ``except 
     to'' and all that follows through ``authorized in section 
     8(a)(3)''.
       (2) Unfair labor practices.--Section 8 of the National 
     Labor Relations Act (29 U.S.C. 158) is amended--
       (A) in subsection (a)(3), by striking ``: Provided, That'' 
     and all that follows through ``retaining membership'';
       (B) in subsection (b)--
       (i) in paragraph (2), by striking ``or to discriminate'' 
     and all that follows through ``retaining membership''; and
       (ii) in paragraph (5), by striking ``covered by an 
     agreement authorized under subsection (a)(3) of this 
     section''; and
       (C) in subsection (f), by striking clause (2) and 
     redesignating clauses (3) and (4) as clauses (2) and (3), 
     respectively.
       (b) Amendment to the Railway Labor Act.--Section 2 of the 
     Railway Labor Act (45 U.S.C. 152) is amended by striking 
     paragraph Eleven.
                                 ______
                                 
  SA 3610. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PROTECTING SMALL BUSINESS JOBS.

       Section 558 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(d) Before any enforcement action is taken on a sanction 
     on a business for a violation of a rule or pursuant to an 
     adjudication, and subject to subsection (e) and (f), an 
     agency shall--
       ``(1) not later than 10 business days after the date on 
     which the agency determines that the sanction may be imposed 
     on the business, provide notice to the business that, if the 
     business is a small business, the small business may be 
     subject to a sanction at the end of the grace period 
     described in paragraph (3);
       ``(2) delay any further action relating to the sanction 
     until the end of the 15-calendar day period beginning on the 
     date on which

[[Page S4819]]

     the agency provides notice under paragraph (1);
       ``(3) for a small business--
       ``(A) delay any further action relating to the sanction 
     until not earlier than the end of the 6-month period 
     beginning on the date on which the agency provides notice 
     under paragraph (1); and
       ``(B) upon application by the small business demonstrating 
     reasonable efforts made in good faith to remedy the violation 
     or other conduct giving rise to the sanction, extending the 
     period under subparagraph (A) by 3 months;
       ``(4) after the end of the period described in paragraph 
     (3), redetermine whether, as of the day after the end of the 
     period, the small business would still be subject to the 
     sanction; and
       ``(5) if the agency determines under paragraph (4) that the 
     small business would not be subject to the sanction, waive 
     the sanction.
       ``(e) If an agency provides notice described in subsection 
     (d)(1) to a business on or after the date that is 11 business 
     days after the date on which the agency determines that a 
     sanction may be imposed on the business--
       ``(1) if the agency determines that the same sanction may 
     have been imposed on the business 10 business days before the 
     date of the notice, the agency shall take further action in 
     accordance with subsection (d); and
       ``(2) if the agency determines that the same sanction could 
     not have been imposed on the business 10 business days before 
     the date of the notice, the agency shall waive the sanction 
     and take no further action relating to imposition of the 
     sanction.
       ``(f) The period during which further action is delayed 
     under subsection (d)--
       ``(1) shall apply to a business only 1 time in relation to 
     any single rule;
       ``(2) until the end of such period, as determined in 
     accordance with subsection (d), shall apply to action by the 
     agency relating to any subsequent violation of the same rule; 
     and
       ``(3) shall not apply to a violation that puts any person 
     in imminent danger, within the meaning given that term under 
     section 13 of the Occupational Safety and Health Act (29 
     U.S.C. 662).
       ``(g) Nothing in subsection (d) shall be construed to 
     prevent a small business from appealing any sanction imposed 
     in accordance with the procedures of the agency, or from 
     seeking review under chapter 7.
       ``(h) Any sanction imposed by an agency on a small business 
     for any violation of a rule or pursuant to an adjudication, 
     absent proof of written notice of the sanction and the date 
     on which the agency determined that a sanction may be 
     imposed, or in violation of subsection (d)(3), shall have no 
     force or effect.
       ``(i) Each Federal agency shall submit to the Ombudsman an 
     annual report on the implementation of subsection (d), 
     including a discussion of the deferral of action relating to 
     and waiver of sanctions on small businesses.
       ``(j) The Ombudsman shall include in the annual report to 
     Congress required under section 30(b)(2)(C) of the Small 
     Business Act (15 U.S.C. 657(b)(2)(C)) the agency reports 
     described by subsection (i) and a summary of the findings.
       ``(k) For purposes of this section--
       ``(1) the term `consumer price index' means the consumer 
     price index for all urban consumers published by the 
     Department of Labor;
       ``(2) the term `CPI adjusted gross receipts' means the 
     amount of gross receipts, divided by the consumer price index 
     for calendar year 2012, and multiplied by the consumer price 
     index for the preceding calendar year, rounded to the nearest 
     multiple of $100,000 (or, if midway between multiples of 
     $100,000, to the next higher multiple of $100,000);
       ``(3) the term `Ombudsman' has the same meaning given such 
     term in section 30(a) of the Small Business Act (15 U.S.C. 
     657(a)); and
       ``(4) term `small business' means any sole proprietorship, 
     partnership, corporation, limited liability company, or other 
     business entity, that--
       ``(A) had less than $10,000,000 in gross receipts in the 
     preceding calendar year;
       ``(B) is considered a small-business concern (as defined 
     under section 3(a) of the Small Business Act (15 U.S.C. 
     632(a));
       ``(C) employed fewer than 200 individuals in the preceding 
     calendar year; or
       ``(D) had CPI adjusted gross receipts of less than 
     $10,000,000 in the preceding calendar year.''.
                                 ______
                                 
  SA 3611. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                    DIVISION--ECONOMIC FREEDOM ZONES

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Economic Freedom Zones Act of 2014''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

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

          TITLE I--PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS

Sec. 101. Prohibition of Federal Government bailouts.

         TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)

Sec. 201. Eligibility requirements for Economic Freedom Zone Status.
Sec. 202. Application and duration of designation.

                   TITLE III--FEDERAL TAX INCENTIVES

Sec. 301. Tax incentives related to Economic Freedom Zones.

                TITLE IV--FEDERAL REGULATORY REDUCTIONS

Sec. 401. Suspension of certain laws and regulations.

                   TITLE V--EDUCATIONAL ENHANCEMENTS

Sec. 501. Educational opportunity tax credit.
Sec. 502. School choice through portability.
Sec. 503. Special economic freedom zone visas.
Sec. 504. Economic Freedom Zone educational savings accounts.

             TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING

Sec. 601. Nonapplication of Davis-Bacon.
Sec. 602. Economic Freedom Zone charitable tax credit.

         TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS

Sec. 701. Sense of the Senate concerning policy recommendations.

     SEC. 2. DEFINITIONS.

       In this division:
       (1) City.--The term ``city'' means any unit of general 
     local government that is classified as a municipality by the 
     United States Census Bureau, or is a town or township as 
     determined jointly by the Director of the Office of 
     Management and Budget and the Secretary.
       (2) County.--The term ``county'' means any unit of local 
     general government that is classified as a county by the 
     United States Census Bureau.
       (3) Eligible entity.--The term ``eligible entity'' means a 
     municipality or a zip code.
       (4) Municipality.--The term ``municipality'' has the 
     meaning given that term in section 101(40) of title 11, 
     United States Code.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (6) Zip code.--The term ``zip code'' means any area or 
     region associated with or covered by a United States Postal 
     zip code of not less than 5 digits.

          TITLE I--PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS

     SEC. 101. PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS.

       (a) Definitions.--In this section--
       (1) the term ``credit rating'' has the meaning given that 
     term in section 3(a)(60) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78c(a)(60));
       (2) the term ``credit rating agency'' has the meaning given 
     that term in section 3(a)(61) of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78c(a)(61));
       (3) the term ``Federal assistance'' means the use of any 
     advances from the Federal Reserve credit facility or discount 
     window that is not part of a program or facility with broad-
     based eligibility under section 13(3)(A) of the Federal 
     Reserve Act (12 U.S.C. 343(3)(A)), Federal Deposit Insurance 
     Corporation insurance, or guarantees for the purpose of--
       (A) making a loan to, or purchasing any interest or debt 
     obligation of, a municipality;
       (B) purchasing the assets of a municipality;
       (C) guaranteeing a loan or debt issuance of a municipality; 
     or
       (D) entering into an assistance arrangement, including a 
     grant program, with an eligible entity;
       (4) the term ``insolvent'' means, with respect to an 
     eligible entity, a financial condition such that the eligible 
     entity--
       (A) has any debt that has been given a credit rating lower 
     than a ``B'' by a nationally recognized statistical rating 
     organization or a credit rating agency;
       (B) is not paying its debts as they become due, unless such 
     debts are the subject of a bona fide dispute; or
       (C) is unable to pay its debts as they become due; and
       (5) the term ``nationally recognized statistical rating 
     organization'' has the meaning given that term in section 
     3(a)(62) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78c(a)(62)).
       (b) Prohibition of Federal Government Bailouts.--
       (1) Prohibition of federal assistance.--Notwithstanding any 
     other provision of law, no Federal assistance may be provided 
     to an eligible entity (other than the assistance provided for 
     in this division for an area that is designated as an 
     Economic Free Zone).
       (2) Prohibition of financial assistance to bankrupt or 
     insolvent eligible entities.--Except as provided in paragraph 
     (1), the Federal Government may not provide financial 
     assistance--
       (A) to a municipality that is a debtor under chapter 9 of 
     title 11, United States Code; or
       (B) to a municipality that is insolvent.

         TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)

     SEC. 201. ELIGIBILITY REQUIREMENTS FOR ECONOMIC FREEDOM ZONE 
                   STATUS.

       (a) Designation of Municipalities as Economic Freedom 
     Zones.--
       (1) In general.--An eligible entity that is a municipality 
     may be designated by the

[[Page S4820]]

     Secretary as an Economic Freedom Zone if the municipality--
       (A) meets the requirements under section 109(c) of title 
     11, United States Code; or
       (B) is at risk of insolvency, as determined under paragraph 
     (2).
       (2) At risk of insolvency.--A municipality is at risk of 
     insolvency if--
       (A) an independent actuarial firm that has been engaged by 
     the municipality and that does not have a conflict of 
     interest with the municipality, including any previous 
     relationship with the municipality, as determined by the 
     Secretary--
       (i) determines that the municipality is insolvent (as 
     defined in section 101(a)(4) of title 11, United States 
     Code); and
       (ii) submits its analysis regarding the insolvency of the 
     municipality to the Secretary; and
       (B) the Secretary has reviewed and approved the 
     determination of insolvency by the actuarial firm.
       (b) Designation of Counties, Cities, and Zip Codes as 
     Economic Freedom Zones.--
       (1) In general.--An eligible entity may be designated by 
     the Secretary as an Economic Freedom Zone if the eligible 
     entity--
       (A) is a county or city that--
       (i) is located in a non-metropolitan statistical area (as 
     defined by the Director of the Office of Management and 
     Budget); and
       (ii) meets the requirements under paragraph (2); or
       (B) is a zip code that meets the requirements under 
     paragraph (2).
       (2) Low economic and high poverty area.--
       (A) In general.--An eligible entity shall be eligible for 
     designation as an Economic Freedom Zone under paragraph (1) 
     if the eligible entity is designated by the Secretary as a 
     low economic or high poverty area under subparagraph (B).
       (B) Designation as low economic and high poverty area.--The 
     Secretary, after reviewing supporting data as determined 
     appropriate, shall designate an eligible entity as a low 
     economic or high poverty area if--
       (i) the State or local government with jurisdiction over 
     the eligible entity certifies that--

       (I) the eligible entity is one of pervasive poverty, 
     unemployment, and general distress;
       (II) the average rate of unemployment within such eligible 
     entity during the most recent 3-month period for which data 
     is available is at least 1.5 times the national unemployment 
     rate for the period involved;
       (III) during the most recent 3-month period, at least 30 
     percent of the residents of the eligible entity have incomes 
     below the national poverty level; or
       (IV) at least 70 percent of the residents of the eligible 
     have incomes below 80 percent of the median income of 
     households within the jurisdiction of the local government 
     (as determined in the same manner as under section 119(b)(2) 
     of the Housing and Community Development Act of 1974); and

       (ii) the Secretary determines that such a designation is 
     appropriate.
       (c) Refusal to Grant Status.--The Secretary may refuse to 
     designate an eligible entity as an Economic Freedom Zone if 
     the Secretary determines that any requirement under this 
     division, including any requirement under subsection (a)(2), 
     has not been satisfied.

     SEC. 202. APPLICATION AND DURATION OF DESIGNATION.

       (a) Application.--The Secretary shall develop procedures to 
     enable an eligible entity to submit to the Secretary an 
     application for designation as an Economic Freedom Zone under 
     this title.
       (b) Duration.--The designation by the Secretary of an 
     eligible entity as a Economic Freedom Zone shall be for a 
     period of 10 years.

                   TITLE III--FEDERAL TAX INCENTIVES

     SEC. 301. TAX INCENTIVES RELATED TO ECONOMIC FREEDOM ZONES.

       (a) In General.--Chapter 1 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subchapter:

                 ``Subchapter Z--Economic Freedom Zones

                        ``PART I--Tax Incentives

                         ``PART II--Definitions

                        ``PART I--TAX INCENTIVES

``Sec. 1400V-1. Economic Freedom Zone individual flat tax.
``Sec. 1400V-2. Economic Freedom Zone corporate flat tax.
``Sec. 1400V-3. Zero percent capital gains rate.
``Sec. 1400V-4. Reduced payroll taxes.
``Sec. 1400V-5. Increase in expensing under section 179.

     ``SEC. 1400V-1. ECONOMIC FREEDOM ZONE INDIVIDUAL FLAT TAX.

       ``(a) In General.--In the case of any individual whose 
     principal residence (within the meaning of section 121) is 
     located in an Economic Freedom Zone for the taxable year, in 
     lieu of the tax imposed by section 1, there shall be imposed 
     a tax equal to 5 percent of the taxable income of such 
     taxpayer. For purposes of this title, the tax imposed by the 
     preceding sentence shall be treated as a tax imposed by 
     section 1.
       ``(b) Joint Returns.--In the case of a joint return under 
     section 6013, subsection (a) shall apply so long as either 
     spouse has a principal residence (within the meaning of 
     section 121) in an Economic Freedom Zone for the taxable 
     year.
       ``(c) Alternative Minimum Tax Not to Apply.--The tax 
     imposed by section 55 shall not apply to any taxpayer to whom 
     subsection (a) applies.

     ``SEC. 1400V-2. ECONOMIC FREEDOM ZONE CORPORATE FLAT TAX.

       ``(a) In General.--In the case of any corporation located 
     in an Economic Freedom Zone for the taxable year, in lieu of 
     the tax imposed by section 11, there shall be imposed a tax 
     equal to 5 percent of the taxable income of such corporation. 
     For purposes of this title, the tax imposed by the preceding 
     sentence shall be treated as a tax imposed by section 11.
       ``(b) Limitation.--Subsection (a) shall not apply to any 
     corporation for any taxable year if the adjusted gross income 
     of such corporation for such taxable year exceeds 
     $500,000,000.
       ``(c) Located.--For purposes of this section, a corporation 
     shall be considered to be located in an Economic Freedom Zone 
     if--
       ``(1) not less than 10 percent of the total gross income of 
     such corporation is derived from the active conduct of a 
     trade or business within an Economic Freedom Zone, or
       ``(2) at least 25 percent of the employees of such 
     corporation are residents of an Economic Freedom Zone.
       ``(d) Alternative Minimum Tax Not to Apply.--The tax 
     imposed by section 55 shall not apply to any taxpayer to whom 
     subsection (a) applies.

     ``SEC. 1400V-3. ZERO PERCENT CAPITAL GAINS RATE.

       ``(a) Exclusion.--Gross income shall not include qualified 
     capital gain from the sale or exchange of--
       ``(1) any Economic Freedom Zone asset held for more than 5 
     years,
       ``(2) any real property located in an Economic Freedom 
     Zone.
       ``(b) Economic Freedom Zone Asset.--For purposes of this 
     section--
       ``(1) In general.--The term `Economic Freedom Zone asset' 
     means--
       ``(A) any Economic Freedom Zone business stock,
       ``(B) any Economic Freedom Zone partnership interest, and
       ``(C) any Economic Freedom Zone business property.
       ``(2) Economic freedom zone business stock.--
       ``(A) In general.--The term `Economic Freedom Zone business 
     stock' means any stock in a domestic corporation if--
       ``(i) such stock is acquired by the taxpayer, before the 
     date on which such corporation no longer qualifies as an 
     Economic Freedom Zone business due to the lapse of 1 or more 
     Economic Freedom Zones, at its original issue (directly or 
     through an underwriter) solely in exchange for cash,
       ``(ii) as of the time such stock was issued, such 
     corporation was an Economic Freedom Zone business (or, in the 
     case of a new corporation, such corporation was being 
     organized for purposes of being an Economic Freedom Zone 
     business), and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such stock, such corporation qualified as an 
     Economic Freedom Zone business.
       ``(B) Redemptions.--A rule similar to the rule of section 
     1202(c)(3) shall apply for purposes of this paragraph.
       ``(3) Economic freedom zone partnership interest.--The term 
     `Economic Freedom Zone partnership interest' means any 
     capital or profits interest in a domestic partnership if--
       ``(A) such interest is acquired by the taxpayer, before the 
     date on which such partnership no longer qualifies as an 
     Economic Freedom Zone business due to the lapse of 1 or more 
     Economic Freedom Zones, from the partnership solely in 
     exchange for cash,
       ``(B) as of the time such interest was acquired, such 
     partnership was an Economic Freedom Zone business (or, in the 
     case of a new partnership, such partnership was being 
     organized for purposes of being an Economic Freedom Zone 
     business), and
       ``(C) during substantially all of the taxpayer's holding 
     period for such interest, such partnership qualified as an 
     Economic Freedom Zone business.

     A rule similar to the rule of paragraph (2)(B) shall apply 
     for purposes of this paragraph.
       ``(4) Economic freedom zone business property.--
       ``(A) In general.--The term `Economic Freedom Zone business 
     property' means tangible property if--
       ``(i) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after the date on 
     such taxpayer qualifies as an Economic Freedom Zone business 
     and before the date on which such taxpayer no longer 
     qualifies as an Economic Freedom Zone business due to the 
     lapse of 1 or more Economic Freedom Zones,
       ``(ii) the original use of such property in the Economic 
     Freedom Zone commences with the taxpayer, and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such property, substantially all of the use of 
     such property was in an Economic Freedom Zone business of the 
     taxpayer.
       ``(B) Special rule for buildings which are substantially 
     improved.--
       ``(i) In general.--The requirements of clauses (i) and (ii) 
     of subparagraph (A) shall be treated as met with respect to--

       ``(I) property which is substantially improved by the 
     taxpayer before the date on which such taxpayer no longer 
     qualifies as an Economic Freedom Zone business due to the 
     lapse of 1 or more Economic Freedom Zones, and

[[Page S4821]]

       ``(II) any land on which such property is located.

       ``(ii) Substantial improvement.--For purposes of clause 
     (i), property shall be treated as substantially improved by 
     the taxpayer only if, during any 24-month period beginning 
     after the date on which the taxpayer qualifies as an Economic 
     Freedom Zone business additions to basis with respect to such 
     property in the hands of the taxpayer exceed the greater of--

       ``(I) an amount equal to the adjusted basis of such 
     property at the beginning of such 24-month period in the 
     hands of the taxpayer, or
       ``(II) $5,000.

       ``(5) Treatment of economic freedom zone termination.--
     Except as otherwise provided in this subsection, the 
     termination of the designation of the Economic Freedom Zone 
     shall be disregarded for purposes of determining whether any 
     property is an Economic Freedom Zone asset.
       ``(6) Treatment of subsequent purchasers, etc.--The term 
     `Economic Freedom Zone asset' includes any property which 
     would be an Economic Freedom Zone asset but for paragraph 
     (2)(A)(i), (3)(A), or (4)(A)(i) or (ii) in the hands of the 
     taxpayer if such property was an Economic Freedom Zone asset 
     in the hands of a prior holder.
       ``(7) 5-year safe harbor.--If any property ceases to be an 
     Economic Freedom Zone asset by reason of paragraph 
     (2)(A)(iii), (3)(C), or (4)(A)(iii) after the 5-year period 
     beginning on the date the taxpayer acquired such property, 
     such property shall continue to be treated as meeting the 
     requirements of such paragraph; except that the amount of 
     gain to which subsection (a) applies on any sale or exchange 
     of such property shall not exceed the amount which would be 
     qualified capital gain had such property been sold on the 
     date of such cessation.
       ``(c) Economic Freedom Zone Business.--For purposes of this 
     section, the term `Economic Freedom Zone business' means any 
     enterprise zone business (as defined in section 1397C), 
     determined--
       ``(1) after the application of section 1400(e),
       ``(2) by substituting `80 percent' for `50 percent' in 
     subsections (b)(2) and (c)(1) of section 1397C, and
       ``(3) by treating only areas that are Economic Freedom 
     Zones as an empowerment zone or enterprise community.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Qualified capital gain.--Except as otherwise provided 
     in this subsection, the term `qualified capital gain' means 
     any gain recognized on the sale or exchange of--
       ``(A) a capital asset, or
       ``(B) property used in the trade or business (as defined in 
     section 1231(b)).
       ``(2) Certain gain not qualified.--The term `qualified 
     capital gain' shall not include any gain attributable to 
     periods before the date on which the a business qualifies as 
     an Economic Freedom Zone business or after the date that is 4 
     years after the date on which such business no longer 
     qualifies as an Economic Freedom Zone business due to the 
     lapse of 1 or more Economic Freedom Zones.
       ``(3) Certain gain not qualified.--The term `qualified 
     capital gain' shall not include any gain which would be 
     treated as ordinary income under section 1245 or under 
     section 1250 if section 1250 applied to all depreciation 
     rather than the additional depreciation.
       ``(4) Intangibles not integral part of economic freedom 
     zone business.--In the case of gain described in subsection 
     (a)(1), the term `qualified capital gain' shall not include 
     any gain which is attributable to an intangible asset which 
     is not an integral part of an Economic Freedom Zone business.
       ``(5) Related party transactions.--The term `qualified 
     capital gain' shall not include any gain attributable, 
     directly or indirectly, in whole or in part, to a transaction 
     with a related person. For purposes of this paragraph, 
     persons are related to each other if such persons are 
     described in section 267(b) or 707(b)(1).
       ``(e) Sales and Exchanges of Interests in Partnerships and 
     S Corporations Which Are Economic Freedom Zone Businesses.--
     In the case of the sale or exchange of an interest in a 
     partnership, or of stock in an S corporation, which was an 
     Economic Freedom Zone business during substantially all of 
     the period the taxpayer held such interest or stock, the 
     amount of qualified capital gain shall be determined without 
     regard to--
       ``(1) any gain which is attributable to an intangible asset 
     which is not an integral part of an Economic Freedom Zone 
     business, and
       ``(2) any gain attributable to periods before the date on 
     which the a business qualifies as an Economic Freedom Zone 
     business or after the date that is 4 years after the date on 
     which such business no longer qualifies as an Economic 
     Freedom Zone business due to the lapse of 1 or more Economic 
     Freedom Zones.

     ``SEC. 1400V-4. REDUCED PAYROLL TAXES.

       ``(a) In General.--
       ``(1) Employees.--The rate of tax under 3101(a) (including 
     for purposes of determining the applicable percentage under 
     sections 3201(a) and 3211(a)(1)) shall be 4.2 percent for any 
     remuneration received during any period in which the 
     individual's principal residence (within the meaning of 
     section 121) is located in an Economic Freedom Zone.
       ``(2) Employers.--
       ``(A) In general.--The rate of tax under section 3111(a) 
     (including for purposes of determining the applicable 
     percentage under sections 3221(a)) shall be 4.2 percent with 
     respect to remuneration paid for qualified services during 
     any period in which the employer is located in an Economic 
     Freedom Zone.
       ``(B) Qualified services.--For purposes of this section, 
     the term `qualified services' means services performed--
       ``(i) in a trade or business of a qualified employer, or
       ``(ii) in the case of a qualified employer exempt from tax 
     under section 501(a) of the Internal Revenue Code of 1986, in 
     furtherance of the activities related to the purpose or 
     function constituting the basis of the employer's exemption 
     under section 501 of such Code.
       ``(C) Location of employer.--For purposes of this 
     paragraph, the location of an employer shall be determined in 
     the same manner as under section 1400V--2(c).
       ``(3) Self-employed individuals.--The rate of tax under 
     section 1401(a) shall be 8.40 percent any taxable year in 
     which such individual was located (determined under section 
     1400V--2(c) as if such individual were a corporation) in an 
     Economic Freedom Zone.
       ``(b) Transfers of Funds.---
       ``(1) Transfers to federal old-age and survivors insurance 
     trust fund.--There are hereby appropriated to the Federal 
     Old-Age and Survivors Trust Fund and the Federal Disability 
     Insurance Trust Fund established under section 201 of the 
     Social Security Act (42 U.S.C. 401) amounts equal to the 
     reduction in revenues to the Treasury by reason of the 
     application of subsection (a). Amounts appropriated by the 
     preceding sentence shall be transferred from the general fund 
     at such times and in such manner as to replicate to the 
     extent possible the transfers which would have occurred to 
     such Trust Fund had such amendments not been enacted.
       ``(2) Transfers to social security equivalent benefit 
     account.--There are hereby appropriated to the Social 
     Security Equivalent Benefit Account established under section 
     15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231n-1(a)) amounts equal to the reduction in revenues to the 
     Treasury by reason of the application of paragraphs (1) and 
     (2) of subsection (a). Amounts appropriated by the preceding 
     sentence shall be transferred from the general fund at such 
     times and in such manner as to replicate to the extent 
     possible the transfers which would have occurred to such 
     Account had such amendments not been enacted.
       ``(3) Coordination with other federal laws.--For purposes 
     of applying any provision of Federal law other than the 
     provisions of the Internal Revenue Code of 1986, the rate of 
     tax in effect under section 3101(a) shall be determined 
     without regard to the reduction in such rate under this 
     section.

