[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Pages 5416-5467]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3293. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill (S. 517) to authorize funding the Department of Energy 
to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. __. ESTATE TAX WITH FULL TAX DEDUCTION FOR FAMILY-OWNED 
                   BUSINESS INTERESTS.

       (a) Elimination of Estate Tax Repeal.--
       (1) In general.--Subtitle A of title V, sections 511(d), 
     511(e), and 521(b)(2), and subtitle E of title V of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 are 
     repealed.
       (2) Conforming amendments.--
       (A) The table contained in section 2001(c)(2)(B) of the 
     Internal Revenue Code of 1986 is amended by striking ``2007, 
     2008, and 2009'' and inserting ``2007 and thereafter''.
       (B) The table contained in section 2010(c) of such Code is 
     amended by striking ``2009'' and inserting ``2009 and 
     thereafter''.
       (C) Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended--
       (i) by striking ``this Act'' and all that follows through 
     ``2010.'' in subsection (a) and inserting ``this Act (other 
     than title V) shall not apply to taxable, plan, or limitation 
     years beginning after December 31, 2010.'', and
       (ii) by striking ``, estates, gifts, and transfers'' in 
     subsection (b).
       (b) Increase in Exclusion Amount.--The table contained in 
     section 2010(c) of the Internal Revenue Code of 1986 
     (relating to applicable credit amount), as amended by 
     subsection (a)(2)(B), is amended by striking ``$3,500,000'' 
     and inserting ``$4,000,000''.
       (c) Full Tax Deduction for Family-Owned Business 
     Interests.--
       (1) In general.--Section 2057(a) (relating to deduction for 
     family-owned business interests) is amended--
       (A) by striking paragraphs (2) and (3), and
       (B) by striking ``General Rule.--'' and all that follows 
     through ``For purposes'' and inserting ``Allowance of 
     Deduction.--For purposes''.
       (2) Permanent deduction.--Section 2057 is amended by 
     striking subsection (j).
       (d) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and gifts 
     made, after December 31, 2002.
                                  ____

  SA 3294. Mrs. MURRAY (for herself and Ms. Cantwell) submitted an 
amendment intended to be proposed to

[[Page 5417]]

amendment SA 3286 proposed by Mr. Baucus (for himself, Mr. Grassley, 
Mr. Rockefeller, Mr. Hatch, Mr. Thomas, Mr. Hagel, and Mrs. Carnahan) 
to the amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 103, line 19, strike all through page 
     104, line 7, and insert the following:
       ``(i) generates at least 0.5 kilowatt of electricity using 
     an electrochemical process, and
       ``(ii) has an electricity-only generation efficiency 
     greater than 30 percent.
       ``(B) Limitation.--In the case of qualified fuel cell 
     property placed in service during the taxable year, the 
     credit determined under paragraph (1) for such year with 
     respect to such property shall not exceed an amount equal to 
     the lesser of--
       ``(i) 30 percent of the basis of such property, or
       ``(ii) $500 for each 0.5 kilowatt of capacity of such 
     property.
                                  ____

  SA 3295. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended 
to be proposed to amendment SA 3097 proposed by Mr. Dayton (for 
himself, Mr. Wellstone, and Mr. Feingold) to the amendment SA 2917 
proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 
517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2   . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction is consistent with the public interest, the 
     Commission shall approve the transaction.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) result in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       (a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Section 205 of the Federal Power Act (16 
     U.S.C. 824d) is amended by adding at the end the following:
       ``(g) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of this subsection, the Commission shall adopt 
     such rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(A) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); or
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-based rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provision.--Section 203 of 
     this Act (relating to market-based rates) shall be of no 
     effect.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (1) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The term ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--The term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (14) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer by whatever name 
     designated, of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or

[[Page 5418]]

     indirectly, by such holding company (either alone or pursuant 
     to an arrangement or understanding with one or more other 
     persons) so as to make it necessary for the rate protection 
     of utility customers with respect to rates that such person 
     be subject to the obligations, duties, and liabilities 
     imposed by this subtitle upon subsidiary companies of holding 
     companies.
       (17) Voting Security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (A) In General.--Each holding company and each affiliate or 
     associate company thereof shall maintain, and shall produce 
     for the Commission's examination, such books, accounts, 
     memoranda, records, and any other materials the Commission 
     deems to be relevant to costs incurred by a public utility or 
     natural gas company that is an affiliate or associate company 
     of such holding company and necessary or appropriate for the 
     protection of utility customers with respect to 
     jurisdictional rates.
                                  ____

  SA 3296. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended 
to be proposed to amendment SA 3097 proposed by Mr. Dayton (for 
himself, Mr. Wellstone, and Mr. Feingold) to the amendment SA 2917 
proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 
517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2   . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824b(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction will serve the public interest, the Commission 
     shall approve the transaction.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) result in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       (a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Section 205 of the Federal Power Act (16 
     U.S.C. 824d) is amended by adding at the end the following:
       ``(g) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of this subsection, the Commission shall adopt 
     such rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(A) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); or
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-base rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provision.--Section 203 of 
     this Act (relating to market-based rates) shall be of no 
     effect.
       (b) Remedial Measures for Market Power.--Part II of the 
     Federal Power Act (16 U.S.C. 824 et seq.) (as amended by 
     Section 209) is amended by adding at the end the following:

     ``SEC. 218. REMEDIAL MEASURES FOR MARKET POWER.

       ``(a) Definition of Market Power.--In this section, the 
     term `market power' with respect to a public utility, means 
     the ability of the public utility to maintain energy prices 
     above competitive levels.
       ``(b) Commission Jurisdictional Sales.--If the Commission, 
     on receipt of a complaint by any person or on a motion of the 
     Commission, determines that there exist markets for any 
     service or use of a facility subject to the jurisdiction of 
     the Commission under this Act in which a public utility has 
     exercised market power, the Commission, in accordance with 
     this Act, shall issue such orders as are necessary to 
     mitigate and remedy the adverse competitive effects of the 
     market power exercised.''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (1) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--The term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales

[[Page 5419]]

     of electric energy at wholesale in interstate commerce.
       (14) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer, by whatever name 
     designated, of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (17) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company and each affiliate or 
     associate company thereof shall maintain, and shall produce 
     for the Commission's examination, such books accounts, 
     memoranda, records, and any other materials the Commission 
     deems to be relevant to costs incurred by a public utility or 
     natural gas company that is an affiliate or associate company 
     of such holding company and necessary or appropriate for the 
     protection of utility customers with respect to 
     jurisdictional rates.
                                  ____

  SA 3297. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended 
to be proposed to amendment SA 3097 proposed by Mr. Dayton (for 
himself, Mr. Wellstone, and Mr. Feingold) to the amendment SA 2917 
proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 
517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2  . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824b(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction will serve the public interest, the Commission 
     shall approve the transaction.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) result in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       (a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Section 205 of the Federal Power Act (16 
     U.S.C. 824d) is amended by adding at the end the following:
       ``(g) Rules and Procedures To ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of this subsection, the Commission shall adopt 
     such rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(A) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); or
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-based rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provision.--Section 203 of 
     this Act (relating to market-based rates) shall be of no 
     effect.
       (b) Remedial Measures for market power.--Part II of the 
     Federal Power Act (16 U.S.C. 824 et seq.)(as amended by 
     Section 209) is amended by adding at the end the following:

     ``SEC. 218. REMEDIAL MEASURES FOR MARKET POWER.

       ``(a) Definition of Market Power.--In this section, the 
     term `market power' with respect to a public utility, means 
     the ability of the public utility to maintain energy prices 
     above competitive levels.
       ``(b) Commission Jurisdictional Sales.--If the Commission, 
     on receipt of a complaint by any person or on a motion of the 
     Commission, determines that there exist markets for any 
     service or use of a facility subject to the jurisdiction of 
     the Commission under this Act in which a public utility has 
     exercised market power, the Commission, in accordance with 
     this Act, shall issue such orders as are necessary to 
     mitigate and remedy the adverse competitive effects of the 
     market power exercised.''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (1) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding

[[Page 5420]]

     company, together with its subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--the term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (14) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer, by whatever name 
     designated, of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
        (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (17) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company and each affiliate or 
     associate company thereof shall produce for examination such 
     personnel, books, accounts, memoranda, records, and any other 
     materials upon an order of the Commission or any State 
     commission finding that the production of such materials will 
     assist the Commission or the State commission in carrying out 
     its responsibilities.
       (b) Court Jurisdiction.--Any United States district court 
     located within the State in which the State commission is 
     seeking to examine personnel or materials described in 
     subsection (a), or within the District of Columbia or within 
     any State in which the public utility is headquartered, shall 
     have the jurisdiction to enforce compliance with this 
     section.
       (c) Cost Recovery.--The cost of any audit of a holding 
     company or any affiliate or associate company ordered by the 
     Commission or a State commission under this section shall be 
     borne by the holding company and the associate or affiliate 
     company thereof.
       (d) Confidentiality.--Information provided to the 
     Commission or State commission shall be treated as 
     confidential only if the holding company or affiliate or 
     associate company thereof demonstrates to the court that such 
     information should not be made public.
       (e) Auditing.--The Commission, in consultation with 
     appropriate State commissions, shall conduct an audit every 3 
     years of the books and records of each holding company and 
     each affiliate or associate company thereof.
       (f) Preemption.--Nothing in this section shall preempt any 
     State law obligating a holding company or any associate or 
     affiliate company thereof to produce books and records.
                                  ____

  SA 3298. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended 
to be proposed to amendment SA 3097 proposed by Mr. Dayton (for 
himself, Mr. Wellstone, and Mr. Feingold) to the amendment SA 2917 
proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 
517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2.  . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824b(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction will serve the public interest, the Commission 
     shall approve the transition.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) results in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       (a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Section 205 of the Federal Power Act (16 
     U.S.C. 824d) is amended by adding at the end the following:
       ``(g) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of this subsection, the Commission shall adopt 
     such rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(A) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); or
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-based rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provision.--
       Section 203 of this Act (relating to market-based rates) 
     shall be of no effect.
       (b) Remedial Measures for Market Power.--
       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by Section 209) is amended by adding at the end 
     the following:

     ``SEC. 218. REMEDIAL MEASURES FOR MARKET POWER.

       ``(a) Definition of Market Power.--In this section, the 
     term `market power' with respect to a public utility, means 
     the ability of the public utility to maintain energy prices 
     above competitive levels.
       ``(b) Commission Jurisdictional Sales.--If the Commission, 
     on receipt of a complaint by any person or on a motion of the 
     Commission, determines that there exist markets for any 
     service or use of a facility subject to the jurisdiction of 
     the Commission under this Act in which a public utility has 
     exercised market power, the Commission, in accordance with 
     this Act, shall issue such orders as are necessary to 
     mitigate and remedy the adverse competitive effects of the 
     market power exercised.''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (a) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.

[[Page 5421]]

       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in the 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--The term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (14) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15)  State commission.--The term ``State commission'' 
     means any commission, board, agency, or officer, by whatever 
     names designated, of a State, municipality, or other 
     political subdivision of a State that, under the laws of such 
     State, has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (17) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company an each affiliate or 
     associate company thereof shall produce for examination such 
     personnel, books, accounts, memoranda, records, and any other 
     materials upon an order of the Commission or any State 
     commission finding that the production of such materials will 
     assist the Commission or the State commission in carrying out 
     its responsibilities.
       (b) Court Jurisdiction.--Any United States district court 
     located within the State in which the State commission is 
     seeking to examine personnel or materials described in 
     subsection (a), or within the District of Columbia or within 
     any State in which the public utility is headquartered, shall 
     have the jurisdiction to enforce compliance with this 
     section.
       (c) Cost Recovery.--The cost of any audit of a holding 
     company or any affiliate or associate company ordered by the 
     Commission or a State commission under this section shall be 
     borne by the holding company and the associate or affiliate 
     company thereof.
       (d) Confidentiality.--Information provided to the 
     Commission or State commission shall be treated as 
     confidential only if the holding company or affiliate or 
     associate company thereof demonstrates to the court that such 
     information should not be made public.
       (e) Auditing.--The Commission, in consultation with 
     appropriate State commissions, shall conduct an audit every 3 
     years of the books and records of each holding company and 
     each affiliate or associate company thereof.
       (f) Preemption.--Nothing in this section shall preempt any 
     State law obligating a holding company or any associate or 
     affiliate company thereof to produce books and records.

     SEC. 225. TRANSACTION TRANSPARENCY.

       (a) Prohibited Activities.--No holding company or affiliate 
     thereof, shall enter into any--
       (1) transaction for the purchase, sale, lease, or other 
     transfer or assets, goods, or services (other than the sale 
     of electricity or gas) or into any financial transaction 
     (including the issuance of securities, loans, or guarantees 
     or indebtedness or value) with a public utility company that 
     is an affiliate of that holding company, unless--
       (A) the transaction is clearly and fully disclosed by the 
     public utility company in a financial statement or other 
     report that is available to the public; and
       (B) prior to such transaction, the Commission has 
     determined that the transaction will not be detrimental to 
     the public interest or the interests of electricity and 
     natural gas consumers or competition; or
       (2) financial transaction (including the issuance, 
     purchase, or sale of securities, loans, or guarantees of 
     indebtedness or value) that does not appear in the financial 
     statements or reports maintained by that holding company or 
     affiliate for accounting purposes, unless the transaction is 
     clearly and fully disclosed by that holding company or 
     affiliate in a financial statement or other report that is 
     made available to the public.
       (b) Commission Rules.--Notwithstanding section 236, the 
     Commission shall promulgate final rules prior to the 
     effective date of this subtitle, providing for the 
     expeditions review of transactions referred to in subsection 
     (a)(1) on a case by case basis and protection of electricity 
     and natural gas consumers from holding company 
     diversification.
       (c) Requirements.--Rules required under subsection (c) 
     shall ensure, at a minimum, that--
       (1) no asset of a public utility company shall be used as 
     collateral for indebtedness incurred by the holding company 
     of, or any affiliate of, such public utility company;
       (2) no public utility company shall make any loan to, or 
     guarantee the indebtedness or value of, any holding company 
     or affiliate thereof;
       (3) any sale, lease, or transfer of assets, goods or 
     services to a public utility company by its holding company 
     or any affiliate thereof shall be at terms that are no less 
     favorable to the public utility company than the cost to such 
     holding company or affiliate;
       (4) any sale, lease, or transfer of assets, goods, or 
     services by a public utility company to its holding company 
     or any affiliate thereof, or the provision of assets, goods, 
     or services for the use by, or benefit of, such holding 
     company or affiliate, shall be at terms that are no less 
     favorable to the public utility company than the market price 
     of such assets, goods or services;
       (5) any loan to, or guarantee of, the indebtedness or value 
     of, a public utility company by a holding company or 
     affiliate thereof, shall be at terms that are no less 
     favorable than the cost to such holding company or affiliate;
       (6) information necessary to monitor and regulate a holding 
     company or affiliate thereof is made available to the 
     Commission;
       (7) electricity and natural gas consumers are protected 
     against the financial risks of holding company 
     diversification and transactions with and among any holding 
     company or affiliate thereof; and
       (d) Limitation on Authority.--Nothing in this section or 
     the regulations promulgated under this section shall limit 
     the authority of any State to prevent holding company 
     diversification from adversely affecting electricity or 
     natural gas consumers.
                                  ____

  SA 3299. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray,

[[Page 5422]]

Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended to be 
proposed to amendment SA 3097 proposed by Mr. Dayton (for himself, Mr. 
Wellstone, and Mr. Feingold) to the amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2  . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction will advance the public interest, the Commission 
     shall approve the transaction.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) result in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       ``(a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Section 205 of the Federal Power Act (16 
     U.S.c. 824d) is amended by adding at the end the following:
       ``(g) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       ``(1) In general.--Not later than 270 days after the date 
     of enactment of this subsection, the Commission shall adopt 
     such rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(A) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); or
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-based rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provisions.--
       Section 203 of this Act (relating to market-based rates) 
     shall be of no effect.
       (b) Remedial Measures for Market Power.--
       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by Section 209) is amended by adding at the end 
     the following:

     ``SEC. 218. REMEDIAL MEASURES FOR MARKET POWER.

       ``(a) Definition of Market Power.--In this section, the 
     term `market power' with respect to a public utility, means 
     the ability of the public utility to maintain energy prices 
     above competitive levels.
       ``(b) Commission Jurisdictional Sales.--If the Commission, 
     on receipt of a complaint by any person or on a motion of the 
     Commission, determines that there exist markets for any 
     service or use of a facility subject to the jurisdiction of 
     the Commission under this Act in which a public utility has 
     exercised market power, the Commission, in accordance with 
     this Act, shall issue such orders as are necessary to 
     mitigate and remedy the adverse competitive effects of the 
     market power exercised.''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (1) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--The term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (14) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer, by whatever name 
     designated of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by

[[Page 5423]]

     this subtitle upon subsidiary companies of holding companies.
       (17) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) Is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company and each affiliate or 
     associate company thereof shall produce for examination such 
     personnel, books, accounts, memoranda, records, and any other 
     materials upon an order of the Commission or any State 
     commission finding that the production of such materials will 
     assist the Commission or the State commission in carrying out 
     its responsibilities.
       (b) Court Jurisdiction.--Any United States district court 
     located within the State in which the State commission is 
     seeking to examine personnel or materials described in 
     subsection (a), or within the District of Columbia or within 
     any State in which the public utility is headquartered, shall 
     have the jurisdiction to enforce compliance with this 
     section.
       (c) Cost Recovery.--The cost of any audit of a holding 
     company or any affiliate or associate company ordered by the 
     Commission or a State commission under this section shall be 
     borne by the holding company and the associate or affiliate 
     company thereof.
       (d) Confidentiality.--Information provided to the 
     Commission or State commission shall be treated as 
     confidential only if the holding company or affiliate or 
     associate company thereof demonstrates to the court that such 
     information should not be made public.
       (e) Auditing.--The Commission, in consultation with 
     appropriate State commissions, shall conduct an audit every 3 
     years of the books and records of each holding company and 
     each affiliate or associate company thereof.
       (f) Preemption.--Nothing in this section shall preempt any 
     State law obligating a holding company or any associate or 
     affiliate company thereof to produce books and record.

     SEC. 225. TRANSACTION TRANSPARENCY.

       (a) Prohibitied Activities.--No holding company or 
     affiliate thereof, shall enter into any--
       (1) transaction for the purchase, sale, lease, or other 
     transfer of assets, goods, or services (other than the sale 
     of electricity or gas) or into any financial transaction 
     (including the issuance of securities, loans, or guarantees 
     of indebtedness or value) with a public utility company that 
     is an affiliate of that holding company, unless--
       (A) the transaction is clearly and fully disclosed by the 
     public utility company in a financial statement or other 
     report that is available to the public; and
       (B) prior to such transaction, the Commission has 
     determined that the transaction will not be detrimental to 
     the public interests or the interests of electricity and 
     natural gas consumers or competition; or
       (2) financial transaction (including the issuance, 
     purchase, or sale of securities, loans, or guarantees of 
     indebtedness or value) that does not appear in the financial 
     statements or reports maintained by that holding company or 
     affiliate for accounting purposes, unless the transaction is 
     clearly and fully disclosed by that holding company or 
     affiliate in a financial statement or other report that is 
     made available to the public.
       (b) Commission Rules.--Notwithstanding section 236, the 
     Commission shall promulgate final rules prior to the 
     effective date of this subtitle, providing for the 
     expeditions review of transactions referred to in subsection 
     (a)(1) on a case by case basis and protection of electricity 
     and natural gas consumers from holding companies 
     diversification.
       (c) Requirements.--Rules required under subsection (c) 
     shall ensure, at a minimum, that--
       (1) no asset of a public utility company shall be used as 
     collateral for indebtedness incurred by the holding company 
     of, or any affiliate of, such public utility company;
       (2) no public utility company shall make any loan to, or 
     guarantee the indebtedness or value of, any holding company 
     or affiliate thereof;
       (3) any sale, lease, or transfer of assets, goods or 
     services to a public utility company by its holding company 
     or any affiliate thereof shall be at terms that are no less 
     favorable to the public utility company than the cost to such 
     holding company or affiliate;
       (4) any sale, lease, or transfer of assets, goods, or 
     services by a public utility company to its holding company 
     or any affiliate thereof, or the provision of assets, goods, 
     or services for the use by, or benefit of, such holding 
     company or affiliate, shall be at terms that are no less 
     favorable to the public utility company than the market price 
     of such assets, goods or services;
       (5) any loan to, or guarantee of, the indebtedness or value 
     of, a public utility company by a holding company or 
     affiliate thereof, shall be at terms that are no less 
     favorable than the cost to such holding company or affiliate;
       (6) information necessary to monitor and regulate a holding 
     company or affiliate thereof is made available to the 
     Commission;
       (7) electricity and natural gas consumers are protected 
     against the financial risks of holding company 
     diversification and transactions with and among any holding 
     company or affiliate thereof; and
       (d) Limitation on Authority.--Nothing in this section or 
     the regulations promulgated under this section shall limit 
     the authority of any State to prevent holding company 
     diversification from adversely affecting electricity or 
     natural gas consumers.
                                  ____

  SA 3300. Ms. CANTWELL (for herself, Mrs. Boxer, Mr. Wyden, Mrs. 
Murray, Ms. Stabenow, and Mr. Jeffords) submitted an amendment intended 
to be proposed to amendment SA 3097 proposed by Mr. Dayton (for 
himself, Mr. Wellstone, and Mr. Feingold) to the amendment SA 2917 
proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 
517) to authorize funding for Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
year 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 2   . ELECTRIC UTILITY MERGER PROVISIONS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824b(a)) 
     (as amended by section 202) is amended by striking paragraph 
     (4) and inserting the following:
       ``(4) Approval.--
       ``(A) In general.--After notice and opportunity for 
     hearing, if the Commission finds that the proposed 
     transaction will serve the public interest, the Commission 
     shall approve the transaction.
       ``(B) Minimum required findings.--In making the finding 
     under subparagraph (A) with respect to a proposed 
     transaction, the Commission shall, at a minimum, find that 
     the proposed transaction will--
       ``(i)(I) enhance competition in wholesale electricity 
     markets; and
       ``(II) if a State commission requests the Commission to 
     consider the effect of the proposed transaction on 
     competition in retail electricity markets, enhance 
     competition in retail electricity markets;
       ``(ii) produce significant gains in operational and 
     economic efficiency; and
       ``(iii) include employee protective arrangements, as 
     defined in Sec. 222 of the Public Utility Holding Company Act 
     of 2002, that the Commission concludes will fairly and 
     equitable protect the interests of employees affected by the 
     proposed transaction; and
       ``(iv) result in a corporate and capital structure that 
     facilitates effective regulatory oversight.''.

     SEC. 2  . WHOLESALE MARKETS AND MARKET POWER.

       (a) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Section 205 of the Federal Power Act (16 
     U.S.C. 824d) is amended by adding at the end the following:
       (g) Rules and Procedures To Ensure Competitive Wholesale 
     Markets.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this subsection, the Commission shall adopt such 
     rules and procedures as the Commission determines are 
     necessary to define and determine the conditions necessary--
       ``(A) to maintain competitive wholesale markets;
       ``(B) to effectively monitor market conditions and trends;
       ``(C) to prevent the abuse of market power and market 
     manipulation;
       ``(D) to protect the public interest; and
       ``(E) to ensure the maintenance of just and reasonable 
     wholesale rates.
       ``(2) Conditions on grants of authority.--The Commission 
     shall--
       ``(2) ensure that any grant of authority by the Commission 
     to a public utility to charge market-based rates for any sale 
     of electric energy subject to the jurisdiction of the 
     Commission is consistent with the rules and procedures 
     adopted by the Commission under paragraph (1); and
       ``(B) establish and impose remedies applicable to a public 
     utility that--
       ``(i) violates a rule or procedures adopted under paragraph 
     (1); and
       ``(ii) by any other means uses a grant of authority to 
     exercise market power or manipulate the market.
       ``(3) No limitation on federal antitrust remedies.--The 
     filing with the Commission of a request for authorization to 
     charge market-based rates, and the acceptance or approval by 
     the Commission of such a request, shall not affect the 
     availability of any remedy under Federal antitrust law with 
     respect to any rate, charge, or service that is subject to 
     the authorization.''.
       (2) Ineffectiveness of other provision.--
       Section 203 of this Act (relating to market-based rates) 
     shall be of no effect.
       (b) Remedial Measures for Market Power.--
       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by Section 209) is amended by adding at the end 
     the following:

[[Page 5424]]



     ``SEC. 218. REMEDIAL MEASURES FOR MARKET POWER.

