[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Pages 12486-12507]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

              DEPARTMENT OF LABOR APPROPRIATIONS ACT, 2001

                                 ______
                                 

               SMITH OF NEW HAMPSHIRE AMENDMENT NO. 3628

  Mr. SMITH of New Hampshire proposed an amendment to the bill (H.R. 
4577) making appropriations for the Departments of Labor, Health and 
Human Services, and Education, and related agencies for the fiscal year 
ending September 30, 2001, and for other purposes; as follows:

       At the appropriate place, add the following:

     ``SEC.  . PURCHASE OF FETAL TISSUE.

       ``None of the funds made available in this Act may be used 
     to pay, reimburse, or otherwise compensate, directly or 
     indirectly, any abortion provider, fetal tissue procurement 
     contractor, or tissue resource source, for fetal tissue, or 
     the cost of collecting, transferring, or otherwise processing 
     fetal tissue, if such fetal tissue is obtained from induced 
     abortions.''.
                                 ______
                                 

               REID (AND BOXER) AMENDMENTS NOS. 3629-3630

  Mr. REID (for himself and Mrs. Boxer) proposed two amendments to the 
bill, H.R. 4577, supra; as follows:

                           Amendment No. 3629

       At the appropriate place, insert the following:


       sense of the senate on prevention of needlestick injuries

       Sec. __. (a) Findings.--The Senate finds that--
       (1) the Centers for Disease Control and Prevention reports 
     that American health care workers report 600,000-800,000 
     needlestick and sharps injuries each year;
       (2) the occurrence of needlestick injuries is believed to 
     be widely under-reported;
       (3) needlestick and sharps injuries result in at least 
     1,000 new cases of health care workers with HIV, hepatitis C 
     or hepatitis B every year; and
       (4) more than 80 percent of needlestick injuries can be 
     prevented through the use of safer devices.
       (5) OSHA's November 1999 Compliance Directive has helped 
     clarify the duty of employers to use safer needle devices to 
     protect their workers. However, millions of State and local 
     government employees are not covered by OSHA's bloodborn 
     pathogen standard and are not protected against the hazards 
     of needlesticks.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Senate should pass legislation that would eliminate 
     or minimize the significant risk of needlestick injury to 
     health care workers.
                                  ____


                           Amendment No. 3630

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) In General.--There is appropriated $10,000,000 
     that may be used by the Director of the National Institute 
     for Occupational Safety and Health to--
       (1) establish and maintain a national database on existing 
     needleless systems and sharps with engineered sharps injury 
     protections;
       (2) develop a set of evaluation criteria for use by 
     employers, employees, and other persons when they are 
     evaluating and selecting needleless systems and sharps with 
     engineered sharps injury protections;
       (3) develop a model training curriculum to train employers, 
     employees, and other persons on the process of evaluating 
     needleless systems and sharps with engineered sharps injury 
     protections and to the extent feasible to provide technical 
     assistance to persons who request such assistance; and
       (4) establish a national system to collect comprehensive 
     data on needlestick injuries to health care workers, 
     including data on mechanisms to analyze and evaluate 
     prevention interventions in relation to needlestick injury 
     occurrence.
       (b) Definitions.--In this section:
       (1) Employer.--The term ``employer'' means each employer 
     having an employee with occupational exposure to human blood 
     or other material potentially containing bloodborne 
     pathogens.
       (2) Engineered sharps injury protections.--The term 
     ``engineered sharps injury protections'' means--
       (A) a physical attribute built into a needle device used 
     for withdrawing body fluids, accessing a vein or artery, or 
     administering medications or other fluids, that effectively 
     reduces the risk of an exposure incident by a mechanism such 
     as barrier creation, blunting, encapsulation, withdrawal, 
     retraction, destruction, or other effective mechanisms; or
       (B) a physical attribute built into any other type of 
     needle device, or into a nonneedle sharp, which effectively 
     reduces the risk of an exposure incident.
       (3) Needleless system.--The term ``needleless system'' 
     means a device that does not use needles for--
       (A) the withdrawal of body fluids after initial venous or 
     arterial access is established;
       (B) the administration of medication or fluids; and
       (C) any other procedure involving the potential for an 
     exposure incident.
       (4) Sharp.--The term ``sharp'' means any object used or 
     encountered in a health care setting that can be reasonably 
     anticipated to penetrate the skin or any other part of the 
     body, and to result in an exposure incident, including, but 
     not limited to, needle devices, scalpels, lancets, broken 
     glass, broken capillary tubes, exposed ends of dental wires 
     and dental knives, drills, and burs.
       (5) Sharps injury.--The term ``sharps injury'' means any 
     injury caused by a sharp, including cuts, abrasions, or 
     needlesticks.
       (c) Offset.--Amounts made available under this Act for the 
     travel, consulting, and printing services for the Department 
     of Labor, the Department of Health and Human Services, and 
     the Department of Education shall be reduced on a pro rata 
     basis by $10,000,000.
                                 ______
                                 

               WELLSTONE (AND OTHERS) AMENDMENT NO. 3631

  (Ordered to lie on the table.)
  Mr. WELLSTONE (for himself, Mr. Kennedy, Mr. Dodd, Mr. Bingaman, and 
Mr. Reed) submitted an amendment intended to be proposed by them to the 
bill, H.R. 4577, supra; as follows:

       At the end of title III, insert the following:

     SEC.   . PART A OF TITLE I.

       Notwithstanding any other provision of this Act, the total 
     amount appropriated under this Act to carry out part A of 
     title I of the Elementary and Secondary Education Act of 1965 
     shall be $10,000,000,000.
                                 ______
                                 

                        WYDEN AMENDMENT NO. 3632

  Mr. WYDEN proposed an amendment to the bill, H.R. 4577, supra, as 
follows:

       At the appropriate place, insert:
       Sec.   . None of the funds made available under this Act 
     may be made available to any entity under the Public Health 
     Service Act after September 1, 2001, unless the Director of 
     NIH has provided to the Chairman and Ranking Member of the 
     Senate Committee on Health, Education, Labor, and Pensions a 
     proposal to require a reasonable rate of return on both 
     intramural and extramural research by March 31, 2001.
                                 ______
                                 

                 INHOFE (AND OTHERS) AMENDMENT NO. 3633

  Mr. INHOFE (for himself, Mr. Murkowski, and Mr. Sessions) proposed an 
amendment to the bill, H.R. 4577, supra; as follows:

       At the end of title III, insert the following:

     SEC. __. IMPACT AID.

       Notwithstanding any other provision of this Act--
       (1) the total amount appropriated under this title to carry 
     out title VIII of the Elementary and Secondary Education Act 
     of 1965 shall be $1,108,200,000;
       (2) the total amount appropriated under this title for 
     basic support payments under section 8003(b) of the 
     Elementary and Secondary Education Act of 1965 shall be 
     $896,200,000, and
       (3) amounts made available under title I for the 
     administrative and related expenses of the Department of 
     Labor, Health and Human Services, and Education shall be 
     further reduced on a pro rata basis by $78,200,000.
                                 ______
                                 

                  HATCH (AND LEAHY) AMENDMENT NO. 3634

  (Ordered to lie on the table.)
  Mr. HATCH (for himself and Mr. Leahy) submitted an amendment intended 
to be proposed by them to the bill, H.R. 4577, supra; as follows:

       Insert at the end the following:

     SEC.   . PROVISION OF INTERNET FILTERING OR SCREENING 
                   SOFTWARE BY CERTAIN INTERNET SERVICE PROVIDERS.

       (a) Requirement to Provide.--Each Internet service provider 
     shall at the time of entering an agreement with a residential 
     customer for the provision of Internet access services, 
     provided to such customer, either at no fee or at a fee not 
     in excess of the amount specified in subsection (c), computer 
     software or other filtering or blocking system that allows 
     the customer to prevent the access of minors to material on 
     the Internet.
       (b) Surveys of Provision of Software or Systems--
       (1) Surveys.--The Office of Juvenile Justice and 
     Delinquency Prevention of the Department of Justice and the 
     Federal Trade Commission shall jointly conduct surveys of

[[Page 12487]]

     the extent to which Internet service providers are providing 
     computer software or systems described in subsection (a) to 
     their subscribers. In performing such surveys, neither the 
     Department nor the Commission shall collect personally 
     identifiable information of subscribers of the Internet 
     service providers.
       (2) Frequency.--The survey required by paragraph (1) shall 
     be completed as follows:
       (A) One shall be completed not later than one year after 
     the date of the enactment of this Act.
       (B) One shall be completed not later than two years after 
     that date.
       (C) One shall be completed not later than three years after 
     that date.
       (c) Fees.--The fee, if any, charged and collected by an 
     Internet service provider for providing computer software or 
     a system described in subsection (a) to a residential 
     customer shall not exceed the amount equal to the cost of the 
     provider in providing the software or system to the 
     subscriber, including the cost of the software or system and 
     of any license required with respect to the software or 
     system.
       (d) Applicability.--The requirement described in subsection 
     (a) shall become effective only if--
       (1) 1 year after the date of the enactment of this Act, the 
     Office and the Commission determine as a result of the survey 
     completed by the deadline in subsection (b)(2)(A) that less 
     than 75 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided computer software or systems described in 
     subsection (a) by such providers;
       (2) 2 years after the date of the enactment of this Act, 
     the Office and the Commission determine as a result of the 
     survey completed by the deadline in subsection (b)(2)(B) that 
     less than 85 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided such software or systems by such providers; or
       (3) 3 years after the date of the enactment of this Act, if 
     the Office of the Commission determine as a result of the 
     survey completed by the deadline in subsection (b)(2)(C) that 
     less than 100 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided such software or systems by such providers.
       (e) Internet Service Provider Defined.--In this section, 
     the term `Internet service provider' means a service provider 
     as defined in section 512(k)(1)(A) of title 17, United States 
     Code, which has more than 50,000 subscribers.
                                 ______
                                 

                      SANTORUM AMENDMENT NO. 3635

  Mr. SANTORUM proposed an amendment to the bill, H.R. 4577, supra, as 
follows:

       On page 92, between lines 4 and 5, insert the following:

         TITLE VI--UNIVERSAL SERVICE FOR SCHOOLS AND LIBRARIES

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Neighborhood Children's 
     Internet Protection Act''.

     SEC. 602. NO UNIVERSAL SERVICE FOR SCHOOLS OR LIBRARIES THAT 
                   FAIL TO IMPLEMENT A FILTERING OR BLOCKING 
                   SYSTEM FOR COMPUTERS WITH INTERNET ACCESS OR 
                   ADOPT INTERNET USE POLICIES.

       (a) No Universal Service.--
       (1) In general.--Section 254 of the Communications Act of 
     1934 (47 U.S.C. 254) is amended by adding at the end the 
     following:
       ``(l) Implementation of Internet Filtering or Blocking 
     System or Use Policies.--
       ``(1) In general.--No services may be provided under 
     subsection (h)(1)(B) to any elementary or secondary school, 
     or any library, unless it provides the certification required 
     by paragraph (2) to the Commission or its designee.
       ``(2) Certification.--A certification under this paragraph 
     with respect to a school or library is a certification by the 
     school, school board, or other authority with responsibility 
     for administration of the school, or the library, or any 
     other entity representing the school or library in applying 
     for universal service assistance, that the school or 
     library--
       ``(A) has--
       ``(i) selected a system for its computers with Internet 
     access that are dedicated to student use in order to filter 
     or block Internet access to matter considered to be 
     inappropriate for minors; and
       ``(ii) installed on such computers, or upon obtaining such 
     computers will install on such computers, a system to filter 
     or block Internet access to such matter; or
       ``(B)(i) has adopted and implemented an Internet use policy 
     that addresses--
       ``(I) access by minors to inappropriate matter on the 
     Internet and World Wide Web;
       ``(II) the safety and security of minors when using 
     electronic mail, chat rooms, and other forms of direct 
     electronic communications;
       ``(III) unauthorized access, including so-called `hacking', 
     and other unlawful activities by minors online;
       ``(IV) unauthorized disclosure, use, and dissemination of 
     personal identification information regarding minors; and
       ``(V) whether the school or library, as the case may be, is 
     employing hardware, software, or other technological means to 
     limit, monitor, or otherwise control or guide Internet access 
     by minors; and
       ``(ii) provided reasonable public notice and held at least 
     one public hearing or meeting which addressed the proposed 
     Internet use policy.
       ``(3) Local determination of content.--For purposes of a 
     certification under paragraph (2), the determination 
     regarding what matter is inappropriate for minors shall be 
     made by the school board, library, or other authority 
     responsible for making the determination. No agency or 
     instrumentality of the United States Government may--
       ``(A) establish criteria for making such determination;
       ``(B) review the determination made by the certifying 
     school, school board, library, or other authority; or
       ``(C) consider the criteria employed by the certifying 
     school, school board, library, or other authority in the 
     administration of subsection (h)(1)(B).
       ``(4) Effective date.--This subsection shall apply with 
     respect to schools and libraries seeking universal service 
     assistance under subsection (h)(1)(B) on or after July 1, 
     2001.''.
       (2) Conforming amendment.--Subsection (h)(1)(B) of that 
     section is amended by striking ``All telecommunications'' and 
     inserting ``Except as provided by subsection (l), all 
     telecommunications''.
       (b) Study.--Not later than 150 days after the date of the 
     enactment of this Act, the National Telecommunications and 
     Information Administration shall initiate a notice and 
     comment proceeding for purposes of--
       (1) evaluating whether or not currently available 
     commercial Internet blocking, filtering, and monitoring 
     software adequately addresses the needs of educational 
     institutions;
       (2) making recommendations on how to foster the development 
     of products which meet such needs; and
       (3) evaluating the development and effectiveness of local 
     Internet use policies that are currently in operation after 
     community input.

     SEC. 603. IMPLEMENTING REGULATIONS.

       Not later than 100 days after the date of the enactment of 
     this Act, the Federal Communications Commission shall adopt 
     rules implementing this title and the amendments made by this 
     title.
                                 ______
                                 

                        KERRY AMENDMENT NO. 3636

  (Ordered to lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       At the end of title III, insert the following:
       Sec. __. Notwithstanding any other provision of this Act--
       (1) the total amount made available under this title to 
     carry out the technology literacy challenge fund under 
     section 3132 of the Elementary and Secondary Education Act of 
     1965 shall be $450,000,000; and
       (2) amounts made available under titles I and II, and this 
     title, for administrative and related expenses at the 
     Departments of Labor, Health and Human Services, and 
     Education, respectively, shall be reduced on a pro rata basis 
     by $25,000,000.
                                 ______
                                 

              REED (AND OTHERS) AMENDMENTS NOS. 3637-3639

  (Ordered to lie on the table.)
  Mr. REED (for himself, Mr. Kennedy, and Mrs. Murray) submitted three 
amendments intended to be proposed by them to the bill, H.R. 4577, 
supra; as follows:

                           Amendment No. 3637

       At the end of title III, insert the following:

     SEC. __. GEAR UP PROGRAM.

       In addition to any other funds appropriated under this Act 
     to carry out chapter 2 of subpart 2 of part A of title IV of 
     the Higher Education Act of 1965, there are appropriated 
     $100,000,000, which shall become available on October 1, 
     2001.
                                  ____


                           Amendment No. 3638

       At the end of title III, insert the following:

     SEC. __. GEAR UP PROGRAM.

       In addition to any other funds appropriated under this Act 
     to carry out chapter 2 of subpart 2 of part A of title IV of 
     the Higher Education Act of 1965, there are appropriated 
     $100,000,000.
                                  ____


                           Amendment No. 3639

       At the end of title III, insert the following:

     SEC. __. GEAR UP PROGRAM.

       In addition to any other funds appropriated under this Act 
     to carry out chapter 2 of subpart 2 of part A of title IV of 
     the Higher Education Act of 1965, there are appropriated 
     $100,000,000: Provided, That these funds are hereby 
     designated by the Congress to be emergency requirements 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985: Provided further, That 
     these funds shall be made available only after submission to 
     the Congress of a formal budget request by the

[[Page 12488]]

     President that includes designation of the entire amount of 
     the request as an emergency requirement as defined in such 
     Act.
                                 ______
                                 

                      BROWNBACK AMENDMENT NO. 3640

  (Ordered to lie on the table.)
  Mr. BROWNBACK submitted an amendment intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

       At the appropriate place, insert the following:
       Sec. __. (a) Findings.--The Senate finds that--
       (1) Ocular Albinism is an x-linked genetic disorder 
     affecting 1 in 50,000 American children, mostly males;
       (2) affected patients show nystagmus, strabimus, 
     photophobia, severe reduction in visual acuity, and loss of 
     three dimensional vision due to abnormal development of the 
     retina and optic pathways; and
       (3) there is a paucity of National Institutes of Health-
     sponsored research in this disorder and its 5 related 
     conditions (Fundus Hypopigmentations, Macular Hypoplasia, 
     Iris Transillumination, Visual Pathway Misrouting and 
     Nystagmus).
       (b) Sense of the Senate.--It is the Sense of the Senate 
     that the National Institutes of Health should develop and 
     fund a research initiative in cooperation with the National 
     Eye Institute into the causes of and treatments for Ocular 
     Albinism and related disorders.
                                 ______
                                 

                      VOINOVICH AMENDMENT NO. 3641

  (Ordered to lie on the table.)
  Mr. VOINOVICH submitted an amendment intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

       On page 59, line 10, insert ``; to carry out part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.);'' after ``qualified teachers''.
                                 ______
                                 

                 COLLINS (AND REED) AMENDMENT NO. 3642

  (Ordered to lie on the table.)
  Ms. COLLINS (for herself and Mr. Reed) submitted an amendment 
intended to be proposed by them to the bill, H.R. 4577, supra; as 
follows:

       On page 54, between lines 10 and 11, insert the following:
       Sec.   . From amounts made available under this title for 
     the Center for Substance Abuse Treatment (discretionary 
     account), $10,000,000 shall be used to provide grants to 
     local non-profit private and public entities to enable such 
     entities to develop and expand activities to provide 
     substance abuse services to homeless individuals.
                                 ______
                                 

                COLLINS (AND OTHERS) AMENDMENT NO. 3643

  (Ordered to lie on the table.)
  Ms. COLLINS (for herself, Mr. Feingold, Mr. Jeffords, Mr. Biden, Mrs. 
Murray, Mr. Enzi, Mr. Wellstone, Mr. Bingaman, Mr. Robb, and Mr. Kerry) 
submitted an amendment intended to be proposed by them to the bill, 
H.R. 4577, supra; as follows:

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) In General.--In addition to amounts 
     appropriated under this title, there is appropriated 
     $5,000,000 to be provided to the Rural Health Outreach Office 
     of the Health Resources and Services Administration for the 
     awarding of grants to community partnerships, that meet the 
     requirements of subsection (b), to enable such partnerships 
     to purchase equipment and provide training as provided for in 
     subsection (c).
       (b) Requirements.--A community partnership meets the 
     requirements of this subsection if such partnership--
       (1) is composed of local emergency response entities such 
     as community training facilities, local emergency responders, 
     fire and rescue departments, police, community hospitals, and 
     local non-profit entities and for-profit entities concerned 
     about cardiac arrest survival rates;
       (2) evaluates the local community emergency response times 
     to assess whether they meet the standards established by 
     national public health organizations such as the American 
     Heart Association and the American Red Cross;
       (3) submits to the Secretary of Health and Human Services 
     an application at such time, in such manner, and containing 
     such information as the Secretary may require; and
       (4) is located in and serves a rural area (as determined by 
     the Secretary of Health and Human Services).
       (c) Use of Funds.--Amounts provided under a grant under 
     this section shall be used--
       (1) to purchase automated external defibrillators that have 
     been approved, or cleared for marketing, by the Food and Drug 
     Administration; and
       (2) to provide defibrillator and basic life support 
     training in automated external defibrillator usage through 
     the American Heart Association, the American Red Cross, or 
     other nationally recognized training courses.
       (d) Offset.--Amounts made available under this title for 
     the administrative and related expenses of the Department of 
     Health and Human Services shall be reduced by $5,000,000.
                                 ______
                                 

                      WELLSTONE AMENDMENT NO. 3644

  (Ordered to lie on the table.)
  Mr. WELLSTONE submitted an amendment intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

       On page 71, after line 25, add the following:
       Sec. __. (a) In addition to any amounts appropriated under 
     this title for the loan forgiveness for child care providers 
     program under section 428K of the Higher Education Act of 
     1965 (20 U.S.C. 1078-11), an additional $10,000,000 is 
     appropriated to carry out such program.
       (b) Notwithstanding any other provision of this Act, 
     amounts made available under titles I and II, and this title, 
     for salaries and expenses at the Departments of Labor, Health 
     and Human Services, and Education, respectively, shall be 
     reduced on a pro rata basis by $10,000,000.
                                 ______
                                 

                      LANDRIEU AMENDMENT NO. 3645

  (Ordered to lie on the table.)
  Ms. LANDRIEU submitted an amendment intended to be proposed by her to 
the bill, H.R. 4577, supra; as follows:

       On page 55, strike line 21 and all that follows through 
     page 56, line 8, and insert the following:

     Higher Education Act of 1965, $9,586,800,000, of which 
     $2,912,222,521 shall become available on July 1, 2001, and 
     shall remain available through September 30, 2002, and of 
     which $6,674,577,479 shall become available on October 1, 
     2001, and shall remain available through September 30, 2002, 
     for academic year 2000-2001: Provided, That $6,985,399,000 
     shall be available for basic grants under section 1124: 
     Provided further, That up to $3,500,000 of these funds shall 
     be available to the Secretary on October 1, 2000, to obtain 
     updated local educational agency level census poverty data 
     from the Bureau of the Census: Provided further, That 
     $1,200,400,000 shall be available for concentration grants 
     under section 1124A: Provided further, That $750,000,000 
     shall be available for targeted grants under section 1125 of 
     the Elementary and Secondary Education Act of 1965: Provided 
     further, That grant awards under * * *
                                 ______
                                 

                      BROWNBACK AMENDMENT NO. 3646

  (Ordered to lie on the table.)
  Mr. BROWNBACK submitted an amendment intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

       At the end of title V, add the following:
       Sec. __. (a) Congress finds that--
       (1) family structure and function have a significant impact 
     on children's physical and emotional health, academic 
     performance, social adjustment, and well-being;
       (2) research on family structure and function may prove 
     helpful in reducing health care costs, strengthening 
     families, and improving the health and well-being of 
     children; and
       (3) the Federal Interagency Forum on Child and Family 
     Statistics has recommended increased data collection relating 
     to family structure and function.
       (b)(1)(A) The Federal officers and employees described in 
     paragraph (2) shall conduct research relating to family 
     structure and function, and their impact on children.
       (B) In conducting the research, the officers and employees 
     shall collect data that describe--
       (i) children's living arrangements;
       (ii) children's interactions with parents and guardians 
     (including non-residential parents); and
       (iii) the number of children who live with biological 
     parents, stepparents, adoptive parents, or guardians, or with 
     no parent or guardian.
       (2) The Federal officers and employees referred to in 
     paragraph (1) are--
       (A) in the Department of Health and Human Services--
       (i) the Director of the National Center for Health 
     Statistics in the Centers for Disease Control and Prevention;
       (ii) the Director of the Agency for Healthcare Research and 
     Quality;
       (iii) the Director of the National Institute of Child 
     Health and Human Development of the National Institutes of 
     Health;
       (iv) the Assistant Secretary for Children and Families;
       (v) the Associate Administrator of the Maternal and Child 
     Health Bureau of the Health Resources and Services 
     Administration; and
       (vi) the Assistant Secretary for Planning and Evaluation; 
     and
       (B) in the Department of Labor, the Commissioner of Labor 
     Statistics.
       (c) There is authorized to be appropriated to carry out 
     this section $5,000,000 for fiscal year 2001.