     ``SEC. 1400V-5. INCREASE IN EXPENSING UNDER SECTION 179.

       ``(a) In General.--In the case of an Economic Freedom Zone 
     business, for purposes of section 179--
       ``(1) the limitation under section 179(b)(1) shall be 
     increased by the lesser of--
       ``(A) 200 percent of the amount in effect under such 
     section (determined without regard to this section), or
       ``(B) the cost of section 179 property which is Economic 
     Freedom Zone business property placed in service during the 
     taxable year, and
       ``(2) the amount taken into account under section 179(b)(2) 
     with respect to any section 179 property which is Economic 
     Freedom Zone business property shall be 50 percent of the 
     cost thereof.
       ``(b) Economic Freedom Zone Business Property.--For 
     purposes of this section, the term `Economic Freedom Zone 
     business property' has the meaning given such term under 
     section 1400V--3(b)(4), except that for purposes of 
     subparagraph (A)(ii) thereof, if property is sold and leased 
     back by the taxpayer within 3 months after the date such 
     property was originally placed in service, such property 
     shall be treated as originally placed in service not earlier 
     than the date on which such property is used under the 
     leaseback
       ``(c) Recapture.--Rules similar to the rules under section 
     179(d)(10) shall apply with respect to any qualified zone 
     property which ceases to be used in an empowerment zone by an 
     enterprise zone business.

                         ``PART II--DEFINITIONS

``Sec. 1400V-6. Economic Freedom Zone.

     ``SEC. 1400V-6. ECONOMIC FREEDOM ZONE.

       ``For purposes of this subchapter, the term `Economic 
     Freedom Zone' means any area which is an Economic Freedom 
     Zone under title II of the Economic Freedom Zone Act.''.
       (b) Clerical Amendment.--The table of subchapters for 
     chapter 1 of such Code is amended by inserting after the item 
     relating to subchapter Y the following new item:

               ``subchapter z--economic freedom zones''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                TITLE IV--FEDERAL REGULATORY REDUCTIONS

     SEC. 401. SUSPENSION OF CERTAIN LAWS AND REGULATIONS.

       (a) Environmental Protection Agency.--For each area 
     designated as an Economic Freedom Zone under this Act, the 
     Administrator of the Environmental Protection Agency shall 
     not enforce, with respect to that Economic Freedom Zone, and 
     the Economic Freedom Zone shall be exempt from compliance 
     with--

[[Page S4822]]

       (1) part D of the Clean Air Act (42 U.S.C. 7501 et seq.) 
     (including any regulations promulgated under that part);
       (2) section 402 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1342);
       (3) sections 139, 168, 169, 326, and 327 of title 23, 
     United States Code;
       (4) section 304 of title 49, United States Code; and
       (5) sections 1315 through 1320 of Public Law 112-141 (126 
     Stat. 549).
       (b) Department of the Interior.--
       (1) Wild and scenic rivers.--For each area designated as an 
     Economic Freedom Zone under this Act, the Secretary of the 
     Interior shall not enforce, with respect to that Economic 
     Freedom Zone, and the Economic Freedom Zone shall be exempt 
     from compliance with the Wild and Scenic Rivers Act (16 
     U.S.C. 1271 et seq.).
       (2) National heritage areas.--For the period beginning on 
     the date of enactment of this Act and ending on the date on 
     which an area is removed from designation as an Economic 
     Freedom Zone, any National Heritage Area located within that 
     Economic Freedom Zone shall not be considered to be a 
     National Heritage Area and any applicable Federal law 
     (including regulations) relating to that National Heritage 
     Area shall not apply.

                   TITLE V--EDUCATIONAL ENHANCEMENTS

     SEC. 501. EDUCATIONAL OPPORTUNITY TAX CREDIT.

       (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. CREDIT FOR QUALIFIED ELEMENTARY AND SECONDARY 
                   EDUCATION EXPENSES.

       ``(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 the qualified 
     elementary and secondary education expenses of an eligible 
     student.
       ``(b) Limitation.--The amount taken into account under 
     subsection (a) with respect to any student for any taxable 
     year shall not exceed $5,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified elementary and secondary education 
     expenses.--The term `qualified elementary and secondary 
     education expenses' has the meaning given such term under 
     section 530(b)(3).
       ``(2) Eligible student.--The term `eligible student' means 
     any student who--
       ``(A) is enrolled in, or attends, any public, private, or 
     religious school (as defined in section 530(b)(3)(B)), and
       ``(B) whose principal residence (within the meaning of 
     section 123) is located in an Economic Freedom Zone.
       ``(3) Economic freedom zone.--The term `Economic Freedom 
     Zone' means any area which is an Economic Freedom Zone under 
     title II of the Economic Freedom Zone Act.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 25D 
     the following new item:

``Sec. 25E. Credit for qualified elementary and secondary education 
              expenses.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures made in taxable years beginning 
     after the date of the enactment of this Act.

     SEC. 502. SCHOOL CHOICE THROUGH PORTABILITY.

       (a) In General.--Subpart 2 of part A of title I of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6331 et seq.) is amended by adding at the end the following:

     ``SEC. 1128. SCHOOL CHOICE THROUGH PORTABILITY.

       ``(a) Authorization.--
       ``(1) In general.--Notwithstanding sections 1124, 1124A, 
     and 1125 and any other provision of law, and to the extent 
     permitted under State law, a State educational agency may 
     allocate grant funds under this subpart among the local 
     educational agencies in the State based on the formula 
     described in paragraph (2).
       ``(2) Formula.--A State educational agency may allocate 
     grant funds under this subpart for a fiscal year among the 
     local educational agencies in the State in proportion to the 
     number of eligible children enrolled in public schools served 
     by the local educational agency and enrolled in State-
     accredited private schools within the local educational 
     agency's geographic jurisdiction, for the most recent fiscal 
     year for which satisfactory data are available, compared to 
     the number of such children in all such local educational 
     agencies for that fiscal year.
       ``(b) Eligible Child.--
       ``(1) In general.--In this section, the term `eligible 
     child' means a child--
       ``(A) from a family with an income below the poverty level, 
     on the basis of the most recent satisfactory data published 
     by the Department of Commerce; and
       ``(B) who resides in an Economic Freedom Zone as designated 
     under title II of the Economic Freedom Zones Act of 2014.
       ``(2) Criteria of poverty.--In determining the families 
     with incomes below the poverty level for the purposes of 
     paragraph (2), a State educational agency shall use the 
     criteria of poverty used by the Census Bureau in compiling 
     the most recent decennial census.
       ``(3) Identification of eligible children.--On an annual 
     basis, on a date to be determined by the State educational 
     agency, each local educational agency that receives grant 
     funding in accordance with subsection (a) shall inform the 
     State educational agency of the number of eligible children 
     enrolled in public schools served by the local educational 
     agency and enrolled in State-accredited private schools 
     within the local educational agency's geographic 
     jurisdiction.
       ``(c) Distribution to Schools.--Each local educational 
     agency that receives grant funding under subsection (a) shall 
     distribute such funds to the public schools served by the 
     local educational agency and State-accredited private schools 
     with the local educational agency's geographic jurisdiction--
       ``(1) based on the number of eligible children enrolled in 
     such schools; and
       ``(2) in the manner that would, in the absence of such 
     Federal funds, supplement the funds made available from the 
     non-Federal resources for the education of pupils 
     participating in programs under this part, and not to 
     supplant such funds.''.
       (b) Table of Contents.--The table of contents in section 2 
     of the Elementary and Secondary Education Act of 1965 is 
     amended by inserting after the item relating to section 1127 
     the following:

``Sec. 1128. School choice through portability.''.

     SEC. 503. SPECIAL ECONOMIC FREEDOM ZONE VISAS.

       (a) Definitions.--In this section:
       (1) Abandoned; dilapidated.--The terms ``abandoned'' and 
     ``dilapidated'' shall be defined by the States in accordance 
     with the provisions of this Act.
       (2) Full-time employment.--The term ``full-time 
     employment'' means employment in a position that requires at 
     least 35 hours of service per week at any time, regardless of 
     who fills the position.
       (b) Purpose.--The purpose of this section is to facilitate 
     increased investment and enhanced human capital in Economic 
     Freedom Zones through the issuance of special regional visas.
       (c) Authorization.--The Secretary of Homeland Security, in 
     collaboration with the Secretary of Labor, may issue Special 
     Economic Freedom Zone Visas, in a number determined by the 
     Governor of each State, in consultation with local officials 
     in regions designated by the Secretary of Treasury as 
     Economic Freedom Zones, to authorize qualified aliens to 
     enter the United States for the purpose of--
       (1) engaging in a new commercial enterprise (including a 
     limited partnership)--
       (A) in which such alien has invested, or is actively in the 
     process of investing, capital in an amount not less than the 
     amount specified in subsection (d); and
       (B) which will benefit the region designated as an Economic 
     Freedom Zone by creating full-time employment of not fewer 
     than 5 United States citizens, aliens lawfully admitted for 
     permanent residence, or other immigrants lawfully authorized 
     to be employed in the United States (excluding the alien and 
     the alien's immediate family);
       (2) engaging in the purchase and renovation of dilapidated 
     or abandoned properties or residences (as determined by State 
     and local officials) in which such alien has invested, or is 
     actively in the process of investing, in the ownership of 
     such properties or residences; or
       (3) residing and working in an Economic Freedom Zone.
       (d) Effective Period.--A visa issued to an alien under this 
     section shall expire on the later of--
       (1) the date on which the relevant Economic Freedom Zone 
     loses such designation; or
       (2) the date that is 5 years after the date on which such 
     visa was issued to such alien.
       (e) Capital and Educational Requirements.--
       (1) New commercial enterprises.--Except as otherwise 
     provided under this section, the minimum amount of capital 
     required to comply with subsection (c)(1)(A) shall be 
     $50,000.
       (2) Renovation of dilapidated or abandoned properties.--An 
     alien is not in compliance with subsection (c)(2) unless the 
     alien--
       (A) purchases a dilapidated or abandoned property in an 
     Economic Freedom Zone; and
       (B) not later than 18 months after such purchase, invests 
     not less than $25,000 to rebuild, rehabilitate, or repurpose 
     the property.
       (3) Verification.--A visa issued under subsection (c) shall 
     not remain in effect for more than 2 years unless the 
     Secretary of Homeland Security has verified that the alien 
     has complied with the requirements described in subsection 
     (c).
       (4) Education and skill requirements.--An alien is not in 
     compliance with subsection (c)(3) unless the alien 
     possesses--
       (A) a bachelor's degree (or its equivalent) or an advanced 
     degree;
       (B) a degree or specialty certification that--
       (i) is required for the job the alien will be performing; 
     and
       (ii) is specific to an industry or job that is so complex 
     or unique that it can be performed only by an individual with 
     the specialty certification;
       (C)(i) the knowledge required to perform the duties of the 
     job the alien will be performing; and
       (ii) the nature of the specific duties is so specialized 
     and complex that such knowledge is usually associated with 
     attainment of a bachelor's or higher degree; or

[[Page S4823]]

       (D) a skill or talent that would benefit the Economic 
     Freedom Zone.
       (f) Additional Provisions.--
       (1) Geographic limitation.--An alien who has been issued a 
     visa under this section is not permitted to live or work 
     outside of an Economic Freedom Zone.
       (2) Rescission.--A visa issued under this section shall be 
     rescinded if the visa holder resides or works outside of an 
     Economic Freedom Zone or otherwise fails to comply with the 
     provisions of this section.
       (3) Other visas.--An alien who has been issued a visa under 
     this section may apply for any other visa for which the alien 
     is eligible in order to pursue employment outside of an 
     Economic Freedom Zone.
       (g) Adjustment of Status.--The Secretary of Homeland 
     Security may adjust the status of an alien who has been 
     issued a visa under this section to that of an alien lawfully 
     admitted for permanent residence, without numerical 
     limitation, if the alien--
       (1) has fully complied with the requirements set forth in 
     this section for at least 5 years;
       (2) submits a completed application to the Secretary; and
       (3) is not inadmissible to the United States based on any 
     of the factors set forth in section 212(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)).

     SEC. 504. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS ACCOUNTS.

       (a) In General.--Part VIII of subchapter F of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 530A. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS 
                   ACCOUNTS.

       ``(a) In General.--Except as provided in this section, an 
     Economic Freedom Zone educational savings account shall be 
     treated for purposes of this title in the same manner as a 
     Coverdell education savings account.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Economic freedom zone educational savings account.--
     The term `Economic Freedom Zone educational savings account' 
     means a trust created or organized in the United States 
     exclusively for the purpose of paying the qualified education 
     expenses (as defined in section 530(b)(2)) of an individual 
     who is the designated beneficiary of the trust (and 
     designated as an Economic Freedom Zone educational saving 
     account at the time created or organized) and who is a 
     qualified individual at the time such trust is established, 
     but only if the written governing instrument creating the 
     trust meets the following requirements:
       ``(A) No contribution will be accepted--
       ``(i) unless it is in cash,
       ``(ii) after the date on which such beneficiary attains age 
     25, or
       ``(iii) except in the case of rollover contributions, if 
     such contribution would result in aggregate contributions for 
     the taxable year exceeding $10,000.
       ``(B) No contribution shall be accepted at any time in 
     which the designated beneficiary is not a qualified 
     individual.
       ``(C) The trust meets the requirements of subparagraphs 
     (B), (C), (D), and (E) of section 530(b)(1).

     The age limitations in subparagraphs (A)(ii), subparagraph 
     (E) of section 530(b)(1), and paragraphs (5) and (6) of 
     section 530(d), shall not apply to any designated beneficiary 
     with special needs (as determined under regulations 
     prescribed by the Secretary).
       ``(2) Qualified individual.--The term `qualified 
     individual' means any individual whose principal residence 
     (within the meaning of section 121) is located in an Economic 
     Freedom Zone (as defined in section 1400V--6).
       ``(c) Deduction for Contributions.--
       ``(1) In general.--There shall be allowed as a deduction 
     under part VII of subchapter B of this chapter an amount 
     equal to the aggregate amount of contributions made by the 
     taxpayer to any Economic Freedom Zone educational savings 
     account during the taxable year .
       ``(2) Limitation.--The amount of the deduction allowed 
     under paragraph (1) for any taxpayer for any taxable year 
     shall not exceed $40,000.
       ``(3) No deduction for rollover contributions.--No 
     deduction shall be allowed under paragraph (1) for any 
     rollover contribution described in section 530(d)(5).
       ``(d) Other Rules.--
       ``(1) No income limit.--In the case of an Economic Freedom 
     Zone educational savings account, subsection (c) of section 
     530 shall not apply.
       ``(2) Change in beneficiaries.--Notwithstanding paragraph 
     (6) of section 530(b), a change in the beneficiary of an 
     Economic Freedom Zone education savings account shall be 
     treated as a distribution unless the new beneficiary is a 
     qualified individual.''.
       (b) Clerical Amendment.--The table of sections for part 
     VIII of subchapter F of chapter 1 of such Code is amended by 
     adding at the end the following new item:

``Sec. 530A. Economic Freedom Zone educational savings accounts.''.

             TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING

     SEC. 601. NONAPPLICATION OF DAVIS-BACON.

       The wage rate requirements of subchapter IV of chapter 31 
     of title 40, United States Code (commonly referred to as the 
     ``Davis-Bacon Act''), shall not apply with respect to any 
     area designated as an Economic Freedom Zone under this Act.

     SEC. 602. ECONOMIC FREEDOM ZONE CHARITABLE TAX CREDIT.

       (a) In General.--Section 170 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (p) as 
     subsection (q) and by inserting after subsection (o) the 
     following new subsection:
       ``(o) Election to Treat Contributions for Economic Freedom 
     Zone Charities as a Credit.--
       ``(1) In general.--In the case of an individual, at the 
     election of the taxpayer, so much of the deduction allowed 
     under subsection (a) (determined without regard to this 
     subsection) which is attributable to Economic Freedom Zone 
     charitable contributions--
       ``(A) shall be allowed as a credit against the tax imposed 
     by this chapter for the taxable year, and
       ``(B) shall not be allowed as a deduction for such taxable 
     year under subsection (a).

     Any amount allowable as a credit under this subsection shall 
     be treated as a credit allowed under subpart A of part IV of 
     subchapter A for purposes of this title.
       ``(2) Amount attributable to economic freedom zone 
     charitable contributions.--For purposes of paragraph (1)--
       ``(A) In general.--In any case in which the total 
     charitable contributions of a taxpayer for a taxable year 
     exceed the contribution base, the amount of Economic Freedom 
     Zone charitable contributions taken into account under 
     paragraph (1) shall be the amount which bears the same ratio 
     to the total charitable contributions made by the taxpayer 
     during such taxable year as the amount of the deduction 
     allowed under subsection (a) (determined without regard to 
     this subsection and after application of subsection (b)) 
     bears to the total charitable contributions made by the 
     taxpayer for such taxable year.
       ``(B) Carryovers.--In the case of any contribution carried 
     from a preceding taxable year under subsection (d), such 
     amount shall be treated as attributable to an Economic 
     Freedom Zone charitable contribution in the amount that bears 
     the same ratio to the total amount carried from preceding 
     taxable years under subsection (d) as the amount of Economic 
     Freedom Zone charitable contributions not allowed as a 
     deduction under subsection (a) (other than by reason of this 
     subsection) for the preceding 5 taxable year bears to total 
     amount carried from preceding taxable years under subsection 
     (d).
       ``(3) Economic freedom zone charitable contribution.--The 
     term `Economic Freedom Zone charitable contribution' means 
     any contribution to a corporation, trust, or community chest 
     fund, or foundation described in subsection (c)(2), but only 
     if--
       ``(A) such entity is created or organized exclusively for--
       ``(i) religious purposes,
       ``(ii) educational purposes, or
       ``(iii) any of the following charitable purposes: providing 
     educational scholarships, providing shelters for homeless 
     individuals, or setting up or maintaining food banks,
       ``(B) the primary mission of such entity is serving 
     individuals in an Economic Freedom Zone,
       ``(C) the entity maintains accountability to residents of 
     such Economic Freedom Zone through their representation on 
     any governing board of the entity or any advisory board to 
     the entity, and
       ``(D) the entity is certified by the Secretary for purposes 
     of this subsection.
     Such term shall not include any contribution made to an 
     entity described in the preceding sentence after the date in 
     which the designation of the Economic Freedom Zone serviced 
     by such entity lapses.
       ``(4) Economic freedom zone.--The term `Economic Freedom 
     Zone' means any area which is an Economic Freedom Zone under 
     title II of the Economic Freedom Zone Act.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

         TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS

     SEC. 701. SENSE OF THE SENATE CONCERNING POLICY 
                   RECOMMENDATIONS.

       It is the sense of the Senate that State and local 
     governments should review and adopt the following policy 
     recommendations:
       (1) Pension reform.--State and local governments should--
       (A) implement reforms to address any fiscal shortfall in 
     public pension funding, including utilizing accrual 
     accounting methods, such as those reforms undertaken by the 
     private sector pension funds; and
       (B) restructure and renegotiate any public pension fund 
     that is deemed to be insolvent or underfunded, including 
     adopting defined contribution retirement systems.
       (2) Taxes.--State and local governments should reduce 
     jurisdictional tax rates below the national average in order 
     to help facilitate capital investment and economic growth, 
     particularly in combination with the provisions of this 
     division.
       (3) Education.--State and local governments should adopt 
     school choice options to provide children and parents more 
     educational choices, particularly in impoverished areas.
       (4) Communities.--State and local governments should adopt 
     right-to-work laws to allow more competitiveness and more 
     flexibility for businesses to expand.
       (5) Regulations.--State and local governments should 
     streamline the regulatory burden on families and businesses, 
     including

[[Page S4824]]

     streamlining the opportunities for occupational licensing.
       (6) Abandoned structures.--State and local governments 
     should consider the following options to reduce or fix areas 
     with abandoned properties or residences:
       (A) In the case of foreclosures, tax notifications should 
     be sent to both the lien holder (if different than the 
     homeowner) and the homeowner.
       (B) Where State constitutions permit, property tax 
     abatement or credits should be provided for individuals who 
     purchase or invest in abandoned or dilapidated properties.
       (C) Non-profit or charity demolition entities should be 
     permitted or encouraged to help remove abandoned properties.
       (D) Government or municipality fees and penalties should be 
     limited, and be proportional to the outstanding tax amount 
     and the ability to pay.
       (E) The sale of tax liens to third parties should be 
     reviewed, and where available, should prohibit the selling of 
     tax liens below a certain threshold (for example the 
     prohibition of the sale of tax liens to third parties under 
     $1,000).
                                 ______
                                 
  SA 3612. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, add the following new title:

              TITLE II--CERTAIN PROVISIONS MADE PERMANENT

     SEC. 201. PERMANENT EXTENSION AND MODIFICATION OF INCREASED 
                   EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN 
                   REAL PROPERTY AS SECTION 179 PROPERTY.

       (a) In General.--
       (1) Dollar limitation.--Paragraph (1) of section 179(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``shall not exceed--'' and all that follows and inserting 
     ``shall not exceed $500,000.''.
       (2) Reduction in limitation.--Paragraph (2) of section 
     179(b) of such Code is amended by striking ``exceeds--'' and 
     all that follows and inserting ``exceeds $2,000,000.''.
       (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``, to which section 167 applies, and which is placed in 
     service in a taxable year beginning after 2002 and before 
     2014'' and inserting ``and to which section 167 applies''.
       (c) Election.--Paragraph (2) of section 179(c) of such Code 
     is amended--
       (1) by striking ``may not be revoked'' and all that follows 
     through ``and before 2014'', and
       (2) by striking ``irrevocable'' in the heading thereof.
       (d) Air Conditioning and Heating Units.--The last sentence 
     of section 179(d)(1) of such Code is amended by striking 
     ``and shall not include air conditioning or heating units''.
       (e) Qualified Real Property.--Subsection (f) of section 179 
     of such Code is amended--
       (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
     in paragraph (1), and
       (2) by striking paragraphs (3) and (4).
       (f) Adjustment for Inflation.--Subsection (b) of section 
     179 of such Code is amended by adding at the end the 
     following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2013, the dollar amounts in paragraphs (1) 
     and (2) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2012' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--
       ``(i) Dollar limitation.--If the amount in paragraph (1) as 
     increased under subparagraph (A) of this paragraph is not a 
     multiple of $1,000, such amount shall be rounded to the 
     nearest multiple of $1,000.
       ``(ii) Phaseout amount.--If the amount in paragraph (2) as 
     increased under subparagraph (A) of this paragraph is not a 
     multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 202. BONUS DEPRECIATION MODIFIED AND MADE PERMANENT.

       (a) Made Permanent; Inclusion of Qualified Retail 
     Improvement Property.--Section 168(k)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less,
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(III) which is water utility property,
       ``(IV) which is qualified leasehold improvement property, 
     or
       ``(V) which is qualified retail improvement property, and
       ``(ii) the original use of which commences with the 
     taxpayer.
       ``(B) Exception for alternative depreciation property.--The 
     term `qualified property' shall not include any property to 
     which the alternative depreciation system under subsection 
     (g) applies, determined--
       ``(i) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(ii) after application of section 280F(b) (relating to 
     listed property with limited business use).
       ``(C) Special rules.--
       ``(i) Sale-leasebacks.--For purposes of clause (ii) and 
     subparagraph (A)(ii), if property is--

       ``(I) originally placed in service by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(ii) Syndication.--For purposes of subparagraph (A)(ii), 
     if--

       ``(I) property is originally placed in service by the 
     lessor of such property,
       ``(II) such property is sold by such lessor or any 
     subsequent purchaser within 3 months after the date such 
     property was originally placed in service (or, in the case of 
     multiple units of property subject to the same lease, within 
     3 months after the date the final unit is placed in service, 
     so long as the period between the time the first unit is 
     placed in service and the time the last unit is placed in 
     service does not exceed 12 months), and
       ``(III) the user of such property after the last sale 
     during such 3-month period remains the same as when such 
     property was originally placed in service,

     such property shall be treated as originally placed in 
     service not earlier than the date of such last sale.
       ``(D) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(i) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitation under 
     section 280F(a)(1)(A)(i) by $8,000.
       ``(ii) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).
       ``(iii) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2014, the $8,000 
     amount in clause (i) shall be increased by an amount equal 
     to--

       ``(I) such dollar amount, multiplied by
       ``(II) the automobile price inflation adjustment determined 
     under section 280F(d)(7)(B)(i) for the calendar year in which 
     such taxable year begins by substituting `2013' for `1987' in 
     subclause (II) thereof.