       ``(a) Definition of Marker Power.--(In this section the 
     term `market power' with respect to a public utility, means 
     the ability of the public utility to maintain energy prices 
     above competitive levels.
       ``(b) Commission Jurisdictional Sales.--If the Commission, 
     on receipt of a complaint by any person or on a motion of the 
     Commission, determines that there exist markets for any 
     service or use of a facility subject to the jurisdiction of 
     the Commission under this Act in which a public utility has 
     exercised market power, the Commission, in accordance with 
     this Act, shall issue such orders as are necessary to 
     mitigate and remedy the adverse competitive effects of the 
     market power exercised.''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       In this subtitle:
       (1) Affilate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Employee protective arrangement.--The term ``employee 
     protective arrangement'' means a provision that may be 
     necessary for--
       (A) the preservation of rights, privileges, and benefits 
     (including continuation of pension rights and benefits) under 
     existing collective bargaining agreements or otherwise;
       (B) the continuation of collective bargaining rights;
       (C) the protection of individual employees against a 
     worsening of their positions related to employment;
       (D) assurances of employment to employees of acquired 
     companies;
       (E) assurances of priority of reemployment of employees 
     whose employment is ended or who are laid off; and
       (F) paid training or retraining programs.
       (7) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meaning as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (8) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (9) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (10) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (11) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates established by the Commission for the 
     transmission of electric energy in interstate commerce, the 
     sale of electric energy at wholesale in interstate commerce, 
     the transportation of natural gas in interstate commerce, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (12) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (13) Person.--The term ``person'' means an individual or 
     company.
       (14) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (15) Public utility company.--The term ``public utility 
     company'' means an electric utility company or a gas utility 
     company.
       (16) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer, by whatever name 
     designated, of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (17) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (a) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (18) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) Is repealed.

     SEC. 224. ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company and each affiliate or 
     associate company thereof shall produce for examination such 
     personnel, books, accounts, memoranda, records, and any other 
     materials upon an order of the Commission or any State 
     commission finding that the production of such materials will 
     assist the Commission or State commission in carrying out its 
     responsibilities.
       (b) Court Jurisdiction.--Any United States district court 
     located within the State in which the State commission is 
     seeking to examine personnel or materials described in 
     subsection (a), or within the District of Columbia or within 
     any State in which the public utility is headquartered, shall 
     have the jurisdiction to enforce compliance with this 
     section.
       (c) Cost Recovery.--The cost of any audit of a holding 
     company or any affiliate or associate company ordered by the 
     Commission or a State commission under this section shall be 
     borne by the holding company and the associate or affiliate 
     company thereof.
       (d) Confidentiality.--Information provided to the 
     Commission or State commission shall be treated as 
     confidential only if the holding company or affiliate or 
     associate company thereof demonstrates to the court that such 
     information should not be made public.
       (e) Auditing.--The Commission, in consultation with 
     appropriate State commissions, shall conduct an audit every 3 
     years of the books and records of each holding company and 
     each affiliate or associate company thereof.
       (f) Preemption.--Nothing in this section shall preempt any 
     State law obligating a holding company or any associate or 
     affiliate company thereof to produce books and records.

     SEC. 225. TRANSACTION TRANSPARENCY.

       (a) Prohibited Activities.--No holding company or affiliate 
     thereof, shall enter into any--
       (1) transaction for the purchase, sale, lease, or other 
     transfer of assets, goods, or services (other than the sale 
     of electricity or gas) or into nay financial transaction 
     (including the issuance of securities, loans, or guarantees 
     of indebtedness or value) with a public utility company that 
     is an affiliate of that holding company, unless--
       (A) the transaction is clearly and fully disclosed by the 
     public utility company in a financial statement or other 
     report that is available to the public; and
       (B) prior to such transaction, the Commission has 
     determined that the transaction will not be detrimental to 
     the public interest or the interests of electricity and 
     natural gas consumers or competition; or
       (2) financial transaction (including the issuance, 
     purchase, or sale of securities, loans, or guarantees of 
     indebtedness or value) that does not appear in the financial 
     statements or reports maintained by that holding company or 
     affiliate for accounting purposes, unless the transaction is 
     clearly and fully disclosed by that holding company or 
     affiliate in a financial statement or other report that is 
     made available to the public.
       (b) Commission Rules.--Notwithstanding section 236, the 
     Commission shall promulgate final rules prior to the 
     effective date of

[[Page 5425]]

     this subtitle, providing for the expeditious review of 
     transactions referred to in subsection (a)(1) on a case by 
     case basis and protection of electricity and natural gas 
     consumers from holding company diversification.
       (c) Requirements.--Rules required under subsection (c) 
     shall ensure, at a minimum, that--
       (1) no asset of a public utility company shall be used as 
     collateral for indebtedness incurred by the holding company 
     of, or any affiliate of, such public utility company;
       (2) no public utility company shall make any loan to, or 
     guarantee the indebtedness or value of, any holding company 
     or affiliate thereof;
       (3) any sale, lease, or transfer of assets, goods or 
     services to a public utility company by its holding company 
     or any affiliate thereof shall be at terms that are no less 
     favorable to the public utility company than the cost to such 
     holding company or affiliate;
       (4) any sale, lease, or transfer of assets, goods, or 
     services by a public utility company to its holding company 
     or any affiliate thereof, or the provision of assets, goods 
     or services for the use by, or benefit of, such holding 
     company or affiliate, shall be at terms that are no less 
     favorable to the public utility company than the market price 
     of such assets, goods or services.
       (5) any loan to, or guarantee of, the indebtedness or value 
     of, a public utility company by a holding company of 
     affiliate thereof, shall be at terms that are no less 
     favorable than the cost to such holding company or affiliate;
       (6) information necessary to monitor and regulate a holding 
     company or affiliate thereof is made available to the 
     Commission;
       (7) electricity and natural gas consumers are protected 
     against the financial risks of holding company 
     diversification and transactions with and among any holding 
     company or affiliate thereof; and
       (8) the interest of employees affected by a proposed 
     transaction shall be protected under employee protective 
     arrangements the Commission concludes are fair and equitable.
       (d) Limitation on Authority.--Nothing in this section or 
     the regulations promulgated under this section shall limit 
     the authority of any State to prevent holding company 
     diversification from adversely affecting electricity or 
     natural gas consumers.
                                  ____

  SA 3301. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 3140 submitted by Mr. Nelson of Nebraska and intended 
to be proposed to the amendment SA 2917 proposed by Mr. Daschle (for 
himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter to be inserted, insert the following:

                    TITLE III--HYDROELECTRIC ENERGY

     SEC. 301. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

       (a) Alternative Conditions.--The Federal Power Act is 
     amended by inserting after section 4 (16 U.S.C. 797) the 
     following:

     ``SEC. 4A. ALTERNATIVE CONDITIONS.

       ``(a) Definition of Secretary.--In this section, the term 
     `Secretary', with respect to an application under subsection 
     (e) of section 4 for a license for a project works within a 
     reservation of the United States, means the Secretary of the 
     department under whose supervision the reservation falls.
       ``(b) Proposal of Alternative Condition.--When a person 
     applies for a license for any project works within a 
     reservation of the United States under subsection (e) of 
     section 4, and the Secretary deems a condition to the license 
     to be necessary under the first proviso of that subsection, 
     the license applicant or any other interested person may 
     propose an alternative condition.
       ``(c) Acceptance of Proposed Alternative Condition.--
     Notwithstanding the first proviso of section 4(e), the 
     Secretary may accept an alternative condition proposed under 
     subsection (b), and the Commission shall include in the 
     license that alternative condition, if the Secretary 
     determines, based on substantial evidence, that the 
     alternative condition--
       ``(1) provides for the adequate protection and use of the 
     reservation; and
       ``(2) will cost less to implement, or result in improved 
     operation of the project works for electricity production, as 
     compared with the condition initially deemed necessary by the 
     Secretary.
       ``(d) Written Statement.--The Secretary shall submit into 
     the public record of the Commission proceeding, with any 
     condition under section 4(e) or alternative condition that 
     the Secretary accepts under subsection (c), a written 
     statement explaining the basis for the condition or 
     alternative condition, and each reason for not accepting any 
     alternative condition under this subsection, including--
       ``(1) a statement of the goals, objectives, or applicable 
     management requirements established by the Secretary for 
     protection and use of the reservation;
       ``(2) the consideration by the Secretary of all studies, 
     data, and other factual information made available to the 
     Secretary that are relevant to the decision of the Secretary; 
     and
       ``(3) any information made available to the Secretary 
     regarding the effects of the condition or alternative 
     condition on energy supply, distribution, cost, and use, air 
     quality, flood control, navigation, and drinking, irrigation, 
     and recreation water supply (including information 
     voluntarily provided in a timely manner by the applicant and 
     any other person).
       ``(e) Procedure.--Not later than 1 year after the date of 
     enactment of this section, the Secretary of each department 
     that exercises supervision over a reservation of the United 
     States shall, by regulation, establish a procedure to 
     expeditiously resolve any conflict arising under this 
     section.''.
       (b) Alternative Prescriptions.--Section 18 of the Federal 
     Power Act (16 U.S.C. 811) is amended--
       (1) by striking ``Sec. 18. The Commission'' and inserting 
     the following:

     ``SEC. 18. OPERATION OF NAVIGATION FACILITIES.

       ``(a) In General.--The Commission''; and
       (2) by adding at the end the following:
       ``(b) Alternative Prescriptions.--
       ``(1) In general.--When the Secretary of the Interior or 
     the Secretary of Commerce prescribes a fishway under 
     subsection (a), the license applicant or licensee, or any 
     other interested person, may propose an alternative 
     condition.
       ``(2) Acceptance of proposed alternative condition.--
     Notwithstanding subsection (a), the Secretary of the Interior 
     or the Secretary of Commerce, as appropriate, may accept an 
     alternative condition proposed under paragraph (1), and the 
     Commission shall include in the license the alternative 
     condition, if the Secretary of the appropriate department 
     determines, based on substantial evidence, that the 
     alternative condition--
       ``(A) will be no less effective to meet the goals, 
     objectives, or applicable management requirements identified 
     by the Secretary under this section, than the fishway 
     initially prescribed by the Secretary; and
       ``(B) will cost less to implement, or result in improved 
     operation of the project works for electricity production, as 
     compared to the fishway initially prescribed by the 
     Secretary.
       ``(3) Written statement.--The Secretary shall submit into 
     the public record of the Commission proceeding, with any 
     prescription under subsection (a) or alternative condition 
     that the Secretary accepts under paragraph (2), a written 
     statement explaining the basis for the prescription or 
     alternative condition, and reason for not accepting any 
     alternative condition under this subsection, including--
       ``(A) a statement of the biological and other goals, 
     objectives, or applicable management requirements identified 
     by the Secretary under this section;
       ``(B) the consideration by the Secretary of all studies, 
     data, and other factual information made available to the 
     Secretary and relevant to the decision of the Secretary; and
       ``(C) any information made available to the Secretary 
     regarding the effects of the prescription or alternative 
     condition on energy supply, distribution, cost, and use, air 
     quality, flood control, navigation, and drinking, irrigation, 
     and recreation water supply (including information 
     voluntarily provided in a timely manner by the applicant and 
     any other person).
       ``(4) Procedure.--Not later than 1 year after the date of 
     enactment of this subsection, each Secretary concerned shall, 
     by regulation, establish a procedure to expeditiously any 
     resolve conflict arising under this subsection.''.

     SEC. 302. RELICENSING STUDY.

       (a) Definition of New Licensing Condition.--In this 
     section, the term ``new license condition'' means any 
     condition imposed under--
       (1) section 4(e) of the Federal Power Act (16 U.S.C. 
     797(e));
       (2) section 10(a) of the Federal Power Act (16 U.S.C. 
     803(a));
       (3) section 10(e) of the Federal Power Act (16 U.S.C. 
     803(e));
       (4) section 10(j) of the Federal Power Act (16 U.S.C. 
     803(j));
       (5) section 18 of the Federal Power Act (16 U.S.C. 811); or
       (6) section 401(d) of the Clean Water Act (33 U.S.C. 
     1341(d)).
       (b) Study.--The Federal Energy Regulatory Commission shall, 
     jointly with the Secretary of Commerce, the Secretary of the 
     Interior, and the Secretary of Agriculture, conduct a study 
     of all new licenses issued for existing projects under 
     section 15 of the Federal Power Act (16 U.S.C. 808) since 
     January 1, 1994.
       (c) Scope.--The study shall analyze--
       (1) the length of time the Commission has taken to issue 
     each new license for an existing project;
       (2) the additional cost to the licensee attributable to new 
     license conditions;
       (3) the change in generating capacity attributable to new 
     license conditions;
       (4) the environmental benefits achieved by new license 
     conditions;

[[Page 5426]]

       (5) significant unmitigated environmental damage of the 
     project and costs to mitigate such damage; and
       (6) litigation arising from the issuance or failure to 
     issue new licenses for existing projects under section 15 of 
     the Federal Power Act or the imposition or failure to impose 
     new license conditions.
       (d) Consultation.--The Commission shall give interested 
     persons and licensees an opportunity to submit information 
     and views in writing.
       (e) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Commission shall submit to the 
     Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Energy and Commerce of the 
     House of Representatives a report that describes findings 
     made as a result of the study.

     SEC. 302. DATA COLLECTION PROCEDURES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission, the Secretary of the Interior, the Secretary of 
     Commerce, and the Secretary of Agriculture shall jointly 
     develop procedures for ensuring complete and accurate data 
     concerning the time and cost to parties in the hydroelectric 
     licensing process under part I of the Federal Power Act (16 
     U.S.C. 791 et seq.).
       (b) Publication of Data.--Data described in subsection (a) 
     shall be published regularly, but not less frequently than 
     every 3 years.
                                  ____

  SA 3302. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 517, to authorize funding the Department of Energy 
to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 123, after line 25, add the following:
       ``(v) Nonapplication of certain rules.--For purposes of 
     determining if the term `combined heat and power system 
     property' includes technologies which generate electricity or 
     mechanical power using back-pressure steam turbines in place 
     of existing pressure-reducing valves or which make use of 
     waste heat from industrial processes such as by using organic 
     rankin, stirling, or kalina heat engine systems, subparagraph 
     (A) shall be applied without regard to clauses (iii) and (iv) 
     thereof.
                                  ____

  SA 3303. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 517, to authorize funding the Department of Energy 
to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       In the amendment strike all after the first word and insert 
     the following:

     SEC. __. ESTATE TAX WITH FULL TAX DEDUCTION FOR FAMILY-OWNED 
                   BUSINESS INTERESTS.

       (a) Elimination of Estate Tax Repeal.--
       (1) In general.--Subtitle A of title V, sections 511(d), 
     511(e), and 521(b)(2), and subtitle E of title V of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 are 
     repealed.
       (2) Conforming amendments.--
       (A) The table contained in section 2001(c)(2)(B) of the 
     Internal Revenue Code of 1986 is amended by striking ``2007, 
     2008, and 2009'' and inserting ``2007 and thereafter''.
       (B) The table contained in section 2010(c) of such Code is 
     amended by striking ``2009'' and inserting ``2009 and 
     thereafter''.
       (C) Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended--
       (i) by striking ``this Act'' and all that follows through 
     ``2010.'' in subsection (a) and inserting ``this Act (other 
     than title V) shall not apply to taxable, plan, or limitation 
     years beginning after December 31, 2010.'', and
       (ii) by striking ``, estates, gifts, and transfers'' in 
     subsection (b).
       (b) Increase in Exclusion Amount.--The table contained in 
     section 2010(c) of the Internal Revenue Code of 1986 
     (relating to applicable credit amount), as amended by 
     subsection (a)(2)(B), is amended by striking ``$3,500,000'' 
     and inserting ``$4,000,000''.
       (c) Full Tax Deduction for Family-Owned Business 
     Interests.--
       (1) In general.--Section 2057(a) (relating to deduction for 
     family-owned business interests) is amended--
       (A) by striking paragraphs (2) and (3), and
       (B) by striking ``General Rule.--'' and all that follows 
     through ``For purposes'' and inserting ``Allowance of 
     Deduction.--For purposes''.
       (2) Permanent deduction.--Section 2057 is amended by 
     striking subsection (j).
       (d) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and gifts 
     made, after December 31, 2002.
                                  ____

  SA 3304. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 517, to authorize funding the Department of Energy 
to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. ESTATE TAX WITH FULL TAX DEDUCTION FOR FAMILY-OWNED 
                   BUSINESS INTERESTS.

       (a) Elimination of Estate Tax Repeal.--
       (1) In general.--Subtitle A of title V, sections 511(d), 
     511(e), and 521(b)(2), and subtitle E of title V of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 are 
     repealed.
       (2) Conforming amendments.--
       (A) The table contained in section 2001(c)(2)(B) of the 
     Internal Revenue Code of 1986 is amended by striking ``2007, 
     2008, and 2009'' and inserting ``2007 and thereafter''.
       (B) The table contained in section 2010(c) of such Code is 
     amended by striking ``2009'' and inserting ``2009 and 
     thereafter''.
       (C) Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended--
       (i) by striking ``this Act'' and all that follows through 
     ``2010.'' in subsection (a) and inserting ``this Act (other 
     than title V) shall not apply to taxable, plan, or limitation 
     years beginning after December 31, 2010.'', and
       (ii) by striking ``, estates, gifts, and transfers'' in 
     subsection (b).
       (b) Increase in Exclusion Amount.--The table contained in 
     section 2010(c) of the Internal Revenue Code of 1986 
     (relating to applicable credit amount), as amended by 
     subsection (a)(2)(B), is amended by striking ``$3,500,000'' 
     and inserting ``$4,000,000''.
       (c) Full Tax Deduction for Family-Owned Business 
     Interests.--
       (1) In general.--Section 2057(a) (relating to deduction for 
     family-owned business interests) is amended--
       (A) by striking paragraphs (2) and (3), and
       (B) by striking ``General Rule.--'' and all that follows 
     through ``For purposes'' and inserting ``Allowance of 
     Deduction.--For purposes''.
       (2) Permanent deduction.--Section 2057 is amended by 
     striking subsection (j).
       (d) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and gifts 
     made, after December 31, 2002.
                                  ____

  SA 3305. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill S. 517, to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 202, between lines 22 and 23, insert the following:
       (b) Extension for Certain Fuel Produced at Existing 
     Facilities.--Paragraph (2) of section 29(f) (relating to 
     application of section) is amended by inserting ``(January 1, 
     2005, in the case of any coke or coke gas produced in a 
     facility described in paragraph (1)(B))'' after ``January 1, 
     2003''.
                                  ____

  SA 3306. Mr. SMITH of Oregon submitted an amendment intended to be 
proposed to amendment SA 3140 submitted by Mr. Nelson of Nebraska and 
intended to be proposed to the amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike Title III and insert the following:

     ``SEC. 301. ALTERNATIVE CONDITIONS AND FISHWAYS.

       ``(a) Alternative Mandatory Conditions.--Section 4 of the 
     Federal Power Act (16 U.S.C. 797) is amended by adding at the 
     end the following:
       `(h)(1) Whenever any person applies for a license for any 
     project works within any reservation of the United States 
     under subsection (e), and the Secretary of the department 
     under whose supervision such reservation falls (in this 
     subsection referred to as the `Secretary') shall deem a 
     condition to such license to be necessary under the first 
     proviso of such section, the license applicant may propose an 
     alternative condition.
       `(2) Notwithstanding the first proviso of subsection (e), 
     the Secretary of the department under whose supervision the 
     reservation falls shall accept the proposed alternative 
     condition referred to in paragraph (1), and the Commission 
     shall include in the license such alternative condition, if 
     the Secretary of the appropriate department determines, based 
     on substantial evidence provided by the license applicant, 
     that the alternative condition--
       `(A) provides for the adequate protection and utilization 
     of the reservation; and
       `(B) will either--

[[Page 5427]]

       `(i) cost less to implement, or
       `(ii) result in improved operation of the project works for 
     electricity production as compared to the condition initially 
     deemed necessary by the Secretary.
       `(3) The Secretary shall submit into the public record of 
     the Commission proceeding with any condition under subsection 
     (e) or alternative condition it accepts under this subsection 
     a written statement explaining the basis for such condition, 
     and reason for not accepting any alternative condition under 
     this subsection, including the effects of the condition 
     accepted and alternatives not accepted on energy supply, 
     distribution, cost, and use, air quality, flood control, 
     navigation, and drinking, irrigation, and recreation water 
     supply, based on such information as may be available to the 
     Secretary, including information voluntarily provided in a 
     timely manner by the applicant and others.
       `(4) Nothing in this subsection shall prohibit other 
     interested parties from proposing alternative conditions.'
       ``(b) Alternative Fishways.--Section 18 of the Federal 
     Power Act (16 U.S.C. 881) is amended by--
       ``(1) inserting ``(a)'' before the first sentence; and
       ``(2) adding at the end the following:
       `(b)(1) Whenever the Secretary of the Interior or the 
     Secretary of Commerce prescribes a fishway under this 
     section, the license applicant or the licensee may propose an 
     alternative to such prescription to construct, maintain, or 
     operate a fishway.
       `(2) Notwithstanding subsection (a), the Secretary of the 
     Interior or the Secretary of commerce, as appropriate, shall 
     accept and prescribe, and the Commission shall require, the 
     proposed alternative referred to in paragraph (1), if the 
     Secretary of the appropriate department determines, based on 
     substantial evidence provided by the licensee, that the 
     alternative--
       `(A) will be no less protective of the fish resources that 
     the fishway initially prescribed by the Secretary; and
       `(B) will either--
       `(i) cost less to implement, or
       `(ii) result in improved operation of the project works for 
     electricity production as compared to the fishway initially 
     prescribed by the Secretary.
       `(3) The Secretary shall submit into the public record of 
     the Commission proceeding with any prescription under 
     subsection (a) or alternative prescription it accepts under 
     this subsection a written statement explaining the basis for 
     such prescription, and reason for not accepting any 
     alternative prescription under this subsection, including the 
     effects of the prescription accepted or alternative not 
     accepted on energy supply, distribution, cost, and use, air 
     quality, flood control, navigation, and drinking, irrigation, 
     and recreation water supply, based on such information as may 
     be available to the Secretary, including information 
     voluntarily provided in a timely manner by the applicant and 
     others.
       `(4) Nothing in this subsection shall prohibit other 
     interested parties from proposing alternative 
     prescriptions.'''
       ``(c) Time of Filing Application.--Section 15(c)(1) of the 
     Federal Power Act (16 U.S.C. 808(c)(1)) is amended by 
     striking the first sentence and inserting the following:
       `(1) Each application for a new license pursuant to this 
     section shall be filed with the Commission--
       `(A) at least 24 months before the expiration of the term 
     of the existing license in the case of licenses that expire 
     prior to 2008; and
       `(B) at least 36 months before the expiration of the term 
     of the existing license in the case of licenses that expire 
     in 2008 or any year thereafter.'''
                                  ____

  SA 3307. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed to amendment SA 3190 submitted by Mr. Torricelli (for 
himself and Mr. Graham) and intended to be proposed to the amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

     SEC. ___. RECYCLED OIL LIABILITY.