[[Page 12489]]


                                 ______
                                 

                  COVERDELL AMENDMENTS NOs. 3647-3648

  (Ordered to lie on the table.)
  Mr. COVERDELL submitted two amendments intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

                           Amendment No. 3647

       On page 92, between lines 4 and 5, insert the following:

     SEC.   . PROHIBITION.

       None of the funds made available under this Act may be used 
     to enter into a contract with a person or entity that is the 
     subject of a criminal, civil, or administrative proceeding 
     commenced by the Federal Government and alleging fraud.
                                  ____


                           Amendment No. 3648

       Strike Sec. 505 and insert the following:
       ``Sec. 505. Notwithstanding any other provision of this 
     Act, no funds appropriated under this Act shall be used to 
     carry out any program of distributing sterile needless or 
     syringes for the hypodermic injection of any illegal drug.''
                                 ______
                                 

                BINGAMAN (AND OTHERS) AMENDMENT NO. 3649

  Mr. BINGAMAN (for himself, Mr. Reed, Mr. Kennedy, Mrs. Murray, Mr. 
Dodd, and Mr. Wellstone) proposed an amendment to the bill, H.R. 4577, 
supra; as follows:

       On page 57, line 19, after ``year'' insert the following: 
     ``: Provided further, That in addition to any other funds 
     appropriated under this title, there are appropriated, under 
     the authority of section 1002(f) of the Elementary and 
     Secondary Education Act of 1965, $250,000,000 to carry out 
     sections 1116 and 1117 of such Act''.
                                 ______
                                 

               LIEBERMAN (AND OTHERS) AMENDMENT NO. 3650

  (Ordered to lie on the table.)
  Mr. LIEBERMAN (for himself, Mr. Gorton, Mr. Bayh, Mr. Bryan, Ms. 
Landrieu, Mrs. Lincoln, Mr. Kohl, and Mr. Robb) submitted an amendment 
intended to be proposed by them to the bill, H.R. 4577, supra; as 
follows:

       In lieu of the matter proposed to be inserted, insert the 
     following: ``Higher Education Act of 1965, $8,986,800,000, of 
     which $2,729,958,000 shall become available on July 1, 2001, 
     and shall remain available through September 30, 2002, and of 
     which $6,223,342,000 shall become available on October 1, 
     2001 and shall remain available through September 30, 2002, 
     for academic year 2000-2001: Provided, That $7,113,403,000 
     shall be available for basic grants under section 1124 of the 
     Elementary and Secondary Education Act of 1965: Provided 
     further, That up to $3,500,000 of those funds shall be 
     available to the Secretary on October 1, 2000, to obtain 
     updated local educational agency level census poverty data 
     from the Bureau of the Census: Provided further, That 
     $1,222,397,000 shall be available for concentration grants 
     under section 1124A of that Act: Provided further, That, in 
     addition to the amounts otherwise made available under this 
     heading, an amount of $1,000 (which shall become available on 
     October 1, 2000) shall be transferred to the account under 
     this heading from the amount appropriated under the heading 
     ``program administration'' under the heading ``Departmental 
     Management'' in title III, for carrying out a study by the 
     Comptroller General of the United States, evaluating the 
     extent to which funds made available under part A of title I 
     of the Elementary and Secondary Education Act of 1965 are 
     allocated to schools and local educational agencies with the 
     greatest concentrations of school-age children from low-
     income families, the extent to which allocations of such 
     funds adjust to shifts in concentrations of pupils from low-
     income families in different regions, States, and substate 
     areas, the implications of current distribution methods for 
     such funds, and formula and other policy recommendations to 
     improve the targeting of such funds to more effectively serve 
     low-income children in both rural and urban areas, and for 
     preparing interim and final reports based on the results of 
     the study, to be submitted to Congress not later than 
     February 1, 2001, and April 1, 2001, respectively: Provided 
     further, That grant awards under sec-''.
                                 ______
                                 

                      DOMENICI AMENDMENT NO. 3651

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       On page 4, between lines 6 and 7, insert the following:
       Of the funds made available under this heading for 
     dislocated worker employment and training activities, 
     $5,000,000 shall be available to the New Mexico 
     Telecommunications Call Center Training Consortium for such 
     activities.
                                 ______
                                 
      BINGAMAN (AND OTHERS) AMENDMENT NO. 3652
  (Ordered to lie on the table.)
  Mr. BINGAMAN (for himself, Mr. Reid, and Mr. Leahy) submitted an 
amendment intended to be proposed by them to the bill, H.R. 4577, 
supra; as follows:

       At the end, add the following:

                               Division B

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

       (a) Short Title.--This Act may be cited as the `Energy 
     Security Tax Act of 2000'.
       (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 for this Act 
     is as follows:

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

          Title I--Energy-Efficient Property Used in Business

Sec. 101. Credit for certain energy-efficient property used in 
              business.
Sec. 102. Energy Efficient Commercial Building Property Deduction.

                  Title II--Nonbusiness Energy Systems

Sec. 201. Credit for certain nonbusiness energy systems.

                      Title III--Alternative Fuels

Sec. 301. Allocation of alcohol fuels credit to patrons of a 
              cooperative.

                         Title IV--Automobiles

Sec. 401. Extension of credit for qualified electric vehicles.

                    Title V--Clean Coal Technologies

Sec. 501. Credit for investment in qualifying clean coal technology.
Sec. 502. Credit for production from qualifying clean coal technology.
Sec. 503. Risk pool for qualifying clean coal technology.

                       Title VI--Methane Recovery

Sec. 601. Credit for capture of coalbed methane gas.

                   Title VII--Oil and Gas Production

Sec. 701. Credit for production of re-refined lubricating oil.
Sec. 702. Oil and gas from marginal wells.
Sec. 703. Deduction for delay rental payments.
Sec. 704. Election to expense geological and geophysical expenditures.

                 Title VIII--Renewable Power Generation

Sec. 801. Modifications to credit for electricity produced from 
              renewable resources.
Sec. 802. Credit for capital costs of qualified biomass-based 
              generating system.
Sec. 803. Treatment of facilities using bagasse to produce energy as 
              solid waste disposal facilities eligible for tax-exempt 
              financing.

                         Title IX--Steelmaking

Sec. 901. Credit for investment in energy-efficient steelmaking 
              facilities.
See. 902. Extension of credit for electricity to production from steel 
              cogeneration.

                          Title X--Agriculture

Sec. 1001. Agricultural Conservation Tax Credit.

                      Title XI--Energy Emergencies

Sec. 1101. Energy Policy and Conservation Act Amendments.
Sec. 1102. Annual Home Heating Readiness Reports.
Sec. 1103. Summer Fill and Fuel Budgeting Programs.
Sec. 1104. Use of Energy Futures for Fuel Purchases.
Sec. 1105. Full Expensing of Home Heating Oil and Propane Storage 
              Facilities.

                      Title XII--Energy Efficiency

Sec. 1201. Energy Savings Performance Contracts.
Sec. 1202. Weatherization.

                    Title XIII--Electric Reliability

Sec. 1301. Short Title.
Sec. 1302. Electric Reliability Organization.

          Title I--Energy-Efficient Property Used in Business

     SEC. 101. CREDIT FOR CERTAIN ENERGY-EFFICIENT PROPERTY USED 
                   IN BUSINESS.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter I (relating to rules for computing investment credit) 
     is amended by inserting after section 48 the following:

     ``SEC. 48A. ENERGY CREDIT.

       ``(a) In General.--For purposes of section 46, the energy 
     credit for any taxable year is the sum of--
       ``(1) the amount equal to the energy percentage of the 
     basis of each energy property placed in service during such 
     taxable year, and
       ``(2) the credit amount for each qualified hybrid vehicle 
     placed in service during the taxable year.
       ``(b) Energy Percentage.--
       ``(1) In General.--The energy percentage is--

[[Page 12490]]

       ``(A) except as otherwise provided in this subparagraph, 10 
     percent,
       ``(B) in the case of energy property described in clauses 
     (i), (iii), (vi), and (vii) of subsection (c)(1)(A), 20 
     percent,
       ``(C) in the case of energy property described in 
     subsection (c)(1)(A)(v), 15 percent, and
       ``(D) in the case of energy property described in 
     subsection (c)(1)(A)(ii) relating to a high risk geothermal 
     well, 20 percent.
       ``(2) Coordination with rehabilitation.--The energy 
     percentage shall not apply to that portion of the basis of 
     any property which is attributable to qualified 
     rehabilitation expenditures.
       ``(c) Energy Property Defined.--
       (1) In general.--For purposes of this subpart, the term 
     `energy property' means any property--
       ``(A) which is--
       ``(i) energy property,
       ``(ii) geothermal energy property,
       ``(iii) energy-efficient building property,
       ``(iv) combined heat and power system property,
       ``(v) low core loss distribution transformer property,
       ``(vi) qualified anaerobic digester property, or
       ``(vii) qualified wind energy systems equipment property,
       ``(B)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer,
       ``(C) which can reasonably be expected to remain in 
     operation for at least 5 years,
       ``(D) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable, and
       ``(E) which meets the performance and quality standards (if 
     any) which--
       ``(i) have been prescribed by the Secretary by regulations 
     (after consultation with the Secretary of Energy), and
       ``(ii) are in effect at the time of the acquisition of the 
     property.
       ``(2) Exceptions.--
       ``(A) Public utility property.--Such term shall not include 
     any property which is public utility property (as defined in 
     section 46(f)(5) as in effect on the day before the date of 
     the enactment of the Revenue Reconciliation Act of 1990), 
     except for property described in paragraph (1)(A)(iv).
       ``(B) Certain wind equipment.--Such term shall not include 
     equipment described in paragraph (1)(A)(vii) which is taken 
     into account for purposes of section 45 for the taxable year.
       ``(d) Definitions Relating to Types of Energy Property.--
     For purposes of this section--
       ``(1) Solar Energy Property.--
       ``(A) In general.--The term `solar energy property' means 
     equipment which uses solar energy to generate electricity, to 
     heat or cool (or provide hot water for use in) a structure, 
     or to provide solar process heat.
       ``(B) Swimming pools, etc., used as storage medium.--The 
     term `solar energy property' shall not include property with 
     respect to which expenditures are properly allocable to a 
     swimming pool, hot tub, or any other energy storage medium 
     which has a function other than the function of such storage.
       ``(C) Solar panels.--No solar panel or other property 
     installed as a roof (or portion thereof) shall fail to be 
     treated as solar energy property solely because it 
     constitutes a structural component of the structure on which 
     it is installed.
       ``(2) Geothermal energy property.--
       ``(A) In general.--The term `geothermal energy property' 
     means equipment used to produce, distribute, or use energy 
     derived from a geothermal deposit (within the meaning of 
     section 613(e)(2)), but only, in the case of electricity 
     generated by geothermal power, up to (but not including) the 
     electrical transmission state.
       ``(B) High risk geothermal well.--The term `high risk 
     geothermal well' means a geothermal deposit (within the 
     meaning of section 613(e)(2)) which requires high risk 
     drilling techniques. Such deposit may not be located in a 
     State or national park or in an area in which the relevant 
     State park authority or the National Park Service determines 
     the development of such a deposit will negatively impact on a 
     State or national park.
       ``(3) Energy-efficient building property.--
       ``(A) In general.--The term `energy-efficient building 
     property' means--
       ``(i) a fuel cell that--
       ``(I) generates electricity and heat using an 
     electrochemical process,
       ``(II) has an electricity-only generation efficiency 
     greater than 35 percent, and
       ``(III) has a minimum generating capacity of 5 kilowatts,
       ``(ii) an electric heat pump hot water heater that yields 
     an energy factor of 1.7 or greater under standards prescribed 
     by the Secretary of Energy,
       ``(iii) an electric heat pump that has a heating system 
     performance factor (HSPF) of 9 or greater and a cooling 
     seasonal energy efficiency ratio (SEER) of 13.5 or greater,
       ``(iv) a natural gas heat pump that has a coefficient of 
     performance of not less than 1.25 for heating and not less 
     than 0.60 for cooling,
       ``(v) a central air conditioner that has a cooling seasonal 
     energy efficiency ratio (SEER) of 13.5 or greater,
       ``(vi) an advanced natural gas water heater that--
       ``(I) increases steady state efficiency and reduces standby 
     and vent losses, and
       ``(II) has an energy factor of at least 0.65,
       ``(vii) an advanced natural gas furnace that achieves a 95 
     percent AFUE, and
       ``(viii) natural gas cooling equipment--
       ``(I) that has a coefficient of performance of not less 
     than .60, or
       ``(II) that uses desiccant technology and has an efficiency 
     rating of 40 percent.
       ``(B) Limitations.--The credit under subsection (a)(1) for 
     the taxable year may not exceed--
       ``(i) $500 in the case of property described in 
     subparagraph (A) other than clauses (i) and (iv) thereof,
       ``(ii) $500 for each kilowatt of capacity in the case of a 
     fuel cell described in subparagraph (A)(i), and
       ``(iii) $1,000 in the case of a natural gas heat pump 
     described in subparagraph (A)(iv).
       ``(4) Combined heat and power system property.--
       ``(A) In general.--The term `combined heat and power system 
     property' means property--
       ``(i) comprising a system for using the same energy source 
     for the sequential generation of electrical power, mechanical 
     shaft power, or both, in combination with steam, heat, or 
     other forms of useful energy,
       ``(ii) that has an electrical capacity of more than 50 
     kilowatts, and
       ``(iii) that produces at least 20 percent of its total 
     useful energy in the form of both thermal energy and 
     electrical or mechanical power.
       ``(B) Accounting rule for public utility property.--In the 
     case that combined heat and power system property is public 
     utility property (as defined in section 46(f)(5) as in effect 
     on the day before the date of the enactment of the Revenue 
     Reconciliation Act of 1990), the taxpayer may only claim the 
     credit under subsection (a)(1) if, with respect to such 
     property, the taxpayer uses a normalization method of 
     accounting.
       ``(5) Low core loss distribution transformer property.--The 
     term `low core loss distribution transformer property' means 
     a distribution transformer which has energy savings from a 
     highly efficient core of at least 20 percent more than the 
     average for power ratings reported by studies required under 
     section 124 of the Energy Policy Act of 1992.
       ``(6) Qualified anaerobic digester property.--The term 
     `qualified anaerobic digester property' means anaerobic 
     digester for manure or crop waste that achieves at least 65 
     percent efficiency measured in terms of the fraction of 
     energy input converted to electricity and useful thermal 
     energy.
       ``(7) Qualified wind energy systems equipment property.--
     The term `qualified wind energy systems equipment property' 
     means wind energy systems equipment with a turbine size of 
     not more than 50 kilowatts rated capacity.
       ``(e) Qualified Hybrid Vehicles.--For purposes of 
     subsection (a)(2)--
       ``(1) Credit amount.--
       ``(A) In general.--The credit amount for each qualified 
     hybrid vehicle with a rechargeable energy storage system that 
     provides the applicable percentage of the maximum available 
     power shall be the amount specified in the following table:

------------------------------------------------------------------------
                    ``Applicable percentage                       Credit
----------------------------------------------------------------  amount
       Greater than or equal to                Less than           is:
------------------------------------------------------------------------
5 percent............................  10 percent..............     $500
10 percent...........................  20 percent..............    1,000
20 percent...........................  30 percent..............    1,500
30 percent...........................  ........................    2,000
------------------------------------------------------------------------

       ``(B) Increase in credit amount for regenerative braking 
     system.--In the case of a qualified hybrid vehicle that 
     actively employs a regenerative braking system which supplies 
     to the rechargeable energy storage system the applicable 
     percentage of the energy available from braking in a typical 
     60 miles per hour to 0 miles per hour braking event, the 
     credit amount determined under subparagraph (A) shall be 
     increased by the amount specified in the following table:

------------------------------------------------------------------------
                    ``Applicable percentage                       Credit
----------------------------------------------------------------  amount
       Greater than or equal to                Less than           is:
------------------------------------------------------------------------
20 percent...........................  40 percent..............     $250
40 percent...........................  60 percent..............      500
60 percent...........................  ........................    1,000
------------------------------------------------------------------------

       ``(2) Qualified hybrid vehicle.--The term `qualified hybrid 
     vehicle', means an automobile that meets all applicable 
     regulatory requirements and that can draw propulsion energy 
     from both of the following on-board sources of stored energy:
       ``(A) A consumable fuel.
       ``(B) A rechargeable energy storage system.
       ``(3) Maximum available power.--The term `maximum available 
     power' means the maximum value of the sum of the heat engine 
     and electric drive system power or other non-heat energy 
     conversion devices available for a driver's command for 
     maximum acceleration at vehicle speeds under 75 miles per 
     hour.

[[Page 12491]]

       ``(4) Automobile.--The term `automobile' has the meaning 
     given such term by section 4064(b)(1) (without regard to 
     subparagraphs (B) and (C) thereof). A vehicle shall not fail 
     to be treated as an automobile solely by reason of weight if 
     such vehicle is rated at 8,500 pounds gross vehicle weight 
     rating or less.
       ``(5) Double benefit; property used outside united states, 
     etc., not qualified.--No credit shall be allowed under 
     subsection (a)(2) with respect to--
       ``(A) any property for which a credit is allowed under 
     section 25B or 30,
       ``(B) any property referred to in section 50(b), and
       ``(C) the portion of the cost of any property taken into 
     account under section 179 or 179A.
       ``(6) Regulations.--
       ``(A) Treasury.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection.
       ``(B) Environmental protection agency.--The Administrator 
     of the Environmental Protection Agency shall prescribe such 
     regulations as may be necessary or appropriate to specify the 
     testing and calculation procedures that would be used to 
     determine whether a vehicle meets the qualifications for a 
     credit under this subsection.
       ``(7) Termination.--Paragraph (2) shall not apply with 
     respect to any vehicle placed in service during a calendar 
     year ending before January 1, 2003, or after December 31, 
     2006.
       ``(f) Special Rules.--For purposes of this section--
       ``(1) Special rule for property financed by subsidized 
     energy financing or industrial development bonds.--
       (A) Reduction of basis.--For purposes of applying the 
     energy percentage to any property, if such property is 
     financed in whole or in part by--
       ``(i) subsidized energy financing, or
       ``(ii) the proceeds of a private activity bond (within the 
     meaning of section 141) the interest on which is exempt from 
     tax under section 103, the amount taken into account as the 
     basis of such property shall not exceed the amount which (but 
     for this subparagraph) would be so taken into account 
     multiplied by the fraction determined under subparagraph (B).
       ``(B) Determination of fraction.--For purposes of 
     subparagraph (A), the fraction determined under this 
     subparagraph is 1 reduced by a fraction--
       ``(i) the numerator of which is that portion of the basis 
     of the property which is allocable to such financing or 
     proceeds, and
       ``(ii) the denominator of which is the basis of the 
     property.
       ``(C) Subsidized energy financing.--For purposes of 
     subparagraph (A), the term `subsidized energy financing' 
     means financing provided under a Federal, State, or local 
     program a principal purpose of which is to provide subsidized 
     financing for projects designed to conserve or produce 
     energy.
       ``(2) Certain progress expenditure rules made applicable.--
     Rules similar to the rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(g) Application of Section.--
       ``(1) In general.--Except as provided by paragraph (2) and 
     subsection (e), this section shall apply to property placed 
     in service after December 31, 1999, and before January 1, 
     2004.
       ``(2) Exceptions.--
       ``(A) Solar energy and geothermal energy property.--
     Paragraph (1) shall not apply to solar energy property or 
     geothermal energy property.
       ``(B) Fuel cell property.--In the case of property that is 
     a fuel cell described in subsection (d)(3)(A)(i), this 
     section shall apply to property placed in service after 
     December 31, 1999, and before January 1, 2005.''
       (b) Conforming Amendments.--
       (1) Section 48 is amended to read as follows:

     ``SEC. 48. REFORESTATION CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     reforestation credit for any taxable year is 20 percent of 
     the portion of the amortizable basis of any qualified timber 
     property which was acquired during such taxable year and 
     which is taken into account under section 194 (after the 
     application of section 194(b)(1)).
       ``(b) Definitions.--For purposes of this subpart, the terms 
     `amortizable basis' and `qualified timber property' have the 
     respective meanings given to such terms by section 194.''
       (2) Section 39(d) is amended by adding at the end the 
     following:
       ``(9) No carryback of energy credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the energy credit 
     determined under section 48A may be carried back to a taxable 
     year ending before the date of the enactment of section 
     48A.''
       (3) Section 280C is amended by adding at the end the 
     following:
       ``(d) Credit for Energy Property Expenses.--
       ``(1) In general.--No deduction shall be allowed for that 
     portion of the expenses for energy property (as defined in 
     section 48A(c)) otherwise allowable as a deduction for the 
     taxable year which is equal to the amount of the credit 
     determined for such taxable year under section 48A(a).
       ``(2) Similar rule where taxpayer capitalizes rather than 
     deducts expenses.--If--
       ``(A) the amount of the credit allowable for the taxable 
     year under section 48A (determined without regard to section 
     38(c)), exceeds
       ``(B) the amount allowable as a deduction for the taxable 
     year for expenses for energy property (determined without 
     regard to paragraph (1)), the amount chargeable to capital 
     account for the taxable year for such expenses shall be 
     reduced by the amount of such excess.
       ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
     shall apply for purposes of this subsection.''
       (4) Section 29(b)(3)(A)(i)(III) is amended by striking 
     ``section 48(a)(4)(C)'' and inserting ``section 
     48A(f)(1)(C)''.
       (5) Section 50(a)(2)(E) is amended by striking ``section 
     48(a)(5)'' and inserting ``section 48A(f)(2)''.
       (6) Section 168(e)(3)(B) is amended--
       (A) by striking clause (vi)(I) and inserting the following:
       ``(I) is described in paragraph (1) or (2) of section 
     48A(d) (or would be so described if `solar and wind' were 
     substituted for `solar' in paragraph (1)(B)),'', and
       (B) in the last sentence by striking, ``section 48(a)(3)'' 
     and inserting ``section 48A(c)(2)(A)''.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48 and inserting the 
     following:
       ``Sec. 48. Reforestation credit.
       `Sec. 48A. Energy credit' ''
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     1999, under rules similar to the rules of section 48(m) of 
     the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 102 ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY 
                   DEDUCTION--