     If any increase under the preceding sentence is not a 
     multiple of $100, such increase shall be rounded to the 
     nearest multiple of $100.
       ``(E) Deduction allowed in computing minimum tax.--For 
     purposes of determining alternative minimum taxable income 
     under section 55, the deduction under section 167 for 
     qualified property shall be determined without regard to any 
     adjustment under section 56.''.
       (b) Expansion of Election to Accelerate Amt Credits in Lieu 
     of Bonus Depreciation.--Section 168(k)(4) of such Code is 
     amended to read as follows:
       ``(4) Election to accelerate amt credits in lieu of bonus 
     depreciation.--
       ``(A) In general.--If a corporation elects to have this 
     paragraph apply for any taxable year--
       ``(i) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not 
     apply for such taxable year,
       ``(ii) the applicable depreciation method used under this 
     section with respect to any qualified property shall be the 
     straight line method, and
       ``(iii) the limitation imposed by section 53(c) for such 
     taxable year shall be increased by the bonus depreciation 
     amount which is determined for such taxable year under 
     subparagraph (B).
       ``(B) Bonus depreciation amount.--For purposes of this 
     paragraph--
       ``(i) In general.--The bonus depreciation amount for any 
     taxable year is an amount equal to 20 percent of the excess 
     (if any) of--

       ``(I) the aggregate amount of depreciation which would be 
     allowed under this section for qualified property placed in 
     service by the taxpayer during such taxable year if paragraph 
     (1) applied to all such property, over
       ``(II) the aggregate amount of depreciation which would be 
     allowed under this section for qualified property placed in 
     service by the taxpayer during such taxable year if paragraph 
     (1) did not apply to any such property.

     The aggregate amounts determined under subclauses (I) and 
     (II) shall be determined without regard to any election made 
     under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without 
     regard to subparagraph (A)(ii).
       ``(ii) Limitation.--The bonus depreciation amount for any 
     taxable year shall not exceed the lesser of--

       ``(I) 50 percent of the minimum tax credit under section 
     53(b) for the first taxable year ending after December 31, 
     2013, or
       ``(II) the minimum tax credit under section 53(b) for such 
     taxable year determined by taking into account only the 
     adjusted net minimum tax for taxable years ending before 
     January 1, 2014 (determined by treating credits as allowed on 
     a first-in, first-out basis).

[[Page S4825]]

       ``(iii) Aggregation rule.--All corporations which are 
     treated as a single employer under section 52(a) shall be 
     treated--

       ``(I) as 1 taxpayer for purposes of this paragraph, and
       ``(II) as having elected the application of this paragraph 
     if any such corporation so elects.

       ``(C) Credit refundable.--For purposes of section 6401(b), 
     the aggregate increase in the credits allowable under part IV 
     of subchapter A for any taxable year resulting from the 
     application of this paragraph shall be treated as allowed 
     under subpart C of such part (and not any other subpart).
       ``(D) Other rules.--
       ``(i) Election.--Any election under this paragraph may be 
     revoked only with the consent of the Secretary.
       ``(ii) Partnerships with electing partners.--In the case of 
     a corporation which is a partner in a partnership and which 
     makes an election under subparagraph (A) for the taxable 
     year, for purposes of determining such corporation's 
     distributive share of partnership items under section 702 for 
     such taxable year--

       ``(I) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not 
     apply, and
       ``(II) the applicable depreciation method used under this 
     section with respect to any qualified property shall be the 
     straight line method.

       ``(iii) Certain partnerships.--In the case of a partnership 
     in which more than 50 percent of the capital and profits 
     interests are owned (directly or indirectly) at all times 
     during the taxable year by 1 corporation (or by corporations 
     treated as 1 taxpayer under subparagraph (B)(iii)), each 
     partner shall compute its bonus depreciation amount under 
     clause (i) of subparagraph (B) by taking into account its 
     distributive share of the amounts determined by the 
     partnership under subclauses (I) and (II) of such clause for 
     the taxable year of the partnership ending with or within the 
     taxable year of the partner.''.
       (c) Special Rules for Trees and Vines Bearing Fruits and 
     Nuts.--Section 168(k) of such Code is amended--
       (1) by striking paragraph (5), and
       (2) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Special rules for trees and vines bearing fruits and 
     nuts.--
       ``(A) In general.--In the case of any tree or vine bearing 
     fruits or nuts which is planted, or is grafted to a plant 
     that has already been planted, by the taxpayer in the 
     ordinary course of the taxpayer's farming business (as 
     defined in section 263A(e)(4))--
       ``(i) a depreciation deduction equal to 50 percent of the 
     adjusted basis of such tree or vine shall be allowed under 
     section 167(a) for the taxable year in which such tree or 
     vine is so planted or grafted, and
       ``(ii) the adjusted basis of such tree or vine shall be 
     reduced by the amount of such deduction.
       ``(B) Election out.--If a taxpayer makes an election under 
     this subparagraph for any taxable year, this paragraph shall 
     not apply to any tree or vine planted or grafted during such 
     taxable year. An election under this subparagraph may be 
     revoked only with the consent of the Secretary.
       ``(C) Additional depreciation may be claimed only once.--If 
     this paragraph applies to any tree or vine, such tree or vine 
     shall not be treated as qualified property in the taxable 
     year in which placed in service.
       ``(D) Coordination with election to accelerate amt 
     credits.--If a corporation makes an election under paragraph 
     (4) for any taxable year, the amount under paragraph 
     (4)(B)(i)(I) for such taxable year shall be increased by the 
     amount determined under subparagraph (A)(i) for such taxable 
     year.
       ``(E) Deduction allowed in computing minimum tax.--Rules 
     similar to the rules of paragraph (2)(E) shall apply for 
     purposes of this paragraph.''.
       (d) Conforming Amendments.--
       (1) Section 168(e)(8) of such Code is amended by striking 
     subparagraph (D).
       (2) Section 168(k) of such Code is amended by adding at the 
     end the following new paragraph:
       ``(6) Election out.--If a taxpayer makes an election under 
     this paragraph with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service (or, in the case of paragraph 
     (5), planted or grafted) during such taxable year. An 
     election under this paragraph may be revoked only with the 
     consent of the Secretary.''.
       (3) Section 168(l)(5) of such Code is amended by striking 
     ``section 168(k)(2)(G)'' and inserting ``section 
     168(k)(2)(E)''.
       (4) Section 263A(c) of such Code is amended by adding at 
     the end the following new paragraph:
       ``(7) Coordination with section 168(k)(5).--This section 
     shall not apply to any amount allowable as a deduction by 
     reason of section 168(k)(5) (relating to special rules for 
     trees and vines bearing fruits and nuts).''.
       (5) Section 460(c)(6)(B) of such Code is amended by 
     striking ``which--'' and all that follows and inserting 
     ``which has a recovery period of 7 years or less.''.
       (6) Section 168(k) of such Code is amended by striking 
     ``Acquired After December 31, 2007, and Before January 1, 
     2014'' in the heading thereof.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to property placed in service after December 31, 2013.
       (2) Expansion of election to accelerate amt credits in lieu 
     of bonus depreciation.--
       (A) In general.--The amendment made by subsection (b) 
     (other than so much of such amendment as relates to section 
     168(k)(4)(D)(iii) of such Code, as added by such amendment) 
     shall apply to taxable years ending after December 31, 2013.
       (B) Transitional rule.--In the case of a taxable year 
     beginning before January 1, 2014, and ending after December 
     31, 2013, the bonus depreciation amount determined under 
     section 168(k)(4) of such Code for such year shall be the sum 
     of--
       (i) such amount determined without regard to the amendments 
     made by this section and--

       (I) by taking into account only property placed in service 
     before January 1, 2014, and
       (II) by multiplying the limitation under section 
     168(k)(4)(C)(ii) of such Code (determined without regard to 
     the amendments made by this section) by a fraction the 
     numerator of which is the number of days in the taxable year 
     before January 1, 2014, and the denominator of which is the 
     number of days in the taxable year, and

       (ii) such amount determined after taking into account the 
     amendments made by this section and--

       (I) by taking into account only property placed in service 
     after December 31, 2013, and
       (II) by multiplying the limitation under section 
     168(k)(4)(B)(ii) of such Code (as amended by this section) by 
     a fraction the numerator of which is the number of days in 
     the taxable year after December 31, 2013, and the denominator 
     of which is the number of days in the taxable year.

       (3) Special rules for certain trees and vines.--The 
     amendment made by subsection (c)(2) shall apply to trees and 
     vines planted or grafted after December 31, 2013.

     SEC. 203. PERMANENT EXTENSION AND MODIFICATION OF RESEARCH 
                   CREDIT.

       (a) Simplified Credit for Qualified Research Expenses.--
     Subsection (a) of section 41 of the Internal Revenue Code of 
     1986 is amended to read as follows:
       ``(a) General Rule.--For purposes of section 38, the 
     research credit determined under this section for the taxable 
     year shall be an amount equal to 20 percent of so much of the 
     qualified research expenses for the taxable year as exceeds 
     50 percent of the average qualified research expenses for the 
     3 taxable years preceding the taxable year for which the 
     credit is being determined.''.
       (b) Special Rules and Termination of Base Amount 
     Calculation.--
       (1) In general.--Subsection (c) of section 41 of such Code 
     is amended to read as follows:
       ``(c) Special Rule in Case of No Qualified Research 
     Expenses in Any of 3 Preceding Taxable Years.--
       ``(1) Taxpayers to which subsection applies.--The credit 
     under this section shall be determined under this subsection, 
     and not under subsection (a), if, in any one of the 3 taxable 
     years preceding the taxable year for which the credit is 
     being determined, the taxpayer has no qualified research 
     expenses.
       ``(2) Credit rate.--The credit determined under this 
     subsection shall be equal to 10 percent of the qualified 
     research expenses for the taxable year.''.
       (2) Consistent treatment of expenses.--Subsection (b) of 
     section 41 of such Code is amended by adding at the end the 
     following new paragraph:
       ``(5) Consistent treatment of expenses required.--
       ``(A) In general.--Notwithstanding whether the period for 
     filing a claim for credit or refund has expired for any 
     taxable year in the 3-taxable-year period taken into account 
     under subsection (a), the qualified research expenses taken 
     into account for such year shall be determined on a basis 
     consistent with the determination of qualified research 
     expenses for the credit year.
       ``(B) Prevention of distortions.--The Secretary may 
     prescribe regulations to prevent distortions in calculating a 
     taxpayer's qualified research expenses caused by a change in 
     accounting methods used by such taxpayer between the credit 
     year and a year in such 3-taxable-year period.''.
       (c) Inclusion of Qualified Research Expenses of an Acquired 
     Person.--
       (1) Partial inclusion of pre-acquisition qualified research 
     expenses.--Subparagraph (A) of section 41(f)(3) of such Code 
     is amended to read as follows:
       ``(A) Acquisitions.--
       ``(i) In general.--If a person acquires the major portion 
     of a trade or business of another person (hereinafter in this 
     paragraph referred to as the `predecessor') or the major 
     portion of a separate unit of a trade or business of a 
     predecessor, then the amount of qualified research expenses 
     paid or incurred by the acquiring person during the 3 taxable 
     years preceding the taxable year in which the credit under 
     this section is determined shall be increased by--

       ``(I) for purposes of applying this section for the taxable 
     year in which such acquisition is made, the amount determined 
     under clause (ii), and
       ``(II) for purposes of applying this section for any 
     taxable year after the taxable year in which such acquisition 
     is made, so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the portion of the measurement 
     period that is part of the 3-taxable-year period preceding 
     the taxable

[[Page S4826]]

     year for which the credit is determined as is attributable to 
     the portion of such trade or business or separate unit 
     acquired by such person.

       ``(ii) Amount determined.--The amount determined under this 
     clause is the amount equal to the product of--

       ``(I) so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the 3 taxable years before the 
     taxable year in which the acquisition is made as is 
     attributable to the portion of such trade or business or 
     separate unit acquired by the acquiring person, and
       ``(II) the number of months in the period beginning on the 
     date of the acquisition and ending on the last day of the 
     taxable year in which the acquisition is made,

     divided by 12.
       ``(iii) Special rules for coordinating taxable years.--In 
     the case of an acquiring person and a predecessor whose 
     taxable years do not begin on the same date--

       ``(I) each reference to a taxable year in clauses (i) and 
     (ii) shall refer to the appropriate taxable year of the 
     acquiring person,
       ``(II) the qualified research expenses paid or incurred by 
     the predecessor during each taxable year of the predecessor 
     any portion of which is part of the measurement period shall 
     be allocated equally among the months of such taxable year, 
     and
       ``(III) the amount of such qualified research expenses 
     taken into account under clauses (i) and (ii) with respect to 
     a taxable year of the acquiring person shall be equal to the 
     total of the expenses attributable under subclause (II) to 
     the months occurring during such taxable year.

       ``(iv) Measurement period.--For purposes of this 
     subparagraph, the term `measurement period' means the taxable 
     year of the acquiring person in which the acquisition is made 
     and the 3 taxable years of the acquiring person preceding 
     such taxable year.''.
       (2) Expenses of a predecessor.--Subparagraph (B) of section 
     41(f)(3) of such Code is amended to read as follows:
       ``(B) Dispositions.--If the predecessor furnished to the 
     acquiring person such information as is necessary for the 
     application of subparagraph (A), then, for purposes of 
     applying this section for any taxable year ending after such 
     disposition, the amount of qualified research expenses paid 
     or incurred by the predecessor during the 3 taxable years 
     preceding such taxable year shall be reduced--
       ``(i) in the case of the taxable year in which such 
     disposition is made, by an amount equal to the product of--

       ``(I) the amount of qualified research expenses paid or 
     incurred during such 3 taxable years with respect to the 
     acquired business, and
       ``(II) the number of days in the period beginning on the 
     date of acquisition (as determined for purposes of 
     subparagraph (A)(ii)(II)) and ending on the last day of the 
     taxable year of the predecessor in which the disposition is 
     made,

     divided by the number of days in the taxable year of the 
     predecessor, and
       ``(ii) in the case of any taxable year ending after the 
     taxable year in which such disposition is made, the amount 
     described in clause (i)(I).''.
       (d) Aggregation of Expenditures.--Paragraph (1) of section 
     41(f) of such Code, as amended by the American Taxpayer 
     Relief Act of 2012, is amended--
       (1) by striking ``of the qualified research expenses, basic 
     research payments, and amounts paid or incurred to energy 
     research consortiums,'' in subparagraph (A)(ii) and inserting 
     ``qualified research expenses'', and
       (2) by striking ``of the qualified research expenses, basic 
     research payments, and amounts paid or incurred to energy 
     research consortiums,'' in subparagraph (B)(ii) and inserting 
     ``qualified research expenses''.
       (e) Permanent Extension.--
       (1) Section 41 of such Code is amended by striking 
     subsection (h).
       (2) Paragraph (1) of section 45C(b) of such Code is amended 
     by striking subparagraph (D).
       (f) Conforming Amendments.--
       (1) Termination of basic research payment calculation.--
     Section 41 of such Code is amended--
       (A) by striking subsection (e),
       (B) by redesignating subsection (g) as subsection (e), and
       (C) by relocating subsection (e), as so redesignated, 
     immediately after subsection (d).
       (2) Special rules.--
       (A) Paragraph (4) of section 41(f) of such Code is amended 
     by striking ``and gross receipts''.
       (B) Subsection (f) of section 41 of such Code is amended by 
     striking paragraph (6).
       (3) Cross-references.--
       (A) Paragraph (2) of section 45C(c) of such Code is amended 
     by striking ``base period research expenses'' and inserting 
     ``average qualified research expenses''.
       (B) Subparagraph (A) of section 54(l)(3) of such Code is 
     amended by striking ``section 41(g)'' and inserting ``section 
     41(e)''.
       (C) Clause (i) of section 170(e)(4)(B) of such Code is 
     amended to read as follows:
       ``(i) the contribution is to a qualified organization,''.
       (D) Paragraph (4) of section 170(e) of such Code is amended 
     by adding at the end the following new subparagraph:
       ``(E) Qualified organization.--For purposes of this 
     paragraph, the term `qualified organization' means--
       ``(i) any educational organization which--

       ``(I) is an institution of higher education (within the 
     meaning of section 3304(f)), and
       ``(II) is described in subsection (b)(1)(A)(ii), or

       ``(ii) any organization not described in clause (i) which--

       ``(I) is described in section 501(c)(3) and is exempt from 
     tax under section 501(a),
       ``(II) is organized and operated primarily to conduct 
     scientific research, and
       ``(III) is not a private foundation.''.

       (E) Section 280C of such Code is amended--
       (i) by striking ``or basic research expenses (as defined in 
     section 41(e)(2))'' in subsection (c)(1),
       (ii) by striking ``section 41(a)(1)'' in subsection 
     (c)(2)(A) and inserting ``section 41(a)'', and
       (iii) by striking ``or basic research expenses'' in 
     subsection (c)(2)(B).
       (F) Clause (i) of section 1400N(l)(7)(B) of such Code is 
     amended by striking ``section 41(g)'' and inserting ``section 
     41(e)''.
       (g) Technical Corrections.--Section 409 of such Code is 
     amended--
       (1) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (b)(1)(A),
       (2) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984'' after ``relating to the employee 
     stock ownership credit'' in subsection (b)(4),
       (3) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (i)(1)(A),
       (4) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (m), and
       (5) by inserting ``(as so in effect)'' after ``section 
     48(n)(1)'' in subsection (m).
       (h) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     credits determined for taxable years beginning after December 
     31, 2013.
       (2) Permanent extension.--The amendments made by subsection 
     (e) shall apply to amounts paid or incurred after December 
     31, 2013.
       (3) Technical corrections.--The amendments made by 
     subsection (g) shall take effect on the date of the enactment 
     of this Act.

     SEC. 204. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED 
                   SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and before January 1, 2014'', and
       (2) by striking ``certain periods in 2010, 2011, 2012, and 
     2013'' in the heading and inserting ``certain periods after 
     2009''.
       (b) Conforming Amendments.--
       (1) The heading for section 1202 of such Code is amended by 
     striking ``partial''.
       (2) The item relating to section 1202 in the table of 
     sections of such Code for part I of subchapter P of chapter 1 
     is amended by striking ``Partial exclusion'' and inserting 
     ``Exclusion''.
       (3) Section 1223(13) of such Code is amended by striking 
     ``1202(a)(2),''.
       (c) Effective Date.--The amendments made by this section 
     apply to stock acquired after December 31, 2013.
                                 ______
                                 
  SA 3613. Mr. WARNER (for himself and Mr. Blunt) submitted an 
amendment intended to be proposed by him to the bill H.R. 5021, to 
provide an extension of Federal-aid highway, highway safety, motor 
carrier safety, transit, and other programs funded out of the Highway 
Trust Fund, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, add the following:

             TITLE III--INFRASTRUCTURE FINANCING AUTHORITY

     SEC. 301. SHORT TITLE.

       (a) Short Title.--This title may be cited as the ``Building 
     and Renewing Infrastructure for Development and Growth in 
     Employment Act'' or the ``BRIDGE Act''.

     SEC. 302. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) infrastructure has always been a vital element of the 
     economic strength of the United States and a key indicator of 
     the international leadership of the United States;
       (2) the Erie Canal, the Hoover Dam, the railroads, and the 
     interstate highway system are all testaments to the ingenuity 
     of the United States and have helped propel and maintain the 
     United States as the largest economy in the world;
       (3) according to the 2013-2014 World Economic Forum's 
     Global Competitiveness Report, the United States--
       (A) ranked fifth in the world on the Global Competitiveness 
     Index; and
       (B) ranked 19th in the world in the ``Quality of overall 
     infrastructure'' category;
       (4) according to the World Bank's 2012 Logistic Performance 
     Index, the capacity of countries to efficiently move goods 
     and connect manufacturers and consumers with international 
     markets is improving around the world, and the United States 
     now ranks ninth in the world in logistics-related 
     infrastructure behind countries from both Europe and Asia;

[[Page S4827]]

       (5) according to a January 2009 report from the University 
     of Massachusetts/Alliance for American Manufacturing entitled 
     ``Employment, Productivity and Growth'', infrastructure 
     investment is a ``highly effective engine of job creation'' 
     such that $1,000,000,000 in new investment in infrastructure 
     results in 18,000 total long-term jobs;
       (6) according to the American Society of Civil Engineers, 
     the current condition of the infrastructure in the United 
     States earns a grade point average of D+, and an estimated 
     $1,600,000,000,000 of additional investment is needed over 
     the next 7 years to bring the infrastructure of the United 
     States up to adequate condition;
       (7) according to the National Surface Transportation Policy 
     and Revenue Study Commission, $225,000,000,000 is needed 
     annually from all sources for the next 50 years to upgrade 
     the United States surface transportation system to a state of 
     good repair and create a more advanced system;
       (8) the current infrastructure financing mechanisms of the 
     United States, both on the Federal and State level, will fail 
     to meet current and foreseeable demands and will create large 
     funding gaps;
       (9) published reports state that there may not be enough 
     demand for municipal bonds to maintain the same level of 
     borrowing at the same rates, resulting in significantly 
     decreased infrastructure investment at the State and local 
     level;
       (10) current funding mechanisms are not readily scalable 
     and do not--
       (A) serve large in-State or cross-jurisdictional 
     infrastructure projects, projects of regional or national 
     significance, or projects that cross sector silos;
       (B) sufficiently catalyze private sector investment; or
       (C) ensure the optimal return on public resources;
       (11) although grant programs of the Federal Government must 
     continue to play a central role in financing the 
     infrastructure needs of the United States, current and 
     foreseeable demands on existing Federal, State, and local 
     funding for infrastructure expansion clearly exceed the 
     resources to support those programs by margins wide enough to 
     prompt serious concerns about the ability of the United 
     States to sustain long-term economic development, 
     productivity, and international competitiveness;
       (12) the capital markets, including pension funds, private 
     equity funds, mutual funds, sovereign wealth funds, and other 
     investors, have a growing interest in infrastructure 
     investment and represent hundreds of billions of dollars of 
     potential investment; and
       (13) the establishment of a federally owned, independent, 
     professionally managed institution that could provide credit 
     support to qualified infrastructure projects of regional and 
     national significance, making transparent merit-based 
     investment decisions based on the commercial viability of 
     infrastructure projects, would catalyze the participation of 
     significant private investment capital.
       (b) Purpose.--The purpose of this title is to facilitate 
     investment in, and the long-term financing of, economically 
     viable eligible infrastructure projects of regional or 
     national significance that are in the public interest in a 
     manner that complements existing Federal, State, local, and 
     private funding sources for these projects and introduces a 
     merit-based system for financing those projects, in order to 
     mobilize significant private sector investment, create long-
     term jobs, and ensure United States competitiveness through a 
     self-sustaining institution that limits the need for ongoing 
     Federal funding.

     SEC. 303. DEFINITIONS.

       In this title:
       (1) Blind trust.--The term ``blind trust'' means a trust in 
     which the beneficiary has no knowledge of the specific 
     holdings and no rights over how those holdings are managed by 
     the fiduciary of the trust prior to the dissolution of the 
     trust.
       (2) Board of directors.--The term ``Board of Directors'' 
     means the Board of Directors of IFA.
       (3) Chairperson.--The term ``Chairperson'' means the 
     Chairperson of the Board of Directors of IFA.
       (4) Chief executive officer.--The term ``chief executive 
     officer'' means the chief executive officer of IFA, appointed 
     under section 313.
       (5) Cost.--The term ``cost'' has the meaning given the term 
     in section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a).
       (6) Direct loan.--The term ``direct loan'' has the meaning 
     given the term in section 502 of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a).
       (7) Eligible entity.--The term ``eligible entity'' means--
       (A) an individual;
       (B) a corporation;
       (C) a partnership, including a public-private partnership;
       (D) a joint venture;
       (E) a trust;
       (F) a State or any other governmental entity, including a 
     political subdivision or any other instrumentality of a 
     State; or
       (G) a revolving fund.
       (8) Eligible infrastructure project.--
       (A) In general.--The term ``eligible infrastructure 
     project'' means the construction, consolidation, alteration, 
     or repair of the following sectors:
       (i) Intercity passenger or freight rail lines.
       (ii) Intercity passenger rail facilities or equipment.
       (iii) Intercity freight rail facilities or equipment.
       (iv) Intercity passenger bus facilities or equipment.
       (v) Public transportation facilities or equipment.
       (vi) Highway facilities, including bridges and tunnels.
       (vii) Airports.
       (viii) Air traffic control systems.
       (ix) Port or marine terminal facilities, including 
     approaches to marine terminal facilities or inland port 
     facilities.
       (x) Port or marine equipment, including fixed equipment to 
     serve approaches to marine terminals or inland ports.
       (xi) Transmission or distribution pipelines.
       (xii) Inland waterways.
       (xiii) Intermodal facilities or equipment related to 2 or 
     more of the sectors described in clauses (i) through (xii).
       (xiv) Water treatment and solid waste disposal facilities, 
     including drinking water facilities.
       (xv) Storm water management systems.
       (xvi) Dams and levees.
       (xvii) Facilities or equipment for energy transmission, 
     distribution or storage.
       (B) Authority of the board of directors to modify 
     sectors.--The Board of Directors may make modifications, at 
     the discretion of the Board, to any of the sectors described 
     in subparagraph (A) by a vote of not fewer than 5 of the 
     voting members of the Board of Directors.
       (9) IFA.--The term ``IFA'' means the Infrastructure 
     Financing Authority established under subtitle A.
       (10) Investment-grade rating.--The term ``investment-grade 
     rating'' means a rating of BBB minus, Baa3, or higher 
     assigned to an eligible infrastructure project by a ratings 
     agency.
       (11) Loan guarantee.--The term ``loan guarantee'' has the 
     meaning given the term in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a).
       (12) Public-private partnership.--The term ``public-private 
     partnership'' means any eligible entity--
       (A)(i) that is undertaking the development of all or part 
     of an eligible infrastructure project that will have a 
     measurable public benefit, pursuant to requirements 
     established in 1 or more contracts between the entity and a 
     State or an instrumentality of a State; or
       (ii) the activities of which, with respect to such an 
     eligible infrastructure project, are subject to regulation by 
     a State or any instrumentality of a State;
       (B) that owns, leases, or operates or will own, lease, or 
     operate, the project in whole or in part; and
       (C) the participants in which include not fewer than 1 
     nongovernmental entity with significant investment and some 
     control over the project or entity sponsoring the project 
     vehicle.
       (13) Rating agency.--The term ``rating agency'' means a 
     credit rating agency registered with the Securities and 
     Exchange Commission as a nationally recognized statistical 
     rating organization (as defined in section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
       (14) Rural infrastructure project.--The term ``rural 
     infrastructure project''--
       (A) has the same meaning given the term in section 601(15) 
     of title 23, United States Code; and
       (B) includes any eligible infrastructure project located in 
     an area described in such section 601(15).
       (15) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the designee of the Secretary of the 
     Treasury.
       (16) Senior management.--The term ``senior management'' 
     means the chief financial officer, chief risk officer, chief 
     compliance officer, general counsel, chief lending officer, 
     and chief operations officer of IFA, and such other officers 
     as the Board of Directors may, by majority vote, add to 
     senior management.
       (17) Special inspector general.--The term ``Special 
     Inspector General'' means the Special Inspector General for 
     IFA.
       (18) State.--The term ``State'' means--
       (A) each of the several States of the United States; and
       (B) the District of Columbia.