       Section 114(c) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9614(c)) 
     is amended by adding at the end the following:
       ``(5) Prior to effective date.--
       ``(A) In general.--Except on occurrence of a condition 
     described in subparagraph (B), with respect to any period 
     before the effective date described in paragraph (4), no 
     person (including the United States or any State) may--
       ``(i) recover, under paragraph (3) or (4) of section 
     107(a), from a service station dealer for any response costs 
     or damages resulting from a release or threatened release of 
     recycled oil; or
       ``(ii) use the authority of section 106 against a service 
     station dealer (other than a person described in paragraph 
     (1) or (2) of section 107(a)).
       ``(B) Conditions.--A condition referred to in subparagraph 
     (A) is that a service station dealer--
       ``(i) mixes recycled oil with any other hazardous 
     substance; or
       ``(ii) fails to store, treat, transport, or otherwise 
     manage the recycled oil in compliance with any applicable 
     standard in effect on the date on which the storage, 
     treatment, transportation, or management activity occurred.
       ``(C) No effect on judicial or administrative action.--
     Nothing in this paragraph affects any final judicial or 
     administrative action.''.
                                  ____

  SA 3308. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed to amendment SA 3190 submitted by Mr. Torricelli (for 
himself and Mr. Graham) and intended to be proposed to the amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

                       DIVISION H--MISCELLANEOUS

     TITLE ___--COMPREHENSIVE SUPERFUND REAUTHORIZATION AND REFORM

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Superfund Amendments and 
     Reauthorization Act of 2002''.

                      Subtitle A--State Delegation

     SEC. __11. DELEGATION TO STATES OF AUTHORITY WITH RESPECT TO 
                   NATIONAL PRIORITIES LIST FACILITIES.

       (a) In General.--Title I of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.) is amended by adding at the end the following:

     ``SEC. 129. DELEGATION TO STATES OF AUTHORITIES WITH RESPECT 
                   TO NATIONAL PRIORITIES LIST FACILITIES.

       ``(a) Delegation of Authority.--
       ``(1) In general.--A State that seeks to administer this 
     Act at facilities in the State that are listed on the 
     National Priorities List may, after providing notice and an 
     opportunity for a public hearing, submit to the Administrator 
     for approval under subsection (b) an application, in such 
     form as the Administrator may require, for delegation to the 
     State of the authority described in paragraph (2).
       ``(2) Authority.--
       ``(A) In general.--In accordance with an application of a 
     State approved under subsection (b), the Administrator shall 
     delegate to the State (referred to in this section as an 
     `authorized State') sole administrative authority to 
     administer this Act at facilities in the State that are 
     listed on the National Priorities List.
       ``(B) Inclusions.--A delegation of authority to a State 
     under subparagraph (A) includes the authority to--
       ``(i) collect information;
       ``(ii) allocate liability;
       ``(iii) conduct technical investigation, evaluations, and 
     risk assessments;
       ``(iv) develop response alternatives;
       ``(v) select responses;
       ``(vi) carry out remedial design, remedial action, and 
     operation and maintenance;
       ``(vii) recover response costs;
       ``(viii) require potentially responsible parties to carry 
     out response actions; and
       ``(ix) otherwise compel implementation of a response 
     action.
       ``(C) Scope.--An authorized State shall administer this 
     Act, in lieu of the President or the Administrator, as 
     applicable, at facilities in the State to which the 
     application of the State approved under subsection (b) 
     applies.
       ``(b) Approval of Application.--
       ``(1) In general.--Not later than the deadline determined 
     under paragraph (3), the Administrator shall--
       ``(A) issue a notice of approval of the application; or
       ``(B) if the Administrator determines that the State does 
     not have adequate legal authority, financial and personnel 
     resources, organization, or expertise to administer and 
     enforce any of the requested delegable authority, issue a 
     notice of disapproval, including an explanation of the basis 
     for the disapproval.
       ``(2) Failure to act.--If the Administrator fails to issue 
     a notice of approval or disapproval of an application by the 
     deadline determined under paragraph (3), the application 
     shall be deemed to have been approved.
       ``(3) Deadline.--The deadline referred to in paragraphs (1) 
     and (2) is--
       ``(A)(i) in the case of a State that is authorized to 
     administer and enforce the corrective action requirements of 
     a hazardous waste program under section 3006 of the Solid 
     Waste Disposal Act (42 U.S.C. 6926), 60 days after the date 
     on which the Administrator receives an application under 
     subsection (a) from the State; and

[[Page 5428]]

       ``(ii) in the case of a State that is not authorized to 
     administer and enforce the corrective action requirements 
     described in clause (i), 120 days after the date on which the 
     Administrator receives an application under subsection (a) 
     from the State; or
       ``(B) in the case of a State that agrees to a greater 
     period of time than the applicable period described in 
     subparagraph (A), that greater period.
       ``(c) No Duplication of Response Efforts.--
       ``(1) No duplication of documents.--If, as of the date of 
     delegation of authority to a State over a facility under 
     subsection (a), an investigational or other response document 
     relating to the facility has been completed at the facility 
     in coordination with the Administrator, the authorized State 
     shall not require the document to be modified.
       ``(2) Parity with corrective action program.--A response 
     action carried out under this Act that is approved by an 
     authorized State shall be deemed to satisfy corrective action 
     requirements under the Solid Waste Disposal Act (42 U.S.C. 
     6901 et seq.).
       ``(d) Increased Costs of Response Action.--
       ``(1) In general.--An authorized State may select a 
     remedial action based on remedy selection criteria that are 
     more stringent than the criteria identified in section 121(b) 
     if the authorized State agrees to pay any increased costs 
     resulting from selection of the remedial action.
       ``(2) No cost recovery.--If an authorized State selects a 
     remedial action under paragraph (1) that results in increased 
     costs, the authorized State shall neither seek nor accept 
     from any person, under this Act or any other Federal or State 
     law, assistance to pay the increased costs.
       ``(e) Judicial Review.--An order that is issued by an 
     authorized State under section 106 shall be reviewable only 
     in an appropriate United States district court in accordance 
     with section 113.
       ``(f) Cost Recovery.--
       ``(1) By a delegated state.--Of the amount of any response 
     costs recovered by an authorized State from a responsible 
     party under section 107 with respect to a facility listed on 
     the National Priorities List--
       ``(A) the authorized State may retain an amount equal to 
     the sum of--
       ``(i) 25 percent of the response costs; and
       ``(ii) the amount of response costs incurred by the 
     authorized State with respect to the facility; and
       ``(B) any remaining amount shall be deposited in the 
     Hazardous Substances Superfund established under subchapter A 
     of chapter 98 of the Internal Revenue Code of 1986.
       ``(2) By the administrator.--The Administrator shall carry 
     out cost recovery efforts of the Administrator--
       ``(A) in States that are not authorized States; and
       ``(B) in authorized States, in any case in which an 
     authorized State requests in writing that the Administrator 
     continue cost recovery efforts in the authorized State.
       ``(g) Funding.--
       ``(1) In general.--The Administrator shall provide grants 
     to, or enter into cooperative agreements with, each 
     authorized State to carry out this section.
       ``(2) Facility-specific grants.--A grant under paragraph 
     (1) shall be--
       ``(A) made to an authorized State on a facility-specific 
     basis; and
       ``(B) funded by the Administrator as costs relating to each 
     facility covered by the grant arise.
       ``(3) Permitted use of grant funds.--An authorized State 
     may use grant funds, in accordance with this Act and the 
     National Contingency Plan, to take any action or perform any 
     duty necessary to implement the authority delegated to the 
     authorized State.
       ``(4) Prohibited use of grant funds.--An authorized State 
     to which a grant is made under this section may not use grant 
     funds to pay any amount required under section 104(c)(3).
       ``(5) No claim against fund.--Notwithstanding any other 
     provision of law, funds that may be provided under this 
     subsection shall not constitute a claim against the Hazardous 
     Substances Fund or the United States.
       ``(h) Insufficient Funds.--If funds made available in any 
     fiscal year are insufficient to fund all commitments made by 
     the Administrator under this section, the Administrator shall 
     have sole authority and discretion to establish priorities 
     and delay payments until such time as sufficient funds are 
     available.
       ``(i) Cooperative Agreements.--
       ``(1) In general.--Nothing in this section affects the 
     authority of the Administrator under section 104(d)(1) to 
     enter into a cooperative agreement with a State, a political 
     subdivision of a State, or an Indian tribe to carry out 
     actions under section 104.
       ``(2) Partial and facility-specific delegations.--The 
     Administrator may use authority provided under paragraph (1) 
     to make partial or facility-specific delegations of authority 
     under this section (including the authority to select a 
     remedy).''.
       (b) Conforming Amendment.--Section 111(a) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9611(a)) is amended by 
     inserting after paragraph (6) the following:
       ``(7) Making grants to authorized States under section 
     129(g).''.

               Subtitle B--Selection of Remedial Actions

     SEC. __21. SELECTION OF REMEDIAL ACTIONS.

       Section 121 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9621) is 
     amended by striking subsection (b) and inserting the 
     following:
       ``(b) General Rules.--
       ``(1) Remedy selection criteria.--In selecting a remedy 
     under this section, subject to paragraph (3), the President 
     shall take into consideration each of the factors described 
     in paragraph (2).
       ``(2) Factors.--The factors referred to in paragraph (1) 
     are--
       ``(A) factors described in section 300.430 of title 40, 
     Code of Federal Regulations (as in effect on the date of 
     enactment of the Superfund Amendments and Reauthorization Act 
     of 2002), consisting of--
       ``(i) the threshold criterion of protection of human health 
     and the environment (as described in clauses (i) and (ii) of 
     paragraph (3)(B));
       ``(ii) balancing criteria, including--

       ``(I) long-term effectiveness and permanence;
       ``(II) reduction of toxicity, mobility, or volume of 
     hazardous substances or pollutants or contaminants, through 
     treatment;
       ``(III) short-term effectiveness;
       ``(IV) implementability; and
       ``(V) cost; and

       ``(iii) modifying criteria, including--

       ``(I) State acceptance of the remedy; and
       ``(II) community acceptance of the remedy; and

       ``(B) the additional threshold criterion of compliance with 
     all applicable environmental and siting laws (as described in 
     paragraph (3)(B)(iii)).
       ``(3) Remedy selection.--
       ``(A) In general.--The President shall select a remedial 
     action from among alternatives that achieve the threshold 
     criteria described in paragraph (2)(A) in accordance with--
       ``(i) the goals described in subparagraph (B); and
       ``(ii) a facility-specific risk assessment under paragraph 
     (4).
       ``(B) Goals of threshold criteria.--With respect to the 
     selection of a remedial action under this section, the goals 
     of the threshold criteria described in paragraph (2)(A) shall 
     be as follows:
       ``(i) Protection of human health.--A remedial action shall 
     be considered to be protective of human health if, taking 
     into consideration any expected exposures associated with the 
     actual, planned, or reasonably anticipated future use of the 
     land and water resources covered by the remedial action, and 
     on the basis of a facility-specific risk evaluation conducted 
     in accordance with this section, the remedial action 
     achieves--

       ``(I) from exposure to nonthreshold carcinogenic hazardous 
     substances, or pollutants or contaminants, at the facility, 
     concentration levels that represent a cumulative lifetime 
     additional cancer risk from 10-4 to 
     10-6 for a representative exposed population; and
       ``(II) from exposure to threshold carcinogenic and 
     noncarcinogenic hazardous substances, or pollutants or 
     contaminants, at the facility, a residual risk that does not 
     exceed a hazard index of 1.

       ``(ii) Protection of the environment.--A remedial action 
     shall be considered to be protective of the environment if 
     the remedial action--

       ``(I) protects ecosystems from significant threats to 
     sustainability arising from exposure resulting from a release 
     of 1 or more hazardous substances at a site; and
       ``(II) does not cause a greater threat to the 
     sustainability of the ecosystems than would be caused by a 
     release of a hazardous substance.

       ``(iii) Compliance with applicable federal and state 
     laws.--

       ``(I) In general.--A remedial action shall comply with the 
     substantive requirements of all promulgated standards, 
     requirements, criteria, and limitations under--

       ``(aa) each Federal environmental law that is legally 
     applicable to the conduct or operation of the remedial action 
     or to determination of the level of cleanup for remedial 
     actions; and
       ``(bb) any State law relating to the environment, or to the 
     siting of facilities, that is more stringent than Federal 
     law, is legally applicable to the conduct or operation of the 
     remedial action or to determination of the level of cleanup 
     for remedial actions, and is demonstrated by the State to be 
     generally applicable and consistently applied to other 
     remedial actions in the State.

       ``(II) Contaminated media.--With respect to a remedial 
     action, compliance with section 3004 of the Solid Waste 
     Disposal Act (42 U.S.C. 6924) shall not be required with 
     respect to the return, replacement, or disposal of 
     contaminated media (including residuals of contaminated media 
     and other solid wastes generated onsite in the conduct of a 
     remedial action) into the same media in or near areas of 
     contamination onsite at a facility (as those areas exist as 
     of the date of the return, replacement, or disposal of the 
     contaminated media).

[[Page 5429]]

       ``(4) Risk assessment.--
       ``(A) In general.--A facility-specific risk assessment 
     relating to a remedial action selected under this section 
     shall be based on known levels or scientific estimates of 
     exposure, developed by taking into consideration the actual, 
     planned, or reasonably anticipated future use of the land and 
     water resources covered by the remedial action.
       ``(B) Regulations.--Not later than 18 months after the date 
     of enactment of this subparagraph, the Administrator shall 
     promulgate final regulations that--
       ``(i) implement this section; and
       ``(ii) promote a realistic characterization of the risks 
     posed by a facility or a proposed remedial action that 
     neither minimizes nor exaggerates the risks.
       ``(C) Uses.--A facility-specific risk assessment shall be 
     used to--
       ``(i) determine the need for remedial action;
       ``(ii) evaluate the current and potential hazards, 
     exposures, and risks at a facility;
       ``(iii) identify potential contaminants, areas, or exposure 
     pathways from further study at a facility;
       ``(iv) evaluate the protectiveness of alternative remedial 
     actions proposed for a facility;
       ``(v) demonstrate that the remedial action selected for a 
     facility is capable of protecting human health and the 
     environment; and
       ``(vi) establish protective concentration levels, if no 
     applicable requirement relating to concentration levels 
     exists under subsection (d).''.

     SEC. __22. OBLIGATIONS FROM THE FUND FOR RESPONSE ACTIONS.

       Section 104(c)(1)(C) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9604(c)(1)(C)) is amended--
       (1) by striking ``consistent with the remedial action to be 
     taken'' and inserting ``not inconsistent with any remedial 
     action that has been selected or is anticipated at the time 
     of any removal action at a facility,'';
       (2) by striking ``$2,000,000'' and inserting 
     ``$4,000,000''; and
       (3) by striking ``12 months'' and inserting ``2 years''.

     SEC. __23. CONFORMING AMENDMENTS.

       (a) Section 113(h) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9613(h)) is amended by striking ``or relevant and 
     appropriate''.
       (b) Section 121(d) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(d)) is amended--
       (1) in paragraph (1), by striking the second sentence;
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) in the first sentence, by striking ``or is relevant and 
     appropriate under the circumstances of the release or 
     threatened release of such hazardous substance or pollutant 
     or contaminant''; and
       (ii) in the second sentence, by striking ``, where such 
     goals or criteria are relevant and appropriate under the 
     circumstances of the release or threatened release'' and 
     inserting ``in cases in which those goals or criteria are 
     applicable'';
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Alternate concentration limits.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of this section, a process for establishing 
     alternate concentration limits to those otherwise applicable 
     to hazardous constituents in groundwater under subparagraph 
     (A) may not be used to establish applicable standards under 
     this paragraph if the process assumes a point of human 
     exposure beyond the boundary of the facility, as defined at 
     the conclusion of the remedial investigation and feasibility 
     study.
       ``(ii) Exception.--Clause (i) shall not apply in any case 
     in which--

       ``(I) there are known and projected points of entry of 
     groundwater described in clause (i) into surface water;
       ``(II) on the basis of measurements or projections, there 
     is or will be no statistically significant increase of those 
     constituents from the groundwater in the surface water--

       ``(aa) at the point of entry; or
       ``(bb) at any point at which there is reason to believe 
     accumulation of constituents may occur downstream; and

       ``(III) a remedial action includes enforceable measures 
     that will preclude human exposure to the contaminated 
     groundwater at any point between the facility boundary and 
     all known and projected points of entry of the groundwater 
     into surface water.

       ``(iii) Points of entry.--In a case described in clause 
     (ii), an assumed point of human exposure described in clause 
     (i) may be at each known or projected point of entry 
     described in clause (ii)(III).''; and
       (C) in subparagraph (C)(i), by striking ``of a proposed 
     remedial action which does not permanently and significantly 
     reduce the volume, toxicity, or mobility of hazardous 
     substances, pollutants, or contaminants''; and
       (3) in the first sentence of paragraph (4), by striking 
     ``or relevant and appropriate''.
       (c) Section 121(f) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(f)) is amended--
       (1) in the second sentence of paragraph (2)(A), by striking 
     ``or relevant and appropriate''; and
       (2) in the second sentence of paragraph (3)(A), by striking 
     ``or relevant and appropriate''.

                   Subtitle C--Recycled Oil Liability

     SEC. __31. RECYCLED OIL LIABILITY.

       Section 114(c) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9614(c)) 
     is amended by adding at the end the following:
       ``(5) Prior to effective date.--
       ``(A) In general.--Except on occurrence of a condition 
     described in subparagraph (B), with respect to any period 
     before the effective date described in paragraph (4), no 
     person (including the United States or any State) may--
       ``(i) recover, under paragraph (3) or (4) of section 
     107(a), from a service station dealer for any response costs 
     or damages resulting from a release or threatened release of 
     recycled oil; or
       ``(ii) use the authority of section 106 against a service 
     station dealer (other than a person described in paragraph 
     (1) or (2) of section 107(a)).
       ``(B) Conditions.--A condition referred to in subparagraph 
     (A) is that a service station dealer--
       ``(i) mixes recycled oil with any other hazardous 
     substance; or
       ``(ii) fails to store, treat, transport, or otherwise 
     manage the recycled oil in compliance with any applicable 
     standard in effect on the date on which the storage, 
     treatment, transportation, or management activity occurred.
       ``(C) No effect on judicial or administrative action.--
     Nothing in this paragraph affects any final judicial or 
     administrative action.''.

                  Subtitle D--Natural Resource Damages

     SEC. __41. RESTORATION OF NATURAL RESOURCES.

       Section 107(f) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)) 
     is amended--
       (1) by striking ``(f)(1) Natural Resources Liability.--In 
     the case'' and inserting the following:
       ``(f) Natural Resource Damages.--
       ``(1) Liability.--
       ``(A) In general.--In the case''; and
       (2) in paragraph (1)(A) (as designated by paragraph (1))--
       (A) by inserting after the fourth sentence the following: 
     ``Sums recovered by an Indian tribe as trustee under this 
     subsection shall be available for use only for restoration, 
     replacement, or acquisition of the equivalent of those 
     natural resources by the Indian tribe. A restoration, 
     replacement, or acquisition conducted by the United States, a 
     State, or an Indian tribe shall proceed only if the 
     restoration, replacement, or acquisition is technologically 
     feasible from an engineering perspective (at a reasonable 
     cost) and consistent with all known or anticipated response 
     actions at or near the facility.''; and
       (B) by striking ``The measure of damages in any action'' 
     and all that follows through the end of the paragraph and 
     inserting the following:
       ``(B) Limitations on liability.--
       ``(i) Measure of damages.--The measure of damages in any 
     action for damages for injury to, destruction of, or loss of 
     natural resources shall be limited to--

       ``(I) the reasonable costs of restoration, replacement, or 
     acquisition of the equivalent of the natural resources that 
     suffer injury, destruction, or loss caused by a release; and
       ``(II) the reasonable costs of assessing damages.

       ``(ii) Nonuse or lost use values.--There shall be no 
     recovery under this Act for any impairment of--

       ``(I) nonuse values; or
       ``(II) lost use values.

       ``(iii) No double recovery.--A person that obtains a 
     recovery of damages, response costs, assessment costs, or any 
     other costs under this Act for the costs described in clause 
     (i) shall not be entitled to recovery under this Act or any 
     other Federal or State law for the same injury to or 
     destruction or loss of the natural resource.
       ``(iv) Restrictions on recovery.--There shall be no 
     recovery from any person under this section for the costs of 
     restoration, replacement, or acquisition of the equivalent of 
     a natural resource if the natural resource injury, 
     destruction, or loss for which the restoration, replacement, 
     or acquisition is sought, and the release of the hazardous 
     substance from which the injury resulted, occurred wholly 
     before December 11, 1980.''.

     SEC. __42. ASSESSMENT OF INJURY TO AND RESTORATION OF NATURAL 
                   RESOURCES.

       Section 107(f)(2) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(f)(2)) is amended by striking subparagraph (C) and 
     inserting the following:
       ``(C) Natural resource injury and restoration 
     assessments.--
       ``(i) Regulation.--A natural resource injury and 
     restoration assessment conducted for the purposes of this Act 
     by a Federal, State, or tribal trustee shall be performed,

[[Page 5430]]

     to the maximum extent practicable, in accordance with--

       ``(I) the regulations promulgated under section 301(c); and
       ``(II) generally accepted scientific and technical 
     standards and methodologies to ensure the validity and 
     reliability of assessment results.

       ``(ii) Facility-specific conditions.--Injury assessment, 
     restoration planning, and quantification of restoration costs 
     shall, to the extent practicable, be based on facility-
     specific information.
       ``(iii) Recoverable costs.--A claim by a trustee for 
     assessment costs--

       ``(I) may include only--

       ``(aa) costs that arise from work performed for the purpose 
     of assessing injury to a natural resource to support a claim 
     for restoration of the natural resource; and
       ``(bb) costs that arise from developing and evaluating a 
     reasonable range of alternative restoration measures; but

       ``(II) may not include the costs of conducting any type of 
     study relying on the use of contingent valuation methodology.

       ``(iv) Payment period.--In a case in which injury to or 
     destruction or loss of a natural resource was caused by a 
     release that occurred over a period of years, payment of 
     damages shall be permitted to be made over a period of years 
     that is appropriate based on--

       ``(I) the period of time over which the damages occurred;
       ``(II) the amount of the damages;
       ``(III) the financial ability of the responsible party to 
     pay the damages; and
       ``(IV) the period over which, and the pace at which, 
     expenditures are expected to be made for restoration, 
     replacement, and acquisition activities.

       ``(v) Trustee restoration plans.--

       ``(I) Administrative record.--

       ``(aa) In general.--A participating natural resource 
     trustees may designate 1 or more lead administrative 
     trustees.
       ``(bb) Record.--A lead administrative trustee may establish 
     an administrative record on which the trustees will base the 
     selection of a plan for restoration of a natural resource.
       ``(cc) Plan.--A restoration plan selected under item (bb) 
     shall include a determination of the nature and extent of the 
     natural resource injury.
       ``(dd) Public availability.--The administrative record 
     shall be made available to members of the public located at 
     or near the facility at which the release occurred.

       ``(II) Public participation.--

       ``(aa) In general.--The Administrator shall promulgate 
     regulations that provide for procedures under which 
     interested persons (including potentially responsible 
     parties) may participate in the development of the 
     administrative record that is described in subclause (I)(bb) 
     and on which judicial review of restoration plans will be 
     based.
       ``(bb) Minimum requirements.--The procedures described in 
     item (aa) shall include, at a minimum, each of the 
     requirements described in section 113(k)(2)(B).''.

     SEC. __43. CONSISTENCY BETWEEN RESPONSE ACTIONS AND RESOURCE 
                   RESTORATION STANDARDS.

       (a) Restoration Standards and Alternatives.--Section 107(f) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9607(f)) is amended by 
     adding at the end the following:
       ``(3) Compatibility with remedial action.--
       ``(A) In general.--A response action and a restoration 
     measure may be implemented--
       ``(i) at the same facility; or
       ``(ii) to address releases from the same facility.
       ``(B) Consistency.--A response action and restoration 
     measure described in subparagraph (A)--
       ``(i) shall not be inconsistent; and
       ``(ii) shall be implemented, to the maximum extent 
     practicable, in a coordinated and integrated manner.''.
       (b) Consideration of Natural Resources in Response 
     Actions.--Section 121(a) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(a)) is amended--
       (1) in the first sentence, by striking ``The President 
     shall'' and inserting the following:
       ``(1) In general.--The President shall'';
       (2) in the second sentence, by striking ``In evaluating'' 
     and inserting the following:
       ``(2) Evaluation.--
       ``(A) Cost-effectiveness.--In evaluating''; and
       (3) by adding at the end the following:
       ``(B) Injury to natural resources.--In evaluating and 
     selecting remedial actions, the President shall take into 
     account the potential for injury to a natural resource 
     resulting from those actions.''.