       ``(a) In General.--There shall be allowed as a deduction 
     for the taxable year an amount equal to the sum of the energy 
     efficient commercial building amount determined under 
     subsection (b).
       (b) ``(1) Deduction allowed.--For purposes of subsection 
     (a)--
       ``(A) In General.--The energy efficient commercial building 
     property deduction determined under this subsection is an 
     amount equal to energy efficient commercial building property 
     expenditures made by a taxpayer for the taxable year.
       ``(B) Maximum amount of deduction.--The amount of energy 
     efficient commercial building-property expenditures taken 
     into account under subparagraph (A) shall not exceed an 
     amount equal to the product of--
       ``(i) $2.25, and
       ``(ii) the square footage of the building with respect to 
     which the expenditures are made.
       ``(C) Year deduction allowed.--The deduction under 
     subparagraph (A) shall be allowed in the taxable year in 
     which the construction of the building is completed.
       ``(2) Energy efficient commercial building property 
     expenditures.--For purposes of this subsection, the term 
     `energy efficient commercial building property expenditures' 
     means an amount paid or incurred for energy efficient 
     commercial building property installed on or in connection 
     with new construction or reconstruction of property--
       ``(A) for which depreciation is allowable under section 
     167,
       ``(B) which is located in the United States, and
       ``(C) the construction or erection of which is completed by 
     the taxpayer.
       Such property includes all residential rental property, 
     including low-rise multifamily structures and single family 
     housing property which is not within the scope of Standard 
     90.1-1999 (described in paragraph (3)). Such term includes 
     expenditures for labor costs properly allocable to the on 
     site preparation, assembly, or original installation of the 
     property.
       ``(3) Energy efficient commercial building property.--For 
     purposes of paragraph (2)--
       ``(A) In general.--The term `energy efficient commercial 
     building property' means any property which reduces total 
     annual energy and power costs with respect to the lighting, 
     heating, cooling, ventilation, and hot water supply systems 
     of the building by 50 percent or more in comparison to a 
     reference building which meets the requirements of Standard 
     90.1-1999 of the American Society of Heating, Refrigerating, 
     and Air Conditioning Engineers and the Illuminating 
     Engineering Society of North America using methods of 
     calculation under subparagraph (B) and certified by qualified 
     professionals as provided under paragraph (6).
       ``(B) Methods of calculation.--The Secretary, in 
     consultation with the Secretary of Energy, shall promulgate 
     regulations which describe in detail methods for calculating 
     and verifying energy and power consumption and cost, taking 
     into consideration the provisions of the 1998 California 
     Nonresidential

[[Page 12492]]

     ACM Manual. These procedures shall meet the following 
     requirements:
       ``(i) In calculating tradeoffs and energy performance, the 
     regulations shall prescribe the costs per unit of energy and 
     power, such as kilowatt hour, kilowatt, gallon of fuel oil, 
     and cubic foot or Btu of natural gas, which may be dependent 
     on time of usage.
       ``(ii) The calculational methodology shall require that 
     compliance be demonstrated for a whole building. If some 
     systems of the building, such as lighting, are designed later 
     than other systems of the building, the method shall provide 
     that either--
       ``(I) the expenses taken into account under paragraph (1) 
     shall not occur until the date designs for all energy-using 
     systems of the building are completed,
       ``(II) the energy performance of all systems and components 
     not yet designed shall be assumed to comply minimally with 
     the requirements of such Standard 90.1-1999, or
       ``(III) the expenses taken into account under paragraph (1) 
     shall be a fraction of such expenses based on the performance 
     of less than all energy-using systems in accordance with 
     clause (iii).
       ``(iii) The expenditures in connection with the design of 
     subsystems in the building, such as the envelope, the 
     heating, ventilation, air conditioning and water heating 
     system, and the lighting system shall be allocated to the 
     appropriate building subsystem based on system-specific 
     energy cost savings targets in regulations promulgated by the 
     Secretary of Energy which are equivalent, using the 
     calculation methodology, to the whole building requirement of 
     50 percent savings.
       ``(iv) The calculational methods under this subparagraph 
     need not comply fully with section 11 of such Standard 90.1-
     1999.
       ``(v) The calculational methods shall be fuel neutral, such 
     that the same energy efficiency features shall qualify a 
     building for the deduction under this subsection regardless 
     of whether the heating source is a gas or oil furnace or an 
     electric heat pump.
       ``(vi) The calculational methods shall provide appropriate 
     calculated energy savings for design methods and technologies 
     not otherwise credited in either such Standard 90.1-1999 or 
     in the 1998 California Nonresidential ACM Manual, including 
     the following:
       ``(I) Natural ventilation.
       ``(II) Evaporative cooling.
       ``(III) Automatic lighting controls such as occupancy 
     sensors, photocells, and timeclocks.
       ``(IV) Daylighting.
       ``(V) Designs utilizing semi-conditioned spaces that 
     maintain adequate comfort conditions without air conditioning 
     or without heating.
       ``(VI) Improved fan system efficiency, including reductions 
     in static pressure.
       ``(VII) Advanced unloading mechanisms for mechanical 
     cooling, such as multiple or variable speed compressors.
       ``(VIII) The calculational methods may take into account 
     the extent of commissioning in the building, and allow the 
     taxpayer to take into account measured performance that 
     exceeds typical performance.
       ``(C) Computer software.--
       ``(i) In general.--Any calculation under this paragraph 
     shall be prepared by qualified computer software.
       ``(ii) Qualified computer software.--For purposes of this 
     subparagraph, the term `qualified computer software' means 
     software--
       ``(I) for which the software designer has certified that 
     the software meets all procedures and detailed methods for 
     calculating energy and power consumption and costs as 
     required by the Secretary,
       ``(II) which provides such forms as required to be filed by 
     the Secretary in connection with energy efficiency of 
     property and the deduction allowed under this subsection, and
       ``(III) which provides a notice form which summarizes the 
     energy efficiency features of the building and its projected 
     annual energy costs.
       ``(4) Allocation of deduction for public property.--In the 
     case of energy efficient commercial building property 
     installed on or in public property, the Secretary shall 
     promulgate a regulation to allow the allocation of the 
     deduction to the person primarily responsible for designing 
     the property in lieu of the public entity which is the owner 
     of such property. Such person shall be treated as the 
     taxpayer for purposes of this subsection.
       ``(5) Notice to owner.--The qualified individual shall 
     provide an explanation to the owner of the building regarding 
     the energy efficiency features of the building and its 
     projected annual energy costs as provided in the notice under 
     paragraph (3)(C)(ii)(III).
       ``(6) Certification--
       ``(A) In general.--Except as provided in this paragraph, 
     the Secretary, in consultation with the Secretary of Energy, 
     shall establish requirements for certification and compliance 
     procedures similar to the procedures under section 25B(c)(7).
       ``(B) Qualified individuals.--Individuals qualified to 
     determine compliance shall be only those individuals who are 
     recognized by an organization certified by the Secretary for 
     such purposes.
       ``(C) Proficiency of qualified individuals.--The Secretary 
     shall consult with nonprofit organizations and State agencies 
     with expertise in energy efficiency calculations and 
     inspections to develop proficiency tests and training 
     programs to qualify individuals to determine compliance.
       ``(g) Termination.--This section shall not apply with 
     respect to--
       ``(1) any energy property placed in service after December 
     31, 2006, and
       ``(2) any energy efficient commercial building property 
     expenditures in connection with property--
       ``(A) the plans for which are not certified under 
     subsection (f)(6) on or before December 31, 2006, and
       ``(B) the construction of which is not completed on or 
     before December 31, 2008.''.

                  TITLE II--NONBUSINESS ENERGY SYSTEMS

     SEC. 201. CREDIT FOR CERTAIN NONBUSINESS ENERGY SYSTEMS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 25A the following:

     ``SEC. 25B. NONBUSINESS ENERGY PROPERTY.

       ``(a) Allowance of Credit--
       ``(1) 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 sum of--
       ``(A) the applicable percentage of residential energy 
     property expenditures made by the taxpayer during such year,
       ``(B) the credit amount (determined under section 48A(e)) 
     for each vehicle purchased during the taxable year which is a 
     qualified hybrid vehicle (as defined in section 48A(e)(2)), 
     and
       ``(C) the credit amount specified in the following table 
     for a new, highly energy-efficient principal residence:

------------------------------------------------------------------------
                                    Column B--  Column C--Period for the
                                      Credit             period
  ``Column A--Description in the    amount the -------------------------
             case of                  credit     Beginning
                                    amount is        on       Ending on
------------------------------------------------------------------------
30 percent property..............       $1,000     1/1/2000   12/31/2001
40 percent property..............        1,500     1/1/2000   12/31/2002
50 percent property..............        2,000     1/1/2000   12/31/2003
------------------------------------------------------------------------

       In the case of any new, highly energy-efficient principal 
     residence, the credit amount shall be zero for any period for 
     which a credit amount is not specified for such property in 
     the table under subparagraph (C).
       ``(2) Applicable percentage--
       ``(A) In general.--The applicable percentage shall be 
     determined in accordance with the following table:

------------------------------------------------------------------------
                                                 Col. C--Period for the
                                    Col. B--             period
  ``Col. A--Description in the     Applicable  -------------------------
            case of              percentage is   Beginning
                                                     on       Ending on
------------------------------------------------------------------------
20 percent energy-eff. bldg.               20      1/1/2000   12/31/2003
 prop..........................
10 percent energy-eff. bldg.               10      1/1/2000   12/31/2001
 prop..........................
Solar water heating property...            15      1/1/2000   12/31/2006
Photovoltaic property..........            15      1/1/2000   12/31/2006
------------------------------------------------------------------------

       ``(B) Periods for which percentage not specified.--In the 
     case of any residential energy property, the applicable 
     percentage shall be zero for any period for which an 
     applicable percentage is not specified for such property 
     under subparagraph (A).
       ``(b) Maximum Credit.--
       ``(1) In general.--In the case of property described in the 
     following table, the amount of the credit allowed under 
     subsection (a)(1)(A) for the taxable year for each item of 
     such property with respect to a dwelling unit shall not 
     exceed the amount specified for such property in such table:

------------------------------------------------------------------------
                                              Maximum allowable credit
       Description of property item                   amount is
------------------------------------------------------------------------
20 percent energy-efficient building        $500.
 property (other than a fuel cell or
 natural gas heat pump).
20 percent energy-efficient building        $500 per each kw/hr of
 property: fuel cell described in section    capacity.
 48A(d)(3)(A)(i).
Natural gas heat pump described in section  $1,000.
 48A(d)(3)(D)(iv).
10 percent energy-efficient building        $250.
 property.
Solar water heating property..............  $1,000.
Photovoltaic property.....................  $2,000.
------------------------------------------------------------------------

       ``(2) Coordination of limitations.--If a credit is allowed 
     to the taxpayer for any taxable year by reason of an 
     acquisition of a new, highly energy-efficient principal 
     residence, no other credit shall be allowed under subsection 
     (a)(1)(A) with respect to such residence during the 1-taxable 
     year period beginning with such taxable year.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Residential energy property expenditures.--The term 
     `residential energy property expenditures' means expenditures 
     made by the taxpayer for qualified energy property installed 
     on or in connection with a dwelling unit which--
       ``(A) is located in the United States, and
       ``(B) is used by the taxpayer as a residence.
       Such term includes expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the property.
       ``(2) Qualified energy property--
       ``(A) In general.--The term `qualified energy property' 
     means--
       ``(i) energy-efficient building property,
       ``(ii) solar water heating property, and
       ``(iii) photovoltaic property.
       ``(B) Swimming pool, etc., used as storage medium; solar 
     panels.--For purposes of this

[[Page 12493]]

     paragraph, the provisions of subparagraphs (B) and (C) of 
     section 48A(d)(1) shall apply.
       ``(3) Energy-efficient building property.--The term 
     `energy-efficient building property' has the meaning given to 
     such term by section 48A(e)(3).
       ``(4) Solar water heating property.--The term `solar water 
     heating property' means property which, when installed in 
     connection with a structure, uses solar energy for the 
     purpose of providing hot water for use within such structure.
       ``(5) Photovoltaic property.--The term `photovoltaic 
     property' means property which, when installed in connection 
     with a structure, uses a solar photovoltaic process to 
     generate electricity for use in such structure.
       ``(6) New, highly energy-efficient principal residence.--
       ``(A) In general.--Property is a new, highly energy-
     efficient principal residence if--
       ``(i) such property is located in the United States,
       ``(ii) the original use of such property commences with the 
     taxpayer and is, at the time of such use, the principal 
     residence of the taxpayer, and
       ``(iii) such property is certified before such use 
     commences as being 50 percent property, 40 percent property, 
     or 30 percent property.
       ``(B) 50, 40, or 30 percent property.--
       ``(i) In general.--For purposes of subparagraph (A), 
     property is 50 percent property, 40 percent property, or 30 
     percent property if the projected energy usage of such 
     property is reduced by 50 percent, 40 percent, or 30 percent, 
     respectively, compared to the energy usage of a reference 
     house that complies with minimum standard practice, such as 
     the 1998 International Energy Conservation Code of the 
     International Code Council, as determined according to the 
     requirements specified in clause (ii).
       ``(ii) Procedures.--
       ``(I) In general.--For purposes of clause (i), energy usage 
     shall be demonstrated either by a component-based approach or 
     a performance-based approach.
       ``(II) Component approach.--Compliance by the component 
     approach is achieved when all of the components of the house 
     comply with the requirements of prescriptive packages 
     established by the Secretary of Energy, in consultation with 
     the Administrator of the Environmental Protection Agency, 
     such that they are equivalent to the results of using the 
     performance-based approach of subclause (III) to achieve the 
     required reduction in energy usage.
       ``(III) Performance-based approach.--Performance-based 
     compliance shall be demonstrated in terms of the required 
     percentage reductions in projected energy use. Computer 
     software used in support of performance-based compliance must 
     meet all of the procedures and methods for calculating energy 
     savings reductions that are promulgated by the Secretary of 
     Energy. Such regulations on the specifications for software 
     shall be based in the 1998 California Residential Alternative 
     Calculation Method Approval Manual, except that the 
     calculation procedures shall be developed such that the same 
     energy efficiency measures qualify a home for tax credits 
     regardless of whether the home uses a gas or oil furnace or 
     boiler, or an electric heat pump.
       ``(IV) Approval of software submissions.--The Secretary of 
     Energy shall approve software submissions that comply with 
     the calculation requirements of subclause (III).
       ``(C) Determinations of compliance.--A determination of 
     compliance made for the purposes of this paragraph shall be 
     filed with the Secretary of Energy within 1 year of the date 
     of such determination and shall include the TIN of the 
     certifier, the address of the building in compliance, and the 
     identity of the person for whom such determination was 
     performed. Determinations of compliance filed with the 
     Secretary of Energy shall be available for inspection by the 
     Secretary.
       ``(D) Compliance--
       ``(i) In general.--The Secretary of Energy in consultation 
     with the Secretary of the Treasury shall establish 
     requirements for certification and compliance procedures 
     after examining the requirements for energy consultants and 
     home energy ratings providers specified by the Mortgage 
     Industry National Accreditation Procedures for Home Energy 
     Rating Systems.
       ``(ii) Individuals qualified to determine compliance.--
     Individuals qualified to determine compliance shall be only 
     those individuals who are recognized by an organization 
     certified by the Secretary of Energy for such purposes.
       ``(E) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121, except that 
     the period for which a building is treated as the principal 
     residence of the taxpayer shall also include the 60-day 
     period ending on the 1st day on which it would (but for this 
     subparagraph) first be treated as the taxpayer's principal 
     residence.
       ``(d) Special Rules.--For purposes of this section--
       ``(1) Dollar amounts in case of joint occupancy.--In the 
     case of any dwelling unit which if jointly occupied and used 
     during any calendar year as a residence by 2 or more 
     individuals the following shall apply:
       ``(A) The amount of the credit allowable under subsection 
     (a) by reason of expenditures made during such calendar year 
     by any of such individuals with respect to such dwelling unit 
     shall be determined by treating all of such individuals as 1 
     taxpayer whose taxable year is such calendar year.
       ``(B) There shall be allowable with respect to such 
     expenditures to each of such individuals, a credit under 
     subsection (a) for the taxable year in which such calendar 
     year ends in an amount which bears the same ratio to the 
     amount determined under subparagraph (A) as the amount of 
     such expenditures made by such individual during such 
     calendar year bears to the aggregate of such expenditures 
     made by all of such individuals during such calendar year.
       ``(2) Tenant-stockholder in cooperative housing 
     corporation.--In the case of an individual who in tenant-
     stockholder (as defined in section 216) in a cooperative 
     housing corporation (as defined in such section), such 
     individual shall be treated as having made his tenant-
     stockholder's proportionate share (as defined in section 
     216(b)(3)) of any expenditures of such corporation.
       ``(3) Condominiums.--
       ``(A) In general.--In the case of an individual who is a 
     member of a condominium management association with respect 
     to a condominium which the individual owns, such individual 
     shall be treated as having made his proportionate share of 
     any expenditures of such association.
       ``(B) Condominium management association.--For purposes of 
     this paragraph, the term `condominium management association' 
     means an organization which meets the requirements of 
     paragraph (1) of section 528(c) (other than subparagraph (E) 
     thereof) with respect to a condominium project substantially 
     all of the units of which are used as residences.
       ``(4) Joint ownership of energy items--
       ``(A) In general.--Any expenditure otherwise qualifying as 
     a residential energy property expenditure shall not be 
     treated as failing to so qualify merely because such 
     expenditure was made with respect to 2 or more dwelling 
     units.
       ``(B) Limits applied separately.--In the case of any 
     expenditure described in subparagraph (A), the amount of the 
     credit allowable under subsection (a) shall (subject to 
     paragraph (1)) be computed separately with respect to the 
     amount of the expenditure made for each dwelling unit.
       ``(5) Allocation in certain cases.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if less than 80 percent of the use of an item is for 
     nonbusiness purposes, only that portion of the expenditures 
     for such item which is properly allocable to use for 
     nonbusiness purposes shall be taken into account. For 
     purposes of this paragraph, use for a swimming pool shall be 
     treated as use which is not for nonbusiness purposes.
       ``(B) Special rule for vehicles.--For purposes of this 
     section and section 48A, a vehicle shall be treated as used 
     entirely for business or nonbusiness purposes if the majority 
     of the use of such vehicle is for business or nonbusiness 
     purposes, as the case may be.
       ``(6) Double benefit; property used outside united states, 
     etc., not qualified.--No credit shall be allowed under 
     subsection (a)(1)(B) with respect to--
       ``(A) any property for which a credit is allowed under 
     section 30 or 48A,
       ``(B) any property referred to in section 50(b), and
       ``(C) the portion of the cost of any property taken into 
     account under section 179 or 179A.
       ``(7) When expenditure made; amount of expenditure.--
       ``(A) In General.--Except as provided in subparagraph (B), 
     an expenditure with respect to an item shall be treated as 
     made when the original installation of the item is completed.
       ``(B) Expenditure part of building construction.--In the 
     case of an expenditure in connection with the construction of 
     a structure, such expenditure shall be treated as made when 
     the original use of the constructed structure by the taxpayer 
     begins.
       ``(C) Amount.--The amount of any expenditure shall be the 
     cost thereof.
       ``(8) Property financed by subsidized energy financing.--
       ``(A) Reduction of Expenditures.--For purposes of 
     determining the amount of residential energy property 
     expenditures made by any individual with respect to any 
     dwelling unit, there shall not be taken in to account 
     expenditures which are made from subsidized energy financing 
     (as defined in section 48A(f)(1)(C)).
       ``(B) Dollar limits reduced.--The dollar amounts in the 
     table contained in subsection (b)(1) with respect to each 
     property purchased for such dwelling unit for any taxable 
     year of such taxpayer shall be reduced proportionately by an 
     amount equal to the sum of--
       ``(i) the amount of the expenditures made by the taxpayer 
     during such taxable year with respect to such dwelling unit 
     and not taken into account by reason of subparagraph (A), and
       ``(ii) the amount of any Federal, State, or local grant 
     received by the taxpayer during such taxable year which is 
     used to make residential energy property expenditures with 
     respect to the dwelling unit and is not included in the gross 
     income of such taxpayer.
       ``(9) Safety certifications.--No credit shall be allowed 
     under this section for an item of property unless--

[[Page 12494]]

       ``(A) in the case of solar water heating property, such 
     property is certified for performance and safety by the non-
     profit Solar Rating Certification Corporation or a comparable 
     entity endorsed by the government of the State in which such 
     property is installed, and
       ``(B) in the case of photovoltaic property, such property 
     meets appropriate fire and electric code requirements.
       ``(e) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.''
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (26), by striking the period at the end of 
     paragraph (27) and inserting''; and'', by adding at the end 
     the following:
       ``(28) to the extent provided in section 25B(e), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 25B.''
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 25A the following:
       ``Sec. 25B. Nonbusiness energy property.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures after December 31, 1999.

                      TITLE III--ALTERNATIVE FUELS

     SEC. 301. ALLOCATION OF ALCOHOL FUELS CREDIT TO PATRONS OF A 
                   COOPERATIVE.

       (a) In General.--Section 40(d) (relating to alcohol used as 
     fuel) is amended by adding at the end the following:
       ``(6) Allocation of small ethanol producer credit to 
     patrons of cooperative.--
       ``(A) In General.--In the case of a cooperative 
     organization described in section 1381(a), any portion of the 
     credit determined under subsection (a)(3) for the taxable 
     year may, at the election of the organization made on a 
     timely filed return (including extensions) for such year, be 
     apportioned pro rata among patrons of the organization on the 
     basis of the quantity or value of business done with or for 
     such patrons for the taxable year. Such an election, once 
     made, shall be irrevocable for such taxable year.
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to patrons pursuant to subparagraph 
     (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) for the taxable year of the organization, and
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the taxable year of each patron in which 
     the patronage dividend for the taxable year referred to in 
     subparagraph (A) is includible in gross income.
       ``(C) Special rule for decreasing credit for taxable 
     year.--If the amount of the credit of a cooperative 
     organization determined under subsection (a)(3) for a taxable 
     year is less than the amount of such credit shown on the 
     cooperative organization's return for such year, an amount 
     equal to the excess of such reduction over the amount not 
     apportioned to the patrons under subparagraph (A) for the 
     taxable year shall be treated as an increase in tax imposed 
     by this chapter on the organization. Any such increase shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this subpart or 
     subpart A, B, E, or G of this part.''
       (b) Technical Amendment.--Section 1388 (relating to 
     definitions and special rules for cooperative organizations) 
     is amended by adding at the end the following:
       ``(k) Cross Reference.--
       ``For provisions relating to the apportionment of the 
     alcohol fuels credit between cooperative organizations and 
     their patrons, see section 40(d)(6).''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

                         TITLE IV--AUTOMOBILES

     SEC. 401. EXTENSION OF CREDIT FOR QUALIFIED ELECTRIC 
                   VEHICLES.