             Subtitle A--Infrastructure Financing Authority

     SEC. 311. ESTABLISHMENT AND GENERAL AUTHORITY OF IFA.

       (a) Establishment of IFA.--The Infrastructure Financing 
     Authority is established as a wholly owned Government 
     corporation.
       (b) General Authority of IFA.--IFA shall--
       (1) provide direct loans and loan guarantees to facilitate 
     eligible infrastructure projects that are economically 
     viable, in the public interest, and of regional or national 
     significance; and
       (2) carry out any other activities and duties authorized 
     under this title.
       (c) Incorporation.--
       (1) In general.--The Board of Directors first appointed 
     shall be deemed the incorporator of IFA, and the 
     incorporation shall be held to have been effected from the 
     date of the first meeting of the Board of Directors.
       (2) Corporate office.--IFA shall--
       (A) maintain an office in Washington, DC; and
       (B) for purposes of venue in civil actions, be considered 
     to be a resident of Washington, DC.
       (d) Responsibility of the Secretary.--The Secretary shall 
     take such action as may

[[Page S4828]]

     be necessary to assist in implementing IFA and in carrying 
     out the purpose of this title.
       (e) Rule of Construction.--Chapter 91 of title 31, United 
     States Code, does not apply to IFA, unless otherwise 
     specifically provided in this title.

     SEC. 312. VOTING MEMBERS OF THE BOARD OF DIRECTORS.

       (a) Voting Membership of the Board of Directors.--
       (1) In general.--IFA shall have a Board of Directors 
     consisting of 7 voting members appointed by the President, by 
     and with the advice and consent of the Senate, not more than 
     4 of whom shall be from the same political party.
       (2) Chairperson.--One of the voting members of the Board of 
     Directors shall be designated by the President, by and with 
     the advice and consent of the Senate, to serve as Chairperson 
     of the Board of Directors.
       (3) Congressional recommendations.--Not later than 30 days 
     after the date of the enactment of this Act, the majority 
     leader of the Senate, the minority leader of the Senate, the 
     Speaker of the House of Representatives, and the minority 
     leader of the House of Representatives shall each submit a 
     recommendation to the President for appointment of a member 
     of the Board of Directors, after consultation with the 
     appropriate committees of Congress.
       (4) Special consideration of rural interests and geographic 
     diversity.--In making an appointment under this subsection, 
     the President shall give consideration to the geographic 
     areas of the United States in which the members of the Board 
     of Directors live and work, particularly to ensure that the 
     infrastructure priorities and concerns of each region of the 
     country, including rural areas and small communities, are 
     represented on the Board of Directors.
       (b) Voting Rights.--Each voting member of the Board of 
     Directors shall have an equal vote in all decisions of the 
     Board of Directors.
       (c) Qualifications of Voting Members.--Each voting member 
     of the Board of Directors shall--
       (1) be a citizen of the United States; and
       (2) have significant demonstrated expertise in--
       (A) the management and administration of a financial 
     institution relevant to the operation of IFA; or
       (B) the financing, development, or operation of 
     infrastructure projects, including in the evaluation and 
     selection of eligible infrastructure projects based on the 
     purposes, goals, and objectives of this title.
       (d) Terms.--
       (1) In general.--Except as otherwise provided in this 
     title, each voting member of the Board of Directors shall be 
     appointed for a term of 5 years.
       (2) Initial staggered terms.--Of the voting members first 
     appointed to the Board of Directors--
       (A) the initial Chairperson and 3 of the other voting 
     member shall each be appointed for a term of 5 years; and
       (B) the remaining 3 voting members shall each be appointed 
     for a term of 2 years.
       (3) Date of initial nominations.--The initial nominations 
     for the appointment of all voting members of the Board of 
     Directors shall be made not later than 60 days after the date 
     of the enactment of this Act.
       (4) Beginning of term.--The term of each of the initial 
     voting members appointed under this section shall commence 
     immediately upon the date of appointment, except that, for 
     purposes of calculating the term limits specified in this 
     subsection, the initial terms shall each be construed as 
     beginning on January 22 of the year following the date of the 
     initial appointment.
       (5) Vacancies.--
       (A) In general.--A vacancy in the position of a voting 
     member of the Board of Directors shall be filled by the 
     President, by and with the advice and consent of the Senate.
       (B) Term.--A member appointed to fill a vacancy on the 
     Board of Directors occurring before the expiration of the 
     term for which the predecessor was appointed shall be 
     appointed only for the remainder of that term.
       (e) Meetings.--
       (1) Open to the public; notice.--Except as provided in 
     paragraph (3), all meetings of the Board of Directors shall 
     be--
       (A) open to the public; and
       (B) preceded by reasonable public notice.
       (2) Frequency.--The Board of Directors shall meet--
       (A) not later than 60 days after the date on which all 
     members of the Board of Directors are first appointed;
       (B) at least quarterly after the date described in 
     subparagraph (A); and
       (C) at the call of the Chairperson or 3 voting members of 
     the Board of Directors.
       (3) Exception for closed meetings.--
       (A) In general.--The voting members of the Board of 
     Directors may, by majority vote, close a meeting to the 
     public if, during the meeting to be closed, there is likely 
     to be disclosed proprietary or sensitive information 
     regarding an eligible infrastructure project under 
     consideration for assistance under this title.
       (B) Availability of minutes.--The Board of Directors shall 
     prepare minutes of any meeting that is closed to the public, 
     which minutes shall be made available as soon as practicable, 
     but not later than 1 year after the date of the closed 
     meeting, with any necessary redactions to protect any 
     proprietary or sensitive information.
       (4) Quorum.--For purposes of meetings of the Board of 
     Directors, 5 voting members of the Board of Directors shall 
     constitute a quorum.
       (f) Compensation of Members.--Each voting member of the 
     Board of Directors shall be compensated at a rate equal to 
     the daily equivalent of the annual rate of basic pay 
     prescribed for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code, for each day 
     (including travel time) during which the member is engaged in 
     the performance of the duties of the Board of Directors.
       (g) Conflicts of Interest.--A voting member of the Board of 
     Directors may not participate in any review or decision 
     affecting an eligible infrastructure project under 
     consideration for assistance under this title, if the member 
     has or is affiliated with an entity who has a financial 
     interest in that project.

     SEC. 313. CHIEF EXECUTIVE OFFICER OF IFA.

       (a) In General.--The chief executive officer shall--
       (1) be a nonvoting member of the Board of Directors;
       (2) be responsible for all activities of IFA; and
       (3) support the Board of Directors in accordance with this 
     title and as the Board of Directors determines to be 
     necessary.
       (b) Appointment and Tenure of the Chief Executive 
     Officer.--
       (1) In general.--The President shall appoint the chief 
     executive officer, by and with the advice and consent of the 
     Senate.
       (2) Term.--The chief executive officer shall be appointed 
     for a term of 6 years.
       (3) Vacancies.--
       (A) In general.--Any vacancy in the office of the chief 
     executive officer shall be filled by the President, by and 
     with the advice and consent of the Senate.
       (B) Term.--The person appointed to fill a vacancy in the 
     chief executive officer position that occurs before the 
     expiration of the term for which the predecessor was 
     appointed shall be appointed only for the remainder of that 
     term.
       (c) Qualifications.--The chief executive officer--
       (1) shall have significant expertise in management and 
     administration of a financial institution, or significant 
     expertise in the financing and development of infrastructure 
     projects; and
       (2) may not--
       (A) hold any other public office;
       (B) have any financial interest in an eligible 
     infrastructure project then being considered by the Board of 
     Directors, unless that interest is placed in a blind trust; 
     or
       (C) have any financial interest in an investment 
     institution or its affiliates or any other entity seeking or 
     likely to seek financial assistance for any eligible 
     infrastructure project from IFA, unless any such interest is 
     placed in a blind trust for the tenure of the service of the 
     chief executive officer plus 2 additional years.
       (d) Responsibilities.--The chief executive officer shall 
     have such executive functions, powers, and duties as may be 
     prescribed under this title, the bylaws of IFA, or the Board 
     of Directors, including--
       (1) responsibility for the development and implementation 
     of the strategy of IFA, including--
       (A) the development and submission to the Board of 
     Directors of the annual business plans and budget;
       (B) the development and submission to the Board of 
     Directors of a long-term strategic plan; and
       (C) the development, revision, and submission to the Board 
     of Directors of internal policies; and
       (2) responsibility for the management and oversight of the 
     daily activities, decisions, operations, and personnel of 
     IFA.
       (e) Compensation.--
       (1) In general.--Any compensation assessment or 
     recommendation by the chief executive officer under this 
     section shall be without regard to the provisions of chapter 
     51 or subchapter III of chapter 53 of title 5, United States 
     Code.
       (2) Considerations.--The compensation assessment or 
     recommendation required under this subsection shall take into 
     account merit principles, where applicable, as well as the 
     education, experience, level of responsibility, geographic 
     differences, and retention and recruitment needs in 
     determining compensation of personnel.

     SEC. 314. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.

       The Board of Directors shall--
       (1) as soon as practicable after the date on which all 
     members are appointed, approve or disapprove senior 
     management appointed by the chief executive officer;
       (2) not later than 180 days after the date on which all 
     members are appointed--
       (A) develop and approve the bylaws of IFA, including bylaws 
     for the regulation of the affairs and conduct of the business 
     of IFA, consistent with the purpose, goals, objectives, and 
     policies set forth in this title;
       (B) establish subcommittees, including an audit committee 
     that is composed solely of members of the Board of Directors, 
     other than the chief executive officer;
       (C) develop and approve, in consultation with senior 
     management, a conflict-of-interest policy for the Board of 
     Directors and for senior management;
       (D) approve or disapprove internal policies that the chief 
     executive officer shall submit to the Board of Directors, 
     including--
       (i) policies regarding the loan application and approval 
     process, including application procedures and project 
     approval processes;

[[Page S4829]]

       (ii) operational guidelines; and
       (E) approve or disapprove a 1-year business plan and budget 
     for IFA;
       (3) ensure that IFA is at all times operated in a manner 
     that is consistent with this title, by--
       (A) monitoring and assessing the effectiveness of IFA in 
     achieving its strategic goals;
       (B) reviewing and approving internal policies, annual 
     business plans, annual budgets, and long-term strategies 
     submitted by the chief executive officer;
       (C) reviewing and approving annual reports submitted by the 
     chief executive officer;
       (D) engaging 1 or more external auditors, as set forth in 
     this title; and
       (E) reviewing and approving all changes to the organization 
     of senior management;
       (4) appoint and fix, by a vote of not less than 5 of the 7 
     voting members of the Board of Directors, and without regard 
     to the provisions of chapter 51 or subchapter III of chapter 
     53 of title 5, United States Code, the compensation and 
     adjustments to compensation of all IFA personnel, provided 
     that in appointing and fixing any compensation or adjustments 
     to compensation under this paragraph, the Board shall--
       (A) consult with, and seek to maintain comparability with, 
     other comparable Federal personnel, as the Board of Directors 
     may determine to be appropriate;
       (B) consult with the Office of Personnel Management; and
       (C) carry out those duties consistent with merit 
     principles, where applicable, as well as the education, 
     experience, level of responsibility, geographic differences, 
     comparability to private sector positions, and retention and 
     recruitment needs in determining compensation of personnel;
       (5) serve as the primary liaison for IFA in interactions 
     with Congress, the Secretary of Transportation and other 
     Executive Branch officials, and State and local governments, 
     and to represent the interests of IFA in those interactions 
     and others;
       (6) approve by a vote of not less than 5 of the 7 voting 
     members of the Board of Directors any changes to the bylaws 
     or internal policies of IFA;
       (7) have the authority and responsibility--
       (A) to oversee entering into and carrying out such 
     contracts, leases, cooperative agreements, or other 
     transactions as are necessary to carry out this title;
       (B) to approve of the acquisition, lease, pledge, exchange, 
     and disposal of real and personal property by IFA and 
     otherwise approve the exercise by IFA of all of the usual 
     incidents of ownership of property, to the extent that the 
     exercise of those powers is appropriate to and consistent 
     with the purposes of IFA;
       (C) to determine the character of, and the necessity for, 
     the obligations and expenditures of IFA, and the manner in 
     which the obligations and expenditures will be incurred, 
     allowed, and paid, subject to this title and other Federal 
     law specifically applicable to wholly owned Federal 
     corporations;
       (D) to execute, in accordance with applicable bylaws and 
     regulations, appropriate instruments;
       (E) to approve other forms of credit enhancement that IFA 
     may provide to eligible projects, as long as the forms of 
     credit enhancements are consistent with the purposes of this 
     title and the terms set forth in subtitle B;
       (F) to exercise all other lawful powers which are necessary 
     or appropriate to carry out, and are consistent with, the 
     purposes of IFA;
       (G) to sue or be sued in the corporate capacity of IFA in 
     any court of competent jurisdiction;
       (H) to indemnify the members of the Board of Directors and 
     officers of IFA for any liabilities arising out of the 
     actions of the members and officers in that capacity, in 
     accordance with, and subject to the limitations contained in 
     this title;
       (I) to review all financial assistance packages to all 
     eligible infrastructure projects, as submitted by the chief 
     executive officer and to approve, postpone, or deny the same 
     by majority vote;
       (J) to review all restructuring proposals submitted by the 
     chief executive officer, including assignation, pledging, or 
     disposal of the interest of IFA in a project, including 
     payment or income from any interest owned or held by IFA, and 
     to approve, postpone, or deny the same by majority vote;
       (K) to enter into binding commitments, as specified in 
     approved financial assistance packages;
       (L) to determine whether--
       (i) to obtain a lien on the assets of an eligible entity 
     that receives assistance under this title; and
       (ii) to subordinate a lien under clause (i) to any other 
     lien securing project obligations; and
       (M) to ensure a measurable public benefit in the selection 
     of eligible infrastructure projects and to provide for 
     reasonable public input in the selection of such projects;
       (8) delegate to the chief executive officer those duties 
     that the Board of Directors determines to be appropriate, to 
     better carry out the powers and purposes of the Board of 
     Directors under this section; and
       (9) to approve a maximum aggregate amount of principal 
     exposure of IFA at any given time.

     SEC. 315. SENIOR MANAGEMENT.

       (a) In General.--Senior management shall support the chief 
     executive officer in the discharge of the responsibilities of 
     the chief executive officer.
       (b) Appointment of Senior Management.--The chief executive 
     officer shall appoint such senior managers as are necessary 
     to carry out the purposes of IFA, as approved by a majority 
     vote of the voting members of the Board of Directors, 
     including a chief compliance officer, general counsel, chief 
     operating officer, chief lending officer, and other positions 
     as determined to be appropriate by the chief executive 
     officer and Board of Directors.
       (c) Term.--Each member of senior management shall serve at 
     the pleasure of the chief executive officer and the Board of 
     Directors.
       (d) Removal of Senior Management.--Any member of senior 
     management may be removed--
       (1) by a majority of the voting members of the Board of 
     Directors at the request of the chief executive officer; or
       (2) by a vote of not fewer than 5 voting members of the 
     Board of Directors.
       (e) Senior Management.--
       (1) In general.--Each member of senior management shall 
     report directly to the chief executive officer, other than 
     the chief risk officer, who shall report directly to the 
     Board of Directors.
       (2) Chief risk officer.--The chief risk officer shall be 
     responsible for all functions of IFA relating to--
       (A) the creation of financial, credit, and operational risk 
     management guidelines and policies;
       (B) the establishment of guidelines to ensure 
     diversification of lending activities by region, 
     infrastructure project type, and project size;
       (C) the creation of conforming standards for infrastructure 
     finance agreements;
       (D) the monitoring of the financial, credit, and 
     operational exposure of IFA; and
       (E) risk management and mitigation actions, including by 
     reporting those actions, or recommendations of actions to be 
     taken, directly to the Board of Directors.
       (f) Conflicts of Interest.--No individual appointed to 
     senior management may--
       (1) hold any other public office;
       (2) have any financial interest in an eligible 
     infrastructure project then being considered by the Board of 
     Directors, unless that interest is placed in a blind trust; 
     or
       (3) have any financial interest in an investment 
     institution or its affiliates, IFA or its affiliates, or 
     other entity then seeking or likely to seek financial 
     assistance for any eligible infrastructure project from IFA, 
     unless any such interest is placed in a blind trust during 
     the term of service of that individual in a senior management 
     position, and for a period of 2 years thereafter.

     SEC. 316. OFFICE OF TECHNICAL AND RURAL ASSISTANCE.

       (a) In General.--The chief executive officer shall create 
     and manage within IFA an office, to be known as the ``Office 
     of Technical and Rural Assistance''.
       (b) Duties.--The Office of Technical and Rural Assistance 
     shall--
       (1) in consultation with the Secretary, the Secretary of 
     Transportation, and the heads of other relevant Federal 
     agencies, as determined by the chief executive officer, 
     provide technical assistance to State and local governments 
     and parties in public-private partnerships in the development 
     and financing of eligible infrastructure projects, including 
     rural infrastructure projects;
       (2) assist the entities described in paragraph (1) with 
     coordinating loan and loan guarantee programs available 
     through Federal agencies, including the Department of 
     Transportation and other Federal agencies as appropriate; and
       (3) work with the entities described in paragraph (1) to 
     identify and develop a pipeline of projects suitable for 
     financing through innovative project financing and 
     performance based project delivery, including those projects 
     with the potential for financing through IFA.

     SEC. 317. SPECIAL INSPECTOR GENERAL FOR IFA.

       (a) In General.--
       (1) Initial period.--For the 5-year period beginning on the 
     date of the enactment of this Act, the Inspector General of 
     the Department of Treasury shall serve as the Special 
     Inspector General for IFA in addition to the existing duties 
     of the Inspector General of the Department of Treasury.
       (2) Office of the special inspector general.--Effective 
     beginning on the day that is 5 years after the date of the 
     enactment of this Act, there is established the Office of the 
     Special Inspector General for IFA.
       (b) Appointment of Inspector General; Removal.--
       (1) Head of office.--The head of the Office of the Special 
     Inspector General for IFA shall be the Special Inspector 
     General for IFA, who shall be appointed by the President, by 
     and with the advice and consent of the Senate.
       (2) Basis of appointment.--The appointment of the Special 
     Inspector General shall be made on the basis of integrity and 
     demonstrated ability in accounting, auditing, financial 
     analysis, law, management analysis, public administration, or 
     investigations.
       (3) Timing of nomination.--The nomination of an individual 
     as Special Inspector General shall be made as soon as 
     practicable after the date of the enactment of this Act.
       (4) Removal.--The Special Inspector General shall be 
     removable from office in accordance with the provisions of 
     section 3(b) of the Inspector General Act of 1978 (5 U.S.C. 
     App.).

[[Page S4830]]

       (5) Rule of construction.--For purposes of section 7324 of 
     title 5, United States Code, the Special Inspector General 
     shall not be considered an employee who determines policies 
     to be pursued by the United States in the nationwide 
     administration of Federal law.
       (6) Rate of pay.--The annual rate of basic pay of the 
     Special Inspector General shall be the annual rate of basic 
     pay for an Inspector General under section 3(e) of the 
     Inspector General Act of 1978 (5 U.S.C. App.).
       (c) Duties.--The Special Inspector General shall--
       (1) conduct, supervise, and coordinate audits and 
     investigations of the business activities of IFA;
       (2) establish, maintain, and oversee such systems, 
     procedures, and controls as the Special Inspector General 
     considers appropriate to discharge the duty under paragraph 
     (1); and
       (3) carry out any other duties and responsibilities of 
     inspectors general under the Inspector General Act of 1978 (5 
     U.S.C. App.).
       (d) Powers and Authorities.--
       (1) In general.--In carrying out the duties specified in 
     subsection (c), the Special Inspector General shall have the 
     authorities set forth in section 6 of the Inspector General 
     Act of 1978 (5 U.S.C. App.).
       (2) Additional authority.--The Special Inspector General 
     shall carry out the duties specified in subsection (c)(1) in 
     accordance with section 4(b)(1) of the Inspector General Act 
     of 1978 (5 U.S.C. App.).
       (e) Personnel, Facilities, and Other Resources.--
       (1) Additional officers.--
       (A) In general.--The Special Inspector General may select, 
     appoint, and employ such officers and employees as may be 
     necessary for carrying out the duties of the Special 
     Inspector General, subject to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and the provisions of chapter 51 and subchapter III 
     of chapter 53 of such title, relating to classification and 
     General Schedule pay rates.
       (B) Employment and compensation.--The Special Inspector 
     General may exercise the authorities under subsections (b) 
     through (i) of section 3161 of title 5, United States Code 
     (without regard to subsection (a) of that section).
       (2) Retention of services.--The Special Inspector General 
     may obtain services as authorized under section 3109 of title 
     5, United States Code, at daily rates not to exceed the 
     equivalent rate prescribed for grade GS-15 of the General 
     Schedule by section 5332 of such title.
       (3) Ability to contract for audits, studies, and other 
     services.--The Special Inspector General may enter into 
     contracts and other arrangements for audits, studies, 
     analyses, and other services with public agencies and with 
     private persons, and make such payments as may be necessary 
     to carry out the duties of the Special Inspector General.
       (4) Request for information.--
       (A) In general.--Upon request of the Special Inspector 
     General for information or assistance from any department, 
     agency, or other entity of the Federal Government, the head 
     of that entity shall, insofar as is practicable and not in 
     contravention of any existing law, furnish the information or 
     assistance to the Special Inspector General or an authorized 
     designee.
       (B) Refusal to comply.--If information or assistance 
     requested by the Special Inspector General is, in the 
     judgment of the Special Inspector General, unreasonably 
     refused or not provided, the Special Inspector General shall 
     report the circumstances to the Secretary, without delay.
       (f) Reports.--
       (1) Annual report.--Not later than 1 year after the date on 
     which the Special Inspector General is confirmed, and every 
     calendar year thereafter, the Special Inspector General shall 
     submit a report to the President and to appropriate 
     committees of Congress that summarizes the activities of the 
     Special Inspector General during the 1-year period ending on 
     the date of that report.
       (2) Public disclosures.--Nothing in this subsection may be 
     construed to authorize the public disclosure of information 
     that is--
       (A) specifically prohibited from disclosure by any other 
     provision of law;
       (B) specifically required by Executive order to be 
     protected from disclosure in the interest of national defense 
     or national security or in the conduct of foreign affairs; or
       (C) a part of an ongoing criminal investigation.

     SEC. 318. OTHER PERSONNEL.

       (a) Appointment, Removal, and Definition of Duties.--Except 
     as otherwise provided in the IFA bylaws, the chief executive 
     officer, in consultation with the Board of Directors, shall 
     appoint, remove, and define the duties of such qualified 
     personnel as are necessary to carry out the powers, duties, 
     and purpose of IFA, other than senior management, who shall 
     be appointed in accordance with section 315.
       (b) Coordination in Identifying Qualifications and 
     Expertise.--In appointing qualified personnel under 
     subsection (a), the chief executive officer shall coordinate 
     with, and seek assistance from, the Secretary of 
     Transportation in identifying the appropriate qualifications 
     and expertise in infrastructure project finance.

     SEC. 319. COMPLIANCE.

       The provision of assistance by IFA under this title does 
     not supersede any provision of State law or regulation 
     otherwise applicable to an eligible infrastructure project.

 Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees

     SEC. 321. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM IFA AND 
                   TERMS AND LIMITATIONS OF LOANS.