     SEC. __44. CONTRIBUTION.

       Section 113(f)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9613(f)(1)) is amended in the third sentence by inserting 
     ``and natural resource damages'' after ``costs''.

                       Subtitle E--Miscellaneous

     SEC. __51. CLARIFICATION OF TIMING OF REVIEW.

       (a) Congressional Intent.--Congress declares that, contrary 
     to the decision in Fort Ord Toxics Project v. California 
     Environmental Protection Agency, 189 F.3d 828 (9th Cir. 
     1999), and as recognized by the decisions in Werlein v. 
     United States, 746 F. Supp. 887 (D. Minn. 1990), Heart of 
     America Northwest v. Westinghouse Hanford Co., 820 F. Supp. 
     1265 (E.D. Wash. 1993), and Worldworks I v. U.S. Army, 22 F. 
     Supp. 1204 (D. Colo. 1998), the challenges to a remedial 
     action ``selected under section 104'' referred to in section 
     113(h) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9613(h)) 
     include a remedial action selected under section 120 of that 
     Act (42 U.S.C. 9620).
       (b) Clarification.--
       (1) In general.--Section 113(h) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9613(h)) is amended by striking ``section 
     104,'' and inserting ``section 104 (including under section 
     120),''.
       (2) Federal facilities.--Section 120(e)(2) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9620(e)(2)) is amended in 
     the second sentence by inserting ``under section 104'' after 
     ``remedial action''.

     SEC. __52. FAIR SHARE ALLOCATION AND SETTLEMENTS.

       Section 122(e) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9622(e)) 
     is amended--
       (1) by striking ``(e) Special'' and all that follows 
     through the end of paragraph (1) and inserting the following:
       ``(e) Fair Share Allocation.--
       ``(1) Process.--With respect to a facility listed on the 
     National Priorities List, the President shall notify 
     potentially responsible parties and initiate an impartial 
     fair share allocation conducted by a neutral third party, 
     if--
       ``(A) there is more than 1 potentially responsible party 
     that is not--
       ``(i) eligible for an exemption or limitation under section 
     107;
       ``(ii) eligible to receive a settlement under subsection 
     (g); or
       ``(iii) insolvent, bankrupt, or defunct; and
       ``(B) 1 or more of the potentially responsible parties 
     agree to bear the costs of the allocation (which shall be 
     considered to be response costs under this Act) under such 
     conditions as the President may prescribe.'';
       (2) by striking paragraph (4);
       (3) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Allocation factors.--
       ``(A) In general.--In conducting an allocation under this 
     subsection, the allocator, without regard to any theory of 
     joint and several liability, shall estimate the fair share of 
     each potentially responsible party using--
       ``(i) principles of equity;
       ``(ii) the best information reasonably available to the 
     President, including information received from the 
     potentially responsible parties during the allocation 
     process; and
       ``(iii) the factors described in subparagraph (B).
       ``(B) Factors.--The factors referred to in subparagraph 
     (A)(iii) are--
       ``(i) the quantity of hazardous substances contributed by 
     each party;
       ``(ii) the degree of toxicity of hazardous substances 
     contributed by each party;
       ``(iii) the mobility of hazardous substances contributed by 
     each party;
       ``(iv) the degree of involvement of each party in the 
     generation, transportation, treatment, storage, or disposal 
     of hazardous substances;
       ``(v) the degree of care exercised by each party with 
     respect to hazardous substances, taking into account the 
     characteristics of the hazardous substances;
       ``(vi) the cooperation of each party in contributing to any 
     response action and in providing complete and timely 
     information to the United States or the allocator; and
       ``(vii) such other equitable factors as the President 
     considers appropriate.'';
       (5) in paragraph (3) (as redesignated by paragraph (3))--
       (A) by striking subparagraph (B);
       (B) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (C) in subparagraph (B) (as redesignated by subparagraph 
     (B)), by striking ``negotiation'' each place it appears and 
     inserting ``allocation'';
       (6) in paragraph (4) (as redesignated by paragraph (3))--
       (A) by striking subparagraphs (A), (D), and (E);
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively;
       (C) in subparagraph (A) (as redesignated by subparagraph 
     (B)), by striking ``subparagraph (A) or for otherwise 
     implementing''; and
       (D) in subparagraph (B) (as redesignated by subparagraph 
     (B)), by striking ``preliminary'' each place it appears; and
       (7) by adding at the end the following:
       ``(7) Settlements based on allocations.--
       ``(A) Authority.--
       ``(i) In general.--The President may use the authority 
     under this section to enter

[[Page 5431]]

     into a settlement agreement with respect to any response 
     action that is the subject of an allocation.
       ``(ii) Settlement.--A party may settle the liability of the 
     party for response costs under this Act for an amount equal 
     to the sum of--

       ``(I) the allocated fair share of the party (including a 
     reasonable risk premium that reflects uncertainties existing 
     at the time of settlement); and
       ``(II) a portion of unfunded and unattributable shares 
     described in subparagraph (B).

       ``(B) Unfunded and unattributable shares.--Any share 
     attributable to an insolvent, defunct, or bankrupt party, or 
     a share that cannot be attributed to any particular party, 
     shall be allocated among any responsible parties not exempted 
     under this Act.
       ``(C) Effect on principles of liability.--Except as 
     provided in paragraph (2), the authorization of an allocation 
     process under this section shall not modify or affect the 
     principles of liability under this title, as determined by 
     the courts of the United States.''.

                          Subtitle F--Funding

     SEC. __61. AUTHORIZATION OF APPROPRIATIONS FROM THE FUND.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)) 
     is amended in the first sentence by striking ``not more than 
     $8,500,000,000 for the 5-year period beginning on the date of 
     enactment of the Superfund Amendments and Reauthorization Act 
     of 1986, and not more than $5,100,000,000 for the period 
     commencing October 1, 1991, and ending September 30, 1994'' 
     and inserting ``$8,500,000,000 for the period of fiscal years 
     2003 through 2007''.

     SEC. __62. LIMITATIONS ON RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION PROGRAMS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by striking subsection (n) and inserting the 
     following:
       ``(n) Limitations on Research, Development, and 
     Demonstration Programs.--
       ``(1) Alternative or innovative technologies research, 
     development, and demonstration programs.--
       ``(A) Limitation.--For each of fiscal years 2003 through 
     2007, not more than $40,000,000 of the amounts available in 
     the Hazardous Substance Superfund may be used for purposes 
     (other than basic research) to carry out the program 
     authorized under section 311(b).
       ``(B) Availability.--Amounts made available under 
     subparagraph (A) shall remain available until expended.
       ``(2) University hazardous substance research centers.--For 
     each of fiscal years 2003 through 2007, not more than 
     $7,000,000 of the amounts available in the Hazardous 
     Substance Superfund may be used to carry out section 
     311(d).''.

     SEC. __63. AUTHORIZATION OF APPROPRIATIONS FROM GENERAL 
                   REVENUES.

       Section 111(p) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(p)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Authorization of appropriations.--
       ``(A) In general.--There is authorized to be appropriated 
     to the Hazardous Substance Superfund $850,000,000 for each of 
     fiscal years 2003 through 2007.
       ``(B) Additional amounts.--There is authorized to be 
     appropriated to the Hazardous Substance Superfund for each 
     fiscal year specified in subparagraph (A) an amount, in 
     addition to the amount authorized by subparagraph (A), equal 
     to the portion of the aggregate amount authorized to be 
     appropriated under this subsection and section 9507(b) of the 
     Internal Revenue Code of 1986 that is not appropriated before 
     the beginning of the fiscal year.''.

     SEC. __64. ORPHAN SHARE FUNDING.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)) 
     (as amended by section __11(b)) is amended by inserting after 
     paragraph (7) the following:
       ``(8) Payment of orphan shares under section 122.''.

     SEC. __65. LIMITATIONS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by adding at the end the following:
       ``(q) Recoveries.--Any response cost recoveries collected 
     by the United States under this Act shall be credited as 
     offsetting collections to the Superfund appropriations 
     account.''.

     SEC. __66. COEUR D'ALENE RIVER BASIN, IDAHO.

       Title III of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9651 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 313. COEUR D'ALENE RIVER BASIN, IDAHO.

       ``(a) Definition of Coeur D'Alene River Basin.--In this 
     section, the term `Coeur d'Alene River Basin' means the 
     watersheds in northern Idaho (including the Bunker Hill 
     Superfund Facility) that contain--
       ``(1) the north and south forks of the Coeur d'Alene River 
     (including tributaries of the forks);
       ``(2) the main stem of the Coeur d'Alene River (including 
     tributaries and lateral lakes of the main stem);
       ``(3) Lake Coeur d'Alene; and
       ``(4) any area in the State downstream of Lake Coeur 
     d'Alene that is or has been affected by mining-related 
     activities.
       ``(b) Funding.--
       ``(1) In general.--There is appropriated to the Coeur 
     d'Alene River Basin Commission established under section 39-
     3613 of the Idaho Code (or a successor commission) to carry 
     out a pilot program to provide for environmental response, 
     natural resource restoration, and other related activities in 
     the Coeur d'Alene River Basin, $250,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Coeur d'Alene River 
     Basin Commission shall be entitled to receive the funds and 
     shall accept the funds made available under paragraph (1).''.
                                  ____

  SA 3309. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed to amendment SA 3190 submitted by Mr. Torricelli (for 
himself and Mr. Graham) and intended to be proposed to the amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

     DIVISION H--COMPREHENSIVE SUPERFUND REAUTHORIZATION AND REFORM

                          TITLE XIX--SUPERFUND

                         Subtitle A--State Role

     SEC. 1901. DELEGATION TO THE STATES OF AUTHORITIES WITH 
                   RESPECT TO NATIONAL PRIORITIES LIST FACILITIES.

       (a) In General.--Title I of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.) is amended by adding at the end the following:

     ``SEC. 129. DELEGATION TO THE STATES OF AUTHORITIES WITH 
                   RESPECT TO NATIONAL PRIORITIES LIST FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Comprehensive delegation state.--The term 
     `comprehensive delegation State', with respect to a facility, 
     means a State to which the Administrator has delegated 
     authority to perform all of the categories of delegable 
     authority.
       ``(2) Delegable authority.--The term `delegable authority' 
     means authority to perform (or ensure performance of) all of 
     the authorities included in any 1 or more of the categories 
     of authority:
       ``(A) Category a.--All authorities necessary to perform 
     technical investigations, evaluations, and risk analyses, 
     including--
       ``(i) a preliminary assessment or facility evaluation under 
     section 104;
       ``(ii) facility characterization under section 104;
       ``(iii) a remedial investigation under section 104;
       ``(iv) a facility-specific risk evaluation under section 
     130;
       ``(v) enforcement authority related to the authorities 
     described in clauses (i) through (iv); and
       ``(vi) any other authority identified by the Administrator 
     under subsection (b).
       ``(B) Category b.--All authorities necessary to perform 
     alternatives development and remedy selection, including--
       ``(i) a feasibility study under section 104; and
       ``(ii)(I) remedial action selection under section 121 
     (including issuance of a record of decision); or
       ``(II) remedial action planning under section 132(b)(5);
       ``(iii) enforcement authority related to the authorities 
     described in clauses (i) and (ii); and
       ``(iv) any other authority identified by the Administrator 
     under subsection (b).
       ``(C) Category c.--All authorities necessary to perform 
     remedial design, including--
       ``(i) remedial design under section 121;
       ``(ii) enforcement authority related to the authority 
     described in clause (i); and
       ``(iii) any other authority identified by the Administrator 
     under subsection (b).
       ``(D) Category d.--All authorities necessary to perform 
     remedial action and operation and maintenance, including--
       ``(i) a removal under section 104;
       ``(ii) a remedial action under section 104;
       ``(iii) operation and maintenance under section 104(c);
       ``(iv) enforcement authority related to the authorities 
     described in clauses (i) through (iii); and
       ``(v) any other authority identified by the Administrator 
     under subsection (b).
       ``(E) Category e.--All authorities necessary to perform 
     information collection and allocation of liability, 
     including--
       ``(i) information collection activity under section 104(e);

[[Page 5432]]

       ``(ii) allocation of liability under section 135;
       ``(iii) a search for potentially responsible parties under 
     section 104 or 107;
       ``(iv) settlement under section 122;
       ``(v) enforcement authority related to the authorities 
     described in clauses (i) through (iv); and
       ``(vi) any other authority identified by the Administrator 
     under subsection (b).
       ``(3) Delegated authority.--The term `delegated authority' 
     means a delegable authority that has been delegated to a 
     delegated State under this section.
       ``(4) Delegated facility.--The term `delegated facility' 
     means a non-Federal listed facility with respect to which a 
     delegable authority has been delegated to a State under this 
     section.
       ``(5) Delegated state.--The term `delegated State' means a 
     State to which delegable authority has been delegated under 
     subsection (c), except as may be provided in a delegation 
     agreement in the case of a limited delegation of authority 
     under subsection (c)(5).
       ``(6) Enforcement authority.--The term `enforcement 
     authority' means all authorities necessary to recover 
     response costs, require potentially responsible parties to 
     perform response actions, and otherwise compel implementation 
     of a response action, including--
       ``(A) issuance of an order under section 106(a);
       ``(B) a response action cost recovery under section 107;
       ``(C) imposition of a civil penalty or award under 
     subsection (a)(1)(D) or (b)(4) of section 109;
       ``(D) settlement under section 122; and
       ``(E) any other authority identified by the Administrator 
     under subsection (b).
       ``(7) Noncomprehensive delegation state.--The term 
     `noncomprehensive delegation State', with respect to a 
     facility, means a State to which the Administrator has 
     delegated authority to perform fewer than all of the 
     categories of delegable authority.
       ``(8) Nondelegable authority.--The term `nondelegable 
     authority' means authority to--
       ``(A) make grants to community response organizations under 
     section 117; and
       ``(B) conduct research and development activities under any 
     provision of this Act.
       ``(9) Non-federal listed facility.--The term `non-Federal 
     listed facility' means a facility that--
       ``(A) is not owned or operated by a department, agency, or 
     instrumentality of the United States in any branch of the 
     Government; and
       ``(B) is listed on the National Priorities List.
       ``(b) Identification of Delegable Authorities.--
       ``(1) In general.--The President shall by regulation 
     identify all of the authorities of the Administrator that 
     shall be included in a delegation of any category of 
     delegable authority described in subsection (a)(2).
       ``(2) Limitation.--The Administrator shall not identify a 
     nondelegable authority for inclusion in a delegation of any 
     category of delegable authority.
       ``(c) Delegation of Authority.--
       ``(1) In general.--Pursuant to an approved State 
     application, the Administrator shall delegate authority to 
     perform 1 or more delegable authorities with respect to 1 or 
     more non-Federal listed facilities in the State.
       ``(2) Application.--An application under paragraph (1) 
     shall--
       ``(A) identify each non-Federal listed facility for which 
     delegation is requested;
       ``(B) identify each delegable authority that is requested 
     to be delegated for each non-Federal listed facility for 
     which delegation is requested; and
       ``(C) certify that the State, supported by such 
     documentation as the State, in consultation with the 
     Administrator, considers to be appropriate--
       ``(i) has statutory and regulatory authority (including 
     appropriate enforcement authority) to perform the requested 
     delegable authorities in a manner that is protective of human 
     health and the environment;
       ``(ii) has resources in place to adequately administer and 
     enforce the authorities;
       ``(iii) has procedures to ensure public notice and, as 
     appropriate, opportunity for comment on remedial action 
     plans, consistent with sections 117 and 132; and
       ``(iv) agrees to exercise its enforcement authorities to 
     require that persons that are potentially liable under 
     section 107(a), to the extent practicable, perform and pay 
     for the response actions set forth in each category described 
     in subsection (a)(2).
       ``(3) Approval of application.--
       ``(A) In general.--Not later than 60 days after receiving 
     an application under paragraph (2) by a State that is 
     authorized to administer and enforce the corrective action 
     requirements of a hazardous waste program under section 3006 
     of the Solid Waste Disposal Act (42 U.S.C. 6926), and not 
     later than 120 days after receiving an application from a 
     State that is not authorized to administer and enforce the 
     corrective action requirements of a hazardous waste program 
     under section 3006 of the Solid Waste Disposal Act (42 U.S.C. 
     6926), unless the State agrees to a greater length of time 
     for the Administrator to make a determination, the 
     Administrator shall--
       ``(i) issue a notice of approval of the application 
     (including approval or disapproval regarding any or all of 
     the facilities with respect to which a delegation of 
     authority is requested or with respect to any or all of the 
     authorities that are requested to be delegated); or
       ``(ii) if the Administrator determines that the State does 
     not have adequate legal authority, financial and personnel 
     resources, organization, or expertise to administer and 
     enforce any of the requested delegable authority, issue a 
     notice of disapproval, including an explanation of the basis 
     for the determination.
       ``(B) Failure to act.--If the Administrator does not issue 
     a notice of approval or notice of disapproval of all or any 
     portion of an application within the applicable time period 
     under subparagraph (A), the application shall be deemed to 
     have been granted.
       ``(C) Resubmission of application.--
       ``(i) In general.--If the Administrator disapproves an 
     application under paragraph (1), the State may resubmit the 
     application at any time after receiving the notice of 
     disapproval.
       ``(ii) Failure to act.--If the Administrator does not issue 
     a notice of approval or notice of disapproval of a 
     resubmitted application within the applicable time period 
     under subparagraph (A), the resubmitted application shall be 
     deemed to have been granted.
       ``(D) No additional terms or conditions.--The Administrator 
     shall not impose any term or condition on the approval of an 
     application that meets the requirements stated in paragraph 
     (2) (except that any technical deficiencies in the 
     application be corrected).
       ``(E) Judicial review.--The State (but no other person) 
     shall be entitled to judicial review under section 113(b) of 
     a disapproval of a resubmitted application.
       ``(4) Delegation agreement.--On approval of a delegation of 
     authority under this section, the Administrator and the 
     delegated State shall enter into a delegation agreement that 
     identifies each category of delegable authority that is 
     delegated with respect to each delegated facility.
       ``(5) Limited delegation.--
       ``(A) In general.--In the case of a State that does not 
     meet the requirements of paragraph (2)(C) the Administrator 
     may delegate to the State limited authority to perform, 
     ensure the performance of, or supervise or otherwise 
     participate in the performance of 1 or more delegable 
     authorities, as appropriate in view of the extent to which 
     the State has the required legal authority, financial and 
     personnel resources, organization, and expertise.
       ``(B) Special provisions.--In the case of a limited 
     delegation of authority to a State under subparagraph (A), 
     the Administrator shall specify the extent to which the State 
     shall be considered to be a delegated State for the purposes 
     of this Act.
       ``(d) Performance of Delegated Authorities.--
       ``(1) In general.--A delegated State shall have sole 
     authority (except as provided in paragraph (6)(B), subsection 
     (e)(4), and subsection (g)) to perform a delegated authority 
     with respect to a delegated facility.
       ``(2) Agreements for performance of delegated 
     authorities.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a delegated State may enter into an agreement with a 
     political subdivision of the State, an interstate body 
     comprised of that State and another delegated State or 
     States, or a combination of such subdivisions or interstate 
     bodies, providing for the performance of any category of 
     delegated authority with respect to a delegated facility in 
     the State if the parties to the agreement agree in the 
     agreement to undertake response actions that are consistent 
     with this Act.
       ``(B) No agreement with potentially responsible party.--A 
     delegated State shall not enter into an agreement under 
     subparagraph (A) with a political subdivision or interstate 
     body that is, or includes as a component an entity that is, a 
     potentially responsible party with respect to a delegated 
     facility covered by the agreement.
       ``(C) Continuing responsibility.--A delegated State that 
     enters into an agreement under subparagraph (A)--
       ``(i) shall exercise supervision over and approve the 
     activities of the parties to the agreement; and
       ``(ii) shall remain responsible for ensuring performance of 
     the delegated authority.
       ``(3) Compliance with act.--
       ``(A) Noncomprehensive delegation states.--A 
     noncomprehensive delegation State shall implement each 
     applicable provision of this Act (including regulations and 
     guidance issued by the Administrator) so as to perform each 
     delegated authority with respect to a delegated facility in 
     the same manner as would the Administrator with respect to a 
     facility that is not a delegated facility.
       ``(B) Comprehensive delegation states.--
       ``(i) In general.--A comprehensive delegation State shall 
     implement applicable provisions of this Act or of similar 
     provisions of State law in a manner comporting with State 
     policy, so long as the remedial action that is selected 
     protects human health and the environment to the same extent 
     as would

[[Page 5433]]

     a remedial action selected by the Administrator under section 
     121.
       ``(ii) Costlier remedial action.--

       ``(I) In general.--A delegated State may select a remedial 
     action for a delegated facility that has a greater response 
     cost (including operation and maintenance costs) than the 
     response cost for a remedial action that would be selected by 
     the Administrator under section 121, if the State pays for 
     the difference in cost.
       ``(II) No cost recovery.--If a delegated State selects a 
     more costly remedial action under subclause (I), the State 
     shall not be entitled to seek cost recovery under this Act or 
     any other Federal or State law from any other person for the 
     difference in cost.

       ``(4) Judicial review.--An order that is issued under 
     section 106 by a delegated State with respect to a delegated 
     facility shall be reviewable only in United States district 
     court under section 113.
       ``(5) Delisting of national priorities list facilities.--
       ``(A) Delisting.--After notice and an opportunity for 
     public comment, a delegated State may remove from the 
     National Priorities List all or part of a delegated 
     facility--
       ``(i) if the State makes a finding that no further action 
     is needed to be taken at the facility (or part of the 
     facility) under any applicable law to protect human health 
     and the environment consistent with paragraphs (1) and (2) of 
     section 121(a);
       ``(ii) with the concurrence of the potentially responsible 
     parties, if the State has an enforceable agreement to perform 
     all required remedial action and operation and maintenance 
     for the facility or if the cleanup will proceed at the 
     facility under subsection (u) or (v) of section 3004 of the 
     Solid Waste Disposal Act (42 U.S.C. 6924); or
       ``(iii) if the State is a comprehensive delegation State 
     with respect to the facility.
       ``(B) Effect of delisting.--A delisting under clause (ii) 
     or (iii) of subparagraph (A) shall not affect--
       ``(i) the authority or responsibility of the State to 
     complete remedial action and operation and maintenance;
       ``(ii) the eligibility of the State for funding under this 
     Act;
       ``(iii) notwithstanding the limitation on section 
     104(c)(1), the authority of the Administrator to make 
     expenditures from the Fund relating to the facility; or
       ``(iv) the enforceability of any consent order or decree 
     relating to the facility.
       ``(C) No relisting.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Administrator shall not relist on the National Priorities 
     List a facility or part of a facility that has been removed 
     from the National Priorities List under subparagraph (A).
       ``(ii) Cleanup not completed.--The Administrator may relist 
     a facility or part of a facility that has been removed from 
     the National Priorities List under subparagraph (A) if 
     cleanup is not completed in accordance with the enforceable 
     agreement under subparagraph (A)(ii).
       ``(6) Cost recovery.--
       ``(A) Recovery by a delegated state.--Of the amount of any 
     response costs recovered from a responsible party by a 
     delegated State for a delegated facility under section 107--
       ``(i) 25 percent of the amount of any Federal response cost 
     recovered with respect to a facility, plus an amount equal to 
     the amount of response costs incurred by the State with 
     respect to the facility, may be retained by the State; and
       ``(ii) the remainder shall be deposited in the Hazardous 
     Substances Superfund established under subchapter A of 
     chapter 98 of the Internal Revenue Code of 1986.
       ``(B) Recovery by the administrator.--
       ``(i) In general.--The Administrator may take action under 
     section 107 to recover response costs from a responsible 
     party for a delegated facility if--

       ``(I) the delegated State notifies the Administrator in 
     writing that the delegated State does not intend to pursue 
     action for recovery of response costs under section 107 
     against the responsible party; or
       ``(II) the delegated State fails to take action to recover 
     response costs within a reasonable time in light of 
     applicable statutes of limitation.