       (a) Extension of Credit For Qualified Electric Vehicles.--
     Subsection (f) of section 30 (relating to termination) is 
     amended by striking ``December 31, 2004'' and inserting 
     ``December 31, 2006''.
       (b) Repeal of Phaseout.--Subsection (b) of section 30 
     (relating to limitations) is amended by striking paragraph 
     (2) and redesignating paragraph (3) as paragraph (2).
       (c) No Double Benefit.--
       (1) Subsection (d) of section 30 (relating to special 
     rules) is amended by adding at the end the following:
       ``(5) No double benefit.--No credit shall be allowed under 
     subsection (a) with respect to any vehicle if the taxpayer 
     claims a credit for such vehicle under section 25B(a)(1)(B) 
     or 48A(a)(2).''
       (2) Paragraph (3) of section 30(d) (relating to property 
     used outside United States, etc., not qualified) is amended 
     by striking ``section 50(b)'' and inserting ``section 25B, 
     48A, or 50(b)''.
       (3) Paragraph (5) of section 179A(e) (relating to property 
     used outside United States, etc., not qualified) is amended 
     by striking ``section 50(b)'' and inserting ``section 25B, 
     48A, or 50(b)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

                    TITLE V--CLEAN COAL TECHNOLOGIES

     SEC. 501. CREDIT FOR INVESTMENT IN QUALIFYING CLEAN COAL 
                   TECHNOLOGY.

       (a) Allowance of Qualifying Clean Coal Technology Facility 
     Credit.--Section 46 (relating to amount of credit) is amended 
     by striking ``and'' at the end of paragraph (2), by striking 
     the period at the end of paragraph (3) and inserting ``, 
     and,'' and by adding at the end the following:
       ``(4) the qualifying clean coal technology facility 
     credit.''
       (b) Amount of Qualifying Clean Coal Technology Facility 
     Credit.--Subpart E of part IV of subchapter A of chapter 1 
     (relating to rules for computing investment credit), as 
     amended by section 101(a), is amended by inserting after 
     section 48A the following:
       Sec 48B. Qualifying clean coal technology facility credit.
       ``(a) In General.--For purposes of section 46, the 
     qualifying clean coal technology facility credit for any 
     taxable year is an amount equal to 10 percent of the 
     qualified investment in a qualifying clean coal technology 
     facility for such taxable year.
       ``(b) Qualifying Clean Coal Technology Facility--
       ``(1) In general.--For purposes of subsection (a), the term 
     `qualifying clean coal technology facility' means a facility 
     of the taxpayer--
       ``(A)(i)(I) which replaces a conventional technology 
     facility of the taxpayer and the original use of which 
     commences with the taxpayer, or
       ``(II) which is a retrofitted or repowered conventional 
     technology facility, the retrofitting or repowering of which 
     is completed by the taxpayer (but only with respect to that 
     portion of the basis which is properly attributable to such 
     retrofitting or repowering), or
       ``(ii) that is acquired through purchase (as defined by 
     section 179(d)(2)),
       ``(B) that is depreciable under section 167,
       ``(C) that has a useful life of not less than 4 years,
       ``(D) that is located in the United States, and
       ``(E) that uses qualifying clean coal technology.
       ``(2) Special rule for sale-leasebacks.--For purposes of 
     subparagraph (A) of paragraph (1), in the case of a facility 
     that--
       ``(A) is originally placed in service by a person, and
       ``(B) is sold and leased back by such person, or is leased 
     to such person, within 3 months after the date such facility 
     was originally placed in service, for a period of not less 
     than 12 years,

     such facility shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback (or lease) referred to in 
     subparagraph (B). The preceding sentence shall not apply to 
     any property if the lessee and lessor of such property make 
     an election under this sentence. Such an election, once made, 
     may be revoked only with the consent of the Secretary.
       ``(3) Qualifying clean coal technology.--For purposes of 
     paragraph (1)(A)--
       ``(A) In general.--The term `qualifying clean coal 
     technology' means, with respect to clean coal technology--
       ``(i) applications totaling 1,000 megawatts of advanced 
     pulverized coal or atmospheric fluidized bed combustion 
     technology installed as a new, retrofit, or repowering 
     application and operated between 2000 and 2014 that has a 
     design average net heat rate of not more than 8,750 Btu's per 
     kilowatt hour,
       ``(ii) applications totaling 1,500 megawatts of pressurized 
     fluidized bed combustion technology installed as a new, 
     retrofit, or repowering application and operated between 2000 
     and 2014 that has a design average net heat rate of not more 
     than 8,400 Btu's per kilowatt hour,
       ``(iii) applications totaling 1,500 megawatts of integrated 
     gasification combined cycle technology installed as a new, 
     retrofit, or repowering application and operated between 2000 
     and 2014 that has a design average net heat rate of not more 
     than 8,550 Btu's per kilowatt hour, and
       ``(iv) applications totaling 2,000 megawatts or equivalent 
     of technology for the production of electricity installed as 
     a new, retrofit, or repowering application and operated 
     between 2000 and 2014 that has a carbon emission rate that is 
     not more than 85 percent of conventional technology.
       ``(B) Exceptions.--Such term shall not include clean coal 
     technology projects receiving or scheduled to receive funding 
     under the Clean Coal Technology Program of the Department of 
     Energy.
       ``(C) Clean coal technology.--The term `clean coal 
     technology' means advanced technology that utilizes coal to 
     produce 50 percent or more of its thermal output as 
     electricity including advanced pulverized coal or atmospheric 
     fluidized bed combustion, pressurized fluidized bed 
     combustion, integrated gasification combined cycle, and

[[Page 12495]]

     any other technology for the production of electricity that 
     exceeds the performance of conventional technology.
       ``(D) Conventional coal technology.--The term `conventional 
     technology' means--
       ``(i) coal-fired combustion technology with a design 
     average net heat rate of not less than 9,300 Btu's per 
     kilowatt hour (HHV) and a carbon equivalents emission rate of 
     not more than 0.53 pounds of carbon per kilowatt hour; or
       ``(ii) natural gas-fired combustion technology with a 
     design average net heat rate of not less than 7,500 Btu's per 
     kilowatt hour (HHV) and a carbon equivalents emission rate of 
     not more than 0.24 pound of carbon per kilowatt hour.
       ``(E) Design average net heat rate.--The term `design 
     average net heat rate' shall be based on the design average 
     annual heat input to and the design average annual net 
     electrical output from the qualifying clean coal technology 
     (determined without regard to such technology's co-generation 
     of steam).
       ``(F) Selection criteria.--Selection criteria for clean 
     coal technology facilities.--
       ``(i) shall be established by the Secretary of Energy as 
     part of a competitive solicitation,
       ``(ii) shall include primary criteria of minimum design 
     average net heat rate, maximum design average thermal 
     efficiency, and lowest cost to the government, and
       ``(iii) shall include supplemental criteria as determined 
     appropriate by the Secretary of Energy.
       ``(c) Qualified Investment.--For purposes of subsection 
     (a), the term `qualified investment' means, with respect to 
     any taxable year, the basis of a qualifying clean coal 
     technology facility placed in service by the taxpayer during 
     such taxable year.
       ``(d) Qualified Progress Expenditures.--
       ``(1) Increase in qualified investment.--In the case of a 
     taxpayer who has made an election under paragraph (5), the 
     amount of the qualified investment of such taxpayer for the 
     taxable year (determined under subsection (c) without regard 
     to this section) shall be increased by an amount equal to the 
     aggregate of each qualified progress expenditure for the 
     taxable year with respect to progress expenditure property.
       ``(2) Progress expenditure property defined.--For purposes 
     of this subsection, the term `progress expenditure property' 
     means any property being constructed by or for the taxpayer 
     and which it is reasonable to believe will qualify as a 
     qualifying clean coal technology facility which is being 
     constructed by or for the taxpayer when it is placed in 
     service.
       ``(3) Qualified progress expenditures defined.--For 
     purposes of this subsection--
       ``(A) Self-constructed property.--In the case of any self-
     constructed property, the term `qualified progress 
     expenditures' means the amount which, for purposes of this 
     subpart, is properly chargeable (during such taxable year) to 
     capital account with respect to such property.
       ``(B) Non-self-constructed property.-- In the case of non-
     self-constructed property, the term `qualified progress 
     expenditures' means the amount paid during the taxable year 
     to another person for the construction of such property.
       ``(4) Other definitions.--For purposes of this subsection--
       ``(A) Self-constructed property.--The term `self-
     constructed property' means property for which it is 
     reasonable to believe that more than half of the construction 
     expenditures will be made directly by the taxpayer.
       ``(B) Non-self-constructed property.--The term `non-self-
     constructed property' means property which is not self-
     constructed property.
       ``(C) Construction, etc.--The term `Construction' includes 
     reconstruction and erection, and the term `constructed' 
     includes reconstructed and erected.
       ``(D) Only construction of qualifying clean coal technology 
     facility to be taken into account.--Construction shall be 
     taken into account only if, for purposes of this subpart, 
     expenditures therefor are properly chargeable to capital 
     account with respect to the property.
       ``(5) Election--An election under this subsection may be 
     made at such time and in such manner as the Secretary may by 
     regulations prescribe. Such an election shall apply to the 
     taxable year for which made and to all subsequent taxable 
     years. Such an election, once made, may not be revoked except 
     with the consent of the Secretary.
       ``(e) Coordination With Other Credits.--This section shall 
     not apply to any property with respect to which the 
     rehabilitation credit under section 47 or the energy credit 
     under section 48A is allowed unless the taxpayer elects to 
     waive the application of such credit to such property.
       ``(f) Termination.--This section shall not apply with 
     respect to any qualified investment after December 31, 
     2014.''
       (c) Recapture.--Section 50(a) (relating to other special 
     rules) is amended by adding at the end the following:
       ``(6) Special rules relating to qualifying clean coal 
     technology facility.--For purposes of applying this 
     subsection in the case of any credit allowable by reason of 
     section 48B, the following shall apply:
       ``(A) General rule.--In lieu of the amount of the increase 
     in tax under paragraph (1), the increase in tax shall be an 
     amount equal to the investment tax credit allowed under 
     section 38 for all prior taxable years with respect to a 
     qualifying clean coal technology facility (as defined by 
     section 48B(b)(1)) multiplied by a fraction whose numerator 
     is the number of years remaining to fully depreciate under 
     this title the qualifying clean coal technology facility 
     disposed of, and whose denominator is the total number of 
     years over which such facility would otherwise have been 
     subject to depreciation. For purposes of the preceding 
     sentence, the year of disposition of the qualifying clean 
     coal technology facility property shall be treated as a year 
     of remaining depreciation.
       ``(B) Property ceases to qualify for progress 
     expenditures.--Rules similar to the rules of paragraph (2) 
     shall apply in the case of qualified progress expenditures 
     for a qualifying clean coal technology facility under section 
     48B, except that the amount of the increase in tax under 
     subparagraph (A) of this paragraph shall be substituted in 
     lieu of the amount described in such paragraph (2).
       ``(C) Application of paragraph.--This paragraph shall be 
     applied separately with respect to the credit allowed under 
     section 38 regarding a qualifying clean coal technology 
     facility.''
       (d) Transitional Rule.--Section 39(d) of the Internal 
     Revenue Code of 1986 (relating to transitional rules), as 
     amended by section 101(b)(2), is amended by adding at the end 
     the following:
       ``No carryback of section 48b credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the qualifying clean 
     coal technology facility credit determined under section 48B 
     may be carried back to a taxable year ending before the date 
     of the enactment of section 48B.''
       (e) Technical Amendments.--
       (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
     the end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting, ``and,'' and by adding at the end 
     the following:
       ``(iv) the portion of the basis of any qualifying clean 
     coal technology facility attributable to any qualified 
     investment (as defined by section 48B(c)).''
       (2) Section 50(a)(4) is amended by striking ``and (2)'' and 
     inserting ``, (2), and (6).''
       (3) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1, as amended by section 101(d), is 
     amended by inserting after the item relating to section 48A 
     the following:
       ``Sec. 48B. Qualifying clean coal technology facility 
     credit.''
       (f) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 1999, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 502. CREDIT FOR PRODUCTION FROM QUALIFYING CLEAN COAL 
                   TECHNOLOGY.

       (a) Credit for Production From Qualifying Clean Coal 
     Technology.--Subpart D of part IV of subchapter A of chapter 
     1 (relating to business related credits) is amended by adding 
     at the end the following:
       ``Sec. 45D. Credit for production from qualifying clean 
     coal technology.
       ``(a) General Rule.--For purposes of section 38, the 
     qualifying clean coal technology production credit of any 
     taxpayer for any taxable year is equal to the applicable 
     amount for each kilowatt hour--
       ``(1) produced by the taxpayer at a qualifying clean coal 
     technology facility during the 10-year period beginning on 
     the date the facility was originally placed in service, and
       ``(2) sold by the taxpayer to an unrelated person during 
     such taxable year.
       ``(b) Applicable Amount.--For purposes of this section, the 
     applicable amount with respect to production from a 
     qualifying clean coal technology facility shall be determined 
     as follows:
       ``(1) In the case of a facility originally placed in 
     service before 2007, if--

------------------------------------------------------------------------
                                                  The applicable amount
                                                           is:
 ``The facility design average net heat rate,  -------------------------
          Btu/kWh (HHV) is equal to:             For 1st 5     For 2d 5
                                                yrs of such  yrs of such
                                                  service      service
------------------------------------------------------------------------
Not more than 8400............................      $0.0130      $0.0110
More than 8400 but not more than 8550.........        .0100        .0085
More than 8550 but not more than 8750.........        .0090       .0070.
------------------------------------------------------------------------

       ``(2) In the case of a facility originally placed in 
     service after 2006 and before 2011, if--

------------------------------------------------------------------------
                                                  The applicable amount
                                                           is:
 ``The facility design average net heat rate,  -------------------------
          Btu/kWh (HHV) is equal to:              For 1st 5    For 2d 5
                                                yrs of such  yrs of such
                                                  service      service
------------------------------------------------------------------------
Not more than 7770............................       $.0100        .0080
More than 7770 but not more than 8125.........         0080         0065
More than 8125 but not more than 8350.........        .0070       .0055.
------------------------------------------------------------------------

       ``(3) in the case of a facility originally placed in 
     service after 2010 and before 2015, if--

[[Page 12496]]



------------------------------------------------------------------------
                                                  The applicable amount
                                                           is:
The facility design average net heat rate, Btu/-------------------------
            kWh (HHV) is equal to:               For 1st 5     For 2d 5
                                                yrs of such  yrs of such
                                                  service      service
------------------------------------------------------------------------
Not more than 7720............................       $.0085       $.0070
More than 7720 but not more than 7380.........        .0070         0045
------------------------------------------------------------------------

       ``(c) Inflation Adjustment Factor.--Each amount in 
     paragraphs (1), (2), and (3) shall each be adjusted by 
     multiplying such amount by the inflation adjustment factor 
     for the calendar year in which the amount is applied. If any 
     amount as increased under the preceding sentence is not a 
     multiple of 0.01 cent, such amount shall be rounded to the 
     nearest multiple of 0.01 cent.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) any term used in this section which is also used in 
     section 48B shall have the meaning given such term in section 
     48B,
       ``(2) the rules of paragraphs (3), (4), and (5) of section 
     45 shall apply,
       ``(3) the term `inflation adjustment factor' means, with 
     respect to a calendar year, a fraction the numerator of which 
     is the GDP implicit price deflator for the preceding calendar 
     year and the denominator of which is the GDP implicit price 
     deflator for the calendar year 1998, and
       ``(4) the term `GDP implicit price deflator' means the most 
     recent revision of the implicit price deflator for the gross 
     domestic product as computed by the Department of Commerce 
     before March 15 of the calendar year.''
       (b) Credit Treated as Business Credit.--Section 38(b) is 
     amended by striking ``plus'' at the end of paragraph (11), by 
     striking the period at the end of paragraph (12) and 
     inserting ``, plus'', and by adding at the end the following:
       ``(13) the qualifying clean coal technology production 
     credit determined under section 45D(a).''
       (c) Transitional Rule.--Section 39(d) (relating to 
     transitional rules), as amended by section 501(d), is amended 
     by adding at the end the following:
       ``(11) No carryback of certain credits before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credits allowable 
     under any section added to this subpart by the amendments 
     made by the Energy Security Tax Act of 1999 may be carried 
     back to a taxable year ending before the date of the 
     enactment of such Act.''
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following:
       ``Sec. 45D. Credit for production from qualifying clean 
     coal technology.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to production after the date of the enactment of 
     this Act.

     SEC. 503. RISK POOL FOR QUALIFYING CLEAN COAL TECHNOLOGY.

       (a) Establishment.--The Secretary of the Treasury shall 
     establish a financial risk pool which shall be available to 
     any United States owner of qualifying clean coal technology 
     (as defined in section 48B(b)(3) of the Internal Revenue Code 
     of 1986) to offset for the first 3 years of the operation of 
     such technology the costs (not to exceed 5 percent of the 
     total cost of installation) for modifications resulting from 
     the technology's failure to achieve its design performance.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as are necessary to carry out 
     the purposes of this section.

                       TITLE VI--METHANE RECOVERY

     SEC. 601. CREDIT FOR CAPTURE OF COALBED METHANE GAS.

       (a) Credit for Capture of Coalbed Methane Gas.--Subpart D 
     of part IV of subchapter A of chapter 1 (relating to business 
     related credits), as amended by section 502(a), is amended by 
     adding at the end the following:
       SEC. 45E. CREDIT FOR CAPTURE OF COALBED METHANE GAS.
       (d) Definition of Coalmine Methane Gas.--The term 
     ``Coalmine Methane Gas'' as used in this section means any 
     methane gas which is being liberated, or would be liberated, 
     during coal mine operations or as a result of past coal 
     mining operations, or which is extracted up to ten years in 
     advance of coal mining operations as part of specific plan to 
     mine a coal deposit.
       For the purpose of section 38, the coalmine methane gas 
     capture credit of any taxpayer for any taxable year is $1.21 
     for each one million British thermal units of coalmine 
     methane gas captured by the taxpayer and utilized as a fuel 
     source or sold by or on behalf of the taxpayer to an 
     unrelated person during such taxable year (within the meaning 
     of section 45).''
       Credits for the capture of coalmine methane gas shall be 
     earned upon the utilization as a fuel source or sale and 
     delivery of the coalmine methane gas to an unrelated party, 
     except that credit for coalmine methane gas which is captured 
     in advance of mining operations shall be claimed only after 
     coal extraction occurs in the immediate area where the 
     coalmine methane gas was removed.
       (c) Credit Treated as Business Credit.--Section 38(b), as 
     amended by section 502(b), is amended by striking ``plus'' at 
     the end of paragraph (12), by striking the period at the end 
     of paragraph (13) and inserting ``, plus'', and by adding at 
     the end the following:
       ``(14) the coalmine methane gas capture credit determined 
     under section 45E(a).''
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     section 502(d), is amended by adding at the end the 
     following:
       ``Sec. 45E. Credit for the capture of coalmine methane 
     gas.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to the capture of coalmine methane gas after the 
     date of the enactment of this Act and on or before December 
     31, 2006.

                   TITLE VII--OIL AND GAS PRODUCTION

     SEC. 701. CREDIT FOR PRODUCTION OF RE-REFINED LUBRICATING 
                   OIL.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by section 601(a), is amended by adding at the end the 
     following:
       SEC. 45F. CREDIT FOR PRODUCING RE-REFINED LUBRICATING OIL.
       (a) General Rule.--For purposes of section 38, the re-
     refined lubricating oil production credit of any taxpayer for 
     any taxable year is equal to $4.05 per barrel of qualified 
     re-refined lubricating oil production which is attributable 
     to the taxpayer (within the meaning of section 29(d)(3)).
       (b) Qualified Re-Refined Lubricating Oil Production.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified re-refined 
     lubricating oil production' means a base oil manufactured 
     from at least 95 percent used oil and not more than 2 percent 
     of previously unused oil by a re-refining process which 
     effectively removes physical and chemical impurities and 
     spent and unspent additives to the extent that such base oil 
     meets industry standards for engine oil as defined by the 
     American Petroleum Institute document API 1509 as in effect 
     on the date of the enactment of this section.
       ``(2) Limitation on amount of production which may 
     qualify.--Re-refined lubricating oil produced during any 
     taxable year shall not be treated as qualified re-refined 
     lubricating oil production but only to the extent average 
     daily production during the taxable year exceeds 7,000 
     barrels.
       ``(3) Barrel.--The term `barrel' has the meaning given such 
     term by section 613A(e)(4).
       ``(c) Inflation Adjustment.--In the case of any taxable 
     year beginning in a calendar year after 1999, the dollar 
     amount contained in subsection (a) shall be increased to an 
     amount equal to such dollar amount multiplied by the 
     inflation adjustment factor for such calendar year 
     (determined under section 29(d)(2)(B) by substituting `1998' 
     for `1979').''
       (b) Credit Treated as Business Credit.--Section 38(b) 
     (relating to current year business credit), as amended by 
     section 601(b), is amended by striking ``plus'' at the end of 
     paragraph (13), by striking the period at the end of 
     paragraph (14) and inserting ``, plus,'' and by adding at the 
     end the following:
       ``(15) the re-refined lubricating oil production credit 
     determined under section 45F(a).''
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     section 601(c), is amended by adding at the end the 
     following:
       ``Sec. 45F. Credit for producing re-refined lubricating 
     oil.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to production after the date of the enactment of 
     this Act.

     SEC. 702. OIL AND GAS FROM MARGINAL WELLS.