       (a) Public Benefit Required.--
       (1) In general.--Any project the use or purpose of which is 
     private and for which no public benefit is created, as 
     determined by the Board of Directors, shall not be eligible 
     for financial assistance from IFA under this title.
       (2) Criteria.--Financial assistance under this title shall 
     only be made available if the applicant for assistance has 
     demonstrated to the satisfaction of the Board of Directors 
     that--
       (A) the eligible infrastructure project for which 
     assistance is being sought--
       (i) is not for the refinancing of an existing 
     infrastructure project; and
       (ii) meets--

       (I) any pertinent requirements set forth in this title;
       (II) any criteria established by the Board of Directors or 
     chief executive officer in accordance with this title; and
       (III) the definition of an eligible infrastructure project; 
     and

       (B) for projects involving public-private partnerships, the 
     project has received contributed capital or commitments for 
     contributed capital equal to not less than 10 percent of the 
     total cost of the eligible infrastructure project for which 
     assistance is being sought, if such contributed capital 
     includes--
       (i) equity;
       (ii) deeply subordinate loans or other credit and debt 
     instruments, which shall be junior to any IFA assistance 
     provided for the project;
       (iii) appropriated funds or grants from governmental 
     sources other than the Federal Government; or
       (iv) irrevocable private contributions of funds, grants, 
     property (including rights-of way), and other assets that 
     directly reduce or offset project costs.
       (b) Considerations.--The criteria established by the Board 
     of Directors under this title shall provide adequate 
     consideration of--
       (1) the economic, financial, technical, environmental, and 
     public benefits and costs of each eligible infrastructure 
     project under consideration for financial assistance under 
     this title, prioritizing eligible infrastructure projects 
     that--
       (A) demonstrate a clear and measurable public benefit;
       (B) offer value for money to taxpayers;
       (C) contribute to regional or national economic growth;
       (D) lead to long-term job creation; and
       (E) mitigate environmental concerns;
       (2) the means by which development of the eligible 
     infrastructure project under consideration is being financed, 
     including--
       (A) the terms, conditions, and structure of the proposed 
     financing;
       (B) the creditworthiness and standing of the project 
     sponsors, providers of equity, and cofinanciers;
       (C) the financial assumptions and projections on which the 
     eligible infrastructure project is based; and
       (D) whether there is sufficient State or municipal 
     political support for the successful completion of the 
     eligible infrastructure project;
       (3) the likelihood that the provision of assistance by IFA 
     will cause the development to proceed more promptly and with 
     lower costs for financing than would be the case without IFA 
     assistance;
       (4) the extent to which the provision of assistance by IFA 
     maximizes the level of private investment in the eligible 
     infrastructure project or supports a public-private 
     partnership, while providing a significant public benefit;
       (5) the extent to which the provision of assistance by IFA 
     can mobilize the participation of other financing partners in 
     the eligible infrastructure project;
       (6) the technical and operational viability of the eligible 
     infrastructure project;
       (7) the proportion of financial assistance from IFA;
       (8) the geographical location of the project, prioritizing 
     geographical diversity of projects funded by IFA;
       (9) the size of the project and the impact of the project 
     on the resources of IFA; and
       (10) the infrastructure sector of the project, prioritizing 
     projects from more than 1 sector funded by IFA.
       (c) Application.--
       (1) In general.--Any eligible entity seeking assistance 
     from IFA under this title for an eligible infrastructure 
     project shall submit an application to IFA at such time, in 
     such manner, and containing such information as the Board of 
     Directors or the chief executive officer may require.
       (2) Review of applications.--
       (A) In general.--IFA shall review applications for 
     assistance under this title on an ongoing basis.
       (B) Preparation.--The chief executive officer, in 
     cooperation with the senior management, shall prepare 
     eligible infrastructure projects for review and approval by 
     the Board of Directors.
       (3) Dedicated revenue sources.--The Federal credit 
     instrument shall be repayable, in whole or in part, from 
     tolls, user fees, or other dedicated revenue sources derived 
     from

[[Page S4831]]

     users or beneficiaries that also secure the eligible 
     infrastructure project obligations.
       (d) Eligible Infrastructure Project Costs.--
       (1) In general.--Except as provided in paragraph (2), to be 
     eligible for assistance under this title, an eligible 
     infrastructure project shall have project costs that are 
     reasonably anticipated to equal or exceed $50,000,000.
       (2) Rural infrastructure projects.--To be eligible for 
     assistance under this title a rural infrastructure project 
     shall have project costs that are reasonably anticipated to 
     equal or exceed $10,000,000.
       (e) Loan Eligibility and Maximum Amounts.--
       (1) In general.--The amount of a direct loan or loan 
     guarantee under this title shall not exceed the lesser of--
       (A) 49 percent of the reasonably anticipated eligible 
     infrastructure project costs; and
       (B) the amount of the senior project obligations, if the 
     direct loan or loan guarantee does not receive an investment 
     grade rating.
       (2) Maximum annual loan and loan guarantee volume.--The 
     aggregate amount of direct loans and loan guarantees made by 
     IFA shall not exceed--
       (A) during the first 2 fiscal years of the operations of 
     IFA, $10,000,000,000 per year;
       (B) during fiscal years 3 through 9 of the operations of 
     IFA, $20,000,000,000 per year; and
       (C) during any fiscal year thereafter, $50,000,000,000.

     SEC. 322. LOAN TERMS AND REPAYMENT.

       (a) In General.--A direct loan or loan guarantee under this 
     title with respect to an eligible infrastructure project 
     shall be on such terms, subject to such conditions, and 
     contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the chief 
     executive officer determines appropriate.
       (b) Terms.--A direct loan or loan guarantee under this 
     title--
       (1) shall--
       (A) be payable, in whole or in part, from tolls, user fees, 
     or other dedicated revenue sources derived from users or 
     beneficiaries; and
       (B) include a rate covenant, coverage requirement, or 
     similar security feature supporting the project obligations; 
     and
       (2) may be secured by a lien--
       (A) on the assets of the obligor, including revenues 
     described in paragraph (1); and
       (B) which may be subordinated to any other lien securing 
     project obligations.
       (c) Base Interest Rate.--The base interest rate on a direct 
     loan under this title shall be not less than the yield on 
     Treasury obligations of a similar maturity to the maturity of 
     the direct loan on the date of execution of the loan 
     agreement.
       (d) Risk Assessment.--Before entering into an agreement for 
     assistance under this title, the chief executive officer, in 
     consultation with the Director of the Office of Management 
     and Budget and each rating agency providing a preliminary 
     rating opinion letter under this section, shall determine an 
     appropriate Federal credit subsidy amount for each direct 
     loan and loan guarantee, taking into account that preliminary 
     rating opinion letter and any comparable market rates 
     available for such a loan or loan guarantee.
       (e) Credit Fee.--
       (1) In general.--With respect to each agreement for 
     assistance under this title, the chief executive officer 
     shall charge a credit fee to the recipient of that assistance 
     to pay for, over time, all or a portion of the Federal credit 
     subsidy determined under subsection (d), with the remainder 
     paid by the account established for IFA.
       (2) Direct loans.--In the case of a direct loan, the credit 
     fee described in paragraph (1) shall be in addition to the 
     base interest rate established under subsection (c).
       (f) Maturity Date.--The final maturity date of a direct 
     loan or loan guaranteed by IFA under this title shall be not 
     later than 35 years after the date of substantial completion 
     of the eligible infrastructure project, as determined by the 
     chief executive officer.
       (g) Preliminary Rating Opinion Letter.--
       (1) In general.--The chief executive officer shall require 
     each applicant for assistance under this title to provide a 
     preliminary rating opinion letter from at least 1 rating 
     agency, indicating that the senior obligations of the 
     eligible infrastructure project, which may be the Federal 
     credit instrument, have the potential to achieve an 
     investment-grade rating.
       (2) Rural infrastructure projects.--With respect to a rural 
     infrastructure project, a rating agency opinion letter 
     described in paragraph (1) shall not be required, except that 
     the loan or loan guarantee shall receive an internal rating 
     score, using methods similar to the rating agencies generated 
     by IFA, measuring the proposed direct loan or loan guarantee 
     against comparable direct loans or loan guarantees of similar 
     credit quality in a similar sector.
       (h) Investment-Grade Rating Requirement.--
       (1) Loans and loan guarantees.--The execution of a direct 
     loan or loan guarantee under this title shall be contingent 
     on the senior obligations of the eligible infrastructure 
     project receiving an investment-grade rating.
       (2) Rating of ifa overall portfolio.--The average rating of 
     the overall portfolio of IFA shall be not less than 
     investment grade after 5 years of operation.
       (i) Terms and Repayment of Direct Loans.--
       (1) Schedule.--The chief executive officer shall establish 
     a repayment schedule for each direct loan under this title, 
     based on the projected cash flow from eligible infrastructure 
     project revenues and other repayment sources.
       (2) Commencement.--Scheduled loan repayments of principal 
     or interest on a direct loan under this title shall commence 
     not later than 5 years after the date of substantial 
     completion of the eligible infrastructure project, as 
     determined by the chief executive officer.
       (3) Deferred payments of direct loans.--
       (A) Authorization.--If, at any time after the date of 
     substantial completion of an eligible infrastructure project 
     assisted under this title, the eligible infrastructure 
     project is unable to generate sufficient revenues to pay the 
     scheduled loan repayments of principal and interest on the 
     direct loan under this title, the chief executive officer may 
     allow the obligor to add unpaid principal and interest to the 
     outstanding balance of the direct loan, if the result would 
     benefit the taxpayer.
       (B) Interest.--Any payment deferred under subparagraph (A) 
     shall--
       (i) continue to accrue interest, in accordance with the 
     terms of the obligation, until fully repaid; and
       (ii) be scheduled to be amortized over the remaining term 
     of the loan.
       (C) Criteria.--
       (i) In general.--Any payment deferral under subparagraph 
     (A) shall be contingent on the eligible infrastructure 
     project meeting criteria established by the Board of 
     Directors.
       (ii) Repayment standards.--The criteria established under 
     clause (i) shall include standards for reasonable assurance 
     of repayment.
       (4) Prepayment of direct loans.--
       (A) Use of excess revenues.--Any excess revenues that 
     remain after satisfying scheduled debt service requirements 
     on the eligible infrastructure project obligations and direct 
     loan and all deposit requirements under the terms of any 
     trust agreement, bond resolution, or similar agreement 
     securing project obligations under this title may be applied 
     annually to prepay the direct loan, without penalty.
       (B) Use of proceeds of refinancing.--A direct loan under 
     this title may be prepaid at any time, without penalty, from 
     the proceeds of refinancing from non-Federal funding sources.
       (j) Loan Guarantees.--The terms of a loan guaranteed by IFA 
     under this title shall be consistent with the terms set forth 
     in this section for a direct loan, except that the rate on 
     the guaranteed loan and any payment, prepayment, or 
     refinancing features shall be negotiated between the obligor 
     and the lender (as defined in section 601(a) of title 23, 
     United States Code) with the consent of the chief executive 
     officer.
       (k) Compliance With FCRA.--
       (1) In general.--Except as provided in paragraph (2), 
     direct loans and loan guarantees authorized under this title 
     shall be subject to the provisions of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.).
       (2) Exception.--Section 504(b) of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or 
     loan guarantee under this title.
       (l) Policy of Congress.--It is the policy of Congress that 
     IFA shall only make a direct loan or loan guarantee under 
     this title if IFA determines that IFA is reasonably expected 
     to recover the full amount of the direct loan or loan 
     guarantee.

     SEC. 323. COMPLIANCE AND ENFORCEMENT.

       (a) Credit Agreement.--Notwithstanding any other provision 
     of law, each eligible entity that receives assistance under 
     this title shall enter into a credit agreement that requires 
     such entity to comply with all applicable policies and 
     procedures of IFA, in addition to all other provisions of the 
     loan agreement.
       (b) Applicability of Federal Laws.--Each eligible entity 
     that receives assistance under this title shall provide 
     written assurance, in such form and manner and containing 
     such terms as are to be prescribed by IFA, that the eligible 
     infrastructure project will be performed in compliance with 
     the requirements of all Federal laws that would otherwise 
     apply to similar projects to which the United States is a 
     party, or financed in whole or in part from Federal funds or 
     in accordance with guarantees of a Federal agency or financed 
     from funds obtained by pledge of any contract of a Federal 
     agency to make a loan, grant, or annual contribution.
       (c) IFA Authority on Noncompliance.--In any case in which 
     an eligible entity that receives assistance under this title 
     is materially out of compliance with the loan agreement, or 
     any applicable policy or procedure of IFA, the Board of 
     Directors may take action--
       (1) to cancel unused loan amounts; or
       (2) to accelerate the repayment terms of any outstanding 
     obligation.

     SEC. 324. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.

       (a) Accounting.--The books of account of IFA shall be--
       (1) maintained in accordance with generally accepted 
     accounting principles; and
       (2) subject to an annual audit by independent public 
     accountants of nationally recognized standing appointed by 
     the Board of Directors.
       (b) Reports.--

[[Page S4832]]

       (1) Board of directors.--Not later than 90 days after the 
     last day of each fiscal year, the Board of Directors shall 
     submit to the President and Congress a complete and detailed 
     report with respect to the preceding fiscal year, setting 
     forth--
       (A) a summary of the operations of IFA for that fiscal 
     year;
       (B) a schedule of the obligations of IFA and capital 
     securities outstanding at the end of that fiscal year, with a 
     statement of the amounts issued and redeemed or paid during 
     that fiscal year;
       (C) the status of eligible infrastructure projects 
     receiving funding or other assistance under this title during 
     that fiscal year, including--
       (i) all nonperforming loans; and
       (ii) disclosure of all entities with a development, 
     ownership, or operational interest in those eligible 
     infrastructure projects;
       (D) a description of the successes and challenges 
     encountered in lending to rural communities, including the 
     role of the Office of Technical and Rural Assistance 
     established under this title; and
       (E) an assessment of the risks of the portfolio of IFA, 
     which shall be prepared by an independent source.
       (2) GAO evaluation.--Not later than 5 years after the date 
     of the enactment of this Act, the Comptroller General of the 
     United States shall conduct an evaluation of, and submit a 
     report to the Committee on Commerce, Science, and 
     Transportation of the Senate, the Committee on Energy and 
     Commerce of the House of Representatives, and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives on the activities of IFA for the fiscal years 
     covered by the report that includes--
       (A) an assessment of the impact and benefits of each funded 
     eligible infrastructure project, including a review of how 
     effectively each eligible infrastructure project accomplished 
     the goals prioritized by the eligible infrastructure project 
     criteria of IFA; and
       (B) an evaluation of the effectiveness of, and challenges 
     facing, loan programs at the Department of Transportation and 
     Department of Energy, and an analysis of the advisability of 
     consolidating those programs within IFA.
       (3) GAO study and report.--Not later than 10 years after 
     the date of enactment of this Act, the Comptroller General of 
     the United States shall conduct a study and submit a report 
     to the Committee on Commerce, Science, and Transportation of 
     the Senate, the Committee on Energy and Commerce of the House 
     of Representatives, and the Committee on Transportation and 
     Infrastructure of the House of Representatives on the status 
     of actions taken to make IFA a self-sustaining entity, 
     including providing recommendations for such legislative or 
     administrative actions as the Comptroller General considers 
     necessary for IFA to achieve self-sustaining status or to 
     promote a greater likelihood of achieving such status.
       (c) Books and Records.--
       (1) In general.--IFA shall maintain adequate books and 
     records to support the financial transactions of IFA, with a 
     description of financial transactions and eligible 
     infrastructure projects receiving funding, and the amount of 
     funding for each project maintained on a publically 
     accessible database.
       (2) Audits by the secretary and gao.--The books and records 
     of IFA shall at all times be open to inspection by the 
     Secretary, the Special Inspector General, and the Comptroller 
     General of the United States.

     SEC. 325. EFFECT ON OTHER LAWS.

       Nothing in this title affects or alters the responsibility 
     of an eligible entity that receives assistance under this 
     title to comply with applicable Federal and State laws 
     (including regulations) relating to an eligible 
     infrastructure project.

                       Subtitle C--Funding of IFA

     SEC. 331. FEES.

       The chief executive officer shall establish fees with 
     respect to loans and loan guarantees under this title that--
       (1) are sufficient to cover all the administrative costs to 
     the Federal Government for the operations of IFA;
       (2) may be in the form of an application or transaction 
     fee, or interest rate adjustment; and
       (3) may be based on the risk premium associated with the 
     loan or loan guarantee, taking into consideration--
       (A) the price of Treasury obligations of a similar 
     maturity;
       (B) prevailing market conditions;
       (C) the ability of the eligible infrastructure project to 
     support the loan or loan guarantee; and
       (D) the total amount of the loan or loan guarantee.

     SEC. 332. SELF-SUFFICIENCY OF IFA.

       The chief executive officer shall, to the extent 
     practicable, take actions consistent with this title to make 
     IFA a self-sustaining entity, with administrative costs and 
     Federal credit subsidy costs fully funded by fees and risk 
     premiums on loans and loan guarantees.

     SEC. 333. FUNDING.

       (a) In General.--There is authorized to be appropriated to 
     IFA to make direct loans and loan guarantees under this title 
     $10,000,000,000--
       (1) which shall remain available until expended;
       (2) of which not more than $25,000,000 may be used for the 
     administrative costs of IFA for each of the fiscal years 2014 
     and 2015; and
       (3) of which not more than $50,000,000 may be used for the 
     administrative costs of IFA for fiscal year 2016.
       (b) Interest.--The amounts made available to IFA under this 
     title shall be placed in interest-bearing accounts.
       (c) Rural Infrastructure Projects.--Of the amounts made 
     available to IFA under this title, not less than 5 percent 
     shall be used to offset subsidy costs associated with rural 
     infrastructure projects.

     SEC. 334. CONTRACT AUTHORITY.

       Notwithstanding any other provision of law, approval by the 
     Board of Directors of a Federal credit instrument that uses 
     funds made available under this title shall impose upon the 
     United States a contractual obligation to fund the Federal 
     credit investment.

     SEC. 335. LIMITATION ON AUTHORITY.

       IFA shall not have the authority to issue debt in its own 
     name.

                     Subtitle D--Budgetary Effects

     SEC. 341. BUDGETARY EFFECTS.

       The budgetary effects of this title, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this title, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 3614. Mr. SCOTT submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                 TITLE II--SOUTHERN ENERGY ACCESS JOBS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Southern Energy Access 
     Jobs Act'' or the ``SEA Jobs Act''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Director.--The term ``Director'' means the Director of 
     the Bureau of Ocean Energy Management.
       (2) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1002).
       (3) Qualified revenues.--The term ``qualified revenues'' 
     means all bonus bids, rentals and royalties (and other sums) 
     due and payable to the United States from all leases entered 
     into after the date of enactment of this Act that covers an 
     area in the South Atlantic planning area.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (5) South atlantic planning area.--The term ``South 
     Atlantic planning area'' means the area of the outer 
     Continental Shelf (as defined in section 2 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331)) that is located 
     between the northern lateral seaward administrative boundary 
     of the Commonwealth of Virginia and the southernmost lateral 
     seaward administrative boundary of the State of Georgia.
       (6) State.--The term ``State'' means any of the following 
     States:
       (A) Georgia.
       (B) North Carolina.
       (C) South Carolina.
       (D) Virginia.
       (7) Workforce investment board.--The term ``workforce 
     investment board'' means a State or local workforce 
     investment board established under subtitle B of title I of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2811 et 
     seq.).

     SEC. 203. ENHANCING STATE RIGHTS.

       (a) In General.--The Secretary shall promulgate regulations 
     that establish management of the surface occupancy of each 
     portion of the South Atlantic planning area for the 
     applicable coastline of a State for any lease sale authorized 
     under this title to the effect that--
       (1) the applicable State shall have sole authority to 
     restrict or allow surface facilities above the waterline for 
     the purpose of production of oil or gas resources in any area 
     that is within 12 nautical miles seaward from the coastline 
     of the State;
       (2) unless permanent surface occupancy is authorized by a 
     State, only sub-surface production facilities may be 
     installed in areas that are located between the point that is 
     12 nautical miles from seaward from the coastline of the 
     State and the point that is 20 nautical miles seaward from 
     the coastline of the State;
       (3) new offshore production facilities are encouraged and 
     the impacts on coastal vistas are minimized, to the maximum 
     extent practical; and
       (4) onshore facilities that facilitate the development and 
     production of the oil and gas resources of the South Atlantic 
     planning area within 12 nautical miles seaward of the 
     coastline of a State are allowed.
       (b) Temporary Activities Not Affected.--Nothing in the 
     regulations described in subsection (a) shall restrict, or 
     give the States authority to restrict, temporary surface 
     activities related to operations associated with outer 
     Continental Shelf oil and gas leases.

[[Page S4833]]

     SEC. 204. REINSTATEMENT OF VIRGINIA LEASE SALE 220.

       Not later than 2 years after the date of enactment of this 
     Act, the Secretary shall conduct Lease Sale 220 (as described 
     in the notice of intent to prepare an environmental impact 
     statement dated November 13, 2008 (73 Fed. Reg. 67201)).

     SEC. 205. SOUTH CAROLINA LEASE SALE.

       (a) In General.--Notwithstanding the exclusion of the South 
     Atlantic planning area in the outer Continental Shelf leasing 
     program for fiscal years 2012-2017 prepared under section 18 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1344), 
     the Secretary shall conduct a lease sale not later than 2 
     years after the date of enactment of this Act in areas off 
     the coast of the State of South Carolina--
       (1) determined by the Secretary to have the most 
     geologically promising hydrocarbon resources; and
       (2) that constitute not less than 25 percent of the 
     leasable area located within the offshore administrative 
     boundaries of the State of South Carolina depicted in the 
     notice entitled ``Federal Outer Continental Shelf (OCS) 
     Administrative Boundaries Extending from the Submerged Lands 
     Act Boundary seaward to the Limit of the United States Outer 
     Continental Shelf'', published January 3, 2006 (71 Fed. Reg. 
     127).
       (b) Environmental Impact Statement.--The Secretary shall 
     complete a multisale environmental impact statement for the 
     lease sales conducted under subsection (a) and section 204.

     SEC. 206. SOUTH ATLANTIC PLANNING AREA LEASE SALES.

       (a) In General.--The Secretary shall conduct 3 lease sales 
     in the South Atlantic planning area before June 30, 2017, in 
     areas--
       (1) to be determined by the Secretary based on--
       (A) analysis by the Bureau of Ocean Energy Management; and
       (B) industry nomination; and
       (2) determined by the Secretary to contain the most 
     hydrocarbon resource potential.
       (b) 2017-2022 Leasing Program.--The Secretary shall--
       (1) include the South Atlantic planning area in the outer 
     Continental Shelf leasing program for fiscal years 2017-2022 
     prepared under section 18 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1344); and
       (2) conduct 1 lease sale in the South Atlantic planning 
     area during each year of the program, for a total of 5 lease 
     sales.

     SEC. 207. BALANCING OF MILITARY AND ENERGY PRODUCTION GOALS.

       (a) In General.--In recognition that the outer Continental 
     Shelf oil and gas leasing program and the domestic energy 
     resources produced under the program are integral to national 
     security, the Secretary and the Secretary of Defense shall 
     work jointly in implementing lease sales under this title--
       (1) to preserve the ability of the Armed Forces of the 
     United States to maintain an optimum state of readiness 
     through their continued use of the outer Continental Shelf; 
     and
       (2) to allow effective exploration, development, and 
     production of the oil, gas, and renewable energy resources of 
     the United States.
       (b) Prohibition on Conflicts With Military Operations.--No 
     person may engage in any exploration, development, or 
     production of oil or natural gas on the outer Continental 
     Shelf under a lease issued under this title that would 
     conflict with any military operation, as determined in 
     accordance with--
       (1) the agreement entitled ``Memorandum of Agreement 
     between the Department of Defense and the Department of the 
     Interior on Mutual Concerns on the Outer Continental Shelf'' 
     signed July 20, 1983; and
       (2) any revision or replacement for the agreement described 
     in paragraph (1) that is agreed to by the Secretary of 
     Defense and the Secretary after that date but before the date 
     of issuance of the lease under which the exploration, 
     development, or production is conducted.

     SEC. 208. REVENUE SHARING AND DEFICIT REDUCTION.

       Notwithstanding section 9 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1338), each fiscal year the Secretary 
     shall deposit--
       (1) 37.5 percent of the qualified revenues in a special 
     account in the Treasury, from which the Secretary shall 
     allocate amounts in accordance with section 209;
       (2) 2.5 percent of the qualified revenues in the fund 
     established by section 210(b)(1), from which the Secretary 
     shall allocate amounts in accordance with that section;
       (3) 10 percent of the qualified revenues dedicated towards 
     deficit reduction; and
       (4) 50 percent of the qualified revenues in the general 
     fund of the Treasury.

     SEC. 209. ALLOCATION TO STATES.

       (a) In General.--Of the qualified revenues deposited in the 
     account under section 208(1), 37.5 percent shall be 
     distributed to each State--
       (1) using the formula established under subsection (b); and
       (2) in amounts that are inversely proportional to the 
     respective distances between the point on the coastline of 
     each State that is closest to the geographic center of the 
     applicable leased tract and the geographic center of the 
     leased tract.
       (b) Formula.--The formula used to make the calculation 
     under subsection (a) shall be--
       (1) established by the Secretary by regulation; and
       (2) modeled after the final rule entitled ``Allocation and 
     Disbursement of Royalties, Rentals, and Bonuses--Oil and Gas, 
     Offshore'', dated December 23, 2008 (73 Fed. Reg. 78622).
       (c) Minimum Allocation.--Each State shall be entitled to an 
     amount equal to not less than 10 percent of the qualified 
     revenues allocated under subsection (a).
       (d) Use of Funds.--A State receiving amounts under this 
     section may use the amounts in accordance with State law.