       ``(ii) Notice.--If the Administrator proposes to commence 
     an action for recovery of response costs under section 107, 
     the Administrator shall give the State written notice and 
     allow the State at least 90 days after receipt of the notice 
     to commence the action.
       ``(iii) No further action.--If the Administrator takes 
     action against a potentially responsible party under section 
     107 relating to a release from a delegated facility, the 
     delegated State may not take any other action for recovery of 
     response costs relating to that release under this Act or any 
     other Federal or State law.
       ``(e) Federal Responsibilities and Authorities.--
       ``(1) Review use of funds.--
       ``(A) In general.--The Administrator shall review the 
     certification submitted by the Governor under subsection 
     (f)(8) not later than 120 days after the date of its 
     submission.
       ``(B) Finding of use of funds inconsistent with this act.--
     If the Administrator finds that funds were used in a manner 
     that is inconsistent with this Act, the Administrator shall 
     notify the Governor in writing not later than 120 days after 
     receiving the certification of the Governor.
       ``(C) Explanation.--Not later than 30 days after receiving 
     a notice under subparagraph (B), the Governor shall--
       ``(i) explain why the finding of the Administrator is in 
     error; or
       ``(ii) explain to the satisfaction of the Administrator how 
     any misapplication or misuse of funds will be corrected.
       ``(D) Failure to explain.--If the Governor fails to make an 
     explanation under subparagraph (C) to the satisfaction of the 
     Administrator, the Administrator may request reimbursement of 
     such amount of funds as the Administrator finds was 
     misapplied or misused.
       ``(E) Repayment of funds.--If the Administrator fails to 
     obtain reimbursement from the State within a reasonable 
     period of time, the Administrator may, after 30 days' notice 
     to the State, bring a civil action in United States district 
     court to recover from the delegated State any funds that were 
     advanced for a purpose or were used for a purpose or in a 
     manner that is inconsistent with this Act.
       ``(2) Withdrawal of delegation of authority.--
       ``(A) Delegated states.--If at any time the Administrator 
     finds that contrary to a certification made under subsection 
     (c)(2), a delegated State--
       ``(i) lacks the required financial and personnel resources, 
     organization, or expertise to administer and enforce the 
     requested delegated authorities;
       ``(ii) does not have adequate legal authority to request 
     and accept delegation; or
       ``(iii) is failing to materially carry out the delegated 
     authorities of the State,

     the Administrator may withdraw a delegation of authority with 
     respect to a delegated facility after providing notice and 
     opportunity to correct deficiencies under subparagraph (D).
       ``(B) States with limited delegations of authority.--If the 
     Administrator finds that a State to which a limited 
     delegation of authority was made under subsection (c)(5) has 
     materially breached the delegation agreement, the 
     Administrator may withdraw the delegation after providing 
     notice and opportunity to correct deficiencies under 
     subparagraph (D).
       ``(C) Notice and opportunity to correct.--If the 
     Administrator proposes to withdraw a delegation of authority 
     for any or all delegated facilities, the Administrator shall 
     give the State written notice and allow the State at least 90 
     days after the date of receipt of the notice to correct the 
     deficiencies cited in the notice.
       ``(D) Failure to correct.--If the Administrator finds that 
     the deficiencies have not been corrected within the time 
     specified in a notice under subparagraph (C), the 
     Administrator may withdraw delegation of authority after 
     providing public notice and opportunity for comment.
       ``(E) Judicial review.--A decision of the Administrator to 
     withdraw a delegation of authority shall be subject to 
     judicial review under section 113(b).
       ``(3) Rule of construction.--Nothing in this section shall 
     be construed to affect the authority of the Administrator 
     under this Act to--
       ``(A) take a response action at a facility listed on the 
     National Priorities List in a State to which a delegation of 
     authority has not been made under this section or at a 
     facility not included in a delegation of authority; or
       ``(B) perform a delegable authority with respect to a 
     facility that is not included among the authorities delegated 
     to a State with respect to the facility.
       ``(4) Retained authority.--
       ``(A) Notice.--Before performing an emergency removal 
     action under section 104 at a delegated facility, the 
     Administrator shall notify the delegated States of the 
     intention of the Administrator to perform the removal.
       ``(B) State action.--If, after receiving a notice under 
     subparagraph (A), the delegated State notifies the 
     Administrator within 48 hours that the State intends to take 
     action to perform an emergency removal at the delegated 
     facility, the Administrator shall not perform the emergency 
     removal action unless the Administrator determines that the 
     delegated State has failed to act within a reasonable period 
     of time to perform the emergency removal.
       ``(C) Immediate and significant danger.--If the 
     Administrator finds that an emergency at a delegated facility 
     poses an immediate and significant danger to human health or 
     the environment, the Administrator shall not be required to 
     provide notice under subparagraph (A).
       ``(5) Prohibited actions.--Except as provided in 
     subsections (d)(6)(B), (e)(4), and (g) or except with the 
     concurrence of the delegated State, the President, the 
     Administrator, and the Attorney General shall not take any 
     action under section 104, 106, 107, 109, 121, or 122 in 
     performance of a delegable authority that has been delegated 
     to a State with respect to a delegated facility.
       `` Funding.--
       ``(1) In general.--The Administrator shall provide grants 
     to or enter into contracts or

[[Page 5434]]

     cooperative agreements with delegated States to carry out 
     this section.
       ``(2) No claim against fund.--Notwithstanding any other 
     law, funds to be granted under this subsection shall not 
     constitute a claim against the Fund or the United States.
       ``(3) Insufficient funds available.--If funds are 
     unavailable in any fiscal year to satisfy all commitments 
     made under this section by the Administrator, the 
     Administrator shall have sole authority and discretion to 
     establish priorities and to delay payments until funds are 
     available.
       ``(4) Determination of costs on a facility-specific 
     basis.--The Administrator shall--
       ``(A) determine--
       ``(i) the delegable authorities the costs of performing 
     which it is practicable to determine on a facility-specific 
     basis; and
       ``(ii) the delegable authorities the costs of performing 
     which it is not practicable to determine on a facility-
     specific basis; and
       ``(B) publish a list describing the delegable authorities 
     in each category.
       ``(5) Facility-specific grants.--The costs described in 
     paragraph (4)(A)(ii) shall be funded as such costs arise with 
     respect to each delegated facility.
       ``(6) Nonfacility-specific grants.--
       ``(A) In general.--The costs described in paragraph 
     (4)(A)(ii) shall be funded through nonfacility-specific 
     grants under this paragraph.
       ``(B) Formula.--The Administrator shall establish a formula 
     under which funds available for nonfacility-specific grants 
     shall be allocated among the delegated States, taking into 
     consideration--
       ``(i) the cost of administering the delegated authority;
       ``(ii) the number of sites for which the State has been 
     delegated authority;
       ``(iii) the types of activities for which the State has 
     been delegated authority;
       ``(iv) the number of facilities within the State that are 
     listed on the National Priorities List or are delegated 
     facilities under subsection (d)(5);
       ``(v) the number of other high priority facilities within 
     the State;
       ``(vi) the need for the development of the State program;
       ``(vii) the need for additional personnel;
       ``(viii) the amount of resources available through State 
     programs for the cleanup of contaminated sites; and
       ``(ix) the benefit to human health and the environment of 
     providing the funding.
       ``(7) Permitted use of grant funds.--A delegated State may 
     use grant funds, in accordance with this Act and the National 
     Contingency Plan, to take any action or perform any duty 
     necessary to implement the authority delegated to the State 
     under this section.
       ``(8) Cost share.--
       ``(A) Assurance.--A delegated State to which a grant is 
     made under this subsection shall provide an assurance that 
     the State will pay any amount required under section 
     104(c)(3).
       ``(B) Prohibited use of grant funds.--A delegated State to 
     which a grant is made under this subsection may not use grant 
     funds to pay any amount required under section 104(c)(3).
       ``(9) Certification of use of funds.--
       ``(A) In general.--Not later than 1 year after the date on 
     which a delegated State receives funds under this subsection, 
     and annually thereafter, the Governor of the State shall 
     submit to the Administrator--
       ``(i) a certification that the State has used the funds in 
     accordance with the requirements of this Act and the National 
     Contingency Plan; and
       ``(ii) information describing the manner in which the State 
     used the funds.
       ``(B) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Administrator shall issue a 
     regulation describing with particularity the information that 
     a State shall be required to provide under subparagraph 
     (A)(ii).
       ``(g) Cooperative Agreements.--Nothing in this section 
     shall affect the authority of the Administrator under section 
     104(d)(1) to enter into a cooperative agreement with a State, 
     a political subdivision of a State, or an Indian tribe to 
     carry out actions under section 104.''.
       (b) State Cost Share.--Section 104(c) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9604(c)) is amended--
       (1) by striking ``(c)(1) Unless'' and inserting the 
     following:
       ``(c) Miscellaneous Limitations and Requirements.--
       ``(1) Continuance of obligations from fund.--Unless'';
       (2) by striking ``(2) The President'' and inserting the 
     following:
       ``(2) Consultation.--The President''; and
       (3) by striking paragraph (3) and inserting the following:
       ``(3) State cost share.--
       ``(A) In general.--The Administrator shall not provide any 
     remedial action under this section unless the State in which 
     the release occurs first enters into a contract or 
     cooperative agreement with the Administrator providing 
     assurances deemed adequate by the Administrator that the 
     State will pay, in cash or through in-kind contributions, a 
     specified percentage of the costs of the remedial action and 
     operation and maintenance costs.
       ``(B) Activities with respect to which state cost share is 
     required.--No State cost share shall be required except for 
     remedial actions under section 104.
       ``(C) Specified percentage.--
       ``(i) In general.--The specified percentage of costs that a 
     State shall be required to share shall be the lower of 10 
     percent or the percentage determined under clause (ii).
       ``(ii) Maximum in accordance with law prior to 1996 
     amendments.--

       ``(I) In general.--On petition by a State, the Director of 
     the Office of Management and Budget (referred to in this 
     clause as the `Director'), after providing public notice and 
     opportunity for comment, shall establish a cost share 
     percentage, which shall be uniform for all facilities in the 
     State, at the percentage rate at which the total amount of 
     anticipated payments by the State under the cost share for 
     all facilities in the State for which a cost share is 
     required most closely approximates the total amount of 
     estimated cost share payments by the State for facilities 
     that would have been required under cost share requirements 
     that were applicable prior to the date of enactment of this 
     subparagraph, adjusted to reflect the extent to which the 
     ability of the State to recover costs under this Act were 
     reduced by reason of enactment of amendments to this Act by 
     division H of the Energy Policy Act of 2002.
       ``(II) Adjustment.--The Director may adjust the cost share 
     of a State under this clause not more frequently than every 3 
     years.

       ``(D) Indian tribes.--In the case of remedial action to be 
     taken on land or water held by an Indian tribe, held by the 
     United States in trust for Indians, held by a member of an 
     Indian tribe (if the land or water is subject to a trust 
     restriction on alienation), or otherwise within the borders 
     of an Indian reservation, the requirements of this paragraph 
     shall not apply.''.
       (c) Uses of Fund.--Section 111(a) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9611(a)) is amended by inserting after 
     paragraph (6) the following:
       ``(7) Grants to delegated states.--Making a grant to a 
     delegated State under section 129(f).''.
       (d) Relationship to Other Laws.--
       (1) In general.--Section 114(b) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9614(b)) is amended by striking ``removal'' 
     each place it appears and inserting ``response''.
       (2) Conforming amendment.--Section 101(37)(B) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(37)(B)) is amended by 
     striking ``section 114(c)'' and inserting ``section 114(b)''.

                  Subtitle B--Community Participation

     SEC. 1911. COMMUNITY RESPONSE ORGANIZATIONS; TECHNICAL 
                   ASSISTANCE GRANTS; IMPROVEMENT OF PUBLIC 
                   PARTICIPATION IN THE SUPERFUND DECISIONMAKING 
                   PROCESS.

       (a) Amendment.--Section 117 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9617) is amended by striking subsection (e) 
     and inserting the following:
       ``(e) Community Response Organizations.--
       ``(1) Establishment.--The Administrator shall create a 
     community response organization for a facility that is listed 
     or proposed for listing on the National Priorities List--
       ``(A) if the Administrator determines that a representative 
     public forum will be helpful in promoting direct, regular, 
     and meaningful consultation among persons interested in 
     remedial action at the facility; or
       ``(B) at the request of--
       ``(i) 50 individuals residing in, or at least 20 percent of 
     the population of, the area in which the facility is located;
       ``(ii) a representative group of the potentially 
     responsible parties; or
       ``(iii) any local governmental entity with jurisdiction 
     over the facility.
       ``(2) Responsibilities.--A community response organization 
     shall--
       ``(A) solicit the views of the local community on various 
     issues affecting the development and implementation of 
     remedial actions at the facility;
       ``(B) serve as a conduit of information to and from the 
     community to appropriate Federal, State, and local agencies 
     and potentially responsible parties;
       ``(C) serve as a representative of the local community 
     during the remedial action planning and implementation 
     process; and
       ``(D) provide reasonable notice of and opportunities to 
     participate in the meetings and other activities of the 
     community response organization.
       ``(3) Access to documents.--The Administrator shall provide 
     a community response organization access to documents in 
     possession of the Federal Government regarding response 
     actions at the facility that do not relate to liability and 
     are not protected from disclosure as confidential business 
     information.
       ``(4) Community response organization input.--

[[Page 5435]]

       ``(A) Consultation.--The Administrator (or if the remedial 
     action plan is being prepared or implemented by a party other 
     than the Administrator, the other party) shall--
       ``(i) consult with the community response organization in 
     developing and implementing the remedial action plan; and
       ``(ii) keep the community response organization informed of 
     progress in the development and implementation of the 
     remedial action plan.
       ``(B) Timely submission of comments.--The community 
     response organization shall provide its comments, 
     information, and recommendations in a timely manner to the 
     Administrator (and other party).
       ``(C) Consensus.--The community response organization shall 
     attempt to achieve consensus among its members before 
     providing comments and recommendations to the Administrator 
     (and other party), but if consensus cannot be reached, the 
     community response organization shall report or allow 
     presentation of divergent views.
       ``(5) Technical assistance grants.--
       ``(A) Preferred recipient.--If a community response 
     organization exists for a facility, the community response 
     organization shall be the preferred recipient of a technical 
     assistance grant under subsection (f).
       ``(B) Prior award.--If a technical assistance grant 
     concerning a facility has been awarded prior to establishment 
     of a community response organization--
       ``(i) the recipient of the grant shall coordinate its 
     activities and share information and technical expertise with 
     the community response organization; and
       ``(ii) 1 person representing the grant recipient shall 
     serve on the community response organization.
       ``(6) Membership.--
       ``(A) Number.--The Administrator shall select not less than 
     15 nor more than 20 persons to serve on a community response 
     organization.
       ``(B) Notice.--Before selecting members of the community 
     response organization, the Administrator shall provide a 
     notice of intent to establish a community response 
     organization to persons who reside in the local community.
       ``(C) Represented groups.--The Administrator shall, to the 
     extent practicable, appoint members to the community response 
     organization from each of the following groups of persons:
       ``(i) Persons who reside or own residential property near 
     the facility.
       ``(ii) Persons who, although they may not reside or own 
     property near the facility, may be adversely affected by a 
     release from the facility.
       ``(iii) Persons who are members of the local public health 
     or medical community and are practicing in the community.
       ``(iv) Representatives of Indian tribes or Indian 
     communities that reside or own property near the facility or 
     that may be adversely affected by a release from the 
     facility.
       ``(v) Local representatives of citizen, environmental, or 
     public interest groups with members residing in the 
     community.
       ``(vi) Representatives of local governments, such as city 
     or county governments, or both, and any other governmental 
     unit that regulates land use or land use planning in the 
     vicinity of the facility.
       ``(vii) Members of the local business community.
       ``(D) Proportion.--Local residents shall comprise not less 
     than 60 percent of the membership of a community response 
     organization.
       ``(E) Pay.--Members of a community response organization 
     shall serve without pay.
       ``(7) Participation by government representatives.--
     Representatives of the Administrator, the Administrator of 
     the Agency for Toxic Substances and Disease Registry, other 
     Federal agencies, and the State, as appropriate, shall 
     participate in community response organization meetings to 
     provide information and technical expertise, but shall not be 
     members of the community response organization.
       ``(8) Administrative support.--The Administrator, to the 
     extent practicable, shall provide administrative services and 
     meeting facilities for community response organizations.
       ``(9) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
     App.) shall not apply to a community response organization.
       ``(f) Technical Assistance Grants.--
       ``(1) Definitions.--In this subsection:
       ``(A) Affected citizen group.--The term `affected citizen 
     group' means a group of 2 or more individuals who may be 
     affected by the release or threatened release of a hazardous 
     substance, pollutant, or contaminant at any facility on the 
     State Registry or the National Priorities List.
       ``(B) Technical assistance grant.--The term `technical 
     assistance grant' means a grant made under paragraph (2).
       ``(2) Authority.--
       ``(A) In general.--In accordance with a regulation issued 
     by the Administrator, the Administrator may make grants 
     available to affected citizen groups.
       ``(B) Availability of application process.--To ensure that 
     the application process for a technical assistance grant is 
     available to all affected citizen groups, the Administrator 
     shall periodically review the process and, based on the 
     review, implement appropriate changes to improve 
     availability.
       ``(3) Special rules.--
       ``(A) No matching contribution.--No matching contribution 
     shall be required for a technical assistance grant.
       ``(B) Availability in advance.--The Administrator shall 
     make all or a portion (but not less than $5,000 or 10 percent 
     of the grant amount, whichever is greater) of the grant 
     amount available to a grant recipient in advance of the total 
     expenditures to be covered by the grant.
       ``(4) Limit per facility.--
       ``(A) 1 grant per facility.--Not more than 1 technical 
     assistance grant may be made with respect to a single 
     facility, but the grant may be renewed to facilitate public 
     participation at all stages of response action.
       ``(B) Duration.--The Administrator shall by regulation 
     limit the number of years for which a technical assistance 
     grant may be made available based on the duration, type, and 
     extent of response action at a facility.
       ``(5) Availability for facilities not yet listed.--Subject 
     to paragraph (6), 1 or more technical assistance grants shall 
     be made available to affected citizen groups in communities 
     containing facilities on the State Registry as of the date on 
     which the grant is awarded.
       ``(6) Funding limit.--
       ``(A) Percentage of total appropriations.--Not more than 2 
     percent of the funds made available to carry out this Act for 
     a fiscal year may be used to make technical assistance 
     grants.
       ``(B) Allocation between listed and unlisted facilities.--
     Not more than the portion of funds equal to \1/8\ of the 
     total amount of funds used to make technical assistance 
     grants for a fiscal year may be used for technical assistance 
     grants with respect to facilities not listed on the National 
     Priorities List.
       ``(7) Funding amount.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the amount of a technical assistance grant may not exceed 
     $50,000 for a single grant recipient.
       ``(B) Increase.--The Administrator may increase the amount 
     of a technical assistance grant, or renew a previous 
     technical assistance grant, up to a total grant amount not 
     exceeding $100,000, to reflect the complexity of the response 
     action, the nature and extent of contamination at the 
     facility, the level of facility activity, projected total 
     needs as requested by the grant recipient, the size and 
     diversity of the affected population, and the ability of the 
     grant recipient to identify and raise funds from other non-
     Federal sources.
       ``(8) Use of technical assistance grants.--
       ``(A) Permitted use.--A technical assistance grant may be 
     used to obtain technical assistance in interpreting 
     information with regard to--
       ``(i) the nature of the hazardous substances located at a 
     facility;
       ``(ii) the work plan;
       ``(iii) the facility evaluation;
       ``(iv) a proposed remedial action plan, a remedial action 
     plan, and a final remedial design for a facility;
       ``(v) response actions carried out at the facility; and
       ``(vi) operation and maintenance activities at the 
     facility.
       ``(B) Prohibited use.--A technical assistance grant may not 
     be used for the purpose of collecting field sampling data.
       ``(9) Grant guidelines.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of this paragraph, the Administrator shall develop 
     and publish guidelines concerning the management of technical 
     assistance grants by grant recipients.
       ``(B) Hiring of experts.--A recipient of a technical 
     assistance grant that hires technical experts and other 
     experts shall act in accordance with the guidelines under 
     subparagraph (A).
       ``(g) Improvement of Public Participation in the Superfund 
     Decisionmaking Process.--
       ``(1) In general.--
       ``(A) Meetings and notice.--In order to provide an 
     opportunity for meaningful public participation in every 
     significant phase of response activities under this Act, the 
     Administrator shall provide the opportunity for, and publish 
     notice of, public meetings before or during performance of--
       ``(i) a facility evaluation, as appropriate;
       ``(ii) announcement of a proposed remedial action plan; and
       ``(iii) completion of a final remedial design.
       ``(B) Information.--A public meeting under subparagraph (A) 
     shall be designed to obtain information from the community, 
     and disseminate information to the community, with respect to 
     a facility concerning the facility activities and pending 
     decisions of the Administrator.
       ``(2) Participants and subject.--The Administrator shall 
     provide reasonable notice of an opportunity for public 
     participation in meetings in which--
       ``(A) the participants include Federal officials (or State 
     officials, if the State is conducting response actions under 
     a delegated or authorized program or through facility 
     referral) with authority to make significant

[[Page 5436]]

     decisions affecting a response action, and other persons 
     (unless all of such other persons are coregulators that are 
     not potentially responsible parties or are government 
     contractors); and
       ``(B) the subject of the meeting involves discussions 
     directly affecting--
       ``(i) a legally enforceable work plan document, or any 
     significant amendment to the document, for a removal, 
     facility evaluation, proposed remedial action plan, final 
     remedial design, or remedial action for a facility on the 
     National Priorities List; or
       ``(ii) the final record of information on which the 
     Administrator will base a hazard ranking system score for a 
     facility.
       ``(3) Limitation.--Nothing in this subsection--
       ``(A) provides for public participation in or otherwise 
     affects any negotiation, meeting, or other discussion that 
     concerns only the potential liability or settlement of 
     potential liability of any person, whether prior to or 
     following the commencement of litigation or administrative 
     enforcement action;
       ``(B) provides for public participation in or otherwise 
     affects any negotiation, meeting, or other discussion that is 
     attended only by representatives of the United States (or of 
     a department, agency, or instrumentality of the United 
     States) with attorneys representing the United States (or of 
     a department, agency, or instrumentality of the United 
     States); or
       ``(C) waives, compromises, or affects any privilege that 
     may be applicable to a communication related to an activity 
     described in subparagraph (A) or (B).
       ``(4) Evaluation.--
       ``(A) In general.--To the extent practicable, before and 
     during the facility evaluation, the Administrator shall 
     solicit and evaluate concerns, interests, and information 
     from the community.
       ``(B) Procedure.--An evaluation under subparagraph (A) 
     shall include, as appropriate--
       ``(i) face-to-face community surveys to identify the 
     location of private drinking water wells, historic and 
     current or potential use of water, and other environmental 
     resources in the community;
       ``(ii) a public meeting;
       ``(iii) written responses to significant concerns; and
       ``(iv) other appropriate participatory activities.
       ``(5) Views and preferences.--
       ``(A) Solicitation.--During the facility evaluation, the 
     Administrator (or other person performing the facility 
     evaluation) shall solicit the views and preferences of the 
     community on the remediation and disposition of hazardous 
     substances or pollutants or contaminants at the facility.
       ``(B) Consideration.--The views and preferences of the 
     community shall be described in the facility evaluation and 
     considered in the screening of remedial alternatives for the 
     facility.
       ``(6) Alternatives.--Members of the community may propose 
     remedial action alternatives, and the Administrator shall 
     consider such alternatives in the same manner as the 
     Administrator considers alternatives proposed by potentially 
     responsible parties.
       ``(7) Information.--
       ``(A) The community.--The Administrator, with the 
     assistance of the community response organization under 
     subsection (g) if there is one, shall provide information to 
     the community and seek comment from the community throughout 
     all significant phases of the response action at the 
     facility.
       ``(B) Technical staff.--The Administrator shall ensure that 
     information gathered from the community during community 
     outreach efforts reaches appropriate technical staff in a 
     timely and effective manner.
       ``(C) Responses.--The Administrator shall ensure that 
     reasonable written or other appropriate responses will be 
     made to such information.
       ``(8) Nonprivileged information.--Throughout all phases of 
     response action at a facility, the Administrator shall make 
     all nonprivileged information relating to a facility 
     available to the public for inspection and copying without 
     the need to file a formal request, subject to reasonable 
     service charges as appropriate.
       ``(9) Presentation.--
       ``(A) Documents.--
       ``(i) In general.--The Administrator, in carrying out 
     responsibilities under this Act, shall ensure that the 
     presentation of information on risk is complete and 
     informative.
       ``(ii) Risk.--To the extent feasible, documents prepared by 
     the Administrator and made available to the public that 
     purport to describe the degree of risk to human health shall 
     be consistent with the risk communication principles outlined 
     in section 130(c).
       ``(B) Comparisons.--The Administrator, in carrying out 
     responsibilities under this Act, shall provide comparisons of 
     the level of risk from hazardous substances found at the 
     facility to comparable levels of risk from those hazardous 
     substances ordinarily encountered by the general public 
     through other sources of exposure.
       ``(10) Requirements.--
       ``(A) Lengthy removal actions.--Notwithstanding any other 
     provision of this subsection, in the case of a removal action 
     taken in accordance with section 104 that is expected to 
     require more than 180 days to complete, and in any case in 
     which implementation of a removal action is expected to 
     obviate or that in fact obviates the need to conduct a long-
     term remedial action--
       ``(i) the Administrator shall, to the maximum extent 
     practicable, allow for public participation consistent with 
     paragraph (1); and
       ``(ii) the removal action shall achieve the goals of 
     protecting human health and the environment in accordance 
     with section 121(a)(1).
       ``(B) Other removal actions.--In the case of all other 
     removal actions, the Administrator may provide the community 
     with notice of the anticipated removal action and a public 
     comment period, as appropriate.''.
       (b) Issuance of Guidelines.--The Administrator of the 
     Environmental Protection Agency shall issue guidelines under 
     section 117(e)(9) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980, as added 
     by subsection (a), not later than 90 days after the date of 
     enactment of this Act.