     ``SEC. 45D. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL 
                   WELLS

       ``(a) General Rule.--For purposes of section 38, the 
     marginal well production credit for any taxable year is an 
     amount equal to the product of--
       ``(1) the credit amount, and
       ``(2) the qualified crude oil production and the qualified 
     natural gas production which is attributable to the taxpayer.
       ``(b) Credit Amount.--For purposes of this section--
       ``(1) In general.--The credit amount is--
       ``(A) $3 per barrel of qualified crude oil production, and
       ``(B) 50 cents per 1,000 cubic feet of qualified natural 
     gas production.
       ``(2) Reduction as oil and gas prices increase.--
       ``(A) In general.--The $3 and 50 cents amounts under 
     paragraph (1) shall each be reduced (but not below zero) by 
     an amount which bears the same ratio to such amount 
     (determined without regard to this paragraph) as--
       ``(i) the excess (if any) of the applicable reference price 
     over $14 ($1.56 for qualified natural gas production), bears 
     to
       ``(ii) $3 ($0.33 for qualified natural gas production).
       The applicable reference price for a taxable year is the 
     reference price for the calendar year preceding the calendar 
     year in which the taxable year begins.
       ``(B) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2000, each of the 
     dollar amounts contained in subparagraph (A) shall be 
     increased to an amount equal to such dollar

[[Page 12497]]

     amount multiplied by the inflation adjustment factor for such 
     calendar year (determined under section 43(b)(3)(B) by 
     substituting `1999' for `1990').
       (C) Reference price.--For purposes of this paragraph, the 
     term `reference price means, with respect to any calendar 
     year--
       ``(i) in the case of qualified crude oil production, the 
     reference price determined under section 29(d)(2)(C), and
       ``(ii) in the case of qualified natural gas production, the 
     Secretary's estimate of the annual average wellhead price per 
     1,000 cubic feet for all domestic natural gas.
       ``(c) Qualified Crude Oil and Natural Gas Production.--For 
     purposes of this section--
       ``(1) In general.--The terms `qualified crude oil 
     production' and `qualified natural gas production' mean 
     domestic crude oil or natural gas which is produced from a 
     marginal well.
       ``(2) Limitation on amount of production which may 
     qualify.--
       ``(A) In general.--Crude oil or natural gas produced during 
     any taxable year from any well shall not be treated as 
     qualified crude oil production or qualified natural gas 
     production to the extent production from the well during the 
     taxable year exceeds 1,095 barrels or barrel equivalents.
       ``(B) Proportionate reductions.--
       ``(i) Short taxable years.--In the case of a short taxable 
     year, the limitations under this paragraph shall be 
     proportionately reduced to reflect the ratio which the number 
     of days in such taxable year bears to 365.
       ``(ii) Wells not in production entire year.--In the case of 
     a well which is not capable of production during each day of 
     a taxable year, the limitations under this paragraph 
     applicable to the well shall be proportionately reduced to 
     reflect the ratio which the number of days of production 
     bears to the total number of days in the taxable year.
       ``(3) Definitions.--
       ``(A) Marginal well.--The term `marginal well' means a 
     domestic well--
       (i) ``the production from which during the taxable year is 
     treated as marginal production under section 613A(c)(6), or
       ``(ii) which, during the taxable year--
       ``(I) has average daily production of not more than 25 
     barrel equivalents, and
       ``(II) produces water at a rate not less than 95 percent of 
     total well effluent.
       ``(B) Crude oil, etc.--The terms `crude oil', `natural 
     gas', `domestic', and `barrel' have the meanings given such 
     terms by section 613A(e).
       ``(C) Barrel equivalent.--The term `barrel equivalent' 
     means, with respect to natural gas, a conversion ratio of 
     6,000 cubic feet of natural gas to 1 barrel of crude oil.
       ``(d) Other Rules.--
       ``(1) Production attributable to the taxpayer.--In the case 
     of a marginal well in which there is more than one owner of 
     operating interests in the well and the crude oil or natural 
     gas production exceeds the limitation under subsection 
     (c)(2), qualifying crude oil production or qualifying natural 
     gas production attributable to the taxpayer shall be 
     determined on the basis of the ratio which taxpayer's revenue 
     interest in the production bears to the aggregate of the 
     revenue interests of all operating interest owners in the 
     production.
       ``(2) Operating interest required.--Any credit under this 
     section may be claimed only on production which is 
     attributable to the holder of an operating interest.
       ``(3) Production from nonconventional sources excluded.--In 
     the case of production from a marginal well which is eligible 
     for the credit allowed under section 29 for the taxable year, 
     no credit shall be allowable under this section unless the 
     taxpayer elects not to claim the credit under section 29 with 
     respect to the well.''
       ``(c) Credit treated as business credit.--Section 38(b) is 
     amended by striking `plus' at the end of paragraph (11), by 
     striking the period at the end of paragraph (12) and 
     inserting', `plus', and by adding at the end the following 
     new paragraph:
       ``(13) the marginal oil and gas well production credit 
     determined under section 45D(a).''
       (d) Credit Allowed Against Regular and Minimum Tax.--
       (1) In general.--Subsection (c) of section 38 (relating to 
     limitation based on amount of tax) is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Special rules for marginal oil and gas well 
     production credit.--
       ``(A) In general.--In the case of the marginal oil and gas 
     well production credit--
       ``(i) this section and section 39 shall be applied 
     separately with respect to the credit, and
       ``(ii) in applying paragraph (1) to the credit--
       ``(I) subparagraphs (A) and (B) thereof shall not apply, 
     and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (1)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the marginal 
     oil and gas well production credit).
       ``(B) Marginal oil and gas well production credit.--For 
     purposes of this subsection, the term `marginal oil and gas 
     well production credit' means the credit allowable under 
     subsection (a) by reason of section 45D(a).''
       (2) Conforming amendment.--Subclause (II) of section 
     38(c)(2)(A)(ii) is amended by inserting ``or the marginal oil 
     and gas well production credit'' after ``employment credit''.
       (e) Carryback.--Subsection (a) of section 39 (relating to 
     carryback and carryforward of unused credits generally) is 
     amended by adding at the end the following new paragraph:
       ``(3) 10-year carryback for marginal oil and gas well 
     production credit.--In the case of the marginal oil and gas 
     well production credit--
       ``(A) this section shall be applied separately from the 
     business credit (other than the marginal oil and gas well 
     production credit),
       ``(B) paragraph (1) shall be applied by substituting `10 
     taxable years' for `1 taxable year' in subparagraph (A) 
     thereof, and
       ``(C) paragraph (2) shall be applied--
       ``(i) by substituting `31 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(ii) by substituting `30 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.''
       (f) Coordination With Section 29.--Section 29(a) is amended 
     by striking ``There'' and inserting ``At the election of the 
     taxpayer, there''.
       (g) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following item:
       ``Sec. 45D. Credit for producing oil and gas from marginal 
     wells.''
       (h) Effective Date.--The amendments made by this section 
     shall apply to production in taxable years beginning after 
     December 31, 1999.

     SEC. 703. DEDUCTION FOR DELAY RENTAL PAYMENTS.

       (a) In General.--Section 263 (relating to capital 
     expenditures) is amended by adding after subsection (i) the 
     following new subsection:
       ``(j) Delay Rental Payments for Domestic Oil and Gas 
     Wells.--
       ``(1) In general.--Notwithstanding subsection (a), a 
     taxpayer may elect to treat delay rental payments incurred in 
     connection with the development of oil or gas within the 
     United States (as defined in section 638) as payments which 
     are not chargeable to capital account. Any payments so 
     treated shall be allowed as a deduction in the taxable year 
     in which paid or incurred.
       ``(2) Delay rental payments.--For purposes of paragraph 
     (1), the term `delay rental payment' means an amount paid for 
     the privilege of deferring development of an oil or gas 
     well.''
       (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
     inserting ``263(j),'' after ``263(i),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 1999.

     SEC. 704. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES.

       (a) In General.--Section 263 (relating to capital 
     expenditures) is amended by adding after subsection (j) the 
     following new subsection:
       ``(k) Geological and Geophysical Expenditures for Domestic 
     Oil and Gas Wells.--Notwithstanding subsection (a), a 
     taxpayer may elect to treat geological and geophysical 
     expenses incurred in connection with the exploration for, or 
     development of, oil or gas within the United States (as 
     defined in section 638) as expenses which are not chargeable 
     to capital account. Any expenses so treated shall be allowed 
     as a deduction in the taxable year in which paid or 
     incurred.''
       (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
     inserting ``263(k),'' after ``263(j),''
       (c) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred in taxable years 
     beginning after December 31, 1999.

                 TITLE VIII--RENEWABLE POWER GENERATION

     SEC. 801. MODIFICATIONS TO CREDIT FOR ELECTRICITY PRODUCED 
                   FROM RENEWABLE RESOURCES.

       (a) Expansion of qualified energy resources.--
       (1) In general.--Section 45(c)(1) (defining qualified 
     energy resources) is amended by striking `and' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting a comma, and by adding at the 
     end the following:
       ``(C) biomass (other than closed-loop biomass), or
       ``(D) poultry waste.''
       (2) Definitions.--Section 45(c) is amended by redesignating 
     paragraph (3) as paragraph (4) and by striking paragraph (2) 
     and inserting the following:
       ``(2) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) closed-loop biomass, and
       ``(ii) any solid, nonhazardous, cellulosic waste material, 
     which is segregated from other waste materials, and which is 
     derived from--
       ``(I) any of the following forest-related resources: mill 
     residues, precommercial

[[Page 12498]]

     thinnings, slash, and brush, but not including old-growth 
     timber,
       ``(II) waste pallets, crates, and dunnage, and landscape or 
     right-of-way tree trimmings, but not including unsegregated 
     municipal solid waste (garbage) and post-consumer wastepaper, 
     or
       ``(III) agriculture sources, including orchard tree crops, 
     vineyard, grain, legumes, sugar, and other crop by-products 
     or residues, and
       ``(iii) poultry waste, including poultry manure and litter, 
     wood shavings, straw, rice hulls, and other bedding material 
     for the disposition of manure.
       ``(B) Closed-loop biomass.--The term `closed-loop biomass' 
     means any organic material from a plant which is planted 
     exclusively for purposes of being used at a qualified 
     facility to produce electricity.''
       (b) Extension and Modification of Placed-in-Service 
     Rules.--Paragraph (4) of section 45(c), as redesignated by 
     subsection (a), is amended to read as follows:
       ``(4) Qualified facility.--
       ``(A) Wind facility.--In the case of a facility using wind 
     to produce electricity, the term `qualified facility' means 
     any facility owned by the taxpayer which is originally placed 
     in service after December 31, 1993, and before January 1, 
     2004.
       ``(B) Closed-loop biomass facility.--In the case of a 
     facility using closed-loop biomass to produce electricity, 
     the term `qualified facility' means any facility owned by the 
     taxpayer which is--
       ``(i) originally placed in service after December 31, 1992, 
     and before January 1, 2004, or
       ``(ii) originally placed in service before December 31, 
     1992, and modified to use closed loop biomass to co-fire with 
     coal such date and before January 1, 2004.
       ``(C) Biomass facility.--In the case of a facility using 
     biomass (other than closed-loop biomass) to produce 
     electricity, the term `qualified facility' means any facility 
     owned by the taxpayer which is originally placed in service 
     after the date of the enactment of this paragraph and before 
     January 1, 2004.
       ``(E) Special rules.--
       ``(i) Combined production facilities included.--For 
     purposes of this paragraph, the term qualified facility shall 
     include a facility using biomass to produce electricity and 
     ethanol.
       ``(ii) Special rules.--In the case of a qualified facility 
     described in subparagraph (C) or (D)--
       ``(I) the 10-year period referred to in subsection (a) 
     shall be treated as beginning no earlier than the date of the 
     enactment of this paragraph, and
       ``(II) subsection (b)(3) shall not apply to any such 
     facility originally placed in service before January 1, 
     1997.''
       (c) Electricity Produced From Biomass Co-Fired in Coal 
     Plants.--Paragraph (1) of section 45(a) (relating to general 
     rule) is amended by inserting ``(1.0 cents in the case of 
     electricity produced by biomass cofired in a facility which 
     produces electricity from coal)'' after ``1.5 cents.''
       (d) Coordination With Other Credits.--Section 45(d) 
     (relating to definitions and special rules) is amended by 
     adding at the end the following:
       ``(8) Coordination with other credits.--This section shall 
     not apply to any production with respect to which the clean 
     coal technology production credit under section 45(b) is 
     allowed unless the taxpayer elects to waive the application 
     of such credit to such production.''
       ``(9) Proportional credit for facility using coal to co-
     fire with biomass.--In the case of a qualified facility 
     described in subsection (c)(3) (B) using coal to co-fire with 
     biomass, the amount of the credit determined under subsection 
     (a) for taxable year shall be reduced by the percentage of 
     coal comprises (on a Btu Basis) of the average fuel input of 
     the facility for the taxable year..''
       (e) Effective Date.--The amendments made by this section 
     shall apply to electricity produced after the of the 
     enactment of this Act.

     SEC. 802. CREDIT FOR CAPITAL COSTS OF QUALIFIED BIOMASS-BASED 
                   GENERATING SYSTEM.

       (a) Allowance of Qualified Biomass-Based Generating System 
     Facility Credit.--Section 46 (relating to amount of credit), 
     as amended by section 501(a), is amended by striking `and' at 
     the end of paragraph (3), by striking the period at the end 
     of paragraph (4) and inserting `, and', and by adding at the 
     end the following:
       ``(5) the qualified biomass-based generating system 
     facility credit.''
       (b) Amount of Credit.--Subpart E of part IV of subchapter A 
     of chapter 1 (relating to rules for computing investment 
     credit), as amended by section 501(b), is amended by 
     inserting after section 48C the following:

     ``SEC. 48C. QUALIFIED BIOMASS-BASED GENERATING SYSTEM 
                   FACILITY CREDIT.

       ``(a) In general.--For purposes of section 46, the 
     qualified biomass-based generating system facility credit for 
     any taxable year is an amount equal to 20 percent of the 
     qualified investment in a qualified biomass-based generating 
     system facility for such taxable year.
       ``(b) Qualified Biomass-Based Generating System Facility.--
       ``(1) In general.--For purposes of subsection (a), the term 
     `qualified biomass-based generating system facility' means a 
     facility of the taxpayer--
       ``(A)(i) the original use of which commences with the 
     taxpayer or the reconstruction of which is completed by the 
     taxpayer (but only with respect to that portion of the basis 
     which is properly attributable to such reconstruction), or
       ``(ii) that is acquired through purchase (as defined by 
     section 179(d)(2)),
       ``(B) that is depreciable under section 167,
       ``(C) that has a useful life of not less than 4 years, and
       ``(D) that uses a qualified biomass-based generating 
     system.
       ``(2) Special rule for sale-leasebacks.--For purposes of 
     subparagraph (A) of paragraph (1), in the case of a facility 
     that--
       ``(A) is originally placed in service by a person, and
       ``(B) is sold and leased back by such person, or is leased 
     to such person, within 3 months after the date such facility 
     was originally placed in service, for a period of not less 
     than 12 years, such facility shall be treated as originally 
     placed in service not earlier than the date on which such 
     property is used under the leaseback (or lease) referred to 
     in subparagraph (B). The preceding sentence shall not apply 
     to any property if the lessee and lessor of such property 
     make an election under this sentence. Such an election, once 
     made, may be revoked only with the consent of the Secretary.
       ``(3) Qualified biomass-based generating system.--For 
     purposes of paragraph (1)(D), the term `qualified biomass-
     based generating system' means a biomass-based integrated 
     gasification combined cycle (IGCC) generating system which 
     has an electricity-only generation efficiency greater than 40 
     percent.
       ``(c) Qualified Investment.--For purposes of subsection 
     (a), the term `qualified investment' means, with respect to 
     any taxable year, the basis of a qualified biomass-based 
     generating system facility placed in service by the taxpayer 
     during such taxable year.
       ``(d) Qualified Progress Expenditures.--
       ``(1) Increase in qualified investment.--In the case of a 
     taxpayer who has made an election under paragraph (5), the 
     mount of the qualified investment of such taxpayer for the 
     taxable year (determined under subsection (c) without regard 
     to this section) shall be increased by an amount equal to the 
     aggregate of each qualified progress expenditure for the 
     taxable year with respect to progress expenditure property.
       ``(2) Progress expenditure property defined.--For purposes 
     of this subsection, the term `progress expenditure property' 
     means any property being constructed by or for the taxpayer 
     and which--
       ``(A) cannot reasonably be expected to be completed in less 
     than 18 months, and
       ``(B) it is reasonable to believe will qualify as a 
     qualified biomass-based generating system facility which is 
     being constructed by or for the taxpayer when it is placed in 
     service.
       ``(3) Qualified progress expenditures defined.--For 
     purposes of this subsection--
       ``(A) Self-constructed property.--In the case of any self-
     constructed property, the term `qualified progress 
     expenditures' means the amount which, for purposes of this 
     subpart, is properly chargeable (during such taxable year) to 
     capital account with respect to such property.
       ``(B) Non-self-constructed property.--In the case of non-
     self-constructed property, the term `qualified progress 
     expenditures' means the amount paid during the taxable year 
     to another person for the construction of such property.
       ``(4) Other definitions.--For purposes of this subsection--
       ``(A) Self-constructed property.--The term `self-
     constructed property' means property for which it is 
     reasonable to believe that more than half of the construction 
     expenditures will be made directly by the taxpayer.
       ``(B) Non-self-constructed property.--The term `non-self-
     constructed property' means property which is not self-
     constructed property.
       ``(C) Construction, etc.--The term `construction' includes 
     reconstruction and erection, and the term `constructed' 
     includes reconstructed and erected.
       ``(D) Only construction of qualified biomass-based 
     generating system facility to be taken into account.--
     Construction shall be taken into account only if, for 
     purposes of this subpart, expenditures therefor are properly 
     chargeable to capital account with respect to the property.
       ``(5) Election.--An election under this subsection may be 
     made at such time and in such manner as the Secretary may by 
     regulations prescribe. Such an election shall apply to the 
     taxable year for which made and to all subsequent taxable 
     years. Such an election, once made, may not be revoked except 
     with the consent of the Secretary.
       ``(e) Coordination With Other Credits.--This section shall 
     not apply to any property with respect to which the 
     rehabilitation credit under section 47 or the energy credit 
     under section 48A is allowed unless the taxpayer elects to 
     waive the application of such credits to such property.''.
       (c) Recapture.--Section 50(a) (relating to other special 
     rules), as amended by section 501(c), is amended by adding at 
     the end the following:

[[Page 12499]]

       ``(7) Special rules relating to qualified biomass-based 
     generating system facility.--For purposes of applying this 
     subsection in the case of any credit allowable by reason of 
     section 48C, the following shall apply:
       ``(A) General rule.--In lieu of the amount of the increase 
     in tax under paragraph (1), the increase in tax shall be an 
     amount equal to the investment tax credit allowed under 
     section 38 for all prior taxable years with respect to a 
     qualified biomass-based generating system facility (as 
     defined by section 48C(b)) multiplied by a fraction whose 
     numerator is the number of years remaining to fully 
     depreciate under this title the qualified biomass-based 
     generating system facility disposed of, and whose denominator 
     is the total number of years over which such facility would 
     otherwise have been subject to depreciation. For purposes of 
     the preceding sentence, the year of disposition of the 
     qualified biomass-based generating system facility shall be 
     treated as a year of remaining depreciation.
       ``(B) Property ceases to qualify for progress 
     expenditures.--Rules similar to the rules of paragraph (2) 
     shall apply in the case of qualified progress expenditures 
     for a qualified biomass-based generating system facility 
     under section 48C, except that the amount of the increase in 
     tax under subparagraph (A) of this paragraph shall be 
     substituted in lieu of the amount described in such paragraph 
     (2).
       ``(C) Application of paragraph.--This paragraph shall be 
     applied separately with respect to the credit allowed under 
     section 38 regarding a qualified biomass-based generating 
     system facility.''.
       (d) Transitional Rule.--Section 39(d) of the Internal 
     Revenue Code of 1986 (relating to transitional rules), as 
     amended by section 501(d), is amended by adding at the end 
     the following:
       ``(11) No carryback of section 48c credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the qualified biomass-
     based generating system facility credit determined under 
     section 48C may be carried back to a taxable year ending 
     before the date of the enactment of section 48C.''
       (e) Technical Amendments--
       (1) Section 49(a)(1)(C), as amended by section 501(e), is 
     amended by striking ``and'' at the end of clause (iii), by 
     striking the period at the end of clause (iv) and inserting 
     ``, and'', and by adding at the end the following:
       ``(v) the portion of the basis of any qualified biomass-
     based generating system facility attributable to any 
     qualified investment (as defined by section 48C(c)).''
       (2) Section 50(a)(4), as amended by section 501(e), is 
     amended by striking ``and (6)'' and inserting ``, (6), and 
     (7)''.
       (3) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1, as amended by section 501 (e), is 
     amended by inserting after the item relating to section 48B 
     the following:

     ``SEC. 48C. QUALIFIED BIOMASS-BASED GENERATING SYSTEM 
                   FACILITY CREDIT.''

       (f) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 1999, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 803. TREATMENT OF FACILITIES USING BAGASSE TO PRODUCE 
                   ENERGY AS SOLID WASTE DISPOSAL FACILITIES 
                   ELIGIBLE FOR TAX-EXEMPT FINANCING.

       (a) In General.--Section 142 (relating to exempt facility 
     bond) is amended by adding at the end the following:
       ``(k) Solid Waste Disposal Facilities.--For purposes of 
     subsection (a)(6), the term ``solid waste disposal 
     facilities'' includes property located in Hawaii and used for 
     the collection, storage, treatment, utilization, processing, 
     or final disposal of bagasse in the manufacture of 
     ethanol.''.
       (b) Effecitive Date.--The amendment made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

                         TITLE IX--STEELMAKING

     SEC. 901. CREDIT FOR INVESTMENT IN ENERGY-EFFICIENT 
                   STEELMAKING FACILITIES.

       (a) Allowance of Energy-Efficient Steelmaking Facility 
     Credit.--Section 46 (relating to amount of credit), as 
     amended by section 802(a), is amended by striking `and' at 
     the end of paragraph (4), by striking the period at the end 
     of paragraph (5) and inserting `, and', and by adding at the 
     end the following:
       ``(b) the energy-efficient steelmaking facility credit.''
       (b) Amount of Energy-Efficient Steelmaking Facility 
     Credit.--Subpart E of part IV of subchapter A of chapter 1 
     (relating to rules for computing investment credit), as 
     amended by section 802(b), is amended by inserting after 
     section 48C the following:

     SEC. 48D. ENERGY-EFFICIENT STEELMAKING FACILITY CREDIT.

