[Congressional Record Volume 161, Number 10 (Wednesday, January 21, 2015)]
[Senate]
[Pages S360-S361]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 93. Mr. MERKLEY submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, supra; which was ordered to lie on the table, as 
follows:

       At the end, add the following:

            DIVISION--__REBUILDING AMERICA'S INFRASTRUCTURE

     SECTION 1. SHORT TITLE.

       This division may be cited as the ``Rebuilding America's 
     Infrastructure Act of 2015''.

                TITLE I--REPEAL OF OIL AND GAS SUBSIDIES

                Subtitle A--Close Big Oil Tax Loopholes

     SEC. 101. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (within the 
     meaning of section 167(h)(5)) to a foreign country or 
     possession of the United States for any period shall not be 
     considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.
     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (within the meaning of section 167(h)(5)) for the taxable 
     year, the term `domestic production gross receipts' shall not 
     include gross receipts from the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product (within the meaning of subsection (d)(9)) 
     thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
                   DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED 
                   AMOUNTS.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(c) Intangible Drilling and Development Costs in the Case 
     of Oil and Gas Wells and Geothermal Wells.--
       ``(1) In general.--Notwithstanding subsection (a), and 
     except as provided in subsection (i), regulations shall be 
     prescribed by the Secretary under this subtitle corresponding 
     to the regulations which granted the option to deduct as 
     expenses intangible drilling and development costs in the 
     case of oil and gas wells and which were recognized and 
     approved by the Congress in House Concurrent Resolution 50, 
     Seventy-ninth Congress. Such regulations shall also grant the 
     option to deduct as expenses intangible drilling and 
     development costs in the case of wells drilled for any 
     geothermal deposit (as defined in section 613(e)(2)) to the 
     same extent and in the same manner as such expenses are 
     deductible in the case of oil and gas wells. This subsection 
     shall not apply with respect to any costs to which any 
     deduction is allowed under section 59(e) or 291.
       ``(2) Exclusion.--
       ``(A) In general.--This subsection shall not apply to 
     amounts paid or incurred by a taxpayer in any taxable year in 
     which such taxpayer is a major integrated oil company (within 
     the meaning of section 167(h)(5)).
       ``(B) Amortization of amounts not allowable as deductions 
     under subparagraph (a).--The amount not allowable as a 
     deduction for any taxable year by reason of subparagraph (A) 
     shall be allowable as a deduction ratably over the 60-month 
     period beginning with the month in which the costs are paid 
     or incurred. For purposes of section 1254, any deduction 
     under this subparagraph shall be treated as a deduction under 
     this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 104. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR 
                   OIL AND GAS WELLS.

       (a) In General.--Section 613A of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Application With Respect to Major Integrated Oil 
     Companies.--In the case of any taxable year in which the 
     taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)), the allowance for percentage 
     depletion shall be zero.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

       (a) In General.--Section 193 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Application With Respect to Major Integrated Oil 
     Companies.--
       ``(1) In general.--This section shall not apply to amounts 
     paid or incurred by a taxpayer in any taxable year in which 
     such taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)).

[[Page S361]]

       ``(2) Amortization of amounts not allowable as deductions 
     under paragraph (1).--The amount not allowable as a deduction 
     for any taxable year by reason of paragraph (1) shall be 
     allowable as a deduction ratably over the 60-month period 
     beginning with the month in which the costs are paid or 
     incurred.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 106. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL 
                   COMPANY.

       (a) In General.--Paragraph (5) of section 167(h) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Certain successors in interest.--For purposes of this 
     paragraph, the term `major integrated oil company' includes 
     any successor in interest of a company that was described in 
     subparagraph (B) in any taxable year, if such successor 
     controls more than 50 percent of the crude oil production or 
     natural gas production of such company.''.
       (b) Conforming Amendments.--
       (1) In general.--Subparagraph (B) of section 167(h)(5) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``except as provided in subparagraph (C),'' after ``For 
     purposes of this paragraph,''.
       (2) Taxable years tested.--Clause (iii) of section 
     167(h)(5)(B) of such Code is amended--
       (A) by striking ``does not apply by reason of paragraph (4) 
     of section 613A(d)'' and inserting ``did not apply by reason 
     of paragraph (4) of section 613A(d) for any taxable year 
     after 2004'', and
       (B) by striking ``does not apply'' in subclause (II) and 
     inserting ``did not apply for the taxable year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

        Subtitle B--Outer Continental Shelf Oil and Natural Gas

     SEC. 111. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND 
                   DEEP GAS ROYALTY RELIEF.

       (a) In General.--Sections 344 and 345 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
       (b) Administration.--The Secretary of the Interior shall 
     not be required to provide for royalty relief in the lease 
     sale terms beginning with the first lease sale held on or 
     after the date of enactment of this Act for which a final 
     notice of sale has not been published.