               Subtitle C--Selection of Remedial Actions

     SEC. 1921. DEFINITIONS.

       Section 101 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is 
     amended by adding at the end the following:
       ``(42) Actual or planned or reasonably anticipated future 
     use of the land and water resources.--The term `actual or 
     planned or reasonably anticipated future use of the land and 
     water resources' means--
       ``(A) the actual use of the land, surface water, and ground 
     water at a facility on the date of submittal of the proposed 
     remedial action plan; and
       ``(B)(i) with respect to land--
       ``(I) the use of land that is authorized by the zoning or 
     land use decisions formally adopted, at or prior to the time 
     of the initiation of the facility evaluation, by the local 
     land use planning authority for a facility and the land 
     immediately adjacent to the facility; and
       ``(II) any other reasonably anticipated use that the local 
     land use authority, in consultation with the community 
     response organization (if any), determines to have a 
     substantial probability of occurring based on recent (as of 
     the time of the determination) development patterns in the 
     area in which the facility is located and on population 
     projections for the area; and
       ``(ii) with respect to water resources, the future use of 
     the surface water and ground water that is potentially 
     affected by releases from a facility that is reasonably 
     anticipated, by the governmental unit that regulates surface 
     or ground water use or surface or ground water use planning 
     in the vicinity of the facility, on the date of submission of 
     the proposed remedial action plan.
       ``(43) Sustainability.--The term `sustainability'', for the 
     purpose of section 121(a)(1)(B)(ii), means the ability of an 
     ecosystem to continue to function within the normal range of 
     its variability absent the effects of a release of a 
     hazardous substance.''.

     SEC. 1922. SELECTION AND IMPLEMENTATION OF REMEDIAL ACTIONS.

       Section 121 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9621) is 
     amended--
       (1) by striking the section heading and subsections (a) and 
     (b) and inserting the following:

     ``SEC. 121. SELECTION AND IMPLEMENTATION OF REMEDIAL ACTIONS.

       ``(a) General Rules.--
       ``(1) Selection of cost-effective remedial action that 
     protects human health and the environment.--
       ``(A) In general.--The Administrator shall select a cost-
     effective remedial action that achieves the goals of 
     protecting human health and the environment as stated in 
     subparagraph (B), and complies with other applicable Federal 
     and State laws in accordance with subparagraph (C) on the 
     basis of a facility-specific risk evaluation in accordance 
     with section 130 and in accordance with the criteria stated 
     in subparagraph (D) and the requirements of paragraph (2).
       ``(B) Goals of protecting human health and the 
     environment.--
       ``(i) Protection of human health.--A remedial action shall 
     be considered to protect human health if, considering the 
     expected exposures associated with the actual or planned or 
     reasonably anticipated future use of the land and water 
     resources and on the basis of a facility-specific risk 
     evaluation in accordance with section 131, the remedial 
     action achieves a residual risk--

       ``(I) from exposure to nonthreshold carcinogenic hazardous 
     substances, pollutants, or contaminants such that cumulative 
     lifetime additional cancer from exposure to hazardous 
     substances from releases at the facility range from 
     10-4 to 10-6 for the affected 
     population; and
       ``(II) from exposure to threshold carcinogenic and  
     noncarcinogenic hazardous substances, pollutants, or 
     contaminants at the facility, that does not exceed a hazard 
     index of 1.

       ``(ii) Protection of the environment.--A remedial action 
     shall be considered to be protective of the environment if 
     the remedial action--

       ``(I) protects ecosystems from significant threats to their 
     sustainability arising from

[[Page 5437]]

     exposure to releases of hazardous substances at a site; and
       ``(II) does not cause a greater threat to the 
     sustainability of ecosystems than a release of a hazardous 
     substance.

       ``(iii) Protection of ground water.--A remedial action 
     shall prevent or eliminate any actual human ingestion of 
     drinking water containing any hazardous substance from the 
     release at levels--

       ``(I) in excess of the maximum contaminant level 
     established under the Safe Drinking Water Act (42 U.S.C. 300f 
     et seq.); or
       ``(II) if no such maximum contaminant level has been 
     established for the hazardous substance, at levels that meet 
     the goals for protection of human health under clause (i).

       ``(C) Compliance with federal and state laws.--
       ``(i) Substantive requirements.--

       ``(I) In general.--Subject to clause (iii), subparagraphs 
     (A) and (D), and paragraph (2), a remedial action shall--

       ``(aa) comply with the substantive requirements of all 
     promulgated standards, requirements, criteria, and 
     limitations under each Federal law and each State law 
     relating to the environment or to the siting of facilities 
     (including a State law that imposes a more stringent 
     standard, requirement, criterion, or limitation than Federal 
     law) that is applicable to the conduct or operation of the 
     remedial action or to determination of the level of cleanup 
     for remedial actions; and
       ``(bb) comply with or attain any other promulgated 
     standard, requirement, criterion, or limitation under any 
     State law relating to the environment or siting of 
     facilities, as determined by the State, after the date of 
     enactment of the Energy Policy Act of 2002, through a 
     rulemaking procedure that includes public notice, comment, 
     and written response comment, and opportunity for judicial 
     review, but only if the State demonstrates that the standard, 
     requirement, criterion, or limitation is of general 
     applicability and is consistently applied to remedial actions 
     under State law.

       ``(II) Identification of facilities.--Compliance with a 
     State standard, requirement, criterion, or limitation 
     described in subclause (I) shall be required at a facility 
     only if the standard, requirement, criterion, or limitation 
     has been identified by the State to the Administrator in a 
     timely manner as being applicable to the facility.
       ``(III) Published lists.--Each State shall publish a 
     comprehensive list of the standards, requirements, criteria, 
     and limitations that the State may apply to remedial actions 
     under this Act, and shall revise the list periodically, as 
     requested by the Administrator.
       ``(IV) Contaminated media.--Compliance with this clause 
     shall not be required with respect to return, replacement, or 
     disposal of contaminated media or residuals of contaminated 
     media into the same media in or very near then-existing areas 
     of contamination onsite at a facility.

       ``(ii) Procedural requirements.--Procedural requirements of 
     Federal and State standards, requirements, criteria, and 
     limitations (including permitting requirements) shall not 
     apply to response actions conducted onsite at a facility.
       ``(iii) Waiver provisions.--

       ``(I) Determination by the president.--The Administrator 
     shall evaluate and determine if it is not appropriate for a 
     remedial action to attain a Federal or State standard, 
     requirement, criterion, or limitation as required by clause 
     (i).
       ``(II) Selection of remedial action that does not comply.--
     The Administrator may select a remedial action at a facility 
     that meets the requirements of subparagraph (B) but does not 
     comply with or attain a Federal or State standard, 
     requirement, criterion, or limitation described in clause (i) 
     if the Administrator makes any of the following findings:

       ``(aa) Improper identification.--The standard, requirement, 
     criterion, or limitation, which was improperly identified as 
     an applicable requirement under clause (i)(I)(aa), fails to 
     comply with the rulemaking requirements of clause (i)(I)(bb).
       ``(bb) Part of remedial action.--The selected remedial 
     action is only part of a total remedial action that will 
     comply with or attain the applicable requirements of clause 
     (i) when the total remedial action is completed.
       ``(cc) Greater risk.--Compliance with or attainment of the 
     standard, requirement, criterion, or limitation at the 
     facility will result in greater risk to human health or the 
     environment than alternative options.
       ``(dd) Technically impracticability.--Compliance with or 
     attainment of the standard, requirement, criterion, or 
     limitation is technically impracticable.
       ``(ee) Equivalent to standard of performance.--The selected 
     remedial action will attain a standard of performance that is 
     equivalent to that required under a standard, requirement, 
     criterion, or limitation described in clause (i) through use 
     of another approach.
       ``(ff) Inconsistent application.--With respect to a State 
     standard, requirement, criterion, limitation, or level, the 
     State has not consistently applied (or demonstrated the 
     intention to apply consistently) the standard, requirement, 
     criterion, or limitation or level in similar circumstances to 
     other remedial actions in the State.
       ``(gg) Balance.--In the case of a remedial action to be 
     undertaken under section 104 or 135 using amounts from the 
     Fund, a selection of a remedial action that complies with or 
     attains a standard, requirement, criterion, or limitation 
     described in clause (i) will not provide a balance between 
     the need for protection of public health and welfare and the 
     environment at the facility, and the need to make amounts 
     from the Fund available to respond to other facilities that 
     may present a threat to public health or welfare or the 
     environment, taking into consideration the relative immediacy 
     of the threats presented by the various facilities.

       ``(III) Publication.--The Administrator shall publish any 
     findings made under subclause (II), including an explanation 
     and appropriate documentation.

       ``(D) Remedy selection criteria.--In selecting a remedial 
     action from among alternatives that achieve the goals stated 
     in subparagraph (B) pursuant to a facility-specific risk 
     evaluation in accordance with section 130, the Administrator 
     shall balance the following factors, ensuring that no single 
     factor predominates over the others:
       ``(i) The effectiveness of the remedy in protecting human 
     health and the environment.
       ``(ii) The reliability of the remedial action in achieving 
     the protectiveness standards over the long term.
       ``(iii) Any short-term risk to the affected community, 
     those engaged in the remedial action effort, and to the 
     environment posed by the implementation of the remedial 
     action.
       ``(iv) The acceptability of the remedial action to the 
     affected community.
       ``(v) The implementability and technical feasibility of the 
     remedial action from an engineering perspective.
       ``(vi) The reasonableness of the cost.
       ``(2) Technical impracticability.--
       ``(A) Minimization of risk.--If the Administrator, after 
     reviewing the remedy selection criteria stated in paragraph 
     (1)(D), finds that achieving the goals stated in paragraph 
     (1)(B) is technically impracticable, the Administrator shall 
     evaluate remedial measures that mitigate the risks to human 
     health and the environment and select a technically 
     practicable remedial action that will most closely achieve 
     the goals stated in paragraph (1) through cost-effective 
     means.
       ``(B) Basis for finding.--A finding of technical 
     impracticability may be made on the basis of a determination, 
     supported by appropriate documentation, that, at the time at 
     which the finding is made--
       ``(i) there is no known reliable means of achieving at a 
     reasonable cost the goals stated in paragraph (1)(B); and
       ``(ii) it has not been shown that such a means is likely to 
     be developed within a reasonable period of time.
       ``(3) Presumptive remedial actions.--A remedial action that 
     implements a presumptive remedial action issued under section 
     131 shall be considered to achieve the goals stated in 
     paragraph (1)(B) and balance adequately the factors stated in 
     paragraph (1)(D).
       ``(4) Ground water.--
       ``(A) In general.--The Administrator or the preparer of the 
     remedial action plan shall select a cost effective remedial 
     action for ground water that achieves the goals of protecting 
     human health and the environment as stated in paragraph 
     (1)(B) and with the requirements of this paragraph, and 
     complies with other applicable Federal and State laws in 
     accordance with subparagraph (C) on the basis of a facility-
     specific risk evaluation in accordance with section 130 and 
     in accordance with the criteria stated in subparagraph (D) 
     and the requirements of paragraph (2). If appropriate, a 
     remedial action for ground water shall be phased, allowing 
     collection of sufficient data to evaluate the effect of any 
     other remedial action taken at the site and to determine the 
     appropriate scope of the remedial action.
       ``(B) Considerations for ground water remedial action.--A 
     decision regarding a remedial action for ground water shall 
     take into consideration--
       ``(i) the actual or planned or reasonably anticipated 
     future use of ground water and the timing of that use; and
       ``(ii) any attenuation or biodegradation that would occur 
     if no remedial action were taken.
       ``(C) Uncontaminated ground water.--A remedial action shall 
     protect uncontaminated ground water that is suitable for use 
     as drinking water by humans or livestock if the water is 
     uncontaminated and suitable for such use at the time of 
     submission of the proposed remedial action plan. A remedial 
     action to protect uncontaminated ground water may utilize 
     natural attenuation (which may include dilution or 
     dispersion, but in conjunction with biodegradation or other 
     levels of attenuation necessary to facilitate the remediation 
     of contaminated ground water) so long as the remedial action 
     does not interfere with the actual or planned or reasonably 
     anticipated future use of the uncontaminated ground water.
       ``(D) Contaminated ground water.--
       ``(i) In general.--In the case of contaminated ground water 
     for which the actual or planned or reasonably anticipated 
     future use of the resource is as drinking water for humans or 
     livestock, if the Administrator determines that restoration 
     of some portion of

[[Page 5438]]

     the contaminated ground water to a condition suitable for the 
     use is technically practicable, the Administrator shall seek 
     to restore the ground water to a condition suitable for the 
     use.
       ``(ii) Determination of restoration practicability.--In 
     making a determination regarding the technical practicability 
     of ground water restoration--

       ``(I) there shall be no presumption of the technical 
     practicability; and
       ``(II) the determination of technical practicability shall, 
     to the extent practicable, be made on the basis of 
     projections, modeling, or other analysis on a site-specific 
     basis without a requirement for the construction or 
     installation and operation of a remedial action.

       ``(iii) Determination of need for and methods of 
     restoration.--In making a determination and selecting a 
     remedial action regarding restoration of contaminated ground 
     water the Administrator shall take into account--

       ``(I) the ability to substantially accelerate the 
     availability of ground water for use as drinking water beyond 
     the rate achievable by natural attenuation; and
       ``(II) the nature and timing of the actual or planned or 
     reasonably anticipated use of such ground water.

       ``(iv) Restoration technically impracticable.--

       ``(I) In general.--A remedial action for contaminated 
     ground water having an actual or planned or reasonably 
     anticipated future use as a drinking water source for humans 
     or livestock for which attainment of the levels described in 
     paragraph (1)(B)(iii) is technically impracticable shall be 
     selected in accordance with paragraph (2).
       ``(II) No ingestion.--Selected remedies may rely on point-
     of-use treatment or other measures to ensure that there will 
     be no ingestion of drinking water at levels exceeding the 
     requirement of subclause (I) or (II) of paragraph 
     (1)(B)(iii).

       ``(III) Inclusion as part of operation and maintenance.--
     The operation and maintenance of any treatment device 
     installed at the point of use shall be included as part of 
     the operation and maintenance of the remedy.

       ``(E) Ground water not suitable for use as drinking 
     water.--Notwithstanding any other evaluation or determination 
     of the potential suitability of ground water for drinking 
     water use, ground water that is not suitable for use as 
     drinking water by humans or livestock because of naturally 
     occurring conditions, or is so contaminated by the effects of 
     broad-scale human activity unrelated to a specific facility 
     or release that restoration of drinking water quality is 
     technically impracticable or is physically incapable of 
     yielding a quantity of 150 gallons per day of water to a well 
     or spring, shall be considered to be not suitable for use as 
     drinking water.
       ``(F) Other ground water.--Remedial action for contaminated 
     ground water (other than ground water having an actual or 
     planned or reasonably anticipated future use as a drinking 
     water source for humans or livestock) shall attain levels 
     appropriate for the then-current or reasonably anticipated 
     future use of the ground water, or levels appropriate 
     considering the then-current use of any ground water or 
     surface water to which the contaminated ground water 
     discharges.
       ``(5) Other considerations applicable to remedial 
     actions.--A remedial action that uses institutional and 
     engineering controls shall be considered to be on an equal 
     basis with all other remedial action alternatives.'';
       (2) by redesignating subsection (c) as subsection (b);
       (3) by striking subsection (d); and
       (4) by redesignating subsections (e) and (f) as subsections 
     (c) and (d), respectively.

     SEC. 1923. REMEDY SELECTION METHODOLOGY.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 1901(a)) is amended by adding at 
     the end the following:

     ``SEC. 130. FACILITY-SPECIFIC RISK EVALUATIONS.

       ``(a) Uses.--
       ``(1) In general.--A facility-specific risk evaluation 
     shall be used to--
       ``(A) identify the significant components of potential risk 
     posed by a facility;
       ``(B) screen out potential contaminants, areas, or exposure 
     pathways from further study at a facility;
       ``(C) compare the relative protectiveness of alternative 
     potential remedies proposed for a facility; and
       ``(D) demonstrate that the remedial action selected for a 
     facility is capable of protecting human health and the 
     environment considering the actual or planned or reasonably 
     anticipated future use of the land and water resources.
       ``(2) Compliance with principles.--A facility-specific risk 
     evaluation shall comply with the principles stated in this 
     section to ensure that--
       ``(A) actual or planned or reasonably anticipated future 
     use of the land and water resources is given appropriate 
     consideration; and
       ``(B) all of the components of the evaluation are, to the 
     maximum extent practicable, scientifically objective and 
     inclusive of all relevant data.
       ``(b) Risk Evaluation Principles.--A facility-specific risk 
     evaluation shall--
       ``(1) be based on actual information or scientific 
     estimates of exposure considering the actual or planned or 
     reasonably anticipated future use of the land and water 
     resources to the extent that substituting such estimates for 
     those made using standard assumptions alters the basis for 
     decisions to be made;
       ``(2) be comprised of components each of which is, to the 
     maximum extent practicable, scientifically objective, and 
     inclusive of all relevant data;
       ``(3) use chemical and facility-specific data and analysis 
     (such as bioavailability, exposure, and fate and transport 
     evaluations) in preference to default assumptions when--
       ``(A) such data and analysis are likely to vary by 
     facility; and
       ``(B) facility-specific risks are to be communicated to the 
     public or the use of such data and analysis alters the basis 
     for decisions to be made; and
       ``(4) use a range and distribution of realistic and 
     scientifically supportable assumptions when chemical and 
     facility-specific data are not available, if the use of such 
     assumptions would communicate more accurately the 
     consequences of the various decision options.
       ``(c) Risk Communication Principles.--The document 
     reporting the results of a facility-specific risk evaluation 
     shall--
       ``(1) contain an explanation that clearly communicates the 
     risks at the facility;
       ``(2) identify and explain all assumptions used in the 
     evaluation, any alternative assumptions that, if made, could 
     materially affect the outcome of the evaluation, the policy 
     or value judgments used in choosing the assumptions, and 
     whether empirical data conflict with or validate the 
     assumptions;
       ``(3) present--
       ``(A) a range and distribution of exposure and risk 
     estimates, including, if numerical estimates are provided, 
     central estimates of exposure and risk using--
       ``(i) the most scientifically supportable assumptions or a 
     weighted combination of multiple assumptions based on 
     different scenarios; or
       ``(ii) any other methodology designed to characterize the 
     most scientifically supportable estimate of risk given the 
     information that is available at the time of the facility-
     specific risk evaluation; and
       ``(B) a statement of the nature and magnitude of the 
     scientific and other uncertainties associated with those 
     estimates;
       ``(4) state the size of the population potentially at risk 
     from releases from the facility and the likelihood that 
     potential exposures will occur based on the actual or planned 
     or reasonably anticipated future use of the land and water 
     resources; and
       ``(5) compare the risks from the facility to other risks 
     commonly experienced by members of the local community in 
     their daily lives and similar risks regulated by the Federal 
     Government.
       ``(d) Regulations.--Not later than 18 months after the date 
     of enactment of this section, the Administrator shall issue a 
     final regulation implementing this section that promotes a 
     realistic characterization of risk that neither minimizes nor 
     exaggerates the risks and potential risks posed by a facility 
     or a proposed remedial action.

     ``SEC. 131. PRESUMPTIVE REMEDIAL ACTIONS.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this section, the Administrator shall issue a 
     final regulation establishing presumptive remedial actions 
     for commonly encountered types of facilities with reasonably 
     well understood contamination problems and exposure 
     potential.
       ``(b) Practicability and Cost-Effectiveness.--Such 
     presumptive remedies must have been demonstrated to be 
     technically practicable and cost-effective methods of 
     achieving the goals of protecting human health and the 
     environment stated in section 121(a)(1)(B).
       ``(c) Variations.--The Administrator may issue various 
     presumptive remedial actions based on various uses of land 
     and water resources, various environmental media, and various 
     types of hazardous substances, pollutants, or contaminants.
       ``(d) Engineering Controls.--Presumptive remedial actions 
     are not limited to treatment remedies, but may be based on, 
     or include, institutional and standard engineering 
     controls.''.

     SEC. 1924. REMEDY SELECTION PROCEDURES.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 1923) is amended by adding at 
     the end the following:

     ``SEC. 132. REMEDIAL ACTION PLANNING AND IMPLEMENTATION.

       ``(a) In General.--
       ``(1) Basic rules.--
       ``(A) Procedures.--A remedial action with respect to a 
     facility that is listed or proposed for listing on the 
     National Priorities List shall be developed and selected in 
     accordance with the procedures set forth in this section.
       ``(B) No other procedures or requirements.--The procedures 
     stated in this section are in lieu of any procedures or 
     requirements under any other law to conduct remedial 
     investigations, feasibility studies, record of decisions, 
     remedial designs, or remedial actions.