       ``(a) In General.--For purposes of section 46, the energy-
     efficient steelmaking facility credit for any taxable year is 
     an amount equal to 10 percent of the qualified investment in 
     an energy-efficient steelmaking facility for such taxable 
     year.
       ``(b) Energy-Efficient Steelmaking Facility.--
       ``(I) In general.--For purposes of subsection (a), the term 
     `energy-efficient steelmaking facility' means a facility of 
     the taxpayer--
       ``(A)(i) which--
       ``(I) with respect to a facility the original use of which 
     commences with the taxpayer, improves steelmaking energy 
     efficiency by 20 percent over the energy efficiency norm of 
     the industry as determined by the Secretary for the year in 
     which such facility is placed in service, or
       ``(II) with respect to a facility which replaces an 
     existing steelmaking facility and the original use of which 
     commences with the taxpayer, improves steelmaking energy 
     efficiency by 20 percent over the average energy efficiency 
     of the replaced facility for the 2 taxable years preceding 
     the year in which the replacing facility is placed in service 
     (but only with respect to that portion of the basis which is 
     properly attributable to such replacement), or
       ``(ii) that is acquired through purchase (as defined by 
     section 179(d)(2)),
       ``(B) that is depreciable under section 167, and
       ``(C) that has a useful life of not less than 4 years.
       ``(2) Special rule for sale-leasebacks.--For purposes of 
     subparagraph (A) of paragraph (1), in the case of a facility 
     that--
       ``(A) is originally placed in service by a person, and
       ``(B) is sold and leased back by such person, or is leased 
     to such person, within 3 months after the date such facility 
     was originally placed in service, for a period of not less 
     than 12 years, such facility shall be treated as originally 
     placed in service not earlier than the date on which such 
     property is used under the leaseback (or lease) referred to 
     in subparagraph (B). The preceding sentence shall not apply 
     to any property if the lessee and lessor of such property 
     make an election under this sentence. Such an election, once 
     made, may be revoked only with the consent of the Secretary.
       ``(3) Steelmaking energy efficiency.--For purposes of 
     paragraph (1)(A), steelmaking energy efficiency shall be 
     measured in BTu's per ton of raw steel produced.
       ``(c) Qualified Investment.--For purposes of subsection 
     (a), the term `qualified investment' means, with respect to 
     any taxable year, the basis of an energy-efficient 
     steelmaking facility placed in service by the taxpayer during 
     such taxable year.
       ``(d) Qualified Progress Expenditures.--
       ``(1) Increase in qualified investment.--In the case of a 
     taxpayer who has made an election under paragraph (5), the 
     amount of the qualified investment of such taxpayer for the 
     taxable year (determined under subsection (c) without regard 
     to this section) shall be increased by an amount equal to the 
     aggregate of each qualified progress expenditure for the 
     taxable year with respect to progress expenditure property.
       ``(2) Progress expenditure property defined.--For purposes 
     of this subsection, the term `progress expenditure property' 
     means any property being constructed by or for the taxpayer 
     and which it is reasonable to believe will qualify as an 
     energy-efficient steelmaking facility which is being 
     constructed by or for the taxpayer when it is placed in 
     service.
       ``(3) Qualified progress expenditures defined.--For 
     purposes of this subsection--
       ``(A) Self-constructed property.--In the case of any self-
     constructed property, the term `qualified progress 
     expenditures' means the amount which, for purposes of this 
     subpart, is properly chargeable (during such taxable year) to 
     capital account with respect to such property.
       ``(B) Non-self-constructed property.--In the case of non-
     self-constructed property, the term `qualified progress 
     expenditures' means the amount paid during the taxable year 
     to another person for the construction of such property.
       ``(4) Other definitions.--For purposes of this subsection--
       (A) Self-constructed property.--The term `self-constructed 
     property' means property for which it is reasonable to 
     believe that more than half of the construction expenditures 
     will be made directly by the taxpayer.
       ``(B) Non-self-constructed property.--The term `non-self-
     constructed property' means property which is not self-
     constructed property.
       ``(C) Construction, etc.--The term `construction' includes 
     reconstruction and erection, and the term `constructed' 
     includes reconstructed and erected.
       ``(D) Only construction of energy-efficient steelmaking 
     facility to be taken into account.--Construction shall be 
     taken into account only if, for purposes of this subpart, 
     expenditures therefor are properly chargeable to capital 
     account with respect to the property.
       ``(5) Election.--An election under this subsection may be 
     made at such time and in

[[Page 12500]]

     such manner as the Secretary may by regulations prescribe. 
     Such an election shall apply to the taxable year for which 
     made and to all subsequent taxable years. Such an election, 
     once made, may not be revoked except with the consent of the 
     Secretary.
       ``(e) Coordination With Other Credits.--This section shall 
     not apply to any property with respect to which the 
     rehabilitation credit under section 47 or the energy credit 
     under section 48A is allowed unless the taxpayer elects to 
     waive the application of such credits to such property.
       ``(f) Termination.--This section shall not apply with 
     respect to any qualified investment after December 31, 
     2004.''
       (c) Recapture.--Section 50(a) (relating to other special 
     rules), as amended by section 802(c), is amended by adding at 
     the end the following:
       ``(8) Special rules relating to energy-efficient 
     steelmaking facility.--For purposes of applying this 
     subsection in the case of any credit allowable by reason of 
     section 48D, the following shall apply:
       ``(A) General rule.--In lieu of the amount of the increase 
     in tax under paragraph (1), the increase in tax shall be an 
     amount equal to the investment tax credit allowed under 
     section 38 for all prior taxable years with respect to an 
     energy-efficient steelmaking facility (as defined by section 
     48D(b)) multiplied by a fraction whose numerator is the 
     number of years remaining to fully depreciate under this 
     title the energy-efficient steelmaking facility disposed of, 
     and whose denominator is the total number of years over which 
     such facility would otherwise have been subject to 
     depreciation. For purposes of the preceding sentence, the 
     year of disposition of the energy-efficient steelmaking 
     facility property shall be treated as a year of remaining 
     depreciation.
       ``(B) Property ceases to qualify for progress 
     expenditures.--Rules similar to the rules of paragraph (2) 
     shall apply in the case of qualified progress expenditures 
     for an energy-efficient steelmaking facility under section 
     48D, except that the amount of the increase in tax under 
     subparagraph (A) of this paragraph shall be substituted in 
     lieu of the amount described in such paragraph (2).
       ``(C) Application of paragraph.--This paragraph shall be 
     applied separately with respect to the credit allowed under 
     section 38 regarding an energy-efficient steelmaking 
     facility.''
       (d) Transitional Rule.--Section 39(d) of the Internal 
     Revenue Code of 1986 (relating to transitional rules), as 
     amended by section 802(d), is amended by adding at the end 
     the following:
       ``(12) No carryback of section 48d credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the energy-efficient 
     steelmaking facility credit determined under section 48D may 
     be carried back to a taxable year ending before the date of 
     the enactment of section 48D.''
       (e) Technical Amendments.--
       (1) Section 49(a)(1)(C), as amended by section 802(e), is 
     amended by striking `and' at the end of clause (iv), by 
     striking the period at the end of clause (v) and inserting `, 
     and', and by adding at the end the following:
       ``(vi) the portion of the basis of any energy-efficient 
     steelmaking facility attributable to any qualified investment 
     (as defined by section 48D(c)).''
       (2) Section 50(a)(4), as amended by section 802(e), is 
     amended by striking ``and (7)'' and inserting ``, (7), and 
     (8)''.
       (3) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1, as amended by section 802(e), is 
     amended by inserting after the item relating to section 48C 
     the following:

     ``SEC. 48D. ENERGY-EFFICIENT STEELMAKING FACILITY CREDIT.''

       (f) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 1999, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 902. EXTENSION OF CREDIT FOR ELECTRICITY TO PRODUCTION 
                   FROM STEEL COGENERATION.

       (a) Extension of Credit for Coke Production and Steel 
     Manufacturing Facilities.--Section 45(c)(1) (defining 
     qualified energy resources), as amended by section 801(a)(1), 
     is amended by striking ``and'' at the end of subparagraph 
     (C), by striking the period at the end of subparagraph (D) 
     and inserting ``, and'', and by adding at the end the 
     following:
       ``(E) steel cogeneratiory.''
       (b) Steel Cogeneration.--Section 45(c), as amended by 
     subsections (a)(2) and (b) of section 801, is amended by 
     redesignating paragraph (4) as paragraph (5) and by inserting 
     after paragraph (3) the following:
       ``(4) Steel cogeneration.--
       ``(A) In general.--The term `steel cogeneration' means the 
     production of steam or other form of thermal energy of at 
     least 20 percent of total production and the production of 
     electricity or mechanical energy (or both) of at least 20 
     percent of total production if the cogeneration meets 
     regulatory energy-efficiency standards established by the 
     Secretary and only to the extent that such energy is produced 
     from--
       ``(i) gases or heat generated during the production of 
     coke,
       ``(ii) blast furnace gases or heat generated during the 
     production of iron ore or iron, or
       ``(iii) waste gases or heat generated from the manufacture 
     of steel that uses at least 20 percent recycled material.
       ``(B) Total production.--For purposes of subparagraph (A), 
     the term `total production' means, with respect to any 
     facility which produces coke, iron ore, iron, or steel, 
     production from all waste sources described in clauses (i), 
     (ii), and (iii) of subparagraph (A) (whichever applicable) 
     from the entire facility.''
       (c) Modification of Placed in Service Rules for Steel 
     Cogeneration Facilities.--Section 45(c)(5) (defining 
     qualified facility), as amended by section 801(b) and 
     redesignated by subsection (b), is amended by redesignating 
     subparagraph (E) as subparagraph (F) and by inserting after 
     subparagraph (D) the following:
       ``(E) Steel cogeneration facilities.--In the case of a 
     facility using steel cogeneration to produce electricity, the 
     term `qualified facility' means any facility permitted to 
     operate under the environmental requirements of the Clean Air 
     Act Amendments of 1990 which is owned by the taxpayer and 
     originally placed in service after December 31, 1999, and 
     before January 1, 2005. Such a facility may be treated as 
     originally placed in service when such facility was last 
     upgraded to increase efficiency or generation capability. 
     However, no facility shall be allowed a credit under this 
     section for more than 10 years of production.''
       (d) Conforming Amendments.--
       (1) The heading for section 45 is amended by inserting 
     ``and waste energy'' after ``renewable''.
       (2) The item relating to section 45 in the table of 
     sections subpart D of part TV of subchapter A of chapter 1 is 
     amended by inserting ``and waste energy'' after 
     ``renewable''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001, and before January 1, 2005.

                          TITLE X--AGRICULTURE

     SEC. 1001. AGRICULTURAL CONSERVATION TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter I (relating to business related credits), as amended 
     by section 701(a), is amended by adding at the end the 
     following:

     ``SEC. 45G. AGRICULTURAL CONSERVATION CREDIT.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible person, the agricultural conservation credit 
     determined under this section for the taxable year is an 
     amount equal to--
       ``(1) 10 percent of the eligible conservation tillage 
     equipment expenses, and
       ``(2) 10 percent of the eligible irrigation equipment 
     expenses, paid or incurred by such person in connection with 
     the active conduct of the trade or business of fanning for 
     the taxable year.
       ``(b) Eligible Person.--For purposes of this section, the 
     term `eligible person' means, with respect to any taxable 
     year, any person if the average annual gross receipts of such 
     person for the 3 preceding taxable years do not exceed 
     $1,000,000. For purposes of the preceding sentence, rules 
     similar to the rules of section 448(c)(3) shall apply.
       ``(c) Limitation.--The amount of the credit allowed under 
     subsection (a) for any taxable year shall not exceed $2,500 
     for each credit determined under paragraph (1) or (2) of such 
     subsection.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Eligible conservation tillage equipment expenses.--
       ``(A) In general.--The term `eligible conservation tillage 
     equipment expenses' means amounts paid or incurred by a 
     taxpayer to purchase and install conservation tillage 
     equipment for use in the trade or business of the taxpayer.
       ``(B) Conservation tillage equipment.--The term 
     `conservation tillage equipment' means a no-till planter or 
     drill designed to minimize the disturbance of the soil in 
     planting crops, including such planters or drills which may 
     be attached to equipment already owned by the taxpayer.
       ``(2) Eligible irrigation equipment expenses.--The term 
     `eligible irrigation equipment expenses' means amounts paid 
     or incurred by a Taxpayer--
       ``(A) to purchase and install on currently irrigated lands 
     new or upgraded equipment which will improve the efficiency 
     of existing irrigation systems used in the trade or business 
     of the taxpayer, including--
       ``(i) spray jets or nozzles which improve water 
     distribution efficiency,
       ``(ii) irrigation well meters,
       ``(iii) surge valves and surge irrigation systems, and
       ``(iv) conversion of equipment from gravity irrigation to 
     sprinkler or drip irrigation, including center pivot systems, 
     and
       ``(B) for service required to schedule the use of such 
     irrigation equipment as necessary to manage water application 
     to the crop requirement based on local evaporation and 
     transpiration rates or soil moisture.
       ``(e) Special Rules.--
       ``(1) Reduction in basis.--For purposes of this subtitle, 
     if a credit is determined under this section with respect to 
     any property,

[[Page 12501]]

     the basis of such property shall be reduced by the amount of 
     the credit so determined.
       ``(2) Pass-thru in the case of estates and trusts.--For 
     purposes of this section, under regulations prescribed by the 
     Secretary, rules similar to the rules of subsection (d) of 
     section 52 shall apply.
       ``(3) Allocation in the case of partnerships.--For purposes 
     of this section, in the case of partnerships, the credit 
     shall be allocated among partners under regulations 
     prescribed by the Secretary.
       ``(4) Denial of double benefit.--No other deduction or 
     credit shall be allowed to the taxpayer under this chapter 
     for any amount taken into account in determining the credit 
     under this section.''.
       (b) Conforming Amendments--
       (1) Section 38(b), as amended by section 701 (b), is 
     amended by striking `plus' at the end of paragraph (14), by 
     striking the period at the end of paragraph (15), and 
     inserting ', `plus', and by adding at the end the following:
       ``(16) the agricultural conservation credit determined 
     under section 45G.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by section 701 (c), is 
     amended by adding at the end the following:
       ``Sec. 45G. Agricultural conservation credit.''.
       (3) Section 1016(a), as amended by section 201 (b)(1), is 
     amended by striking `and' at the end of paragraph (27), 
     striking the period at the end of paragraph (28) and 
     inserting '; and', and adding at the end the following:
       ``(29) in the case of property with respect to which a 
     credit was allowed under section 45G, to the extent provided 
     in section 45G(d)(1).''.
       (c) Effective.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 1999.
                      TITLE XI--ENERGY EMERGENCIES

     SEC. 1101. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.

       Title I of the Energy Policy and Conservation Act (42 
     U.S.C. 6211-6251) is amended--
       (a) In section 166 (42 U.S.C. 6246), by inserting ``through 
     2003'' after ``2000.''.
       (b) In section 181 (42 U.S.C. 6251), by striking ``March 
     31, 2000'' each place it appears and inserting ``September 
     30, 2003.''.
       Title 11 of the Energy Policy and Conservation Act (42 
     U.S.C. 6261-6285) is amended--
       (a) In section 256(h) (42 U.S.C. 6276(h)), by inserting 
     ``through 2003'' after ``1999.''.
       (b) In section 281 (42 U.S.C. 6285), by striking ``March 
     31, 2000'' each place it appears and inserting ``September 
     30, 2003.''.
       (a) Amendment.--Title I of the Energy Policy and 
     Conservation Act is amended by--
       (1) redesignating part D as part E;
       (2) redesignating section 181 as section 191; and
       (3) inserting after part C the following new part D:

              ``Part D--Northeast Home Heating Oil Reserve


                            ``Establishment

       ``Sec. 181. (a) Notwithstanding any other provision of this 
     Act, the Secretary may establish, maintain, and operate in 
     the Northeast a Northeast Home Heating Oil Reserve. A Reserve 
     established under this part is not a component of the 
     Strategic Petroleum Reserve established under part B of this 
     title. A Reserve established under this part shall contain no 
     more than 2 million barrels of petroleum distillate.''.
       ``(b) For the purposes of this part--
       ``(1) the term `Northeast' means the States of Maine, New 
     Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, 
     New York, Pennsylvania, and New Jersey; and
       ``(2) the term `petroleum distillate' includes heating oil 
     and diesel fuel.


                               authority

       ``Sec. 182. To the extent necessary or appropriate to carry 
     out this part, the Secretary may--
       ``(1) purchase, contract for, lease, or otherwise acquire, 
     in whole or in part, storage and related facilities, and 
     storage services;
       ``(2) use, lease, maintain, sell, or otherwise dispose of 
     storage and related facilities acquired under this part;
       ``(3) acquire by purchase, exchange (including exchange of 
     petroleum product from the Strategic Petroleum Reserve or 
     received as royalty from Federal lands), lease, or otherwise, 
     petroleum distillate for storage in the Northeast Home 
     Heating Oil Reserve;
       ``(4) store petroleum distillate in facilities not owned by 
     the United States;
       ``(5) sell, exchange, or otherwise dispose of petroleum 
     distillate from the Reserve established under this part; and
       ``(6) notwithstanding paragraph (5), on terms the Secretary 
     considers reasonable, sell, exchange, or otherwise dispose of 
     petroleum distillate from the Reserve established under this 
     part in order to maintain the quality or quantity of the 
     petroleum distillate in the Reserve or to maintain the 
     operational capability of the Reserve.


                     ``Conditions for release; plan

       ``Sec. 183. (a) The Secretary may drawdown the Reserve only 
     upon a finding by the President that an emergency situation 
     exists in accordance with this section.
       ``(b) The Secretary may recommend to the President a 
     drawdown of petroleum distillate from the Reserve under 
     section 182(5) in an emergency situation if at least one of 
     the following conditions applies:
       ``The price differential between crude oil and residential 
     No. 2 heating oil in the northeast increases by--
       ``(1) more than 15% over a two week period, or
       ``(2) more than 25% over a four week period, or
       ``(3) more than 60% over its five year seasonally adjusted 
     rolling average.
       ``(c) An emergency situation shall be deemed to exist if 
     the President determines a severe energy supply disruption or 
     a severe price increase exists, as demonstrated by the 
     Secretary as set forth in (b), and the price differential 
     continues to increase during the most recent week for which 
     price information is available.
       ``(c) The Secretary shall conduct a continuing evaluation 
     of the residential price data supplied by the Energy 
     Information Administration for the Northeast and data on 
     crude oil prices from published sources.
       ``(d) The drawdown of the Reserve shall be conducted by 
     competitive bid. Bids shall be evaluated to ensure comparable 
     market value.
       ``(e) Within 45 days of the date of the enactment of this 
     section, the Secretary shall transmit to the President and, 
     if the President approves, to the Congress a plan 
     describing--
       ``(1) the acquisition of storage and related facilities or 
     storage services for the Reserve;
       ``(2) the acquisition of petroleum distillate for storage 
     in the Reserve;
       ``(3) the anticipated methods of disposition of petroleum 
     distillate from the Reserve; and
       ``(4) the estimated costs of establishment, maintenance, 
     and operation of the Reserve.


               NORTHEAST HOME HEATING OIL RESERVE ACCOUNT

       ``Sec. 184. (a) Upon a decision of the Secretary of Energy 
     to establish a Reserve under this part, the Secretary of the 
     Treasury shall establish in the Treasury of the United States 
     an account known as the `Northeast Home Heating Oil Reserve 
     Account' (referred to in this section as the `Account').
       ``(b) The Secretary of the Treasury shall deposit in the 
     Account any amounts appropriated to the Account and any 
     receipts from the sale, exchange, or other disposition of 
     petroleum distillate from the Reserve.
       ``(c) The Secretary of Energy may obligate amounts in the 
     Account to carry out activities under this part without the 
     need for further appropriation, and amounts available to the 
     Secretary of Energy for obligation under this section shall 
     remain available without fiscal year limitation.


                              ``exemptions

       ``Sec. 185. An action taken under this part is not subject 
     to the rulemaking requirements of section 523 of this Act, 
     section 501 of the Department of Energy Organization Act, or 
     section 553 of title 5, United States Code; and
       ``(b) Authorization of Appropriations.-- There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out part D of title I of the Energy Policy and 
     Conservation Act.''.

     SEC. 1102. ANNUAL HOME HEATING READINESS REPORTS.

       (a) In General.--Part A of title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6211 et seq.) is amended by 
     adding at the end the following:


                ``annual home heating readiness reports.

       ``(a) In General.--On or before September 1 of each year, 
     Secretary, acting through the Administrator of the Energy 
     Information Agency, shall submit to Congress a Home Heating 
     Readiness Report on the readiness of the heating oil and 
     propane industries to supply fuel under various weather 
     conditions, including rapid decreases in temperature.
       ``(b) Contents.--The Home Heating Readiness Report shall 
     include--
       ``(1) estimates of the consumption, expenditures, and 
     average price per gallon of heating oil and propane for the 
     upcoming period of October through March for various weather 
     conditions, with special attention to extreme weather, and 
     various regions of the country;
       ``(2) an evaluation of--
       ``(A) global and regional crude oil and refined product 
     supplies;
       ``(B) the adequacy and utilization of refinery capacity;
       ``(C) the adequacy, utilization, and distribution of 
     regional refined product storage capacity;
       ``(D) weather conditions;
       ``(E) the refined product transportation system;
       ``(F) market inefficiencies; and
       ``(G) any other factor affecting the functional capability 
     of the heating oil industry and propane industry that has the 
     potential to affect national or regional supplies and prices;
       ``(3) recommendations on steps that the Federal, State, and 
     local governments can take to prevent or alleviate the impact 
     of sharp and sustained increases in the price of heating oil 
     and propane; and
       ``(4) recommendations on steps that companies engaged in 
     the production, refining, storage, transportation of heating 
     oil or propane, or any other activity related to the heating 
     oil industry or propane industry, can take to prevent or 
     alleviate the impact of

[[Page 12502]]

     sharp and sustained increases in the price of heating oil and 
     propane.
       ``(c) Information Requests.--The Secretary may request 
     information necessary to prepare the Home Heating Readiness 
     Report from companies described in subsection (b)(4).''.
       (b) Conforming and Technical Amendments.--The Energy Policy 
     and Conservation Act is amended--
       (1) in the table of contents in the first section (42 
     U.S.C. prec. 6201), by inserting after the item relating to 
     section 106 the following:
       ``Sec. 107. Major fuel burning stationary source.
       ``Sec. 108. Annual home heating readiness reports;'' and
       (2) in section 107 (42 U.S.C. 6215), by striking ``Sec. 
     107. (a) No Governor'' and inserting the following:

     ``SEC. 107. MAJOR FUEL BURNING STATIONARY SOURCE.

       ``(a) No Governor.''.