     SEC. 210. VETERANS JOBS GRANT PROGRAM AUTHORIZED.

       (a) Establishment of Fund.--
       (1) In general.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Oil and Gas 
     Production Veterans Workforce Training Fund'' (referred to in 
     this section as the ``Fund''), consisting of such amounts as 
     are transferred to the Fund under section 208(2).
       (2) Administration.--The Fund shall be administered by the 
     Secretary to fund the grants authorized by subsection (b).
       (b) Grants Authorized.--
       (1) In general.--The Secretary, acting through the 
     Director, shall award grants on a competitive basis to 
     eligible institutions of higher education and workforce 
     investment boards to establish and fund oil and gas 
     exploration, development, and production workforce training 
     programs.
       (2) Eligibility.--To be eligible to receive a grant under 
     this section, an institution of higher education or workforce 
     investment board shall--
       (A) establish or expand and administer an oil and gas 
     exploration, development, and production workforce training 
     program; and
       (B) in granting admission to applicants to the program, 
     give priority to veterans of the Armed Forces of the United 
     States.
       (3) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       (4) Limitation on administrative expenses.--Not more than 
     0.5 percent of the amounts made available to carry out this 
     section may be used to pay for the administrative expenses of 
     the programs described in paragraph (1).

     SEC. 211. ENHANCING GEOLOGICAL AND GEOPHYSICAL EDUCATION FOR 
                   AMERICA'S ENERGY FUTURE.

       (a) In General.--The Secretary, acting through the 
     Director, shall partner with institutions of higher education 
     selected under subsection (c) to facilitate the practical 
     study of geological and geophysical sciences of areas on the 
     Atlantic Outer Continental Shelf and elsewhere on the 
     Continental Shelf of the United States.
       (b) Focus.--Activities conducted by institutions of higher 
     education under this section shall focus all geological and 
     geophysical scientific research on obtaining a better 
     understanding of hydrocarbon potential in the South Atlantic 
     Planning Area while fostering the study of the geological and 
     geophysical sciences at institutions of higher education in 
     the United States.
       (c) Selection of Institutions.--
       (1) Nomination.--Not later than 180 days after the date of 
     enactment of this Act, the Governor of each State may 
     nominate for participation in a partnership--
       (A) 1 institution of higher education located in the State; 
     and
       (B) 1 institution of higher education that is a 
     historically Black college or university, as defined in 
     section 631(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1132(a)) located in the State.
       (2) Preference.--In making nominations under paragraph (1), 
     each Governor shall give preference to those institutions of 
     higher education that demonstrate a vigorous rate of 
     admissions of veterans of the Armed Forces of the United 
     States and meet the criteria described in paragraph (3).
       (3) Selection.--The Director shall select as a partner any 
     institution of higher education nominated under paragraph (1) 
     that the Director determines demonstrates excellence in 1 or 
     more of the following criteria:
       (A) Geophysical sciences curriculum.
       (B) Engineering curriculum.
       (C) Information technology or other technical studies 
     related to seismic research, including data processing.
       (d) Research Authority.--
       (1) In general.--Except as provided in paragraph (2), an 
     institution of higher education selected under subsection 
     (c)(3) may conduct research under this section upon the 
     expiration of the 30-day period beginning on the date the 
     institution of higher education submits notice of the 
     research to the South Atlantic Regional Director of the 
     Bureau of Ocean Energy Management.
       (2) Permit required.--An institution of higher education 
     may not under this section conduct research that uses solid 
     or liquid explosives except as authorized by a permit issued 
     by the Director.
       (e) Data.--
       (1) In general.--Geological and geophysical activities 
     conducted under this section--
       (A) shall be considered scientific research and data 
     produced by the activities;
       (B) shall not be used or shared for commercial purposes;
       (C) shall not be produced for proprietary use or sale; and
       (D) shall be made available by the Director to the public.

[[Page S4834]]

       (2) Submission of data to boem.--Not later than 60 days 
     after completion of initial analysis of data collected under 
     this section by an institution of higher education selected 
     under subsection (c)(3), the institution of higher education 
     shall share with the Bureau of Ocean Energy Management any 
     data collected that is requested by the Bureau of Ocean 
     Energy Management.
       (3) Fees.--The Director may not charge any fee for the 
     provision of data produced in research under this section, 
     other than a data reprocessing fee to pay the cost of 
     duplicating the data.
       (f) Report.--Not less frequently than once every 180 days, 
     the Director shall submit to the Committee on Energy and 
     Natural Resources of the Senate and the Committee on Natural 
     Resources of the House of Representatives a report on the 
     data derived from partnerships under this section.

     SEC. 212. ATLANTIC REGIONAL OFFICE.

       Not later than the last day of the outer Continental Shelf 
     leasing program for fiscal years 2012-2017 prepared under 
     section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344), the Director shall establish an Atlantic 
     regional office in an area that is--
       (1) included in the outer Continental Shelf leasing program 
     for fiscal years 2017-2022 prepared under section 18 of that 
     Act; and
       (2) determined by the Director to have the most potential 
     resource development.
                                 ______
                                 
  SA 3615. Mr. RUBIO submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                TITLE __--NATIONAL REGULATORY BUDGET ACT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``National Regulatory Budget 
     Act of 2014''.

     SEC. _02. ESTABLISHMENT OF THE OFFICE OF REGULATORY ANALYSIS.

       (a) In General.--Part I of title 5, United States Code, is 
     amended by inserting after chapter 6 the following:

   ``CHAPTER 6A--NATIONAL REGULATORY BUDGET AND OFFICE OF REGULATORY 
                                ANALYSIS

``Sec.
``613. Definitions.
``614. Office of Regulatory Analysis; establishment; powers.
``615. Functions of Office of Regulatory Analysis; Executive branch 
              agency compliance.
``616. Public disclosure of estimate methodology and data; privacy.
``617. National Regulatory Budget; timeline.
``618. Executive branch agency cooperation mandatory; information 
              sharing.
``619. Enforcement.
``620. Regulatory Analysis Advisory Board.

     ``Sec. 613. Definitions

       ``In this chapter--
       ``(1) the term `aggregate costs', with respect to a covered 
     Federal rule, means the sum of--
       ``(A) the direct costs of the covered Federal rule; and
       ``(B) the regulatory costs of the covered Federal rule;
       ``(2) the term `covered Federal rule' means--
       ``(A) a rule (as defined in section 551);
       ``(B) an information collection requirement given a control 
     number by the Office of Management and Budget; or
       ``(C) guidance or a directive that--
       ``(i) is not described in subparagraph (A) or (B);
       ``(ii)(I) is mandatory in its application to regulated 
     entities; or
       ``(II) represents a statement of agency position that 
     regulated entities would reasonably construe as reflecting 
     the enforcement or litigation position of the agency; and
       ``(iii) imposes not less than $25,000,000 in annual costs 
     on regulated entities;
       ``(3) the term `direct costs' means--
       ``(A) expenditures made by an Executive branch agency that 
     relate to the promulgation, administration, or enforcement of 
     a covered Federal rule; or
       ``(B) costs incurred by an Executive branch agency, a 
     Government corporation, the United States Postal Service, or 
     any other instrumentality of the Federal Government because 
     of a covered Federal rule;
       ``(4) the term `Director' means the Director of the Office 
     of Regulatory Analysis established under section 614(b);
       ``(5) the term `Executive branch agency' means--
       ``(A) an Executive department (as defined in section 101); 
     and
       ``(B) an independent establishment (as defined in section 
     104);
       ``(6) the term `regulated entity' means--
       ``(A) a for-profit private sector entity (including an 
     individual who is in business as a sole proprietor);
       ``(B) a not-for-profit private sector entity; or
       ``(C) a State or local government; and
       ``(7) the term `regulatory costs' means all costs incurred 
     by a regulated entity because of covered Federal rules.

     ``Sec. 614. Office of Regulatory Analysis; establishment; 
       powers

       ``(a) Establishment.--There is established in the executive 
     branch an independent establishment to be known as the 
     `Office of Regulatory Analysis'.
       ``(b) Director.--
       ``(1) Establishment of position.--There shall be at the 
     head of the Office of Regulatory Analysis a Director, who 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(2) Term.--
       ``(A) In general.--The term of office of the Director 
     shall--
       ``(i) be 4 years; and
       ``(ii) expire on the last day of February following each 
     Presidential election.
       ``(B) Appointments prior to expiration of term.--Subject to 
     subparagraph (C), an individual appointed as Director to fill 
     a vacancy prior to the expiration of a term shall serve only 
     for the unexpired portion of the term.
       ``(C) Service until appointment of successor.--An 
     individual serving as Director at the expiration of a term 
     may continue to serve until a successor is appointed.
       ``(3) Powers.--
       ``(A) Appointment of deputy directors, officers, and 
     employees.--
       ``(i) In general.--The Director may appoint Deputy 
     Directors, officers, and employees, including attorneys, in 
     accordance with chapter 51 and subchapter III of chapter 53.
       ``(ii) Term of deputy directors.--A Deputy Director shall 
     serve until the expiration of the term of office of the 
     Director who appointed the Deputy Director (and until a 
     successor to that Director is appointed), unless sooner 
     removed by the Director.
       ``(B) Contracting.--
       ``(i) In general.--The Director may contract for financial 
     and administrative services (including those related to 
     budget and accounting, financial reporting, personnel, and 
     procurement) with the General Services Administration, or 
     such other Federal agency as the Director determines 
     appropriate, for which payment shall be made in advance, or 
     by reimbursement, from funds of the Office of Regulatory 
     Analysis in such amounts as may be agreed upon by the 
     Director and the head of the Federal agency providing the 
     services.
       ``(ii) Subject to appropriations.--Contract authority under 
     clause (i) shall be effective for any fiscal year only to the 
     extent that appropriations are available for that purpose.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Office of Regulatory 
     Analysis for each fiscal year such sums as may be necessary 
     to enable the Office of Regulatory Analysis to carry out its 
     duties and functions.

     ``Sec. 615. Functions of Office of Regulatory Analysis; 
       Executive branch agency compliance

       ``(a) Annual Report Required.--
       ``(1) In general.--Not later than January 30 of each year, 
     the Director shall submit to the Committee on Homeland 
     Security and Governmental Affairs of the Senate, the 
     Committee on Small Business and Entrepreneurship of the 
     Senate, the Committee on Oversight and Government Reform of 
     the House of Representatives, and the Committee on Small 
     Business of the House of Representatives a Report on National 
     Regulatory Costs (referred to in this section as the 
     `Report') that includes the information specified under 
     paragraph (2).
       ``(2) Contents.--Each Report shall include--
       ``(A) an estimate, for the fiscal year during which the 
     Report is submitted and for the preceding fiscal year, of--
       ``(i) the regulatory costs imposed by each Executive branch 
     agency on regulated entities;
       ``(ii) the aggregate costs imposed by each Executive branch 
     agency;
       ``(iii) the aggregate costs imposed by all Executive branch 
     agencies combined;
       ``(iv) the direct costs incurred by the Federal Government 
     because of covered Federal rules issued by each Executive 
     branch agency;
       ``(v) the sum of the costs described in clauses (iii) and 
     (iv);
       ``(vi) the regulatory costs imposed by each Executive 
     branch agency on small businesses, small organizations, and 
     small governmental jurisdictions (as those terms are defined 
     in section 601); and
       ``(vii) the sum of the costs described in clause (vi);
       ``(B) an analysis of any major changes in estimation 
     methodology used by the Office of Regulatory Analysis since 
     the previous annual report;
       ``(C) an analysis of any major estimate changes caused by 
     improved or inadequate data since the previous annual report;
       ``(D) recommendations, both general and specific, 
     regarding--
       ``(i) how regulations may be streamlined, simplified, and 
     modernized;
       ``(ii) regulations that should be repealed; and
       ``(iii) how the Federal Government may reduce the costs of 
     regulations without diminishing the effectiveness of 
     regulations; and
       ``(E) any other information that the Director determines 
     may be of assistance to Congress in determining the National 
     Regulatory Budget required under section 617.
       ``(b) Regulatory Analysis of New Rules.--
       ``(1) Requirement.--The Director shall publish in the 
     Federal Register and on the website of the Office of 
     Regulatory Analysis a regulatory analysis of each proposed 
     covered Federal rule issued by an Executive

[[Page S4835]]

     branch agency, and each proposed withdrawal or modification 
     of a covered Federal rule by an Executive branch agency, 
     that--
       ``(A) imposes costs on a regulated entity; or
       ``(B) reduces costs imposed on a regulated entity.
       ``(2) Contents.--Each regulatory analysis published under 
     paragraph (1) shall include--
       ``(A) an estimate of the change in regulatory cost of each 
     proposed covered Federal rule (or proposed withdrawal or 
     modification of a covered Federal rule); and
       ``(B) any other information or recommendation that the 
     Director may choose to provide.
       ``(3) Timing of regulatory analysis.--
       ``(A) Initial regulatory analysis.--Not later than 60 days 
     after the date on which the Director receives a copy of a 
     proposed covered Federal rule from the head of an Executive 
     branch agency under paragraph (4), the Director shall publish 
     an initial regulatory analysis.
       ``(B) Revised regulatory analysis.--The Director may 
     publish a revised regulatory analysis at any time.
       ``(4) Notice to director of proposed covered federal 
     rule.--The head of an Executive branch agency shall provide a 
     copy of each proposed covered Federal rule to the Director in 
     a manner prescribed by the Director.
       ``(c) Effective Dates.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     covered Federal rule may not take effect earlier than 75 days 
     after the date on which the head of the Executive branch 
     agency proposing the covered Federal rule submits a copy of 
     the proposed covered Federal rule to the Director in the 
     manner prescribed by the Director under subsection (b)(4).
       ``(2) Exception.--If the head of the Executive branch 
     agency proposing a covered Federal rule determines that the 
     public health or safety or national security requires that 
     the covered Federal rule be promulgated earlier than the date 
     specified under paragraph (1), the head of the Executive 
     branch agency may promulgate the covered Federal rule without 
     regard to paragraph (1).

     ``Sec. 616. Public disclosure of estimate methodology and 
       data; privacy

       ``(a) Privacy.--The Director shall comply with all relevant 
     privacy laws, including--
       ``(1) the Confidential Information Protection and 
     Statistical Efficiency Act of 2002 (44 U.S.C. 3501 note);
       ``(2) section 9 of title 13; and
       ``(3) section 6103 of the Internal Revenue Code of 1986.
       ``(b) Disclosure.--
       ``(1) In general.--To the maximum extent permitted by law, 
     the Director shall disclose, by publication in the Federal 
     Register and on the website of the Office of Regulatory 
     Analysis, the methodology and data used to generate the 
     estimates in the Report on National Regulatory Costs required 
     under section 615.
       ``(2) Goal of disclosure.--In disclosing the methodology 
     and data under paragraph (1), the Director shall seek to 
     provide sufficient information so that outside researchers 
     may replicate the results contained in the Report on National 
     Regulatory Costs.

     ``Sec. 617. National Regulatory Budget; timeline

       ``(a) Definition.--In this section--
       ``(1) the term `annual overall regulatory cost cap' means 
     the maximum amount of regulatory costs that all Executive 
     branch agencies combined may impose in a fiscal year;
       ``(2) the term `annual agency regulatory cost cap' means 
     the maximum amount of regulatory costs that an Executive 
     branch agency may impose in a fiscal year; and
       ``(3) the term `National Regulatory Budget' means an Act of 
     Congress that establishes, for a fiscal year--
       ``(A) the annual overall regulatory cost cap; and
       ``(B) an annual agency regulatory cost cap for each 
     Executive branch agency.
       ``(b) Committee Deadlines.--
       ``(1) Referral.--Not later than March 31 of each year--
       ``(A) the Committee on Small Business and Entrepreneurship 
     of the Senate shall refer to the Committee on Homeland 
     Security and Governmental Affairs of the Senate a bill that 
     sets forth a National Regulatory Budget for the fiscal year 
     beginning on October 1 of that year; and
       ``(B) the Committee on Small Business of the House of 
     Representatives shall refer to the Committee on Oversight and 
     Government Reform of the House of Representatives a bill that 
     sets forth a National Regulatory Budget for the fiscal year 
     beginning on October 1 of that year.
       ``(2) Reporting.--Not later than May 31 of each year--
       ``(A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate shall report a bill establishing a 
     National Regulatory Budget for the fiscal year beginning on 
     October 1 of that year; and
       ``(B) the Committee on Oversight and Government Reform of 
     the House of Representatives shall report a bill establishing 
     a National Regulatory Budget for the fiscal year beginning on 
     October 1 of that year.
       ``(c) Passage.--Not later than July 31 of each year, the 
     House of Representatives and the Senate shall each pass a 
     bill establishing a National Regulatory Budget for the fiscal 
     year beginning on October 1 of that year.
       ``(d) Presentment.--Not later than September 15 of each 
     year, Congress shall pass and present to the President a 
     National Regulatory Budget for the fiscal year beginning on 
     October 1 of that year.
       ``(e) Default Budget.--
       ``(1) In general.--If a National Regulatory Budget is not 
     enacted with respect to a fiscal year, the most recently 
     enacted National Regulatory Budget shall apply to that fiscal 
     year.
       ``(2) Default initial budget.--
       ``(A) Calculation.--If a National Regulatory Budget is not 
     enacted with respect to a fiscal year, and no National 
     Regulatory Budget has previously been enacted--
       ``(i) the annual agency regulatory cost cap for an 
     Executive branch agency for the fiscal year shall be equal to 
     the amount of regulatory costs imposed by that Executive 
     branch agency on regulated entities during the preceding 
     fiscal year, as estimated by the Director in the annual 
     report submitted to Congress under section 615(a); and
       ``(ii) the annual overall regulatory cost cap for the 
     fiscal year shall be equal to the sum of the amounts 
     described in clause (i).
       ``(B) Effect.--For purposes of section 619, an annual 
     agency regulatory cost cap described in subparagraph (A) that 
     applies to a fiscal year shall have the same effect as if the 
     annual agency regulatory cost cap were part of a National 
     Regulatory Budget applicable to that fiscal year.
       ``(f) Initial Budget.--The first National Regulatory Budget 
     shall be with respect to fiscal year 2016.

     ``Sec. 618. Executive branch agency cooperation mandatory; 
       information sharing

       ``(a) Executive Branch Agency Cooperation Mandatory.--Not 
     later than 45 days after the date on which the Director 
     requests any information from an Executive branch agency, the 
     Executive branch agency shall provide the Director with the 
     information.
       ``(b) Memoranda of Understanding Regarding 
     Confidentiality.--
       ``(1) In general.--An Executive branch agency may require 
     the Director to enter into a memorandum of understanding 
     regarding the confidentiality of information provided by the 
     Executive branch agency to the Director under subsection (a) 
     as a condition precedent to providing any requested 
     information.
       ``(2) Degree of confidentiality or data protection.--An 
     Executive branch agency may not require a greater degree of 
     confidentiality or data protection from the Director in a 
     memorandum of understanding entered into under paragraph (1) 
     than the Executive branch agency itself must adhere to.
       ``(3) Scope.--A memorandum of understanding entered into by 
     the Director and an Executive branch agency under paragraph 
     (1) shall--
       ``(A) be general in scope; and
       ``(B) govern all pending and future requests made to the 
     Executive branch agency by the Director.
       ``(c) Sanctions for Non-Cooperation.--
       ``(1) In general.--The appropriations of an Executive 
     branch agency for a fiscal year shall be reduced by one-half 
     of 1 percent if, during that fiscal year, the Director finds 
     that--
       ``(A) the Executive branch agency has failed to timely 
     provide information that the Director requested under 
     subsection (a);
       ``(B) the Director has provided notice of the failure 
     described in subparagraph (A) to the Executive branch agency;
       ``(C) the Executive branch agency has failed to cure the 
     failure described in subparagraph (A) within 30 days of being 
     notified under subparagraph (B); and
       ``(D) the information that the Director requested under 
     subsection (a)--
       ``(i) is in the possession of the Executive branch agency; 
     or
       ``(ii) may reasonably be developed by the Executive branch 
     agency.
       ``(2) Sequestration.--The Office of Management and Budget, 
     in consultation with the Office of Federal Financial 
     Management and Financial Management Service, shall enforce a 
     reduction in appropriations under paragraph (1) by 
     sequestering the appropriate amount of funds and returning 
     the funds to the Treasury.
       ``(3) Appeals.--
       ``(A) In general.--The Director of the Office of Management 
     and Budget may reduce the amount of, or except as provided in 
     subparagraph (B), waive, a sanction imposed under paragraph 
     (1) if the Director of the Office of Management and Budget 
     finds that--
       ``(i) the sanction is unwarranted;
       ``(ii) the sanction is disproportionate to the gravity of 
     the failure;
       ``(iii) the failure has been cured; or
       ``(iv) providing the requested information would adversely 
     affect national security.
       ``(B) No waiver for historically non-compliant agencies.--
     The Director of the Office of Management and Budget may not 
     waive a sanction imposed on an Executive branch agency under 
     paragraph (1) if the Executive branch agency has a history of 
     non-compliance with requests for information by the Director 
     of the Office of Regulatory Analysis under subsection (a).
       ``(d) National Security.--The Director may not require an 
     Executive branch agency to provide information under 
     subsection (a) that would adversely affect national security.

     ``Sec. 619. Enforcement

       ``(a) Exceeding Annual Agency Regulatory Cost Cap.--An 
     Executive branch

[[Page S4836]]

     agency that exceeds the annual agency regulatory cost cap 
     imposed by the National Regulatory Budget for a fiscal year 
     may not promulgate a new covered Federal rule that increases 
     regulatory costs until the Executive branch agency no longer 
     exceeds the annual agency regulatory cost cap imposed by the 
     applicable National Regulatory Budget.
       ``(b) Determination of Director.--
       ``(1) In general.--An Executive branch agency may not 
     promulgate a covered Federal rule unless the Director 
     determines, in conducting the regulatory analysis of the 
     covered Federal rule under section 615(b)(3)(A) that, after 
     the Executive branch agency promulgates the covered Federal 
     rule, the Executive branch agency will not exceed the annual 
     agency regulatory cost cap for that Executive branch agency.
       ``(2) Timing.--The Director shall make a determination 
     under paragraph (1) with respect to a proposed covered 
     Federal rule not later than 60 days after the Director 
     receives a copy of the proposed covered Federal rule under 
     section 615(b)(4).
       ``(c) Effect of Violation of This Section.--
       ``(1) No force or effect.--A covered Federal rule that is 
     promulgated in violation of this section shall have no force 
     or effect.
       ``(2) Judicial enforcement.--Any party may bring an action 
     in a district court of the United States to declare that a 
     covered Federal rule has no force or effect because the 
     covered Federal rule was promulgated in violation of this 
     section.

     ``Sec. 620. Regulatory Analysis Advisory Board

       ``(a) Establishment of Board.--In accordance with the 
     Federal Advisory Committee Act (5 U.S.C. App.), the Director 
     shall--
       ``(1) establish a Regulatory Analysis Advisory Board; and
       ``(2) appoint not fewer than 9 and not more than 15 
     individuals as members of the Regulatory Analysis Advisory 
     Board.
       ``(b) Qualifications.--The Director shall appoint 
     individuals with technical and practical expertise in 
     economics, law, accounting, science, management, and other 
     areas that will aid the Director in preparing the annual 
     Report on National Regulatory Costs required under section 
     615.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of chapters.--The table of chapters for part I of 
     title 5, United States Code, is amended by inserting after 
     the item relating to chapter 6 the following:

``6A.  National Regulatory Budget and Office of Regulatory Analysis  
              613''.

       (2) Internal revenue code of 1986.--Section 6103(j) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(7) Office of regulatory analysis.--Upon written request 
     by the Director of the Office of Regulatory Analysis 
     established under section 614 of title 5, United States Code, 
     the Secretary shall furnish to officers and employees of the 
     Office of Regulatory Analysis return information for the 
     purpose of, but only to the extent necessary for, an analysis 
     of regulatory costs.''.

     SEC. _03. REPORT ON DUPLICATIVE PERSONNEL; REPORT ON 
                   REGULATORY ANALYSIS.

       (a) Report on Duplicative Personnel.--Not later than 
     December 31, 2014, the Director shall submit to Congress a 
     report determining positions in the Federal Government that 
     are--
       (1) duplicative of the work performed by the Office of 
     Regulatory Analysis established under section 614 of title 5, 
     United States Code; or
       (2) otherwise rendered cost ineffective by the work of the 
     Office of Regulatory Analysis.
       (b) Report on Regulatory Analysis.--
       (1) Report required.--Not later than June 30, 2015, the 
     Director shall provide to Congress a report analyzing the 
     practice with respect to, and the effectiveness of--
       (A) chapter 6 of title 5, United States Code (commonly 
     known as the ``Regulatory Flexibility Act'');
       (B) the Small Business Regulatory Enforcement Fairness Act 
     of 1996 (5 U.S.C. 601 note);
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'');
       (D) each Executive order that mandates economic analysis of 
     Federal regulations; and
       (E) Office of Management and Budget circulars, directives, 
     and memoranda that mandate the economic analysis of Federal 
     regulation.
       (2) Recommendations.--The report under paragraph (1) shall 
     include recommendations about how Federal regulatory analysis 
     may be improved.

     SEC. _04. ADMINISTRATIVE PROCEDURE.