[[Page 5439]]

       ``(C) Limited review.--In a case in which the potentially 
     responsible parties prepare a remedial action plan, only the 
     work plan, facility evaluation, proposed remedial action 
     plan, and final remedial design shall be subject to review, 
     comment, and approval by the Administrator.
       ``(D) Designation of potentially responsible parties to 
     prepare work plan, facility evaluation, proposed remedial 
     action, and remedial design and to implement the remedial 
     action plan.--In the case of a facility for which the 
     Administrator is not required to prepare a work plan, 
     facility evaluation, proposed remedial action, and remedial 
     design and implement the remedial action plan--
       ``(i) if a potentially responsible party or group of 
     potentially responsible parties--

       ``(I) expresses an intention to prepare a work plan, 
     facility evaluation, proposed remedial action plan, and 
     remedial design and to implement the remedial action plan 
     (not including any such expression of intention that the 
     Administrator finds is not made in good faith); and
       ``(II) demonstrates that the potentially responsible party 
     or group of potentially responsible parties has the financial 
     resources and the expertise to perform those functions;

     the Administrator shall designate the potentially responsible 
     party or group of potentially responsible parties to perform 
     those functions; and
       ``(ii) if more than 1 potentially responsible party or 
     group of potentially responsible parties--

       ``(I) expresses an intention to prepare a work plan, 
     facility evaluation, proposed remedial action plan, and 
     remedial design and to implement the remedial action plan 
     (not including any such expression of intention that the 
     Administrator finds is not made in good faith); and
       ``(II) demonstrates that the potentially responsible 
     parties or group of potentially responsible parties has the 
     financial resources and the expertise to perform those 
     functions,

     the Administrator, based on an assessment of the various 
     parties' comparative financial resources, technical 
     expertise, and histories of cooperation with respect to 
     facilities that are listed on the National Priorities List, 
     shall designate 1 potentially responsible party or group of 
     potentially responsible parties to perform those functions.
       ``(E) Approval required at each step of procedure.--No 
     action shall be taken with respect to a facility evaluation, 
     proposed remedial action plan, remedial action plan, or 
     remedial design, respectively, until a work plan, facility 
     evaluation, proposed remedial action plan, and remedial 
     action plan, respectively, have been approved by the 
     Administrator.
       ``(F) National contingency plan.--The Administrator shall 
     conform the National Contingency Plan regulations to reflect 
     the procedures stated in this section.
       ``(2) Use of presumptive remedial actions.--
       ``(A) Proposal to use.--In a case in which a presumptive 
     remedial action applies, the Administrator (if the 
     Administrator is conducting the remedial action) or the 
     preparer of the remedial action plan may, after conducting a 
     facility evaluation, propose a presumptive remedial action 
     for the facility, if the Administrator or preparer shows with 
     appropriate documentation that the facility fits the generic 
     classification for which a presumptive remedial action has 
     been issued and performs an engineering evaluation to 
     demonstrate that the presumptive remedial action can be 
     applied at the facility.
       ``(B) Limitation.--The Administrator may not require a 
     potentially responsible party to implement a presumptive 
     remedial action.
       ``(b) Remedial Action Planning Process.--
       ``(1) In general.--The Administrator or a potentially 
     responsible party shall prepare and implement a remedial 
     action plan for a facility.
       ``(2) Contents.--A remedial action plan shall consist of--
       ``(A) the results of a facility evaluation, including any 
     screening analysis performed at the facility;
       ``(B) a discussion of the potentially viable remedies that 
     are considered to be reasonable under section 121(a), the 
     respective capital costs, operation and maintenance costs, 
     and estimated present worth costs of the remedies, and how 
     the remedies balance the factors stated in section 
     121(a)(1)(D);
       ``(C) a description of the remedial action to be taken;
       ``(D) a description of the facility-specific risk-based 
     evaluation under section 130 and a demonstration that the 
     selected remedial action will satisfy sections 121(a) and 
     131; and
       ``(E) a realistic schedule for conducting the remedial 
     action, taking into consideration facility-specific factors.
       ``(3) Work plan.--
       ``(A) In general.--Prior to preparation of a remedial 
     action plan, the preparer shall develop a work plan, 
     including a community information and participation plan, 
     which generally describes how the remedial action plan will 
     be developed.
       ``(B) Submission.--A work plan shall be submitted to the 
     Administrator, the State, the community response 
     organization, the local library, and any other public 
     facility designated by the Administrator.
       ``(C) Publication.--The Administrator or other person that 
     prepares a work plan shall publish in a newspaper of general 
     circulation in the area where the facility is located, and 
     post in conspicuous places in the local community, a notice 
     announcing that the work plan is available for review at the 
     local library and that comments concerning the work plan can 
     be submitted to the preparer of the work plan, the 
     Administrator, the State, or the local community response 
     organization.
       ``(D) Forwarding of comments.--If comments are submitted to 
     the Administrator, the State, or the community response 
     organization, the Administrator, State, or community response 
     organization shall forward the comments to the preparer of 
     the work plan.
       ``(E) Notice of disapproval.--If the Administrator does not 
     approve a work plan, the Administrator shall--
       ``(i) identify to the preparer of the work plan, with 
     specificity, any deficiencies in the submission; and
       ``(ii) require that the preparer submit a revised work plan 
     within a reasonable period of time, which shall not exceed 90 
     days except in unusual circumstances, as determined by the 
     Administrator.
       ``(4) Facility evaluation.--
       ``(A) In general.--The Administrator (or the preparer of 
     the facility evaluation) shall conduct a facility evaluation 
     at each facility to characterize the risk posed by the 
     facility by gathering enough information necessary to--
       ``(i) assess potential remedial alternatives, including 
     ascertaining, to the degree appropriate, the volume and 
     nature of the contaminants, their location, potential 
     exposure pathways and receptors;
       ``(ii) discern the actual or planned or reasonably 
     anticipated future use of the land and water resources; and
       ``(iii) screen out any uncontaminated areas, contaminants, 
     and potential pathways from further consideration.
       ``(B) Submission.--A draft facility evaluation shall be 
     submitted to the Administrator for approval.
       ``(C) Publication.--Not later than 30 days after 
     submission, or in a case in which the Administrator is 
     preparing the remedial action plan, after the completion of 
     the draft facility evaluation, the Administrator shall 
     publish in a newspaper of general circulation in the area 
     where the facility is located, and post in conspicuous places 
     in the local community, a notice announcing that the draft 
     facility evaluation is available for review and that comments 
     concerning the evaluation can be submitted to the 
     Administrator, the State, and the community response 
     organization.
       ``(D) Availability of comments.--If comments are submitted 
     to the Administrator, the State, or the community response 
     organization, the Administrator, State, or community response 
     organization shall make the comments available to the 
     preparer of the facility evaluation.
       ``(E) Notice of approval.--If the Administrator approves a 
     facility evaluation, the Administrator shall--
       ``(i) notify the community response organization; and
       ``(ii) publish in a newspaper of general circulation in the 
     area where the facility is located, and post in conspicuous 
     places in the local community, a notice of approval.
       ``(F) Notice of disapproval.--If the Administrator does not 
     approve a facility evaluation, the Administrator shall--
       ``(i) identify to the preparer of the facility evaluation, 
     with specificity, any deficiencies in the submission; and
       ``(ii) require that the preparer submit a revised facility 
     evaluation within a reasonable period of time, which shall 
     not exceed 90 days except in unusual circumstances, as 
     determined by the Administrator.
       ``(5) Proposed remedial action plan.--
       ``(A) Submission.--In a case in which a potentially 
     responsible party prepares a remedial action plan, the 
     preparer shall submit the remedial action plan to the 
     Administrator for approval and provide a copy to the local 
     library.
       ``(B) Publication.--After receipt of the proposed remedial 
     action plan, or in a case in which the Administrator is 
     preparing the remedial action plan, after the completion of 
     the remedial action plan, the Administrator shall cause to be 
     published in a newspaper of general circulation in the area 
     where the facility is located and posted in other conspicuous 
     places in the local community a notice announcing that the 
     proposed remedial action plan is available for review at the 
     local library and that comments concerning the remedial 
     action plan can be submitted to the Administrator, the State, 
     and the community response organization.
       ``(C) Availability of comments.--If comments are submitted 
     to a State or the community response organization, the State 
     or community response organization shall make the comments 
     available to the preparer of the proposed remedial action 
     plan.
       ``(D) Hearing.--The Administrator shall hold a public 
     hearing at which the proposed remedial action plan shall be 
     presented and public comment received.

[[Page 5440]]

       ``(E) Remedy review boards.--
       ``(i) Establishment.--Not later than 60 days after the date 
     of enactment of this section, the Administrator shall 
     establish and appoint the members of 1 or more remedy review 
     boards (referred to in this subparagraph as a ``remedy review 
     board''), each consisting of independent technical experts 
     within Federal and State agencies with responsibility for 
     remediating contaminated facilities.
       ``(ii) Submission of remedial action plans for review.--
     Subject to clause (iii), a proposed remedial action plan 
     prepared by a potentially responsible party or the 
     Administrator may be submitted to a remedy review board at 
     the request of the person responsible for preparing or 
     implementing the remedial action plan.
       ``(iii) No review.--The Administrator may preclude 
     submission of a proposed remedial action plan to a remedy 
     review board if the Administrator determines that review by a 
     remedy review board would result in an unreasonably long 
     delay that would threaten human health or the environment.
       ``(iv) Recommendations.--Not later than 180 days after 
     receipt of a request for review (unless the Administrator, 
     for good cause, grants additional time), a remedy review 
     board shall provide recommendations to the Administrator 
     regarding whether the proposed remedial action plan is--

       ``(I) consistent with the requirements and standards of 
     section 121(a);
       ``(II) technically feasible or infeasible from an 
     engineering perspective; and
       ``(III) reasonable or unreasonable in cost.

       ``(v) Review by the administrator.--

       ``(I) Consideration of comments.--In reviewing a proposed 
     remedial action plan, a remedy review board shall consider 
     any comments submitted under subparagraphs (B) and (D) and 
     shall provide an opportunity for a meeting, if requested, 
     with the person responsible for preparing or implementing the 
     remedial action plan.
       ``(II) Standard of review.--In determining whether to 
     approve or disapprove a proposed remedial action plan, the 
     Administrator shall give substantial weight to the 
     recommendations of the remedy review board.

       ``(F) Approval.--
       ``(i) In general.--The Administrator shall approve a 
     proposed remedial action plan if the plan--

       ``(I) contains the information described in section 130(b); 
     and
       ``(II) satisfies section 121(a).

       ``(ii) Default.--If the Administrator fails to issue a 
     notice of disapproval of a proposed remedial action plan in 
     accordance with subparagraph (G) within 180 days after the 
     proposed plan is submitted, the plan shall be considered to 
     be approved and its implementation fully authorized.
       ``(G) Notice of approval.--If the Administrator approves a 
     proposed remedial action plan, the Administrator shall--
       ``(i) notify the community response organization; and
       ``(ii) publish in a newspaper of general circulation in the 
     area where the facility is located, and post in conspicuous 
     places in the local community, a notice of approval.
       ``(H) Notice of disapproval.--If the Administrator does not 
     approve a proposed remedial action plan, the Administrator 
     shall--
       ``(i) inform the preparer of the proposed remedial action 
     plan, with specificity, of any deficiencies in the 
     submission; and
       ``(ii) request that the preparer submit a revised proposed 
     remedial action plan within a reasonable time, which shall 
     not exceed 90 days except in unusual circumstances, as 
     determined by the Administrator.
       ``(I) Judicial review.--A recommendation under subparagraph 
     (E)(iv) and the review by the Administrator of such a 
     recommendation shall be subject to the limitations on 
     judicial review under section 113(h).
       ``(6) Implementation of remedial action plan.--A remedial 
     action plan that has been approved or is considered to be 
     approved under paragraph (5) shall be implemented in 
     accordance with the schedule set forth in the remedial action 
     plan.
       ``(7) Remedial design.--
       ``(A) Submission.--A remedial design shall be submitted to 
     the Administrator, or in a case in which the Administrator is 
     preparing the remedial action plan, shall be completed by the 
     Administrator.
       ``(B) Publication.--After receipt by the Administrator of 
     (or completion by the Administrator of) the remedial design, 
     the Administrator shall--
       ``(i) notify the community response organization; and
       ``(ii) cause a notice of submission or completion of the 
     remedial design to be published in a newspaper of general 
     circulation and posted in conspicuous places in the area 
     where the facility is located.
       ``(C) Comment.--The Administrator shall provide an 
     opportunity to the public to submit written comments on the 
     remedial design.
       ``(D) Approval.--Not later than 90 days after the 
     submission to the Administrator of (or completion by the 
     Administrator of) the remedial design, the Administrator 
     shall approve or disapprove the remedial design.
       ``(E) Notice of approval.--If the Administrator approves a 
     remedial design, the Administrator shall--
       ``(i) notify the community response organization; and
       ``(ii) publish in a newspaper of general circulation in the 
     area where the facility is located, and post in conspicuous 
     places in the local community, a notice of approval.
       ``(F) Notice of disapproval.--If the Administrator 
     disapproves the remedial design, the Administrator shall--
       ``(i) identify with specificity any deficiencies in the 
     submission; and
       ``(ii) allow the preparer submitting a remedial design a 
     reasonable time (which shall not exceed 90 days except in 
     unusual circumstances, as determined by the Administrator) in 
     which to submit a revised remedial design.
       ``(c) Enforcement of Remedial Action Plan.--
       ``(1) Notice of significant deviation.--If the 
     Administrator determines that the implementation of the 
     remedial action plan has deviated significantly from the 
     plan, the Administrator shall provide the implementing party 
     a notice that requires the implementing party, within a 
     reasonable period of time specified by the Administrator, 
     to--
       ``(A) comply with the terms of the remedial action plan; or
       ``(B) submit a notice for modifying the plan.
       ``(2) Failure to comply.--
       ``(A) Class one administrative penalty.--In issuing a 
     notice under paragraph (1), the Administrator may impose a 
     class one administrative penalty consistent with section 
     109(a).
       ``(B) Additional enforcement measures.--If the implementing 
     party fails to either comply with the plan or submit a 
     proposed modification, the Administrator may pursue all 
     additional appropriate enforcement measures pursuant to this 
     Act.
       ``(d) Modifications to Remedial Action.--
       ``(1) Definition.--In this subsection, the term `major 
     modification' means a modification that--
       ``(A) fundamentally alters the interpretation of site 
     conditions at the facility;
       ``(B) fundamentally alters the interpretation of sources of 
     risk at the facility;
       ``(C) fundamentally alters the scope of protection to be 
     achieved by the selected remedial action;
       ``(D) fundamentally alters the performance of the selected 
     remedial action; or
       ``(E) delays the completion of the remedy by more than 180 
     days.
       ``(2) Major modifications.--
       ``(A) In general.--If the Administrator or other 
     implementing party proposes a major modification to the plan, 
     the Administrator or other implementing party shall 
     demonstrate that--
       ``(i) the major modification constitutes the most cost-
     effective remedial alternative that is technologically 
     feasible and is not unreasonably costly; and
       ``(ii) that the revised remedy will continue to satisfy 
     section 121(a).
       ``(B) Notice and comment.--The Administrator shall provide 
     the implementing party, the community response organization, 
     and the local community notice of the proposed major 
     modification and at least 30 days' opportunity to comment on 
     any such proposed modification.
       ``(C) Prompt action.--At the end of the comment period, the 
     Administrator shall promptly approve or disapprove the 
     proposed modification and order implementation of the 
     modification in accordance with any reasonable and relevant 
     requirements that the Administrator may specify.
       ``(3) Minor modifications.--Nothing in this section 
     modifies the discretionary authority of the Administrator to 
     make a minor modification of a record of decision or remedial 
     action plan to conform to the best science and engineering, 
     the requirements of this Act, or changing conditions at a 
     facility.''.

     SEC. 1925. COMPLETION OF PHYSICAL CONSTRUCTION AND DELISTING.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 1924) is amended by adding at 
     the end the following:

     ``SEC. 133. COMPLETION OF PHYSICAL CONSTRUCTION AND 
                   DELISTING.

       ``(a) In General.--
       ``(1) Proposed notice of completion and proposed 
     delisting.--Not later than 180 days after the completion by 
     the Administrator of physical construction necessary to 
     implement a response action at a facility, or not later than 
     180 days after receipt of a notice of such completion from 
     the implementing party, the Administrator shall publish a 
     notice of completion and proposed delisting of the facility 
     from the National Priorities List in the Federal Register and 
     in a newspaper of general circulation in the area where the 
     facility is located.
       ``(2) Physical construction.--For the purposes of paragraph 
     (1), physical construction necessary to implement a response 
     action at a facility shall be considered to be complete 
     when--
       ``(A) construction of all systems, structures, devices, and 
     other components necessary to implement a response action for 
     the entire facility has been completed in accordance with the 
     remedial design plan; or
       ``(B) no construction, or no further construction, is 
     expected to be undertaken.
       ``(3) Comments.--The public shall be provided 30 days in 
     which to submit comments

[[Page 5441]]

     on the notice of completion and proposed delisting.
       ``(4) Final notice.--Not later than 60 days after the end 
     of the comment period, the Administrator shall--
       ``(A) issue a final notice of completion and delisting or a 
     notice of withdrawal of the proposed notice until the 
     implementation of the remedial action is determined to be 
     complete; and
       ``(B) publish the notice in the Federal Register and in a 
     newspaper of general circulation in the area where the 
     facility is located.
       ``(5) Failure to act.--If the Administrator fails to 
     publish a notice of withdrawal within the 60-day period 
     described in paragraph (4)--
       ``(A) the remedial action plan shall be deemed to have been 
     completed; and
       ``(B) the facility shall be delisted by operation of law.
       ``(6) Effect of delisting.--The delisting of a facility 
     shall have no effect on--
       ``(A) liability allocation requirements or cost-recovery 
     provisions otherwise provided in this Act;
       ``(B) any liability of a potentially responsible party or 
     the obligation of any person to provide continued operation 
     and maintenance;
       ``(C) the authority of the Administrator to make 
     expenditures from the Fund relating to the facility; or
       ``(D) the enforceability of any consent order or decree 
     relating to the facility.
       ``(7) Failure to make timely disapproval.--The issuance of 
     a final notice of completion and delisting or of a notice of 
     withdrawal within the time required by subsection (a)(3) 
     constitutes a nondiscretionary duty within the meaning of 
     section 310(a)(2).
       ``(b) Certification.--A final notice of completion and 
     delisting shall include a certification by the Administrator 
     that the facility has met all of the requirements of the 
     remedial action plan (except requirements for continued 
     operation and maintenance).
       ``(c) Future Use of a Facility.--
       ``(1) Facility available for unrestricted use.--If, after 
     completion of physical construction, a facility is available 
     for unrestricted use and there is no need for continued 
     operation and maintenance, the potentially responsible 
     parties shall have no further liability under any Federal, 
     State, or local law (including any regulation) for 
     remediation at the facility, unless the Administrator 
     determines, based on new and reliable factual information 
     about the facility, that the facility does not satisfy 
     section 121(a).
       ``(2) Facility not available for any use.--If, after 
     completion of physical construction, a facility is not 
     available for any use or there are continued operation and 
     maintenance requirements that preclude use of the facility, 
     the Administrator shall--
       ``(A) review the status of the facility every 5 years; and
       ``(B) require additional remedial action at the facility if 
     the Administrator determines, after notice and opportunity 
     for hearing, that the facility does not satisfy section 
     121(a).
       ``(3) Facilities available for restricted use.--The 
     Administrator may determine that a facility or portion of a 
     facility is available for restricted use while a response 
     action is under way or after physical construction has been 
     completed. The Administrator shall make a determination that 
     uncontaminated portions of the facility are available for 
     unrestricted use when such use would not interfere with 
     ongoing operations and maintenance activities or endanger 
     human health or the environment.
       ``(d) Operation and Maintenance.--The need to perform 
     continued operation and maintenance at a facility shall not 
     delay delisting of the facility or issuance of the 
     certification if performance of operation and maintenance is 
     subject to a legally enforceable agreement, order, or decree.
       ``(e) Change of Use of Facility.--
       ``(1) Petition.--Any person may petition the Administrator 
     to change the use of a facility described in paragraph (2) or 
     (3) of subsection (c) from that which was the basis of the 
     remedial action plan.
       ``(2) Grant.--The Administrator may grant a petition under 
     paragraph (1) if the petitioner agrees to implement any 
     additional remedial actions that the Administrator determines 
     are necessary to continue to satisfy section 121(a), 
     considering the different use of the facility.
       ``(3) Responsibility for risk.--When a petition has been 
     granted under paragraph (2), the person requesting the change 
     in use of the facility shall be responsible for all risk 
     associated with altering the facility and all costs of 
     implementing any necessary additional remedial actions.''.

     SEC. 1926. TRANSITION RULES FOR FACILITIES CURRENTLY INVOLVED 
                   IN REMEDY SELECTION.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 1925) is amended by adding at 
     the end the following:

     ``SEC. 134. TRANSITION RULES FOR FACILITIES INVOLVED IN 
                   REMEDY SELECTION ON DATE OF ENACTMENT.

       ``(a) No Record of Decision.--
       ``(1) Option.--In the case of a facility or operable unit 
     that, as of the date of enactment of this section, is the 
     subject of a remedial investigation and feasibility study 
     (whether completed or incomplete), the potentially 
     responsible parties or the Administrator may elect to follow 
     the remedial action plan process stated in section 132 rather 
     than the remedial investigation and feasibility study and 
     record of decision process under regulations in effect on the 
     date of enactment of this section that would otherwise apply 
     if the requesting party notifies the Administrator and other 
     potentially responsible parties of the election not later 
     than 90 days after the date of enactment of this section.
       ``(2) Submission of facility evaluation.--In a case in 
     which the potentially responsible parties have or the 
     Administrator has made an election under subsection (a), the 
     potentially responsible parties shall submit the proposed 
     facility evaluation within 180 days after the date on which 
     notice of the election is given.
       ``(b) Remedy Review Boards.--
       ``(1) Authority.--A remedy review board established under 
     section 132(b)(5)(E) (referred to in this subsection as a 
     `remedy review board') shall have authority to consider a 
     petition under paragraph (3) or (4).
       ``(2) General procedure.--
       ``(A) Completion of review.--The review of a petition 
     submitted to a remedy review board under this subsection 
     shall be completed not later than 180 days after the receipt 
     of the petition unless the Administrator, for good cause, 
     grants additional time.
       ``(B) Costs of review.--All reasonable costs incurred by a 
     remedy review board, the Administrator, or a State in 
     conducting a review or evaluating a petition for possible 
     objection shall be borne by the petitioner.
       ``(C) Decisions.--At the completion of the 180-day review 
     period, a remedy review board shall issue a written decision 
     including responses to all comments submitted during the 
     review process with regard to a petition.
       ``(D) Opportunity for comment and meetings.--In reviewing a 
     petition under this subsection, a remedy review board shall 
     provide an opportunity for all interested parties, including 
     representatives of the State and local community in which the 
     facility is located, to comment on the petition and, if 
     requested, to meet with the remedy review board under this 
     subsection.
       ``(E) Review by the administrator.--
       ``(i) In general.--The Administrator shall have final 
     review of any decision of a remedy review board under this 
     subsection.
       ``(ii) Standard of review.--In conducting a review of a 
     decision of a remedy review board under this subsection, the 
     Administrator shall accord substantial weight to the decision 
     of the remedy review board.
       ``(iii) Rejection of decision.--Any determination to reject 
     a decision of a remedy review board under this subsection 
     must be approved by the Administrator or the Assistant 
     Administrator for Solid Waste and Emergency Response.
       ``(F) Judicial review.--A decision of a remedy review board 
     under subparagraph (C) and the review by the Administrator of 
     such a decision shall be subject to the limitations on 
     judicial review under section 113(h).
       ``(G) Calculations of cost savings.--
       ``(i) In general.--A determination with respect to relative 
     cost savings and whether construction has begun shall be 
     based on operable units or distinct elements or phases of 
     remediation and not on the entire record of decision.
       ``(ii) Items not to be considered.--In determining the 
     amount of cost savings--

       ``(I) there shall not be taken into account any 
     administrative, demobilization, remobilization, or additional 
     investigation costs of the review or modification of the 
     remedy associated with the alternative remedy; and
       ``(II) only the estimated cost savings of expenditures 
     avoided by undertaking the alternative remedy shall be 
     considered as cost savings.