     SEC. 1103. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

       (a) In General.--Part C of title II of the Energy Policy 
     and Conservation Act (42 U.S.C. 6211 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

       ``(a) Definitions.--In this section:
       ``(1) Budget contract.--The term `budget contract' means a 
     contract between a retailer and a consumer under which the 
     heating expenses of the consumer are spread evenly over a 
     period of months.
       ``(2) Fixed-price contract.--The term `fixed-price 
     contract' means a contract between a retailer and a consumer 
     under which the retailer charges the consumer a set price for 
     propane, kerosene, or heating oil without regard to market 
     price fluctuations.
       ``(3) Price cap contract.--The term `price cap contract' 
     means a contract between a retailer and a consumer under 
     which the retailer charges the consumer the market price for 
     propane, kerosene, or heating oil, but the cost of the 
     propane, kerosene, or heating oil may not exceed a maximum 
     amount stated in the contract.
       ``((b) Assistance--At the request of the chief executive 
     officer of a State, the Secretary shall provide information, 
     technical assistance, and funding--
       ``(1) to develop education and outreach programs to 
     encourage consumers to fill their storage facilities for 
     propane, kerosene, and heating oil during the summer months; 
     and
       ``(2) to promote the use of budget contracts, price cap 
     contracts, fixed-price contracts, and other advantageous 
     financial arrangements;

     to avoid severe seasonal price increases for and supply 
     shortages of those products.
       ``(c) Preference--In implementing this section, the 
     Secretary shall give preference to States that contribute 
     public funds or leverage private funds to develop State 
     summer fill and fuel and fuel budgeting programs.
       ``(d) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $25,000,000 for fiscal year 2001; and
       ``(2) such sums as are necessary for each fiscal year 
     thereafter.
       ``(e) Inapplicability of expiration provision.--Section 281 
     does not apply to this section.
       (b) Conforming Amendment.--The table of contents in the 
     first section of the Energy Policy and Conservation Act (42 
     U.S.C. prec. 6201) is amended by inserting after the item 
     relating to section 272 the following:
       ``Sec. 273. Summer fill and fuel budgeting programs.''.

     SEC. 1104. USE OF ENERGY FUTURES FOR FUEL PURCHASES.

       (a) Heating Oil Study.--The Secretary shall conduct a 
     study--
       (1) to ascertain if the use of energy futures and options 
     contracts could provide cost-effective protection from sudden 
     surges in the price of heating oil (including number two fuel 
     oil, propane, and kerosene) for governments, consumer 
     cooperatives, and other organizations that purchase heating 
     oil in bulk to market to end use consumers in the Northeast 
     (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, 
     Connecticut, New York, Pennsylvania, and New Jersey); and
       (2) to ascertain how these entities may be most effectively 
     educated in the prudent use of energy futures and options 
     contracts to maximize their purchasing effectiveness, protect 
     themselves against sudden or unanticipated surges in the 
     price of heating oil, and minimize long-term heating oil 
     costs.
       (b) Report.--The Secretary, no later than 180 days after 
     appropriations are enacted to carry out this Act, shall 
     transmit the study required in this section to the Committee 
     on Energy and Commerce of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate. 
     The report shall contain a review of prior studies conducted 
     on the subjects described in subsection (a).
       (c) Pilot Program.--If the study required in subsection (a) 
     indicates that futures and options contracts can provide 
     cost-effective protection from sudden surges in heating oil 
     prices, the Secretary shall conduct a pilot program, 
     commencing not later than 30 days after the transmission of 
     the study required in subsection (b), to educate such 
     governmental entities, consumer cooperatives, and other 
     organizations on the prudent and cost-effective use of energy 
     futures and options contracts to increase their protection 
     against sudden or unanticipated surges in the price of 
     heating oil and increase the efficiency of their heating oil 
     purchase programs.
       (d) Authorization.--There is authorized to be appropriated 
     $3 million in fiscal year 2001 to carry out this section.

     SEC. 1105. FULL EXPENSING OF HOME HEATING OIL AND PROPANE 
                   STORAGE FACILITIES

       (a) In General.--Section 179(b) of the Internal Revenue 
     Code of 1986 (relating to limitations) is amended by adding 
     at the end the following--
       ``(5) Full Expensing of Home Heating Oil and Propane 
     Storage Facilities--Paragraphs (1) and (2) shall not apply to 
     section 179 property which is any storage facility (not 
     including a building or its structural components) used in 
     connection with the distribution of home heating oil.''
                      TITLE XII--ENERGY EFFICIENCY

     SEC. 1201. ENERGY SAVINGS PERFORMANCE CONTRACTS

       That Section 155, Energy Savings Performance Contracts, of 
     the Energy Policy Act (42 U.S.C. 8262), is amended--
       (1) in section D,
       (A) by striking from subsection iii, ``$750,000'';
       (B) by inserting in subsection iii, $10,000,000''; and
       (C) by inserting a new subsection v to read, ``Each agency 
     head shall submit an annual report to Congress on the number, 
     locations, and size of each Federal Energy Service 
     Performance Contract into which they have entered.''
       (2) by inserting a new section E to read, ``A federal 
     agency may conduct a pilot program to use multiyear contracts 
     under this title to cover the cost of constructing a new 
     building from the energy savings resulting from closing an 
     older building. Up to five pilot contracts may be entered 
     into under this authority. Each agency participating in the 
     pilot program shall submit a report to Congress on the 
     location, energy savings, cost of new construction, and size 
     of the Federal Energy Service Contract for each pilot project 
     under this section.''

     SEC. 1202. WEATHERIZATION.

       (a) Section 414 of the Energy and Conservation and 
     Production Act (42 U.S.C. 6865) is amended by inserting the 
     following sentence in subsection (a) the following sentence, 
     ``The application shall contain the state's best estimate of 
     matching funding available from state and local governments 
     and from private sources,'' after the words ``assistance to 
     such persons''. And, by inserting the words, ``without regard 
     to availability of matching funding'', after the words ``low-
     income persons throughout the States,''
       (b) Section 415 of the Energy and Conservation and 
     Production Act (42 U.S.C. 6865) is amended--
       (1) in subsection (a)(1) by striking the first sentence;
       (2) in subsection (a)(2) by--
       (A) striking ``(A)'',
       (B) striking ``approve a State's application to waive the 
     40 percent requirement established in paragraph (1) if the 
     State includes in its plan'' and inserting ``establish'', and
       (C) striking subparagraph (B);
       (3) in subsection (c)(1) by--
       (A) striking ``paragraphs (3) and (4)'' and inserting 
     ``paragraph (3)'',
       (B) striking ``$1600'' and inserting ``$2500'',
       (C) striking ``and'' at the end of subparagraph (C),
       (D) striking the period and inserting ``;and'' in 
     subparagraph (D), and
       (E) inserting after subparagraph (D) the following new 
     subparagraph: ``(E) the cost of making heating and cooling 
     modifications, including replacement.'';
       (4) in subsection (c)(3) by--
       (A) striking ``1991, the $1600 per dwelling unit 
     limitation'' and inserting ``2000, the $2500 per dwelling 
     unit average'',
       (B) striking ``limitation'' and inserting ``average'' each 
     time it appears, and
       (C) inserting ``the'' after ``beginning of'' in 
     subparagraph (B); and
       (5) by striking subsection (c)(4).
                    TITLE XIII--ELECTRIC RELIABILITY

     SEC. 1301. SHORT TITLE.

       This Act may be cited as the ``Electric Reliability 2000 
     Act''.

     SEC. 1302. ELECTRIC RELIABILITY ORGANIZATION.

       (a) In General.--Part II of the Federal Power Act (16 
     U.S.C. 824 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 215. ELECTRIC RELIABILITY ORGANIZATION.

       ``(a) Definitions.--In this section:
       ``(1) Affiliated regional reliability entity.--The term 
     `affiliated regional reliability entity' means an entity 
     delegated authority under subsection (h).
       (2) Bulk-power system.--
       ``(A) In general.--The term `bulk-power system' means all 
     facilities and control systems necessary for operating an 
     interconnected electric power transmission grid

[[Page 12503]]

     or any portion of an interconnected transmission grid.
       ``(B) Inclusions.--The term `bulk-power system' includes--
       ``(i) high voltage transmission lines, substations, control 
     centers, communications, data, and operations planning 
     facilities necessary for the operation of all or any part of 
     the interconnected transmission grid; and
       ``(ii) the output of generating units necessary to maintain 
     the reliability of the transmission grid.
       ``(3) Bulk-power system user.--The term `bulk-power system 
     user' means an entity that--
       ``(A) sells, purchases, or transmits electric energy over a 
     bulk-power system; or
       ``(B) owns, operates, or maintains facilities or control 
     systems that are part of a bulk-power system; or
       ``(C) is a system operator.
       ``(4) Electric reliability organization.--The term 
     ``electric reliability organization'' means the organization 
     designated by the Commission under subsection (d).
       ``(5) Entity rule.--The term `entity rule' means a rule 
     adopted by an affiliated regional reliability entity for a 
     specific region and designed to implement or enflorce 1 or 
     more organization standards.
       ``(6) Independent director.--The term `independent 
     director' means a person that--
       ``(A) is not an officer or employee of an entity that would 
     reasonably be perceived as having a direct financial interest 
     in the outcome of a decision by the board of directors of the 
     electric reliability organization; and
       ``(B) does not have a relationship that would interfere 
     with the exercise of independent judgment in carrying out the 
     responsibilities of a director of the electric reliability 
     organization.
       ``(7) Industry sector.--The term `industry sector' means a 
     group of bulkpower system users with substantially similar 
     commercial interests, as determined by the board of directors 
     of the electric reliability organization.
       ``(8) Interconnection.--The term `interconnection' means a 
     geographic area in which the operation of bulk-power system 
     components is synchronized so that the failure of 1 or more 
     of the components may adversely affect the ability of the 
     operators of other components within the interconnection to 
     maintain safe and reliable operation of the facilities within 
     their control.
       ``(9) Organization standard.--
       ``(A) In general.--The term `organization standard' means a 
     policy or standard adopted by the electric reliability 
     organization to provide for the reliable operation of a bulk-
     power system.
       ``(B) Inclusions.--The term `organization standard' 
     includes--
       ``(i) an entity rule approved by the electric reliability 
     organization; and
       ``(ii) a variance approved by the electric reliability 
     organization.
       ``(10) Public interest group.--
       ``(A) In general.-- The term `public interest group' means 
     a nonprofit private or public organization that has an 
     interest in the activities of the electric reliability 
     organization.
       ``(B) Inclusions.--The term `public interest group' 
     includes--
       ``(i) a ratepayer advocate;
       ``(ii) an environmental group; and
       ``(iii) a State or local government organization that 
     regulates participants in, and promulgates government policy 
     with respect to, the market for electric energy.
       ``(11) System operator.--
       ``(A) In general.--The term `system operator' means an 
     entity that operates or is responsible for the operation of a 
     bulk-power system.
       ``(B) Inclusions.--The term `system operator' includes--
       ``(i) a control area operator;
       ``(ii) an independent system operator;
       ``(iii) a transmission company;
       ``(iv) a transmission system operator; and
       ``(v) a regional security coordinator.
       ``(12) Variance.--The term `variance' means an exception 
     from the requirements of an organization standard (including 
     a proposal for an organization standard in a case in which 
     there is no organization standard) that is adopted by an 
     affiliated regional reliability entity and is applicable to 
     all or a part of the region for which the affiliated regional 
     reliability entity is responsible.
       ``(b) Commission Authority.--
       ``(1) Jurisdiction.--Notwithstanding section 201(f), within 
     the United States, the Commission shall have jurisdiction 
     over the electric reliability organization, all affiliated 
     regional reliability entities, all system operators, and all 
     bulk-power system users, including entities described in 
     section 201(f), for purposes of approving organization 
     standards and enforcing compliance with this section.
       ``(2) Definition of terms.--The Commission may by 
     regulation define any term used in this section consistent 
     with the definitions in subsection (a) and the purpose and 
     intent of this Act.
       (c) Existing Reliability Standards.--
       ``(1) Submission to the commission.--Before designation of 
     an electric reliability organization under subsection (d), 
     any person, including the North American Electric Reliability 
     Council and its member Regional Reliability Councils, may 
     submit to the Commission any reliability standard, guidance, 
     practice, or amendment to a reliability standard, guidance, 
     or practice that the person proposes to be made mandatory and 
     enforceable.
       ``(2) Review by the commission.--The Commission, after 
     allowing interested persons an opportunity to submit 
     comments, may approve a proposed mandatory standard, 
     guidance, practice, or amendment submitted under paragraph 
     (1) if the Commission finds that the standard, guidance, or 
     practice is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest.
       ``(3) Effect of approval.--A standard, guidance, or 
     practice shall be mandatory and applicable according to its 
     terms following approval by the Commission and shall remain 
     in effect until it is--
       ``(A) withdrawn, disapproved, or superseded by an 
     organization standard that is issued or approved by the 
     electric reliability organization and made effective by the 
     Commission under section (e); or
       ``(B) disapproved by the Commission if, on complaint or 
     upon motion by the Commission and after notice and an 
     opportunity for comment, the Commission finds the standard, 
     guidance, or practice to be unjust, unreasonable, unduly 
     discriminatory or preferential, or not in the public 
     interest.
       ``(4) Enforceability.--A standard, guidance, or practice in 
     effect under this subsection shall be enforceable by the 
     Commission.
       ``Designation of Electric Reliability Organization.--
       ``(1) Regulations.--
       ``(A) Proposed regulations.--Not later than 90 days after 
     the date of enactment of this section, the Commission shall 
     propose regulations specifying procedures and requirements 
     for an entity to apply for designation as the electric 
     reliability organization.
       ``(B) Notice and comment.--The Commission shall provide 
     notice and opportunity--for comment on the proposed 
     regulations.
       (C) Final regulation.--Not later than 180 days after the 
     date of enactment of this section, the Commission shall 
     promulgate final regulations under this subsection.
       ``(2) Application.--
       ``(A) Submission.--Following the promulgation of final 
     regulations under paragraph (1), an entity may submit an 
     application to the Commission for designation as the electric 
     reliability organization.
       ``(B) Contents.--The applicant shall describe in the 
     application--
       ``(i) the governance and procedures of the applicant; and
       ``(ii) the funding mechanism and initial funding 
     requirements of the applicant.
       ``(3) Notice and comment.--The Commission shall--
       ``(A) provide public notice of the application; and
       (B) afford interested parties an opportunity to comment.
       ``(4) Designation of electric reliability organization.--
     The Commission shall designate the applicant as the electric 
     reliability organization if the Commission determines that 
     the applicant--
       ``(A) has the ability to develop, implement, and enforce 
     standards that provide for an adequate level of reliability 
     of bulk-power systems;
       ``(B) permits voluntary membership to any bulk-power system 
     user or public interest group;
       ``(C) ensures fair representation of its members in the 
     selection of its directors and fair management of its 
     affairs, taking into account the need for efficiency and 
     effectiveness in decisionmaking and operations and the 
     requirements for technical competency in the development of 
     organization standards and the exercise of oversight of bulk-
     power system reliability;
       ``(D) ensures that no 2 industry sectors have the ability 
     to control, and no 1 industry sector has the ability to veto, 
     the applicant's discharge of its responsibilities as the 
     electric reliability organization (including actions by 
     committees recommending standards for approval by the board 
     or other board actions to implement and enforce standards);
       ``(E) provides for governance by a board wholly comprised 
     of independent directors;
       ``(F) provides a funding mechanism and requirements that--
       ``(i) are just, reasonable, not unduly discriminatory or 
     preferential and in the public interest; and
       ``(ii) satisfy the requirements of subsection (1);
       ``(G) has established procedures for development of 
     organization standards that--
       ``(i) provide reasonable notice and opportunity for public 
     comment, taking into account the need for efficiency and 
     effectiveness in decisionmaking and operations and the 
     requirements for technical competency in the development of 
     organization standards;
       (ii) ensure openness, a balancing of interests, and due 
     process; and
       ``(iii) includes alternative procedures to be followed in 
     emergencies;
       ``(H) has established fair and impartial procedures for 
     implementation and enforcement of organization standards, 
     either directly or through delegation to an affiliated 
     regional

[[Page 12504]]

     reliability entity, including the imposition of penalties, 
     limitations on activities, functions, or operations, or other 
     appropriate sanctions;
       `(I) has established procedures for notice and opportunity 
     for public observation of all meetings, except that the 
     procedures for public observation may include alternative 
     procedures for emergencies or for the discussion of 
     information that the directors reasonably determine should 
     take place in closed session, such as litigation, personnel 
     actions, or commercially sensitive information;
       ``(J) provides for the consideration of recommendations of 
     States and State commissions; and
       ``(K) addresses other matters that the Commission considers 
     appropriate to ensure that the procedures, governance, and 
     funding of the electric reliability organization are just, 
     reasonable, not unduly discriminatory or preferential, and in 
     the public interest.
       ``(5) Exclusive designation.--
       ``(A) In general.--The Commission shall designate only I 
     electric reliability organization.
       ``(B) Multiple applications.--If the Commission receives 2 
     or more timely applications that satisfy the requirements of 
     this subsection, the Commission shall approve only the 
     application that the Commission determines will best 
     implement this section.
       ``(e) Organization Standards.--
       ``(1) Submission of proposals to commission.--
       ``(A) In general.--The electric reliability organization 
     shall submit to the Commission proposals for any new or 
     modified organization standards.
       ``(B) Contents.--A proposal submitted under subparagraph 
     (A) shall include--
       ``(i) a concise statement of the purpose of the proposal; 
     and
       ``(ii) a record of any proceedings conducted with respect 
     to the proposal.
       ``(2) Review by the commission.--
       ``(A) Notice and comment.--The Commission shall--
       ``(i) provide notice of a proposal under paragraph (1); and
       ``(ii) allow interested persons 30 days to submit comments 
     on the proposal.
       ``(B) Action by the commission.--
       ``(i) In general.--After taking into consideration any 
     submitted comments, the Commission shall approve or 
     disapprove a proposed organization standard not later than 
     the end of the 60-day period beginning on the date of the 
     deadline for the submission of comments, except that the 
     Commission may extend the 60-day period for an additional 90 
     days for good cause.
       ``(ii) Failure to act.--If the Commission does not approve 
     or disapprove a proposal within the period specified in 
     clause (i), the proposed organization standard shall go into 
     effect subject to its terms, without prejudice to the 
     authority of the Commission to modify the organization 
     standard in accordance with the standards and requirements of 
     this section.
       ``(C) Effective date.--An organization standard approved by 
     the Commission shall take effect not earlier than 30 days 
     after the date of the Commission's order of approval.
       ``(D) Standards for approval.--
       ``(i) In general.--The Commission shall approve a proposed 
     new or modified organization standard if the Commission 
     determines the organization standard to be just, reasonable, 
     not unduly discriminatory or preferential, and in the public 
     interest.
       ``(ii) Considerations.--In the exercise of its review 
     responsibilities under this subsection, the Commission--
       ``(I) shall give due weight to the technical expertise of 
     the electric reliability organization with respect to the 
     content of a new or modified organization standard; but
       ``(II) shall not defer to the electric reliability 
     organization with respect to the effect of the organization 
     standard on competition.
       ``(E) Remand.--A proposed organization standard that is 
     disapproved in whole or in part by the Commission shall be 
     remanded to the electric reliability organization for further 
     consideration.
       ``(3) Orders to develop or modify organization standards.--
     The Commission, on complaint or on motion of the Commission, 
     may order the electric reliability organization to develop 
     and submit to the Commission, by a date specified in the 
     order, an organization standard or modification to an 
     existing organization standard to address a specific matter 
     if the Commission considers a new or modified organization 
     standard appropriate to carry out this section, and the 
     electric reliability organization shall develop and submit 
     the organization standard or modification to the Commission 
     in accordance with this subsection.
       ``(4) Variances and entity rules.--
       ``(A) Proposal.--An affiliated regional reliability entity 
     may propose a variance or entity rule to the electric 
     reliability organization.
       ``(B) Expedited consideration.--If expedited consideration 
     is necessary to provide for bulk-power system reliability, 
     the affiliated regional reliability entity may--
       ``(i) request that the electric reliability organization 
     expedite consideration of the proposal; and
       ``(ii) file a notice of the request with the Commission.
       ``(C) Failure to act.--
       ``(i) In general.--If the electric reliability organization 
     fails to adopt the variance or entity rule, in whole or in 
     part, the affiliated regional reliability entity may request 
     that the Commission review the proposal.
       ``(ii) Action by the commission.--If the Commission 
     determines, after a review of the request, that the action of 
     the electric reliability organization did not conform to the 
     applicable standards and procedures approved by the 
     Commission, or if the Commission determines that the variance 
     or entity rule is just, reasonable, not unduly discriminatory 
     or preferential, and in the public interest and that the 
     electric reliability organization has unreasonably rejected 
     or failed to act on the proposal, the Commission may--
       ``(I) remand the proposal for further consideration by the 
     electric reliability organization; or
       ``(II) order the electric reliability organization or the 
     affiliated regional reliability entity to develop a variance 
     or entity rule consistent with that requested by the 
     affiliated regional reliability entity.
       ``(D) Procedure.--A variance or entity rule proposed by an 
     affiliated regional reliability entity shall be submitted to 
     the electric reliability organization for review and 
     submission to the Commission in accordance with the 
     procedures specified in paragraph (2).
       ``(5) Immediate effectiveness.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, a new or modified organization standard 
     shall take effect immediately on submission to the Commission 
     without notice or comment if the electric reliability 
     organization--
       ``(i) determines that an emergency exists requiring that 
     the new or modified organization standard take effect 
     immediately without notice or comment;
       ``(ii) notifies the Commission as soon as practicable after 
     making the determination;
       ``(iii) submits the new or modified organization standard 
     to the Commission not later than 5 days after making the 
     determination; and
       ``(iv) includes in the submission an explanation of the 
     need for immediate effectiveness.
       ``(B) Notice and comment.--The Commission shall--
       ``(i) provide notice of the new or modified organization 
     standard or amendment for comment; and
       ``(ii) follow the procedures set out in paragraphs (2) and 
     (3) for review of the new or modified organization standard.
       ``(6) Compliance.--Each bulk power system user shall comply 
     with an organization standard that takes effect under this 
     section.
       ``(f) Coordination With Canada and Mexico.--
       ``(1) Recognition.--The electric reliability organization 
     shall take all appropriate steps to gain recognition in 
     Canada and Mexico.
       ``(2) International agreements.--
       ``(A) In general.--The President shall use best efforts to 
     enter into international agreements with the appropriate 
     governments of Canada and Mexico to provide for--
       ``(i) effective compliance with organization standards; and
       ``(ii) the effectiveness of the electric reliability 
     organization in carrying out its mission and 
     responsibilities.
       ``(B) Compliance.--All actions taken by the electric 
     reliability organization, an affiliated regional reliability 
     entity, and the Commission shall be consistent with any 
     international agreement under subparagraph (A).
       ``(g) Changes in Procedure, Governance, or Funding.--
       ``(1) Submission to the commission.--The electric 
     reliability organization shall submit to the Commission--
       ``(A) any proposed change in a procedure, governance, or 
     funding provision; or
       ``(B) any change in an affiliated regional reliability 
     entity's procedure, governance, or funding provision relating 
     to delegated functions.
       ``(2) Contents.--A submission under paragraph (1) shall 
     include an explanation of the basis and purpose for the 
     change.
       ``(3) Effectiveness.--
       ``(A) Changes in procedure.--
       ``(i) Changes constituting a statement of policy, practice, 
     or interpretation.--A proposed change in procedure shall take 
     effect 90 days after submission to the Commission if the 
     change constitutes a statement of policy, practice, or 
     interpretation with respect to the meaning or enforcement of 
     the procedure.
       ``(ii) Other changes.--A proposed change in procedure other 
     than a change described in clause (i) shall take effect on a 
     finding by the Commission, after notice and opportunity for 
     comment, that the change--
       ``(I) is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest; and
       ``(II) satisfies the requirements of subsection (d)(4).
       ``(B) Chances in governance or funding.--A proposed change 
     in governance or funding shall not take effect unless the 
     Commission finds that the change--
       ``(i) is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest; and