       (a) Definition of ``Rule''.--Section 551(4) of title 5, 
     United States Code, is amended by inserting after 
     ``requirements of an agency'' the following: ``, whether or 
     not the agency statement amends the Code of Federal 
     Regulations and including, without limitation, a statement 
     described by the agency as a regulation, rule, directive, or 
     guidance,''.
       (b) Notice of Proposed Rulemaking.--Section 553(b) of title 
     5, United States Code, is amended, following the flush text, 
     in subparagraph (A) by striking ``interpretative rules, 
     general statements of policy, or''.
                                 ______
                                 
  SA 3616. Mr. COONS (for himself and Mr. Moran) submitted an amendment 
intended to be proposed by him to the bill S. 2569, to provide an 
incentive for businesses to bring jobs back to America; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP 
                   STRUCTURE TO ENERGY POWER GENERATION PROJECTS, 
                   TRANSPORTATION FUELS, AND RELATED ENERGY 
                   ACTIVITIES.

       (a) In General.--Subparagraph (E) of section 7704(d)(1) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``income and gains derived from the 
     exploration'' and inserting ``income and gains derived from 
     the following:
       ``(i) Minerals, natural resources, etc.--The exploration'',
       (2) by inserting ``or'' before ``industrial source'',
       (3) by inserting a period after ``carbon dioxide'', and
       (4) by striking ``, or the transportation or storage'' and 
     all that follows and inserting the following:
       ``(ii) Renewable energy.--The generation of electric power 
     exclusively utilizing any resource described in section 
     45(c)(1) or energy property described in section 48 
     (determined without regard to any termination date), or in 
     the case of a facility described in paragraph (3) or (7) of 
     section 45(d) (determined without regard to any placed in 
     service date or date by which construction of the facility is 
     required to begin), the accepting or processing of such 
     resource.
       ``(iii) Electricity storage devices.--The receipt and sale 
     of electric power that has been stored in a device directly 
     connected to the grid.
       ``(iv) Combined heat and power.--The generation, storage, 
     or distribution of thermal energy exclusively utilizing 
     property described in section 48(c)(3) (determined without 
     regard to subparagraphs (B) and (D) thereof and without 
     regard to any placed in service date).
       ``(v) Renewable thermal energy.--The generation, storage, 
     or distribution of thermal energy exclusively using any 
     resource described in section 45(c)(1) or energy property 
     described in clause (i) or (iii) of section 48(a)(3)(A).
       ``(vi) Waste heat to power.--The use of recoverable waste 
     energy, as defined in section 371(5) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6341(5)) (as in effect on the 
     date of the enactment of the Bring Jobs Home Act).
       ``(vii) Renewable fuel infrastructure.--The storage or 
     transportation of any fuel described in subsection (b), (c), 
     (d), or (e) of section 6426.
       ``(viii) Renewable fuels.--The production, storage, or 
     transportation of any renewable fuel described in section 
     211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J)) 
     (as in effect on the date of the enactment of the Bring Jobs 
     Home Act) or section 40A(d)(1).
       ``(ix) Renewable chemicals.--The production, storage, or 
     transportation of any renewable chemical (as defined in 
     paragraph (6)).
       ``(x) Energy efficient buildings.--The audit and 
     installation through contract or other agreement of any 
     energy efficient building property described in section 
     179D(c)(1).
       ``(xi) Gasification with sequestration.--The production of 
     any product from a project that meets the requirements of 
     subparagraphs (A) and (B) of section 48B(c)(1) and that 
     separates and sequesters in secure geological storage (as 
     determined under section 45Q(d)(2)) at least 75 percent of 
     such project's total qualified carbon dioxide (as defined in 
     section 45Q(b)).
       ``(xii) Carbon capture and sequestration.--The generation 
     or storage of electric power produced from any facility which 
     is a qualified facility described in section 45Q(c) and which 
     disposes of any captured qualified carbon dioxide (as defined 
     in section 45Q(b)) in secure geological storage (as 
     determined under section 45Q(d)(2)).''.
       (b) Renewable Chemical.--Section 7704(d) of such Code is 
     amended by adding at the end the following new paragraph:
       ``(6) Renewable chemical.--The term `renewable chemical' 
     means a monomer, polymer, plastic, formulated product, or 
     chemical substance produced from renewable biomass (as 
     defined in section 9001(12) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8101(12)), as in effect on 
     the date of the enactment of the Bring Jobs Home Act).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     in taxable years ending after such date.
                                 ______
                                 
  SA 3617. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

         TITLE II--ELIMINATING IMPROPER AND ABUSIVE IRS AUDITS

     SEC. 201. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the 
     ``Eliminating Improper and Abusive IRS Audits Act of 2014''.
       (b) Table of Contents.--The table of contents of this title 
     is as follows:

[[Page S4837]]

         TITLE II--ELIMINATING IMPROPER AND ABUSIVE IRS AUDITS

Sec. 201. Short title; table of contents.
Sec. 202. Civil damages allowed for reckless or intentional disregard 
              of internal revenue laws.
Sec. 203. Modifications relating to certain offenses by officers and 
              employees in connection with revenue laws.
Sec. 204. Modifications relating to civil damages for unauthorized 
              inspection or disclosure of returns and return 
              information.
Sec. 205. Extension of time for contesting IRS levy.
Sec. 206. Increase in monetary penalties for certain unauthorized 
              disclosures of information.
Sec. 207. Ban on raising new issues on appeal.
Sec. 208. Limitation on enforcement of liens against principal 
              residences.
Sec. 209. Additional provisions relating to mandatory termination for 
              misconduct.
Sec. 210. Extension of declaratory judgment procedures to social 
              welfare organizations.
Sec. 211. Review by the Treasury Inspector General for Tax 
              Administration.

     SEC. 202. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL 
                   DISREGARD OF INTERNAL REVENUE LAWS.

       (a) Increase in Amount of Damages.--Section 7433(b) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``$1,000,000 ($100,000, in the case of negligence)'' and 
     inserting ``$3,000,000 ($300,000, in the case of 
     negligence)''.
       (b) Extension of Time To Bring Action.--Section 7433(d)(3) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``2 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions of employees of the Internal Revenue 
     Service after the date of the enactment of this Act.

     SEC. 203. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY 
                   OFFICERS AND EMPLOYEES IN CONNECTION WITH 
                   REVENUE LAWS.

       (a) Increase in Penalty.--Section 7214 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``$10,000'' in subsection (a) and inserting 
     ``$25,000'', and
       (2) by striking ``$5,000'' in subsection (b) and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 204. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
                   UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
                   RETURNS AND RETURN INFORMATION.

       (a) Increase in Amount of Damages.--Subparagraph (A) of 
     section 7431(c)(1) of the Internal Revenue Code of 1986 is 
     amended by striking ``$1,000'' and inserting ``$10,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to inspections and disclosure occurring on and 
     after the date of the enactment of this Act.

     SEC. 205. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b) of section 6343 of the Internal Revenue 
     Code of 1986 is amended by striking ``9 months'' and 
     inserting ``3 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 of the Internal Revenue Code of 1986 is 
     amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``3 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``3-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. 206. INCREASE IN MONETARY PENALTIES FOR CERTAIN 
                   UNAUTHORIZED DISCLOSURES OF INFORMATION.

       (a) In General.--Paragraphs (1), (2), (3), and (4) of 
     section 7213(a) of the Internal Revenue Code of 1986 are each 
     amended by striking ``$5,000'' and inserting ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. 207. BAN ON RAISING NEW ISSUES ON APPEAL.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     section:

     ``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING 
                   NEW ISSUES IN AN INTERNAL APPEAL.

       ``(a) In General.--In reviewing an appeal of any 
     determination initially made by the Internal Revenue Service, 
     the Internal Revenue Service Office of Appeals may not 
     consider or decide any issue that is not within the scope of 
     the initial determination.
       ``(b) Certain Issues Deemed Outside of Scope of 
     Determination.--For purposes of subsection (a), the following 
     matters shall be considered to be not within the scope of a 
     determination:
       ``(1) Any issue that was not raised in a notice of 
     deficiency or an examiner's report which is the subject of 
     the appeal.
       ``(2) Any deficiency in tax which was not included in the 
     initial determination.
       ``(3) Any theory or justification for a tax deficiency 
     which was not considered in the initial determination.
       ``(c) No Inference With Respect to Issues Raised by 
     Taxpayers.--Nothing in this section shall be construed to 
     provide any limitation in addition to any limitations in 
     effect on the date of the enactment of this section on the 
     right of a taxpayer to raise an issue, theory, or 
     justification on an appeal from a determination initially 
     made by the Internal Revenue Service that was not within the 
     scope of the initial determination.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 of such Code is amended by adding at the end the following 
     new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues 
              in an internal appeal.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to matters filed or pending with the Internal 
     Revenue Service Office of Appeals on or after the date of the 
     enactment of this Act.

     SEC. 208. LIMITATION ON ENFORCEMENT OF LIENS AGAINST 
                   PRINCIPAL RESIDENCES.

       (a) In General.--Section 7403(a) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``In any case'' and inserting the 
     following:
       ``(1) In general.--In any case'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Limitation with respect to principal residence.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     property used as the principal residence of the taxpayer 
     (within the meaning of section 121) unless the Secretary of 
     the Treasury makes a written determination that--
       ``(i) all other property of the taxpayer, if sold, is 
     insufficient to pay the tax or discharge the liability, and
       ``(ii) such action will not create an economic hardship for 
     the taxpayer.
       ``(B) Delegation.--For purposes of this paragraph, the 
     Secretary of the Treasury may not delegate any 
     responsibilities under subparagraph (A) to any person other 
     than--
       ``(i) the Commissioner of Internal Revenue, or
       ``(ii) a district director or assistant district director 
     of the Internal Revenue Service.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to actions filed after the date of the enactment 
     of this Act.

     SEC. 209. ADDITIONAL PROVISIONS RELATING TO MANDATORY 
                   TERMINATION FOR MISCONDUCT.

       (a) Termination of Unemployment for Inappropriate Review of 
     Tax-Exempt Status.--Section 1203(b) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by striking ``and'' at the end of paragraph 
     (9), by striking the period at the end of paragraph (10) and 
     inserting ``; and'', and by adding at the end the following 
     new paragraph:
       ``(11) in the case of any review of an application for tax-
     exempt status by an organization described in section 501(c) 
     of the Internal Revenue Code of 1986, developing or using any 
     methodology that applies disproportionate scrutiny to any 
     applicant based on the ideology expressed in the name or 
     purpose of the organization.''.
       (b) Mandatory Unpaid Administrative Leave for Misconduct.--
     Paragraph (1) of Section 1203(c) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by adding at the end the following new 
     sentence: ``Notwithstanding the preceding sentence, if the 
     Commissioner of Internal Revenue takes a personnel action 
     other than termination for an act or omission described in 
     subsection (b), the Commissioner shall place the employee on 
     unpaid administrative leave for a period of not less than 30 
     days.''.
       (c) Limitation on Alternative Punishment.--Paragraph (1) of 
     section 1203(c) of the Internal Revenue Service Restructuring 
     and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by 
     striking ``The Commissioner'' and inserting ``Except in the 
     case of an act or omission described in subsection (b)(3)(A), 
     the Commissioner''.

     SEC. 210. EXTENSION OF DECLARATORY JUDGMENT PROCEDURES TO 
                   SOCIAL WELFARE ORGANIZATIONS.

       (a) In General.--Section 7428(a)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``or'' at the end of 
     subparagraph (C) and by adding at the end the following new 
     subparagraph:
       ``(E) with respect to the initial classification or 
     continuing classification of an organization described in 
     section 501(c)(4) which is exempt from tax under section 
     501(a), or''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to pleading filed after the date of 
     the enactment of this Act.

     SEC. 211. REVIEW BY THE TREASURY INSPECTOR GENERAL FOR TAX 
                   ADMINISTRATION.

       (a) Review.--Subsection (k)(1) of section 8D of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) by redesignating subparagraph (D) as subparagraph (E);
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) shall--

[[Page S4838]]

       ``(i) review any criteria employed by the Internal Revenue 
     Service to select tax returns (including applications for 
     recognition of tax-exempt status) for examination or audit, 
     assessment or collection of deficiencies, criminal 
     investigation or referral, refunds for amounts paid, or any 
     heightened scrutiny or review in order to determine whether 
     the criteria discriminates against taxpayers on the basis of 
     race, religion, or political ideology; and
       ``(ii) consult with the Internal Revenue Service on 
     recommended amendments to such criteria in order to eliminate 
     any discrimination identified pursuant to the review 
     described in clause (i); and''; and
       (4) in subparagraph (E), as so redesignated, by striking 
     ``and (C)'' and inserting ``(C), and (D)''.
       (b) Semiannual Report.--Subsection (g) of such section is 
     amended by adding at the end the following new paragraph:
       ``(3) Any semiannual report made by the Treasury Inspector 
     General for Tax Administration that is required pursuant to 
     section 5(a) shall include--
       ``(A) a statement affirming that the Treasury Inspector 
     General for Tax Administration has reviewed the criteria 
     described in subsection (k)(1)(D) and consulted with the 
     Internal Revenue Service regarding such criteria; and
       ``(B) a description and explanation of any such criteria 
     that was identified as discriminatory by the Treasury 
     Inspector General for Tax Administration.''.
                                 ______
                                 
  SA 3618. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

            TITLE II--SMALL BUSINESS TAXPAYER BILL OF RIGHTS

     SEC. 201. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the ``Small 
     Business Taxpayer Bill of Rights Act of 2014''.
       (b) Table of Contents.--The table of contents of this title 
     is as follows:

            TITLE II--SMALL BUSINESS TAXPAYER BILL OF RIGHTS

Sec. 201. Short title; table of contents.
Sec. 202. Modification of standards for awarding of costs and certain 
              fees.
Sec. 203. Civil damages allowed for reckless or intentional disregard 
              of internal revenue laws.
Sec. 204. Modifications relating to certain offenses by officers and 
              employees in connection with revenue laws.
Sec. 205. Modifications relating to civil damages for unauthorized 
              inspection or disclosure of returns and return 
              information.
Sec. 206. Interest abatement reviews.
Sec. 207. Ban on ex parte discussions.
Sec. 208. Alternative dispute resolution procedures.
Sec. 209. Extension of time for contesting IRS levy.
Sec. 210. Waiver of installment agreement fee.
Sec. 211. Suspension of running of period for filing petition of 
              spousal relief and collection cases.
Sec. 212. Venue for appeal of spousal relief and collection cases.
Sec. 213. Increase in monetary penalties for certain unauthorized 
              disclosures of information.
Sec. 214. De novo tax court review of claims for equitable innocent 
              spouse relief.
Sec. 215. Ban on raising new issues on appeal.

     SEC. 202. MODIFICATION OF STANDARDS FOR AWARDING OF COSTS AND 
                   CERTAIN FEES.

       (a) Small Businesses Eligible Without Regard to Net 
     Worth.--Subparagraph (D) of section 7430(c)(4) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of clause (i), by striking the period at the end 
     of clause (ii) and inserting ``and'', and by adding at the 
     end the following new clause:
       ``(iii) in the case of an eligible small business, the net 
     worth limitation in clause (ii) of such section shall not 
     apply.''.
       (b) Eligible Small Business.--Paragraph (4) of section 
     7430(c) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new subparagraph:
       ``(F) Eligible small business.--For purposes of 
     subparagraph (D)(iii), the term `eligible small business' 
     means, with respect to any proceeding commenced in a taxable 
     year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to proceedings commenced after the date of the 
     enactment of this Act.

     SEC. 203. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL 
                   DISREGARD OF INTERNAL REVENUE LAWS.

       (a) Increase in Amount of Damages.--Section 7433(b) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``$1,000,000 ($100,000, in the case of negligence)'' and 
     inserting ``$3,000,000 ($300,000, in the case of 
     negligence)''.
       (b) Extension of Time To Bring Action.--Section 7433(d)(3) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``2 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions of employees of the Internal Revenue 
     Service after the date of the enactment of this Act.

     SEC. 204. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY 
                   OFFICERS AND EMPLOYEES IN CONNECTION WITH 
                   REVENUE LAWS.

       (a) Increase in Penalty.--Section 7214 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``$10,000'' in subsection (a) and inserting 
     ``$25,000'', and
       (2) by striking ``$5,000'' in subsection (b) and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 205. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
                   UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
                   RETURNS AND RETURN INFORMATION.

       (a) Increase in Amount of Damages.--Subparagraph (A) of 
     section 7431(c)(1) of the Internal Revenue Code of 1986 is 
     amended by striking ``$1,000'' and inserting ``$10,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to inspections and disclosure occurring on and 
     after the date of the enactment of this Act.

     SEC. 206. INTEREST ABATEMENT REVIEWS.

       (a) Filing Period for Interest Abatement Cases.--
       (1) In general.--Subsection (h) of section 6404 of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``Review of Denial'' in the heading and 
     inserting ``Judicial Review'', and
       (B) by striking `` `if such action is brought' '' and all 
     that follows in paragraph (1) and inserting ``if such action 
     is brought--
       ``(A) at any time after the earlier of--
       ``(i) the date of the mailing of the Secretary's final 
     determination not to abate such interest, or
       ``(ii) the date which is 180 days after the date of the 
     filing with the Secretary (in such form as the Secretary may 
     prescribe) of a claim for abatement under this section, and
       ``(B) not later than the date which is 180 days after the 
     date described in subparagraph (A)(i).''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to claims for abatement of interest filed with 
     the Secretary after the date of the enactment of this Act.
       (b) Small Tax Case Election for Interest Abatement Cases.--
       (1) In general.--Subsection (f) of section 7463 of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``and'' at the end of paragraph (1),
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(3) a petition to the Tax court under section 6404(h) in 
     which the amount of interest abatement sought does not exceed 
     $50,000.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to--
       (A) cases pending as of the day after the date of the 
     enactment of this Act, and
       (B) cases commenced after such date of enactment.

     SEC. 207. BAN ON EX PARTE DISCUSSIONS.

       (a) In General.--Notwithstanding section 1001(a)(4) of the 
     Internal Revenue Service Restructuring and Reform Act of 
     1998, the Internal Revenue Service shall prohibit any ex 
     parte communications between officers in the Internal Revenue 
     Service Office of Appeals and other Internal Revenue Service 
     employees with respect to any matter pending before such 
     officers.
       (b) Termination of Employment for Misconduct.--Subject to 
     subsection (c), the Commissioner of Internal Revenue shall 
     terminate the employment of any employee of the Internal 
     Revenue Service if there is a final administrative or 
     judicial determination that such employee committed any act 
     or omission prohibited under subsection (a) in the 
     performance of the employee's official duties. Such 
     termination shall be a removal for cause on charges of 
     misconduct.
       (c) Determination of Commissioner.--
       (1) In general.--The Commissioner of Internal Revenue may 
     take a personnel action other than termination for an act 
     prohibited under subsection (a).
       (2) Discretion.--The exercise of authority under paragraph 
     (1) shall be at the sole discretion of the Commissioner of 
     Internal Revenue and may not be delegated to any other 
     officer. The Commissioner of Internal Revenue, in his sole 
     discretion, may establish a procedure which will be used to 
     determine whether an individual should be referred to the 
     Commissioner of Internal Revenue for a determination by the 
     Commissioner under paragraph (1).
       (3) No appeal.--Any determination of the Commissioner of 
     Internal Revenue under this subsection may not be appealed in 
     any administrative or judicial proceeding.

[[Page S4839]]

       (d) TIGTA Reporting of Termination or Mitigation.--Section 
     7803(d)(1)(E) of the Internal Revenue Code of 1986 is amended 
     by inserting ``or section 7 of the Small Business Taxpayer 
     Bill of Rights Act of 2014'' after ``1998''.

     SEC. 208. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.

       (a) In General.--Section 7123 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(c) Availability of Dispute Resolutions.--
       ``(1) In general.--The procedures prescribed under 
     subsection (b)(1) and the pilot program established under 
     subsection (b)(2) shall provide that a taxpayer may request 
     mediation or arbitration in any case unless the Secretary has 
     specifically excluded the type of issue involved in such case 
     or the class of cases to which such case belongs as not 
     appropriate for resolution under such subsection. The 
     Secretary shall make any determination that excludes a type 
     of issue or a class of cases public within 5 working days and 
     provide an explanation for each determination.
       ``(2) Independent mediators.--
       ``(A) In general.--The procedures prescribed under 
     subsection (b)(1) shall provide the taxpayer an opportunity 
     to elect to have the mediation conducted by an independent, 
     neutral individual not employed by the Office of Appeals.
       ``(B) Cost and selection.--
       ``(i) In general.--Any taxpayer making an election under 
     subparagraph (A) shall be required--

       ``(I) to share the costs of such independent mediator 
     equally with the Office of Appeals, and
       ``(II) to limit the selection of the mediator to a roster 
     of recognized national or local neutral mediators.

       ``(ii) Exception.--Clause (i)(I) shall not apply to any 
     taxpayer who is an individual or who was a small business in 
     the preceding calendar year if such taxpayer had an adjusted 
     gross income that did not exceed 250 percent of the poverty 
     level, as determined in accordance with criteria established 
     by the Director of the Office of Management and Budget, in 
     the taxable year preceding the request.
       ``(iii) Small business.--For purposes of clause (ii), the 
     term `small business' has the meaning given such term under 
     section 41(b)(3)(D)(iii).
       ``(3) Availability of process.--The procedures prescribed 
     under subsection (b)(1) and the pilot program established 
     under subsection (b)(2) shall provide the opportunity to 
     elect mediation or arbitration at the time when the case is 
     first filed with the Office of Appeals and at any time before 
     deliberations in the appeal commence.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 209. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b) of section 6343 of the Internal Revenue 
     Code of 1986 is amended by striking ``9 months'' and 
     inserting ``3 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 of the Internal Revenue Code of 1986 is 
     amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``3 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``3-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. 210. WAIVER OF INSTALLMENT AGREEMENT FEE.

       (a) In General.--Section 6159 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (f) as 
     subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Waiver of Installment Agreement Fee.--The Secretary 
     shall waive the fees imposed on installment agreements under 
     this section for any taxpayer with an adjusted gross income 
     that does not exceed 250 percent of the poverty level, as 
     determined in accordance with criteria established by the 
     Director of the Office of Management and Budget, and who has 
     agreed to make payments under the installment agreement by 
     electronic payment through a debit instrument.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 211. SUSPENSION OF RUNNING OF PERIOD FOR FILING PETITION 
                   OF SPOUSAL RELIEF AND COLLECTION CASES.

       (a) Petitions for Spousal Relief.--
       (1) In general.--Subsection (e) of section 6015 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(6) Suspension of running of period for filing petition 
     in title 11 cases.--In the case of a person who is prohibited 
     by reason of a case under title 11, United States Code, from 
     filing a petition under paragraph (1)(A) with respect to a 
     final determination of relief under this section, the running 
     of the period prescribed by such paragraph for filing such a 
     petition with respect to such final determination shall be 
     suspended for the period during which the person is so 
     prohibited from filing such a petition, and for 60 days 
     thereafter.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to petitions filed under section 6015(e) of the 
     Internal Revenue Code of 1986 after the date of the enactment 
     of this Act.
       (b) Collection Proceedings.--
       (1) In general.--Subsection (d) of section 6330 of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``appeal such determination to the Tax 
     Court'' in paragraph (1) and inserting ``petition the Tax 
     Court for review of such determination'',
       (B) by striking ``Judicial review of determination'' in the 
     heading of paragraph (1) and inserting ``Petition for review 
     by tax court'',
       (C) by redesignating paragraph (2) as paragraph (3), and
       (D) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Suspension of running of period for filing petition 
     in title 11 cases.--In the case of a person who is prohibited 
     by reason of a case under title 11, United States Code, from 
     filing a petition under paragraph (1) with respect to a 
     determination under this section, the running of the period 
     prescribed by such subsection for filing such a petition with 
     respect to such determination shall be suspended for the 
     period during which the person is so prohibited from filing 
     such a petition, and for 30 days thereafter.''.
       (2) Conforming amendment.--Subsection (c) of section 6320 
     of such Code is amended by striking ``(2)(B)'' and inserting 
     ``(3)(B)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to petitions filed under section 6330 of the 
     Internal Revenue Code of 1986 after the date of the enactment 
     of this Act.

     SEC. 212. VENUE FOR APPEAL OF SPOUSAL RELIEF AND COLLECTION 
                   CASES.

       (a) In General.--Paragraph (1) of section 7482(b) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``or'' at the end of subparagraph (E),
       (2) by striking the period at the end of subparagraph (F) 
     and inserting a comma, and
       (3) by inserting after subparagraph (F) the following new 
     subparagraphs:
       ``(G) in the case of a petition under section 6015(e), the 
     legal residence of the petitioner, or
       ``(H) in the case of a petition under section 6320 or 
     6330--
       ``(i) the legal residence of the petitioner if the 
     petitioner is an individual, and
       ``(ii) the principal place of business or principal office 
     or agency if the petitioner is an entity other than an 
     individual.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to petitions filed after the date of enactment of 
     this Act.

     SEC. 213. INCREASE IN MONETARY PENALTIES FOR CERTAIN 
                   UNAUTHORIZED DISCLOSURES OF INFORMATION.

       (a) In General.--Paragraphs (1), (2), (3), and (4) of 
     section 7213(a) of the Internal Revenue Code of 1986 are each 
     amended by striking ``$5,000'' and inserting ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. 214. DE NOVO TAX COURT REVIEW OF CLAIMS FOR EQUITABLE 
                   INNOCENT SPOUSE RELIEF.