                    TITLE II--INFRASTRUCTURE FUNDING

     SEC. 201. INFRASTRUCTURE FUNDING.

       (a) In General.--
       (1) Transfers.--Not later than 90 days after the date of 
     enactment of this Act, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer an amount equal to the net amount of any savings 
     realized as a result of the enactment of this Act and the 
     amendments made by this Act (after any expenditures 
     authorized by this Act and the amendments made by this Act)--
       (A) in accordance with subsections (b) and (c); and
       (B) in the case of any additional savings after the 
     application of such subsections, into the Highway Trust Fund 
     in the following manner:
       (i) 75 percent of such additional savings shall be 
     transferred into the Highway Trust Fund (other than the Mass 
     Transit Account).
       (ii) 25 percent of such additional savings shall be 
     transferred into the Mass Transit Account.
       (2) Conforming amendment to the internal revenue code.--
     Subsection (f) of section 9503 of the Internal Revenue Code 
     of 1986 is amended by redesignating paragraph (7) as 
     paragraph (8) and by inserting after paragraph (6) the 
     following new paragraph:
       ``(7) 2015 increase.--Out of money in the Treasury not 
     otherwise appropriated, there is hereby appropriated to the 
     Highway Account (as defined in subsection (e)(5)(B)) and the 
     Mass Transit Account in the Highway Trust Fund amounts equal 
     to the amounts determined under section 201(a)(1)(B) of the 
     Rebuilding America's Infrastructure Act of 2015.''.
       (b) Water Infrastructure Innovative Financing Pilot 
     Projects.--Out of any funds of the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of the Army and the Administrator of the 
     Environmental Protection Agency jointly, $2,000,000,000 to 
     carry out the Water Infrastructure Finance and Innovation Act 
     of 2014 (33 U.S.C. 3901 et seq.) through 2019.
       (c) TIGER Discretionary Grants.--
       (1) Definition of tiger discretionary grant.--In this 
     section, the term ``TIGER discretionary grant'' means a grant 
     awarded and administered by the Secretary of Transportation 
     using funds made available for--
       (A) supplemental discretionary grants for a national 
     surface transportation system under title XII of division A 
     of the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5; 123 Stat. 203);
       (B) the national infrastructure investments discretionary 
     grant program under title I of division A of the Consolidated 
     Appropriations Act, 2010 (Public Law 111-17; 123 Stat. 3035);
       (C) national infrastructure investments under section 2202 
     of division B of the Department of Defense and Full-Year 
     Continuing Appropriations Act, 2011 (Public Law 112-10; 125 
     Stat. 191);
       (D) national infrastructure investments under title I of 
     division C of the Consolidated and Further Continuing 
     Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 641);
       (E) national infrastructure investments under title VIII of 
     division F of the Consolidated and Further Continuing 
     Appropriations Act, 2013 (Public Law 113-6; 127 Stat. 432);
       (F) national infrastructure investments under title I of 
     division L of the Consolidated Appropriations Act, 2014 
     (Public Law 113-76; 128 Stat. 574); or
       (G) national infrastructure investments under title I of 
     division K of the Consolidated and Further Continuing 
     Appropriations Act, 2015 (Public Law 113-235).
       (2) Appropriation.--Out of any funds of the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Transportation, $2,000,000,000 
     to provide TIGER discretionary grants for fiscal year 2016.
       (d) Maintenance of Funding.--The funding provided under 
     this section shall supplement (and not supplant) other 
     Federal funding for the programs and accounts funded under 
     this section.

     SEC. 202. BUDGETARY EFFECTS.

       The budgetary effects of this Act, 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 Act, 
     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.

                    TITLE III--STATE REVOLVING FUNDS

     SEC. 301. STATE WATER POLLUTION CONTROL REVOLVING FUNDS.

       Out of any funds of the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Administrator of the Environmental Protection Agency, 
     $1,500,000,000 for State water pollution control revolving 
     funds established in accordance with title VI of the Federal 
     Water Pollution Control Act (33 U.S.C. 1381 et seq.).

     SEC. 302. STATE DRINKING WATER TREATMENT REVOLVING LOAN 
                   FUNDS.

       Out of any funds of the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Administrator of the Environmental Protection Agency, 
     $1,000,000,000 for State drinking water treatment revolving 
     loan funds established in accordance with section 1452 of the 
     Safe Drinking Water Act (42 U.S.C. 300j-12).

                        TITLE IV--MISCELLANEOUS

     SEC. 401. ENFORCEMENT OF DISCRETIONARY SPENDING LIMITS.

       The Office of Management and Budget shall not include 
     amounts made available under subsections (b) or (c) of 
     section 201 or title III during a fiscal year in determining 
     whether there has been a breach of the discretionary spending 
     limits under the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 900 et seq.) during the fiscal 
     year.
                                 ______