[[Page 12505]]

       ``(ii) satisfies the requirements of subsection (d)(4).
       ``(4) Order to amend.--
       ``(A) In general.--The Commission, on complaint or on the 
     motion of the Commission, may require the electric 
     reliability organization to amend a procedural, governance, 
     or funding provision if the Commission determines that the 
     amendment is necessary to meet the requirements of this 
     section.
       ``(B) Filing.--The electric reliability organization shall 
     submit the amendment in accordance with paragraph (1).
       ``(h) Delegations of Authority.--
       ``(1) In general.--
       ``(A) Implementation and enforcement of compliance.--At the 
     request of an entity, the electric reliability organization 
     shall enter into an agreement with the entity for the 
     delegation of authority to implement and enforce compliance 
     with organization standards in a specified geographic area if 
     the electric reliability organization finds that--
       ``(i) the entity satisfies the requirements of 
     subparagraphs (A), (B), (C), (D), (F), (J), and (K) of 
     subsection (d)(4); and
       ``(ii) the delegation would promote the effective and 
     efficient implementation and administration of bulk-power 
     system reliability.
       ``(B) Other authority.--The electric reliability 
     organization may enter into an agreement to delegate to an 
     entity any other authority, except that the electric 
     reliability organization shall reserve the right to set and 
     approve standards for bulk-power system reliability.
       ``(2) Approval by the commission.--
       ``(A) Submission to the commission.--The electric 
     reliability organization shall submit to the Commission--
       ``(i) any agreement entered into under this subsection; and
       ``(ii) any information the Commission requires with respect 
     to the affiliated regional reliability entity to which 
     authority is delegated.
       ``(B) Standards for approval.--The Commission shall approve 
     the agreement, following public notice and an opportunity for 
     comment, if the Commission finds that the agreement--
       ``(i) meets the requirements of paragraph (1); and
       ``(ii) is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest.
       ``(C) Rebuttable presumption.--A proposed delegation 
     agreement with an affiliated regional reliability entity 
     organized on an interconnection-wide basis shall be 
     rebuttably presumed by the Commission to promote the 
     effective and efficient implementation and administration of 
     the reliability of the bulk-power system.
       ``(D) Invalidity absent approval.--No delegation by the 
     electric reliability organization shall be valid unless the 
     delegation is approved by the Commission.
       ``(3) Procedures for entity rules and variances.--
       ``(A) In general.--A delegation agreement under this 
     subsection shall specify the procedures by which the 
     affiliated regional reliability entity may propose entity 
     rules or variances for review by the electric reliability 
     organization.
       ``(B) Interconnection-wide entity rules and variances.--In 
     the case of a proposal for an entity rule or variance that 
     would apply on an interconnection-wide basis, the electric 
     reliability organization shall approve the entity rule or 
     variance unless the electric reliability organization makes a 
     written finding that the entity rule or variance--
       ``(i) was not developed in a fair and open process that 
     provided an opportunity for all interested parties to 
     participate;
       ``(ii) would have a significant adverse impact on 
     reliability or commerce in other interconnections;
       ``(iii) fails to provide a level of reliability of the 
     bulk-power system wiin the interconnection such that the 
     entity rule or variance would be likely to cause a serious 
     and substantial threat to public health, safety, welfare, or 
     national security; or
       ``(iv) would create a serious and substantial burden on 
     competitive markets within the interconnection that is not 
     necessary for reliability.
       ``(C) Noninterconnection-wide entity rules and variance.--
     In the case of a proposal for an entity rule or variance that 
     would apply only to part of an interconnection, the electric 
     reliability organization shall approve the entity rule or 
     variance if the affiliated regional reliability entity 
     demonstrates that the proposal--
       ``(i) was developed in a fair and open process that 
     provided an opportunity for all interested parties to 
     participate;
       ``(ii) would not have an adverse impact on commerce that is 
     not necessary for reliability;
       ``(iii) provides a level of bulk-power system reliability 
     that is adequate to protect public health, safety, welfare, 
     and national security and would not have a significant 
     adverse impact on reliability; and
       ``(iv) in the case of a variance, is based on a justifiable 
     difference between regions or subregions within the 
     affiliated regional reliability entity's geographic area.
       ``(D) Action by the electric reliability organization.--
       ``(i) In general.--The electric reliability organization 
     shall approve or disapprove a proposal under subparagraph (A) 
     within 120 days after the proposal is submitted.
       ``(ii) Failure to act.--If the electric reliability 
     organization fails to act within the time specified in clause 
     (i), the proposal shall be deemed to have been approved.
       ``(iii) Submission to the commission.--After approving a 
     proposal under subparagraph (A), the electric reliability 
     organization shall submit the proposal to the Commission for 
     approval under the procedures prescribed under subsection 
     (e).
       ``(E) Direct submissions.--An affiliated regional 
     reliability entity may not submit a proposal for approval 
     directly to the Commission except as provided in subsection 
     (e)(4).
       (4) Failure to reach delegation agreement.--
       ``(A) In general.--If an affiliated regional reliability 
     entity requests, consistent with paragraph (1), that the 
     electric reliability organization delegate authority to it, 
     but is unable within 180 days to reach agreement with the 
     electric reliability organization with respect to the 
     requested delegation, the entity may seek relief from the 
     Commission.
       ``(B) Review by the commission.--The Commission shall order 
     the electric reliablity organization to enter into a 
     delegation agreement under terms specified by the Commission 
     if, after notice and opportunity for comment, the Commission 
     determines that--
       ``(i) a delegation to the affiliated regional reliability 
     entity would--
       ``(I) meet the requirements of paragraph (1); and
       ``(II) would be just, reasonable, not unduly discriminatory 
     or preferential, and in the public interest; and
       ``(ii) the electric reliability organization unreasonably 
     withheld the delegation.
       ``(5) Orders to modify delegation agreements.--
       ``(A) In general.--On complaint, or on motion of the 
     Commission, after notice to the appropriate affiliated 
     regional reliability entity, the Commission may order the 
     electric reliability organization to propose a modification 
     to a delegation agreement under this subsection if the 
     Commission determines that--
       ``(i) the affiliated regional reliability entity--
       ``(I) no longer has the capacity to carry out effectively 
     or efficiently the implementation or enforcement 
     responsibilities under the delegation agreement;
       ``(II) has failed to meet its obligations under the 
     delegation agreement; or
       ``(III) has violated this section;
       ``(ii) the rules, practices, or procedures of the 
     affiliated regional reliability entity no longer provide for 
     fair and impartial discharge of the implementation or 
     enforcement responsibilities under the delegation agreement;
       ``(iii) the geographic boundary of a transmission entity 
     approved by the Commission is not wholly within the boundary 
     of an affiliated regional reliability entity, and the 
     difference in boundaries is inconsistent with the effective 
     and efficient implementation and administration of bulk-power 
     system reliability; or
       ``(iv) the agreement is inconsistent with a delegation 
     ordered by the Commission under paragraph (4).
       ``(B) Suspension.--
       ``(i) In general.--Following an order to modify a 
     delegation agreement under subparagraph (A), the Commission 
     may suspend the delegation agreement if the electric 
     reliability organization or the affiliated regional 
     reliability entity does not propose an appropriate and timely 
     modification.
       ``(ii) Assumption of responsibilities.--If a delegation 
     agreement is suspended, the electric reliability organization 
     shall assume the responsibilities delegated under the 
     delegation agreement.
       ``(i) Organization Membership.--Each system operator shall 
     be a member of--
       ``(1) the electric reliability organization; and
       ``(2) any affiliated regional reliability entity operating 
     under an agreement effective under subsection (h) applicable 
     to the region in which the system operator operates, or is 
     responsible for the operation of, a transmission facility.
       ``(j) Enforcement.--
       ``(1) Disciplinary actions.--
       ``(A) In general.--Consistent with procedures approved by 
     the Commission under subsection (d)(4)(H), the electric 
     reliability organization may impose a penalty, limitation on 
     activities, functions, or operations, or other disciplinary 
     action that the electric reliability organization finds 
     appropriate against a bulk-power system user if the electric 
     reliability organization, after notice and an opportunity for 
     interested parties to be heard, issues a finding in writing 
     that the bulk-power system user has violated an organization 
     standard.
       ``(B) Notification.--The electric reliability organization 
     shall immediately notify the Commission of any disciplinary 
     action imposed with respect to an act or failure to act of a 
     bulk-power system user that affected or threatened to affect 
     bulk-power system facilities located in the United States.
       ``(C) Right to petition.--A bulk-power system user that is 
     the subject of disciplinary

[[Page 12506]]

     action under paragraph (1) shall have the right to petition 
     the Commission for a modification or rescission of the 
     disciplinary action.
       ``(D) Injunctions.--If the electric reliability 
     organization finds it necessary to prevent a serious threat 
     to reliability, the electric reliability organization may 
     seek injunctive relief in the United States district court 
     for the district in which the affected facilities are 
     located.
       ``(E) Effective date.--
       ``(i) In general.--Unless the Commission, on motion of the 
     Commission or on application by the bulk-power system user 
     that is the subject of the disciplinary action, suspends the 
     effectiveness of a disciplinary action, the disciplinary 
     action shall take effect on the 30th day after the date on 
     which--
       ``(I) the electric reliability organization submits to the 
     Commission--
       ``(aa) a written finding that the bulk-power system user 
     violated an organization standard; and
       ``(bb) the record of proceedings before the electric 
     reliability organization; and
       ``(II) the Commission posts the written finding on the 
     Internet.
       ``(ii) Duration.--A disciplinary action shall remain in 
     effect or remain suspended unless the Commission, after 
     notice and opportunity for hearing, affirms, sets aside, 
     modifies, or reinstates the disciplinary action.
       ``(iii) Expedited consideration.--The Commission shall 
     conduct the hearing under procedures established to ensure 
     expedited consideration of the action taken.
       ``(2) Compliance orders.--The Commission, on complaint by 
     any person or on motion of the Commission, may order 
     compliance with an organization standard and may impose a 
     penalty, limitation on activities, functions, or operations, 
     or take such other disciplinary action as the Commission 
     finds appropriate, against a bulk-power system user with 
     respect to actions affecting or threatening to affect bulk-
     power system facilities located in the United States if the 
     Commission finds, after notice and opportunity for a hearing, 
     that the bulk-power system user has violated or threatens to 
     violate an organization standard.
       ``(3) Other actions.--The Commission may take such action 
     as is necessary against the electric reliability organization 
     or an affiliated regional reliability entity to ensure 
     compliance with an organization standard, or any Commission 
     order affecting electric reliability organization or 
     affiliated regional reliability entity.
       ``(k) Reliability Reports.--The electric reliability 
     organization shall--
       ``(1) conduct periodic assessments of the reliability and 
     adequacy of the interconnected bulk-power system in North 
     America; and
       ``(2) report annually to the Secretary of Energy and the 
     Commission its findings and recommendations for monitoring or 
     improving system reliability and adequacy.
       ``(l) Assessment and Recovery of Certain Costs.--
       ``(1) In general.--The reasonable costs of the electric 
     reliability organization, and the reasonable costs of each 
     affiliated regional reliability entity that are related to 
     implementation or enforcement of organization standards or 
     other requirements contained in a delegation agreement 
     approved under subsection (h), shall be assessed by the 
     electric reliability organization and each affiliated 
     regional reliability entity, respectively, taking into 
     account the relationship of costs to each region and based on 
     an allocation that reflects an equitable sharing of the costs 
     among all electric energy consumers.
       ``(2) Rule.--The Commission shall provide by rule for the 
     review of costs and allocations under paragraph (1) in 
     accordance with the standards in this subsection and 
     subsection (d)(4)(F).
       ``(m) Application of Antitrust Laws.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the following activities are rebuttably presumed to be 
     in compliance with the antitrust laws of the United States:
       ``(A) Activities undertaken by the electric reliability 
     organization under this section or affiliated regional 
     reliability entity operating under a delegation agreement 
     under subsection (h).
       ``(B) Activities of a member of the electric reliability 
     organization or affiliated regional reliability entity in 
     pursuit of the objectives of the electric reliability 
     organization or affiliated regional reliability entity under 
     this section undertaken in good faith under the rules of the 
     organization of the electric reliability organization or 
     affiliated regional reliability entity.
       ``(2) Availability of defenses.--In a civil action brought 
     by any person or entity against the electric reliability 
     organization or an affiliated regional reliability entity 
     alleging a violation of an antitrust law based on an activity 
     under this Act, the defenses of primary jurisdiction and 
     immunity from suit and other affirmative defenses shall be 
     available to the extent applicable.
       ``(n) Regional Advisory Role.--
       ``(1) Establishment of regional advisory body.--The 
     Commission shall establish a regional advisory body on the 
     petition of the Governors of at least two-thirds of the 
     States within a region that have more than one-half of their 
     electrical loads served within the region.
       ``(2) Membership.--A regional advisory body--
       ``(A) shall be composed of 1 member from each State in the 
     region, appointed by the Governor of the State; and
       ``(B) may include representatives of agencies, States, and 
     Provinces outside in United States, on execution of an 
     appropriate international agreement described in subsection 
     (f).
       ``(3) Functions.--A regional advisory body may provide 
     advice to the electric reliability organization, an 
     affiliated regional reliability entity, or the Commission 
     regarding--
       ``(A) the governance of an affiliated regional reliability 
     entity existing or proposed within a region;
       ``(B) whether a standard proposed to apply within the 
     region is just, reasonable, not unduly discrimatory or 
     preferential, and the public interest; and
       ``(C) whether fees proposed to be assessed within the 
     regions are--
       ``(i) just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest; and
       ``(ii) consistent with the requirements of subsection (1).
       ``(4) Deference.--In a case in which a regional advisory 
     body encompasses an entire interconnection, the Commission 
     may give deference to advice provided by the regional 
     advisory body under paragraph (3).
       ``(o) Applicability of Section.--This section does not 
     apply outside the 48 contiguous States.
       ``(p) Rehearings Court Review of Orders.--Section 313 
     applies to an order of the Commission issued under this 
     section.
       ``(q) Preservation of State Authority.--
       ``(1) The Electric Reliability Organization shall have 
     authority to develop, implement, and enforce compliance with 
     standards for the reliable operation of only the Bulk Power 
     System.
       ``(2) This section does not provide the Electric 
     Reliability Organization or the Commission with the authority 
     to set and enforce compliance with standards for adequacy or 
     safety of electric facility or services.
       ``(3) Nothing in this section shall be construed to preempt 
     any authority of any State to take action to ensure the 
     safety, adequacy, and reliability of electric service within 
     that State, as long as such action is not inconsistent with 
     any Organization Standard.
       ``(4) Not later than 90 days after the application of the 
     Electric Reliability Organization or other affected party, 
     the Commmission shall issue a final order dtermining whether 
     a state action is inconsistent with an Organization Standard, 
     after notice and opportunity for comment, taking into 
     consideration any recommendations of the Electric Reliability 
     Organization.
       ``(5) The Commission, after consultation with the Electric 
     Reliability Organization, may stay the effectiveness of any 
     state action, pending the Commission's issuance of a final 
     order.''.
       ``(b) Enforcement.--
       ``(1) General penalties.--Section 316(c) of the Federal 
     Power Act (16 U.S.C. 825o(c)) is amended--
       ``(A) by striking ``subsection'' and inserting ``section''; 
     and
       ``(B) by striking ``or 214'' and inserting ``214 or 215''.
       ``(2) Certain provisions.--Section 316A of the Federal 
     Power Act (16 U.S.C. 8250-1) is amended by striking ``or 
     214'' each place it appears and inserting ``214, or 215''.
                                 ______
                                 

                  HATCH (AND LEAHY) AMENDMENT NO. 3653

  Mr. HATCH (for himself and Mr. Leahy) proposed an amendment to the 
bill, H.R. 4577, supra; as follows:

       Insert at the end the following:

     SEC.   . PROVISION OF INTERNET FILTERING OR SCREENING 
                   SOFTWARE BY CERTAIN INTERNET SERVICE PROVIDERS.

       (a) Requirement To Provide.--Each Internet Service provider 
     shall at the time of entering an agreement with a residential 
     customer for the provision of Internet access services, 
     provide to such customer, either at no fee or at fee not in 
     excess of the amount specified in subsection (c), computer 
     software or other filtering or blocking system that allows 
     the customer to prevent the access of minors to material or 
     the Internet.
       (b) Surveys of Provision of Software or Systems.--
       (1) Surveys.--The Office of Juvenile Justice and 
     Delinquency Prevention of the Department of Justice and the 
     Federal Trade Commission shall jointly conduct surveys of the 
     extent to which Internet service providers are providing 
     computer software or systems described in subsection (a) to 
     their subscribers. In performing such surveys, neither the 
     Department nor the Commission shall collect personally 
     identifiable information of subscribers of the Internet 
     service providers.
       (2) Frequency.--The surveys required by paragraph (1) shall 
     be completed as follows:
       (A) One shall be completed not later than one year after 
     the date of the enactment of this Act.

[[Page 12507]]

       (B) One shall be completed not later than two years after 
     that date.
       (C) One shall be completed not later than three years after 
     that date.
       (c) Fees.--The fee, if any, charged and collected by an 
     Internet service provider for providing computer software or 
     a system described in subsection (a) to a residential 
     customer shall not exceed the amount equal to the cost of the 
     provider in providing the software or system to the 
     subscriber, including the cost of the software or system and 
     of any license required with respect to the software or 
     system.
       (d) Applicability.--The requirement described in subsection 
     (a) shall become effective only if--
       (1) 1 year after the date of the enactment of this Act, the 
     Office and the Commission determine as a result of the survey 
     completed by the deadline in subsection (b)(2)(A) that less 
     than 75 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided computer software or systems described in 
     subsection (a) by such providers;
       (2) 2 years after the date of the enactment of this Act, 
     the Office and the Commission determine as a result of the 
     survey completed by the deadline in subsection (b)(2)(B) that 
     less than 85 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided such software or systems by such providers; or
       (3) 3 years after the date of the enactment of this Act, 
     the Office and the Commission determine as a result of the 
     survey completed by the deadline in subsection (b)(2)(C) that 
     less than 100 percent of the total number of residential 
     subscribers of Internet service providers as of such deadline 
     are provided such software or systems by such providers.
       (e) Internet Service Provider Defined.--In this section, 
     the term `Internet service provider' means a service provider 
     as defined in section 512(k)(1)(A) of title 17, United States 
     Code, which has more than 50,000 subscribers.
                                 ______
                                 

                        FRIST AMENDMENT NO. 3654

  (Ordered to lie on the table.)
  Mr. FRIST submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       On page 18, line 7, insert before ``: Provided,'' the 
     following: ``(minus $10,000,000)''.
       On page 68, line 23, strike ``$496,519,000'' and insert 
     ``$506,519,000''.
       On page 69, line 3, strike ``$40,000,000'' and insert 
     ``$50,000,000''.
       On page 69, line 6, insert after ``103-227'' the following: 
     ``and $20,000,000 of that $50,000,000 shall be made available 
     for the Interagency Education Research Initiative''.
                                 ______
                                 

                JEFFORDS (AND OTHERS) AMENDMENT NO. 3655

  (Ordered to lie on the table.)
  Mr. JEFFORDS (for himself, Mr. Gregg, Mr. Frist, Mr. Enzi, Mr. 
Hutchinson, Ms. Collins, Mr. Hagel, Mr. Sessions, Mr. Brownback, Mr. 
DeWine, Mr. Santorum, and Mr. Voinovich) submitted an amendment 
intended to be proposed by them to the bill, H.R. 4577, supra; as 
follows:

       On page 58, line 15, strike ``$4,672,534,000'' and insert 
     ``$3,372,534,000''.
       On page 58, line 17, strike ``$2,915,000,000'' and insert 
     ``$1,615,000,000''.
       On page 58, line 22, strike ``$3,100,000,000'' and insert 
     ``$1,800,000,000''.
                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 3656

  (Ordered to lie on the table.)
  Mr. JEFFORDS submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       On page 43, line 9, before the colon, insert the following: 
     ``, of which $5,000,000 shall be available for activities 
     regarding medication management, screening, and education to 
     prevent incorrect medication and adverse drug reactions''.
                                 ______
                                 

                       COLLINS AMENDMENT NO. 3657

  (Ordered to lie on the table.)
  Ms. COLLINS (for herself, Mr. Feingold, Mr. Jeffords, Mr. Biden,  
Mrs. Murray, Mr. Enzi, Mr. Wellstone, Mr. Bingaman, Mr. Robb, Mr. 
Kerry, Mr. Abraham, and Mr. Reed) submitted an amendment intended to be 
proposed by them to the bill, H.R. 4577, supra; as follows:

       On page 24, line 1, strike ``and''.
       On page 24, line 7, insert before the colon the following: 
     ``, and of which $4,000,000 shall be provided to the Rural 
     Health Outreach Office of the Health Resources and Services 
     Administration for the awarding of grants to community 
     partnerships in rural areas for the purchase of automated 
     external defibrillators and the training of individuals in 
     basic cardiac life support''.
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                DASCHLE (AND OTHERS) AMENDMENT NO. 3658

  Mr. HARKIN (for Mr. Daschle (for himself, Mr. Murkowski, Mr. Johnson, 
Mr. Wyden, Mrs. Murray, Mr. Harkin, and Mr. Reid)) proposed an 
amendment to the bill H.R. 4577, supra; as follows:

       On page 27, line 4, insert before the colon the following: 
     ``, and of which $10,000,000 shall remain available until 
     expended to carry out the Fetal Alcohol Syndrome prevention 
     and services program''.
       On page 34, line 13, insert before the colon the following: 
     ``, of which $15,000,000 shall remain available until 
     expended to carry out the Fetal Alcohol Syndrome prevention 
     and services program''.

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