       (a) In General.--Subparagraph (A) of section 6015(e)(1) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new flush sentence:

     ``Any review of a determination by the Secretary with respect 
     to a claim for equitable relief under subsection (f) shall be 
     reviewed de novo by the Tax Court.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to petitions filed or pending before the Tax 
     Court on and after the date of the enactment of this Act.

     SEC. 215. BAN ON RAISING NEW ISSUES ON APPEAL.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     section:

     ``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING 
                   NEW ISSUES IN AN INTERNAL APPEAL.

       ``(a) In General.--In reviewing an appeal of any 
     determination initially made by the Internal Revenue Service, 
     the Internal Revenue Service Office of Appeals may not 
     consider or decide any issue that is not within the scope of 
     the initial determination.
       ``(b) Certain Issues Deemed Outside of Scope of 
     Determination.--For purposes of subsection (a), the following 
     matters shall be considered to be not within the scope of a 
     determination:
       ``(1) Any issue that was not raised in a notice of 
     deficiency or an examiner's report which is the subject of 
     the appeal.
       ``(2) Any deficiency in tax which was not included in the 
     initial determination.
       ``(3) Any theory or justification for a tax deficiency 
     which was not considered in the initial determination.
       ``(c) No Inference With Respect to Issues Raised by 
     Taxpayers.--Nothing in this section shall be construed to 
     provide any limitation in addition to any limitations in 
     effect on the date of the enactment of this section on the 
     right of a taxpayer to raise an issue, theory, or 
     justification on an appeal from a determination initially 
     made by the Internal Revenue Service that was not within the 
     scope of the initial determination.''.

[[Page S4840]]

       (b) Clerical Amendment.--The table of sections for chapter 
     77 of such Code is amended by adding at the end the following 
     new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues 
              in an internal appeal.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to matters filed or pending with the Internal 
     Revenue Service Office of Appeals on or after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3619. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. REPEAL OF UNEARNED INCOME MEDICARE CONTRIBUTION.

       (a) In General.--Chapter 2A of the Internal Revenue Code of 
     1986 is repealed.
       (b) Conforming Amendment.--The table of chapters for 
     subtitle A of chapter 1 of the Internal Revenue Code of 1986 
     is amended by striking the item relating to chapter 2A.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3620. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. POINT OF ORDER ON LEGISLATION THAT RAISES INCOME TAX 
                   RATES ON SMALL BUSINESSES.

       (a) Point of Order.--
       (1) In general.--In the Senate, it shall not be in order to 
     consider any bill, joint resolution, amendment, motion, or 
     conference report that includes any provision which increases 
     Federal income tax rates.
       (2) Definition.--In this section, the term ``Federal income 
     tax rates'' means any rate of tax under--
       (A) subsection (a), (b), (c), (d), or (e) of section 1 of 
     the Internal Revenue Code of 1986,
       (B) section 11(b) of such Code, or
       (C) section 55(b) of such Code.
       (b) Supermajority Waiver and Appeals.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of three-fifths of the 
     Members, dully chosen and sworn.
       (2) Appeals.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this section.
                                 ______
                                 
  SA 3621. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. TAX EFFECT TRANSPARENCY.

       (a) In General.--Chapter 2 of title 1, United States Code, 
     is amended by inserting after section 102 the following:

     ``Sec. 102a. Tax effect transparency

       ``(a) In General.--Each Act of Congress, bill, resolution, 
     conference report thereon, or amendment there to, that 
     modifies Federal tax law shall contain a statement describing 
     the general effect of the modification on Federal tax law.
       ``(b) Failure To Comply.--
       ``(1) In general.--A failure to comply with subsection (a) 
     shall give rise to a point of order in either House of 
     Congress, which may be raised by any Senator during 
     consideration in the Senate or any Member of the House of 
     Representatives during consideration in the House of 
     Representatives.
       ``(2) Nonexclusivity.--The availability of a point of order 
     under this section shall not affect the availability of any 
     other point of order.
       ``(c) Disposition of Point of Order in the Senate.--
       ``(1) In general.--Any Senator may raise a point of order 
     that any matter is not in order under subsection (a).
       ``(2) Waiver.--
       ``(A) In general.--Any Senator may move to waive a point of 
     order raised under paragraph (1) by an affirmative vote of 
     three-fifths of the Senators duly chosen and sworn.
       ``(B) Procedures.--For a motion to waive a point of order 
     under subparagraph (A) as to a matter--
       ``(i) a motion to table the point of order shall not be in 
     order;
       ``(ii) all motions to waive one or more points of order 
     under this section as to the matter shall be debatable for a 
     total of not more than 1 hour, equally divided between the 
     Senator raising the point of order and the Senator moving to 
     waive the point of order or their designees; and
       ``(iii) a motion to waive the point of order shall not be 
     amendable.
       ``(d) Disposition of Point of Order in the House of 
     Representatives.--
       ``(1) In general.--If a Member of the House of 
     Representatives makes a point of order under this section, 
     the Chair shall put the question of consideration with 
     respect to the proposition of whether any statement made 
     under subsection (a) was adequate or, in the absence of such 
     a statement, whether a statement is required under subsection 
     (a).
       ``(2) Consideration.--For a point of order under this 
     section made in the House of Representatives--
       ``(A) the question of consideration shall be debatable for 
     10 minutes, equally divided and controlled by the Member 
     making the point of order and by an opponent, but shall 
     otherwise be decided without intervening motion except one 
     that the House of Representatives adjourn or that the 
     Committee of the Whole rise, as the case may be;
       ``(B) in selecting the opponent, the Speaker of the House 
     of Representatives should first recognize an opponent from 
     the opposing party; and
       ``(C) the disposition of the question of consideration with 
     respect to a measure shall be considered also to determine 
     the question of consideration under this section with respect 
     to an amendment made in order as original text.
       ``(e) Rulemaking Authority.--The provisions of this section 
     are enacted by the Congress--
       ``(1) as an exercise of the rulemaking power of the House 
     of Representatives and the Senate, respectively, and as such 
     they shall be considered as part of the rules of each House, 
     respectively, or of that House to which they specifically 
     apply, and such rules shall supersede other rules only to the 
     extent that they are inconsistent therewith; and
       ``(2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of such House.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 2 of title 1, United States Code, is 
     amended by inserting after the item relating to section 102 
     the following new item:

``102a. Tax effect transparency.''.
                                 ______
                                 
  SA 3622. Mr. ISAKSON submitted an amendment intended to be proposed 
by him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL.

       Section 18A of the Fair Labor Standards Act (29 U.S.C. 
     218a), as added by section 1511 of the Patient Protection and 
     Affordable Care Act, is repealed.
                                 ______
                                 
  SA 3623. Mr. CASEY (for Mr. Kirk) proposed an amendment to the 
resolution S. Res. 489, supporting the goals and ideals of ``Growth 
Awareness Week''; as follows:

       In the ninth whereas clause of the preamble, strike 
     ``providing resources'' and insert ``support''.
                                 ______
                                 
  SA 3624. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. FEDERALISM IN MEDICAL MARIJUANA.

       (a) State Medical Marijuana Laws.--Notwithstanding section 
     708 of the Controlled Substances Act (21 U.S.C. 903) or any 
     other provision of law (including regulations), a State may 
     enact and implement a law that authorizes the use, 
     distribution, possession, or cultivation of marijuana for 
     medical use.
       (b) Prohibition on Certain Prosecutions.--No prosecution 
     may be commenced or maintained against any physician or 
     patient for a violation of any Federal law (including 
     regulations) that prohibits the conduct described in 
     subsection (a) if the State in which the violation occurred 
     has in effect a law described in subsection (a) before, on, 
     or after the date on which the violation occurred, 
     including--
       (1) Alabama;
       (2) Alaska;
       (3) Arizona;
       (4) California;
       (5) Colorado;
       (6) Connecticut;
       (7) Delaware;
       (8) the District of Columbia;
       (9) Florida;
       (10) Hawaii;
       (11) Illinois;
       (12) Iowa;
       (13) Kentucky;
       (14) Maine;
       (15) Maryland;
       (16) Massachusetts;
       (17) Michigan;
       (18) Minnesota;
       (19) Mississippi;
       (20) Missouri;
       (21) Montana;
       (22) Nevada;
       (23) New Hampshire;
       (24) New Jersey;
       (25) New Mexico;
       (26) Oregon;
       (27) Rhode Island;

[[Page S4841]]

       (28) South Carolina;
       (29) Tennessee;
       (30) Utah;
       (31) Vermont;
       (32) Washington; and
       (33) Wisconsin.
                                 ______
                                 
  SA 3625. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 2569, to provide an incentive for businesses to 
bring jobs back to America; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

        TITLE I--ACCOUNTABILITY THROUGH ELECTRONIC VERIFICATION

     SEC. 11. SHORT TITLE.

       This title may be cited as the ``Accountability Through 
     Electronic Verification Act''.

     SEC. 12. PERMANENT REAUTHORIZATION.

       Section 401(b) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (division C of Public 
     Law 104-208; 8 U.S.C. 1324a note) is amended by striking 
     ``Unless the Congress otherwise provides, the Secretary of 
     Homeland Security shall terminate a pilot program on 
     September 30, 2015.''.

     SEC. 13. MANDATORY USE OF E-VERIFY.

       (a) Federal Government.--Section 402(e)(1) of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (8 U.S.C. 1324a note) is amended--
       (1) by amending subparagraph (A) to read as follows:
       ``(A) Executive departments and agencies.--Each department 
     and agency of the Federal Government shall participate in E-
     Verify by complying with the terms and conditions set forth 
     in this section.''; and
       (2) in subparagraph (B), by striking ``, that conducts 
     hiring in a State'' and all that follows and inserting 
     ``shall participate in E-Verify by complying with the terms 
     and conditions set forth in this section.''.
       (b) Federal Contractors; Critical Employers.--Section 
     402(e) of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) United states contractors.--Any person, employer, or 
     other entity that enters into a contract with the Federal 
     Government shall participate in E-Verify by complying with 
     the terms and conditions set forth in this section.
       ``(3) Designation of critical employers.--Not later than 7 
     days after the date of the enactment of this paragraph, the 
     Secretary of Homeland Security shall--
       ``(A) conduct an assessment of employers that are critical 
     to the homeland security or national security needs of the 
     United States;
       ``(B) designate and publish a list of employers and classes 
     of employers that are deemed to be critical pursuant to the 
     assessment conducted under subparagraph (A); and
       ``(C) require that critical employers designated pursuant 
     to subparagraph (B) participate in E-Verify by complying with 
     the terms and conditions set forth in this section not later 
     than 30 days after the Secretary makes such designation.''.
       (c) All Employers.--Section 402 of the Illegal Immigration 
     Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 
     1324a note) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following:
       ``(f) Mandatory Participation in E-Verify.--
       ``(1) In general.--Subject to paragraphs (2) and (3), all 
     employers in the United States shall participate in E-Verify, 
     with respect to all employees recruited, referred, or hired 
     by such employer on or after the date that is 1 year after 
     the date of the enactment of this subsection.
       ``(2) Use of contract labor.--Any employer who uses a 
     contract, subcontract, or exchange to obtain the labor of an 
     individual in the United States shall certify in such 
     contract, subcontract, or exchange that the employer uses E-
     Verify. If such certification is not included in a contract, 
     subcontract, or exchange, the employer shall be deemed to 
     have violated paragraph (1).
       ``(3) Interim mandatory participation.--
       ``(A) In general.--Before the date set forth in paragraph 
     (1), the Secretary of Homeland Security shall require any 
     employer or class of employers to participate in E-Verify, 
     with respect to all employees recruited, referred, or hired 
     by such employer if the Secretary has reasonable cause to 
     believe that the employer is or has been engaged in a 
     material violation of section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a).
       ``(B) Notification.--Not later than 14 days before an 
     employer or class of employers is required to begin 
     participating in E-Verify pursuant to subparagraph (A), the 
     Secretary shall provide such employer or class of employers 
     with--
       ``(i) written notification of such requirement; and
       ``(ii) appropriate training materials to facilitate 
     compliance with such requirement.''.

     SEC. 14. CONSEQUENCES OF FAILURE TO PARTICIPATE.

       (a) In General.--Section 402(e)(5) of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (8 U.S.C. 1324a note), as redesignated by section 13(b)(1), 
     is amended to read as follows:
       ``(5) Consequences of failure to participate.--If a person 
     or other entity that is required to participate in E-Verify 
     fails to comply with the requirements under this title with 
     respect to an individual--
       ``(A) such failure shall be treated as a violation of 
     section 274A(a)(1)(B) with respect to such individual; and
       ``(B) a rebuttable presumption is created that the person 
     or entity has violated section 274A(a)(1)(A).''.
       (b) Penalties.--Section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a) is amended--
       (1) in subsection (e)--
       (A) in paragraph (4)--
       (i) in subparagraph (A), in the matter preceding clause 
     (i), by inserting ``, subject to paragraph (10),'' after ``in 
     an amount'';
       (ii) in subparagraph (A)(i), by striking ``not less than 
     $250 and not more than $2,000'' and inserting ``not less than 
     $2,500 and not more than $5,000'';
       (iii) in subparagraph (A)(ii), by striking ``not less than 
     $2,000 and not more than $5,000'' and inserting ``not less 
     than $5,000 and not more than $10,000'';
       (iv) in subparagraph (A)(iii), by striking ``not less than 
     $3,000 and not more than $10,000'' and inserting ``not less 
     than $10,000 and not more than $25,000''; and
       (v) by amending subparagraph (B) to read as follows:
       ``(B) may require the person or entity to take such other 
     remedial action as is appropriate.'';
       (B) in paragraph (5)--
       (i) by inserting ``, subject to paragraphs (10) through 
     (12),'' after ``in an amount'';
       (ii) by striking ``$100'' and inserting ``$1,000'';
       (iii) by striking ``$1,000'' and inserting ``$25,000'';
       (iv) by striking ``the size of the business of the employer 
     being charged, the good faith of the employer'' and inserting 
     ``the good faith of the employer being charged''; and
       (v) by adding at the end the following: ``Failure by a 
     person or entity to utilize the employment eligibility 
     verification system as required by law, or providing 
     information to the system that the person or entity knows or 
     reasonably believes to be false, shall be treated as a 
     violation of subsection (a)(1)(A).''; and
       (C) by adding at the end the following:
       ``(10) Exemption from penalty.--In the case of imposition 
     of a civil penalty under paragraph (4)(A) with respect to a 
     violation of subsection (a)(1)(A) or (a)(2) for hiring or 
     continuation of employment or recruitment or referral by 
     person or entity and in the case of imposition of a civil 
     penalty under paragraph (5) for a violation of subsection 
     (a)(1)(B) for hiring or recruitment or referral by a person 
     or entity, the penalty otherwise imposed may be waived or 
     reduced if the violator establishes that the violator acted 
     in good faith.
       ``(11) Authority to debar employers for certain 
     violations.--
       ``(A) In general.--If a person or entity is determined by 
     the Secretary of Homeland Security to be a repeat violator of 
     paragraph (1)(A) or (2) of subsection (a), or is convicted of 
     a crime under this section, such person or entity may be 
     considered for debarment from the receipt of Federal 
     contracts, grants, or cooperative agreements in accordance 
     with the debarment standards and pursuant to the debarment 
     procedures set forth in the Federal Acquisition Regulation.
       ``(B) Does not have contract, grant, agreement.--If the 
     Secretary of Homeland Security or the Attorney General wishes 
     to have a person or entity considered for debarment in 
     accordance with this paragraph, and such an person or entity 
     does not hold a Federal contract, grant or cooperative 
     agreement, the Secretary or Attorney General shall refer the 
     matter to the Administrator of General Services to determine 
     whether to list the person or entity on the List of Parties 
     Excluded from Federal Procurement, and if so, for what 
     duration and under what scope.
       ``(C) Has contract, grant, agreement.--If the Secretary of 
     Homeland Security or the Attorney General wishes to have a 
     person or entity considered for debarment in accordance with 
     this paragraph, and such person or entity holds a Federal 
     contract, grant or cooperative agreement, the Secretary or 
     Attorney General shall advise all agencies or departments 
     holding a contract, grant, or cooperative agreement with the 
     person or entity of the Government's interest in having the 
     person or entity considered for debarment, and after 
     soliciting and considering the views of all such agencies and 
     departments, the Secretary or Attorney General may waive the 
     operation of this paragraph or refer the matter to any 
     appropriate lead agency to determine whether to list the 
     person or entity on the List of Parties Excluded from Federal 
     Procurement, and if so, for what duration and under what 
     scope.
       ``(D) Review.--Any decision to debar a person or entity 
     under in accordance with this paragraph shall be reviewable 
     pursuant to part 9.4 of the Federal Acquisition 
     Regulation.''; and
       (2) in subsection (f)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Criminal penalty.--Any person or entity which engages 
     in a pattern or practice of violations of subsection (a)(1) 
     or (2) shall be fined not more than $15,000 for each 
     unauthorized alien with respect to which such a violation 
     occurs, imprisoned for not less

[[Page S4842]]

     than 1 year and not more than 10 years, or both, 
     notwithstanding the provisions of any other Federal law 
     relating to fine levels.''; and
       (B) in paragraph (2), by striking ``Attorney General'' each 
     place it appears and inserting ``Secretary of Homeland 
     Security''.

     SEC. 15. PREEMPTION; LIABILITY.

       Section 402 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note), as amended 
     by this Act, is further amended by adding at the end the 
     following:
       ``(h) Limitation on State Authority.--
       ``(1) Preemption.--A State or local government may not 
     prohibit a person or other entity from verifying the 
     employment authorization of new hires or current employees 
     through E-Verify.
       ``(2) Liability.--A person or other entity that 
     participates in E-Verify may not be held liable under any 
     Federal, State, or local law for any employment-related 
     action taken with respect to the wrongful termination of an 
     individual in good faith reliance on information provided 
     through E-Verify.''.

     SEC. 16. EXPANDED USE OF E-VERIFY.

       Section 403(a)(3)(A) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is 
     amended to read as follows:
       ``(A) In general.--
       ``(i) Before hiring.--The person or other entity may verify 
     the employment eligibility of an individual through E-Verify 
     before the individual is hired, recruited, or referred if the 
     individual consents to such verification. If an employer 
     receives a tentative nonconfirmation for an individual, the 
     employer shall comply with procedures prescribed by the 
     Secretary, including--

       ``(I) providing the individual employees with private, 
     written notification of the finding and written referral 
     instructions;
       ``(II) allowing the individual to contest the finding; and
       ``(III) not taking adverse action against the individual if 
     the individual chooses to contest the finding.

       ``(ii) After employment offer.--The person or other entity 
     shall verify the employment eligibility of an individual 
     through E-Verify not later than 3 days after the date of the 
     hiring, recruitment, or referral, as the case may be.
       ``(iii) Existing employees.--Not later than 3 years after 
     the date of the enactment of the Accountability Through 
     Electronic Verification Act, the Secretary shall require all 
     employers to use E-Verify to verify the identity and 
     employment eligibility of any individual who has not been 
     previously verified by the employer through E-Verify.''.

     SEC. 17. REVERIFICATION.

       Section 403(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is 
     amended by adding at the end the following:
       ``(5) Reverification.--Each person or other entity 
     participating in E-Verify shall use the E-Verify confirmation 
     system to reverify the work authorization of any individual 
     not later than 3 days after the date on which such 
     individual's employment authorization is scheduled to expire 
     (as indicated by the Secretary or the documents provided to 
     the employer pursuant to section 274A(b) of the Immigration 
     and Nationality Act (8 U.S.C. 1324a(b))), in accordance with 
     the procedures set forth in this subsection and section 
     402.''.

     SEC. 18. HOLDING EMPLOYERS ACCOUNTABLE.

       (a) Consequences of Nonconfirmation.--Section 403(a)(4)(C) 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended 
     to read as follows:
       ``(C) Consequences of nonconfirmation.--
       ``(i) Termination and notification.--If the person or other 
     entity receives a final nonconfirmation regarding an 
     individual, the employer shall immediately--

       ``(I) terminate the employment, recruitment, or referral of 
     the individual; and
       ``(II) submit to the Secretary any information relating to 
     the individual that the Secretary determines would assist the 
     Secretary in enforcing or administering United States 
     immigration laws.

       ``(ii) Consequence of continued employment.--If the person 
     or other entity continues to employ, recruit, or refer the 
     individual after receiving final nonconfirmation, a 
     rebuttable presumption is created that the employer has 
     violated section 274A of the Immigration and Nationality Act 
     (8 U.S.C. 1324a).''.
       (b) Interagency Nonconfirmation Report.--Section 405 of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1324a note) is amended by adding at the end 
     the following:
       ``(c) Interagency Nonconfirmation Report.--
       ``(1) In general.--The Director of U.S. Citizenship and 
     Immigration Services shall submit a weekly report to the 
     Assistant Secretary of Immigration and Customs Enforcement 
     that includes, for each individual who receives final 
     nonconfirmation through E-Verify--
       ``(A) the name of such individual;
       ``(B) his or her Social Security number or alien file 
     number;
       ``(C) the name and contact information for his or her 
     current employer; and
       ``(D) any other critical information that the Assistant 
     Secretary determines to be appropriate.
       ``(2) Use of weekly report.--The Secretary of Homeland 
     Security shall use information provided under paragraph (1) 
     to enforce compliance of the United States immigration 
     laws.''.

     SEC. 19. INFORMATION SHARING.

       The Commissioner of Social Security, the Secretary of 
     Homeland Security, and the Secretary of the Treasury shall 
     jointly establish a program to share information among such 
     agencies that may or could lead to the identification of 
     unauthorized aliens (as defined under section 274A(h)(3) of 
     the Immigration and Nationality Act), including any no-match 
     letter and any information in the earnings suspense file.

     SEC. 20. FORM I-9 PROCESS.

       Not later than 9 months after date of the enactment of this 
     Act, the Secretary of Homeland Security shall submit a report 
     to Congress that contains recommendations for--
       (1) modifying and simplifying the process by which 
     employers are required to complete and retain a Form I-9 for 
     each employee pursuant to section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a); and
       (2) eliminating the process described in paragraph (1).

     SEC. 21. ALGORITHM.

       Section 404(d) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is 
     amended to read as follows:
       ``(d) Design and Operation of System.--E-Verify shall be 
     designed and operated--
       ``(1) to maximize its reliability and ease of use by 
     employers;
       ``(2) to insulate and protect the privacy and security of 
     the underlying information;
       ``(3) to maintain appropriate administrative, technical, 
     and physical safeguards to prevent unauthorized disclosure of 
     personal information;
       ``(4) to respond accurately to all inquiries made by 
     employers on whether individuals are authorized to be 
     employed;
       ``(5) to register any times when E-Verify is unable to 
     receive inquiries;
       ``(6) to allow for auditing use of the system to detect 
     fraud and identify theft;
       ``(7) to preserve the security of the information in all of 
     the system by--
       ``(A) developing and using algorithms to detect potential 
     identity theft, such as multiple uses of the same identifying 
     information or documents;
       ``(B) developing and using algorithms to detect misuse of 
     the system by employers and employees;
       ``(C) developing capabilities to detect anomalies in the 
     use of the system that may indicate potential fraud or misuse 
     of the system; and
       ``(D) auditing documents and information submitted by 
     potential employees to employers, including authority to 
     conduct interviews with employers and employees;
       ``(8) to confirm identity and work authorization through 
     verification of records maintained by the Secretary, other 
     Federal departments, States, the Commonwealth of the Northern 
     Mariana Islands, or an outlying possession of the United 
     States, as determined necessary by the Secretary, including--
       ``(A) records maintained by the Social Security 
     Administration;
       ``(B) birth and death records maintained by vital 
     statistics agencies of any State or other jurisdiction in the 
     United States;
       ``(C) passport and visa records (including photographs) 
     maintained by the Department of State; and
       ``(D) State driver's license or identity card information 
     (including photographs) maintained by State department of 
     motor vehicles;
       ``(9) to electronically confirm the issuance of the 
     employment authorization or identity document; and
       ``(10) to display the digital photograph that the issuer 
     placed on the document so that the employer can compare the 
     photograph displayed to the photograph on the document 
     presented by the employee or, in exceptional cases, if a 
     photograph is not available from the issuer, to provide for a 
     temporary alternative procedure, specified by the Secretary, 
     for confirming the authenticity of the document.''.

     SEC. 22. IDENTITY THEFT.

       Section 1028 of title 18, United States Code, is amended--
       (1) in subsection (a)(7), by striking ``of another person'' 
     and inserting ``that is not his or her own''; and
       (2) in subsection (b)(3)--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(D) to facilitate or assist in harboring or hiring 
     unauthorized workers in violation of section 274, 274A, or 
     274C of the Immigration and Nationality Act (8 U.S.C. 1324, 
     1324a, and 1324c).''.

     SEC. 23. SMALL BUSINESS DEMONSTRATION PROGRAM.

       Section 403 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following:
       ``(d) Small Business Demonstration Program.--Not later than 
     9 months after the date of the enactment of the 
     Accountability Through Electronic Verification Act, the 
     Director of U.S. Citizenship and Immigration Services shall 
     establish a demonstration program that assists small 
     businesses in rural

[[Page S4843]]

     areas or areas without internet capabilities to verify the 
     employment eligibility of newly hired employees solely 
     through the use of publicly accessible internet terminals.''.

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