       ``(3) Construction not begun.--
       ``(A) Petition.--In the case of a facility or operable unit 
     with respect to which a record of decision has been signed 
     but construction has not yet begun prior to the date of 
     enactment of this section and which meet the criteria of 
     subparagraph (B), the implementor of the record of decision 
     may file a petition with a remedy review board not later than 
     90 days after the date of enactment of this section to 
     determine whether an alternate remedy under section 132 
     should apply to the facility or operable unit.
       ``(B) Criteria for approval.--Subject to subparagraph (C), 
     a remedy review board shall approve a petition described in 
     subparagraph (A) if--
       ``(i) the alternative remedial action proposed in the 
     petition satisfies section 121(a);
       ``(ii)(I) in the case of a record of decision with an 
     estimated implementation cost of between $5,000,000 and 
     $10,000,000, the alternative remedial action achieves cost 
     savings of at least 25 percent of the total costs of the 
     record of decision; or
       ``(II) in the case of a record of decision valued at a 
     total cost greater than $10,000,000, the alternative remedial 
     action achieves cost savings of $2,500,000 or more;
       ``(iii) in the case of a record of decision involving 
     ground water extraction and treatment remedies for substances 
     other than

[[Page 5442]]

     dense, nonaqueous phase liquids, the alternative remedial 
     action achieves cost savings of $2,000,000 or more; or
       ``(iv) in the case of a record of decision intended 
     primarily for the remediation of dense, nonaqueous phase 
     liquids, the alternative remedial action achieves cost 
     savings of $1,000,000 or more.
       ``(C) Contents of petition.--For the purposes of facility-
     specific risk assessment under section 130, a petition 
     described in subparagraph (A) shall rely on risk assessment 
     data that were available prior to issuance of the record of 
     decision but shall consider the actual or planned or 
     reasonably anticipated future use of the land and water 
     resources.
       ``(D) Incorrect data.--Notwithstanding subparagraphs (B) 
     and (C), a remedy review board may approve a petition if the 
     petitioner demonstrates that technical data generated 
     subsequent to the issuance of the record of decision 
     indicates that the decision was based on faulty or incorrect 
     information.
       ``(4) Additional construction.--
       ``(A) Petition.--In the case of a facility or operable unit 
     with respect to which a record of decision has been signed 
     and construction has begun prior to the date of enactment of 
     this section and which meets the criteria of subparagraph 
     (B), but for which additional construction or long-term 
     operation and maintenance activities are anticipated, the 
     implementor of the record of decision may file a petition 
     with a remedy review board within 90 days after the date of 
     enactment of this section to determine whether an alternative 
     remedial action should apply to the facility or operable 
     unit.
       ``(B) Criteria for approval.--Subject to subparagraph (C), 
     a remedy review board shall approve a petition described in 
     subparagraph (A) if--
       ``(i) the alternative remedial action proposed in the 
     petition satisfies section 121(a); and
       ``(ii)(I) in the case of a record of decision valued at a 
     total cost between $5,000,000 and $10,000,000, the 
     alternative remedial action achieves cost savings of at least 
     50 percent of the total costs of the record of decision;
       ``(II) in the case of a record of decision valued at a 
     total cost greater than $10,000,000, the alternative remedial 
     action achieves cost savings of $5,000,000 or more; or
       ``(III) in the case of a record of decision involving 
     monitoring, operations, and maintenance obligations where 
     construction is completed, the alternative remedial action 
     achieves cost savings of $1,000,000 or more.
       ``(C) Incorrect data.--Notwithstanding subparagraph (B), a 
     remedy review board may approve a petition if the petitioner 
     demonstrates that technical data generated subsequent to the 
     issuance of the record of decision indicates that the 
     decision was based on faulty or incorrect information, and 
     the alternative remedial action achieves cost savings of at 
     least $2,000,000.
       ``(D) Mandatory review.--A remedy review board shall not be 
     required to entertain more than 1 petition under subparagraph 
     (B)(ii)(III) or (C) with respect to a remedial action plan.
       ``(5) Delay.--In determining whether an alternative 
     remedial action will substantially delay the implementation 
     of a remedial action of a facility, no consideration shall be 
     given to the time necessary to review a petition under 
     paragraph (3) or (4) by a remedy review board or the 
     Administrator.
       ``(6) Objection by the governor.--
       ``(A) Notification.--Not later than 7 days after receipt of 
     a petition under this subsection, a remedy review board shall 
     notify the Governor of the State in which the facility is 
     located and provide the Governor a copy of the petition.
       ``(B) Objection.--The Governor may object to the petition 
     or the modification of the remedy, if not later than 90 days 
     after receiving a notification under subparagraph (A) the 
     Governor demonstrates to the remedy review board that the 
     selection of the proposed alternative remedy would cause an 
     unreasonably long delay that would be likely to result in 
     significant adverse human health impacts, environmental 
     risks, disruption of planned future use, or economic 
     hardship.
       ``(C) Denial.--On receipt of an objection and demonstration 
     under subparagraph (C), the remedy review board shall--
       ``(i) deny the petition; or
       ``(ii) consider any other action that the Governor may 
     recommend.
       ``(7) Savings clause.--Notwithstanding any other provision 
     of this subsection, in the case of a remedial action plan for 
     which a final record of decision under section 121 has been 
     published, if remedial action was not completed pursuant to 
     the remedial action plan before the date of enactment of this 
     section, the Administrator or a State exercising authority 
     under section 129(d) may modify the remedial action plan in 
     order to conform the plan to the requirements of this Act, as 
     in effect on the date of enactment of this section.''.

     SEC. 1927. NATIONAL PRIORITIES LIST.

       (a) Amendments.--Section 105 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9605) is amended--
       (1) in subsection (a)(8), by adding at the end the 
     following:
       ``(C) provision that in listing a facility on the National 
     Priorities List, the Administrator shall not include any 
     parcel of real property at which no release has actually 
     occurred, but to which a released hazardous substance, 
     pollutant, or contaminant has migrated in ground water that 
     has moved through subsurface strata from another parcel of 
     real estate at which the release actually occurred, unless--
       ``(i) the ground water is in use as a public drinking water 
     supply or was in such use at the time of the release; and
       ``(ii) the owner or operator of the facility is liable, or 
     is affiliated with any other person that is liable, for any 
     response costs at the facility, through any direct or 
     indirect familial relationship, or any contractual, 
     corporate, or financial relationship other than that created 
     by the instruments by which title to the facility is conveyed 
     or financed.''; and
       (2) by adding at the end the following:
       ``(i) Listing of Particular Parcels.--
       ``(1) Definition.--The term `parcel of real property', as 
     used in subsection (a)(8)(C) and paragraph (2), means a 
     parcel, lot, or tract of land that has a separate legal 
     description from that of any other parcel, lot, or tract of 
     land the legal description and ownership of which has been 
     recorded in accordance with the law of the State in which it 
     is located.
       ``(2) Statutory construction.--Nothing in subsection 
     (a)(8)(C) limits the authority of the Administrator under 
     section 104 to obtain access to, and undertake response 
     actions at, any parcel of real property to which a released 
     hazardous substance, pollutant, or contaminant has migrated 
     in ground water.''.
       (b) Revision of National Priorities List.--The President 
     shall revise the National Priorities List to conform with the 
     amendments made by subsection (a) not later that 180 days of 
     the date of enactment of this Act.

                         Subtitle D--Liability

     SEC. 1931. CONTRIBUTION FROM THE FUND.

       Section 112 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9612) is 
     amended by adding at the end the following:
       ``(g) Contribution From the Fund.--
       ``(1) Completion of obligations.--A person that is subject 
     to an administrative order issued under section 106 or has 
     entered into a settlement decree with the United States or a 
     State as of the date of enactment of this subsection shall 
     complete the obligations of the person under the order or 
     settlement decree.
       ``(2) Contribution.--A person described in paragraph (1) 
     shall receive contribution from the Fund for any portion of 
     the costs (excluding attorneys' fees) incurred for the 
     performance of the response action after the date of 
     enactment of this subsection if the person is not liable for 
     such costs by reason of a liability exemption or limitation 
     under this section.
       ``(3) Application for contribution.--
       ``(A) In general.--Contribution under this section shall be 
     made upon receipt by the Administrator of an application 
     requesting contribution.
       ``(B) Periodic applications.--Beginning with the 7th month 
     after the date of enactment of this subsection, 1 application 
     for each facility shall be submitted every 6 months for all 
     persons with contribution rights (as determined under 
     subparagraph (2)).
       ``(4) Regulations.--Contribution shall be made in 
     accordance with such regulations as the Administrator shall 
     issue within 180 days after the date of enactment of this 
     section.
       ``(5) Documentation.--The regulations under paragraph (4) 
     shall, at a minimum, require that an application for 
     contribution contain such documentation of costs and 
     expenditures as the Administrator considers necessary to 
     ensure compliance with this subsection.
       ``(6) Expedition.--The Administrator shall develop and 
     implement such procedures as may be necessary to provide 
     contribution to such persons in an expeditious manner, but in 
     no case shall a contribution be made later than 1 year after 
     submission of an application under this subsection.
       ``(7) Consistency with national contingency plan.--No 
     contribution shall be made under this subsection unless the 
     Administrator determines that such costs are consistent with 
     the National Contingency Plan.''.

     SEC. 1932. ALLOCATION OF LIABILITY FOR CERTAIN FACILITIES.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 1926) is amended by adding at 
     the end the following:

     ``SEC. 135. ALLOCATION OF LIABILITY FOR CERTAIN FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Allocated share.--The term `allocated share' means 
     the percentage of liability assigned to a potentially 
     responsible party by the allocator in an allocation report 
     under subsection (f)(4).
       ``(2) Allocation party.--The term `allocation party' means 
     a party named on a list of parties that will be subject to 
     the allocation process under this section, as issued by an 
     allocator.

[[Page 5443]]

       ``(3) Allocator.--The term `allocator' means an allocator 
     retained to conduct an allocation for a facility.
       ``(4) Mandatory allocation facility.--The term `mandatory 
     allocation facility' means--
       ``(A) a non-federally owned vessel or facility listed on 
     the National Priorities List with respect to which response 
     costs are incurred after the date of enactment of this 
     section and at which there are 2 or more potentially 
     responsible persons, if at least 1 potentially responsible 
     person is viable;
       ``(B) a federally owned vessel or facility listed on the 
     National Priorities List with respect to which response costs 
     are incurred after the date of enactment of this section, and 
     with respect to which 1 or more potentially responsible 
     parties (other that a department, agency, or instrumentality 
     of the United States) are liable or potentially liable; and
       ``(C) a codisposal landfill listed on the National 
     Priorities List with respect to which costs are incurred 
     after the date of enactment of this section.
       ``(5) Orphan share.--The term `orphan share' means the 
     total of the allocated shares determined by the allocator 
     under subsection (h).
       ``(b) Allocations of Liability.--
       ``(1) Mandatory allocations.--For each mandatory allocation 
     facility involving 2 or more potentially responsible parties, 
     the Administrator shall conduct the allocation process under 
     this section.
       ``(2) Requested allocations.--For a facility (other than a 
     mandatory allocation facility) involving 2 or more 
     potentially responsible parties, the Administrator shall 
     conduct the allocation process under this section if the 
     allocation is requested in writing by a potentially 
     responsible party that has--
       ``(A) incurred response costs with respect to a response 
     action; or
       ``(B) resolved any liability to the United States with 
     respect to a response action in order to assist in allocating 
     shares among potentially responsible parties.
       ``(3) Permissive allocations.--For any facility (other than 
     a mandatory allocation facility or a facility with respect to 
     which a request is made under paragraph (2)) involving 2 or 
     more potentially responsible parties, the Administrator may 
     conduct the allocation process under this section if the 
     Administrator considers it to be appropriate to do so.
       ``(4) Orphan share.--An allocation performed at a vessel or 
     facility identified under paragraph (2) or (3) of subsection 
     (b) shall not require payment of an orphan share under 
     subsection (h) or contribution under subsection (p).
       ``(5) Excluded facilities.--
       ``(A) In general.--A codisposal landfill listed on the 
     Natural Priorities List at which costs are incurred after 
     January 1, 2002. This section does not apply to a response 
     action at a mandatory allocation facility for which there was 
     in effect as of the date of enactment of this section, a 
     settlement, decree, or order that determines the liability 
     and allocated shares of all potentially responsible parties 
     with respect to the response action.
       ``(B) Availability of orphan share.--For any mandatory 
     allocation facility that is otherwise excluded by 
     subparagraph (A) and for which there was not in effect as of 
     the date of enactment of this section a final judicial order 
     that determined the liability of all parties to the action 
     for response costs incurred after the date of enactment of 
     this section, an allocation shall be conducted for the sole 
     purpose of determining the availability of orphan share 
     funding pursuant to subsection (h)(2) for any response costs 
     incurred after the date of enactment of this section.
       ``(6) Scope of allocations.--An allocation under this 
     section shall apply to--
       ``(A) response costs incurred after the date of enactment 
     of this section, with respect to a mandatory allocation 
     facility described in subparagraph (A), (B), or (C) of 
     subsection (a)(4); and
       ``(B) response costs incurred at a facility that is the 
     subject of a requested or permissive allocation under 
     paragraph (2) or (3) of subsection (b).
       ``(7) Other matters.--This section shall not limit or 
     affect--
       ``(A) the obligation of the Administrator to conduct the 
     allocation process for a response action at a facility that 
     has been the subject of a partial or expedited settlement 
     with respect to a response action that is not within the 
     scope of the allocation;
       ``(B) the ability of any person to resolve any liability at 
     a facility to any other person at any time before initiation 
     or completion of the allocation process, subject to 
     subsection (h)(3);
       ``(C) the validity, enforceability, finality, or merits of 
     any judicial or administrative order, judgment, or decree, 
     issued prior to the date of enactment of this section with 
     respect to liability under this Act; or
       ``(D) the validity, enforceability, finality, or merits of 
     any preexisting contract or agreement relating to any 
     allocation of responsibility or any indemnity for, or sharing 
     of, any response costs under this Act.
       ``(c) Moratorium on Litigation and Enforcement.--
       ``(1) In general.--No person may assert a claim for 
     recovery of a response cost or contribution toward a response 
     cost (including a claim for insurance proceeds) under this 
     Act or any other Federal or State law in connection with a 
     response action--
       ``(A) for which an allocation is required to be performed 
     under subsection (b)(1); or
       ``(B) for which the Administrator has initiated the 
     allocation process under this section,

     until the date that is 120 days after the date of issuance of 
     a report by the allocator under subsection (f)(4) or, if a 
     second or subsequent report is issued under subsection (m), 
     the date of issuance of the second or subsequent report.
       ``(2) Pending actions or claims.--If a claim described in 
     paragraph (1) is pending on the date of enactment of this 
     section or on initiation of an allocation under this section, 
     the portion of the claim pertaining to response costs that 
     are the subject of the allocation shall be stayed until the 
     date that is 120 days after the date of issuance of a report 
     by the allocator under subsection (f)(4) or, if a second or 
     subsequent report is issued under subsection (m), the date of 
     issuance of the second or subsequent report, unless the court 
     determines that a stay would result in manifest injustice.
       ``(3) Tolling of period of limitation.--
       ``(A) Beginning of tolling.--Any applicable period of 
     limitation with respect to a claim subject to paragraph (1) 
     shall be tolled beginning on the earlier of--
       ``(i) the date of listing of the facility on the National 
     Priorities List if the listing occurs after the date of 
     enactment of this section; or
       ``(ii) the date of initiation of the allocation process 
     under this section.
       ``(B) End of tolling.--A period of limitation shall be 
     tolled under subparagraph (A) until the date that is 180 days 
     after the date of issuance of a report by the allocator under 
     subsection (f)(4), or of a second or subsequent report under 
     subsection (m).
       ``(4) Retained authority.--Except as specifically provided 
     in this section, this section does not affect the authority 
     of the Administrator to--
       ``(A) exercise the powers conferred by section 103, 104, 
     105, 106, or 122;
       ``(B) commence an action against a party if there is a 
     contemporaneous filing of a judicial consent decree resolving 
     the liability of the party;
       ``(C) file a proof of claim or take other action in a 
     proceeding under title 11, United States Code; or
       ``(D) require implementation of a response action at an 
     allocation facility during the conduct of the allocation 
     process.
       ``(d) Allocation Process.--
       ``(1) Establishment.--Not later than 180 days after the 
     date of enactment of this section, the Administrator shall 
     establish by regulation a process for conduct of mandatory, 
     requested, and permissive allocations.
       ``(2) Requirements.--In developing the allocation process 
     under paragraph (1), the Administrator shall--
       ``(A) ensure that parties that are eligible for an 
     exemption from liability under section 107--
       ``(i) are identified by the Administrator (before selection 
     of an allocator or by an allocator);
       ``(ii) at the earliest practicable opportunity, are 
     notified of their status; and
       ``(iii) are provided with appropriate written assurances 
     that they are not liable for response costs under this Act;
       ``(B) establish an expedited process for the selection, 
     appointment, and retention by contract of an impartial 
     allocator, acceptable to both potentially responsible parties 
     and a representative of the Fund, to conduct the allocation 
     process in a fair, efficient, and impartial manner;
       ``(C) permit any person to propose to name additional 
     potentially responsible parties as allocation parties, the 
     costs of any expenses incurred by the nominated party 
     (including reasonable attorney's fees) to be borne by the 
     party that proposes the addition of the party to the 
     allocation process if the allocator determines that there is 
     no adequate basis in law or fact to conclude that a party is 
     liable based on the information presented by the nominating 
     party or otherwise available to the allocator; and
       ``(D) require that the allocator adopt any settlement that 
     allocates 100 percent of the recoverable costs of a response 
     action at a facility to the signatories to the settlement, if 
     the settlement contains a waiver of--
       ``(i) a right of recovery from any other party of any 
     response cost that is the subject of the allocation; and
       ``(ii) a right to contribution under this Act,

     with respect to any response action that is within the scope 
     of allocation process.
       ``(3) Time limit.--The Administrator shall initiate the 
     allocation process for a facility not later than the earlier 
     of--
       ``(A) the date of completion of the facility evaluation or 
     remedial investigation for the facility; or
       ``(B) the date that is 60 days after the date of selection 
     of a removal action.
       ``(4) No judicial review.--There shall be no judicial 
     review of any action regarding selection of an allocator 
     under the regulation issued under this subsection.

[[Page 5444]]

       ``(5) Recovery of contract costs.--The costs of the 
     Administrator in retaining an allocator shall be considered 
     to be a response cost for all purposes of this Act.
       ``(e) Federal, State, and Local Agencies.--
       ``(1) In general.--Other than as set forth in this Act, any 
     Federal, State, or local governmental department, agency, or 
     instrumentality that is named as a potentially responsible 
     party or an allocation party shall be subject to, and be 
     entitled to the benefits of, the allocation process and 
     allocation determination under this section to the same 
     extent as any other party.
       ``(2) Orphan share.--The Administrator or the Attorney 
     General shall participate in the allocation proceeding as the 
     representative of the Fund from which any orphan share shall 
     be paid.
       ``(f) Allocation Authority.--
       ``(1) Information-gathering authorities.--
       ``(A) In general.--An allocator may request information 
     from any person in order to assist in the efficient 
     completion of the allocation process.
       ``(B) Requests.--Any person may request that an allocator 
     request information under this paragraph.
       ``(C) Authority.--An allocator may exercise the 
     information-gathering authority of the Administrator under 
     section 104(e), including issuing an administrative subpoena 
     to compel the production of a document or the appearance of a 
     witness.
       ``(D) Disclosure.--Notwithstanding any other law, any 
     information submitted to the allocator in response to a 
     subpoena issued under subparagraph (C) shall be exempt from 
     disclosure to any person under section 552 of title 5, United 
     States Code.
       ``(E) Orders.--In a case of contumacy or failure of a 
     person to obey a subpoena issued under subparagraph (C), an 
     allocator may request the Attorney General to--
       ``(i) bring a civil action to enforce the subpoena; or
       ``(ii) if the person moves to quash the subpoena, to defend 
     the motion.
       ``(F) Failure of attorney general to respond.--If the 
     Attorney General fails to provide any response to the 
     allocator within 30 days of a request for enforcement of a 
     subpoena or information request, the allocator may retain 
     counsel to commence a civil action to enforce the subpoena or 
     information request.
       ``(2) Additional authority.--An allocator may--
       ``(A) schedule a meeting or hearing and require the 
     attendance of allocation parties at the meeting or hearing;
       ``(B) sanction an allocation party for failing to cooperate 
     with the orderly conduct of the allocation process;
       ``(C) require that allocation parties wishing to present 
     similar legal or factual positions consolidate the 
     presentation of the positions;
       ``(D) obtain or employ support services, including 
     secretarial, clerical, computer support, legal, and 
     investigative services; and
       ``(E) take any other action necessary to conduct a fair, 
     efficient, and impartial allocation process.
       ``(3) Conduct of allocation process.--
       ``(A) In general.--The allocator shall conduct the 
     allocation process and render a decision based solely on the 
     provisions of this section, including the allocation factors 
     described in subsection (g).
       ``(B) Opportunity to be heard.--Each allocation party shall 
     be afforded an opportunity to be heard (orally or in writing, 
     at the option of an allocation party) and an opportunity to 
     comment on a draft allocation report.
       ``(C) Responses.--The allocator shall not be required to 
     respond to comments.
       ``(D) Streamlining.--The allocator shall make every effort 
     to streamline the allocation process and minimize the cost of 
     conducting the allocation.
       ``(4) Allocation report.--The allocator shall provide a 
     written allocation report to the Administrator and the 
     allocation parties that specifies the allocation share of 
     each allocation party and any orphan shares, as determined by 
     the allocator.
       ``(g) Equitable Factors for Allocation.--The allocator 
     shall prepare a nonbinding allocation of percentage shares of 
     responsibility to each allocation party and to the orphan 
     share, in accordance with this section and without regard to 
     any theory of joint and several liability, based on--
       ``(1) the amount of hazardous substances contributed by 
     each allocation party;
       ``(2) the degree of toxicity of hazardous substances 
     contributed by each allocation party;
       ``(3) the mobility of hazardous substances contributed by 
     each allocation party;
       ``(4) the degree of involvement of each allocation party in 
     the generation, transportation, treatment, storage, or 
     disposal of hazardous substances;
       ``(5) the degree of care exercised by each allocation party 
     with respect to hazardous substances, taking into account the 
     characteristics of the hazardous substances;
       ``(6) the cooperation of each allocation party in 
     contributing to any response action and in providing complete 
     and timely information to the allocator; and
       ``(7) such other equitable factors as the allocator 
     determines are appropriate.
       ``(h) Orphan Shares.--
       ``(1) In general.--The allocator shall determine whether 
     any percentage of responsibility for the response action 
     shall be allocable to the orphan share.
       ``(2) Composition of orphan share.--The orphan share shall 
     consist of--
       ``(A) any share that the allocator determines is 
     attributable to an allocation party that is insolvent or 
     defunct and that is not affiliated with any financially 
     viable allocation party; and
       ``(B) the difference between the aggregate share that the 
     allocator determines is attributable to a person and the 
     aggregate share actually assumed by the person in a 
     settlement with the United States otherwise if--
       ``(i) the person is eligible for an expedited settlement 
     with the United States under section 122 based on limited 
     ability to pay response costs;
       ``(ii) the liability of the person is eliminated, limited, 
     or reduced by any provision of this Act; or
       ``(iii) the person settled with the United States before 
     the completion of the allocation.
       ``(3) Unattributable shares.--A share attributable to a 
     hazardous substance that the allocator determines was 
     disposed at the facility that cannot be attributed to any 
     identifiable party shall be distributed among the allocation 
     parties and the orphan share in accordance with the allocated 
     share assigned to each.
       ``(i) Information Requests.--
       ``(1) Duty to answer.--Each person that receives an 
     information request or subpoena from the allocator shall 
     provide a full and timely response to the request.
       ``(2) Certification.--An answer to an information request 
     by an allocator shall include a certification by a 
     representative that meets the criteria established in section 
     270.11(a) of title 40, Code of Federal Regulations (or any 
     successor regulation), that--
       ``(A) the answer is correct to the best of the 
     representative's knowledge;
       ``(B) the answer is based on a diligent good faith search 
     of records in the possession or control of the person to whom 
     the request was directed;
       ``(C) the answer is based on a reasonable inquiry of the 
     current (as of the date of the answer) officers, directors, 
     employees, and agents of the person to whom the request was 
     directed;
       ``(D) the answer accurately reflects information obtained 
     in the course of conducting the search and the inquiry;
       ``(E) the person executing the certification understands 
     that there is a duty to supplement any answer if, during the 
     allocation process, any significant additional, new, or 
     different information becomes known or available to the 
     person; and
       ``(F) the person executing the certification understands 
     that there are significant penalties for submitting false 
     information, including the possibility of a fine or 
     imprisonment for a knowing violation.
       ``(j) Penalties.--
       ``(1) Civil.--
       ``(A) In general.--A person that fails to submit a complete 
     and timely answer to an information request, a request for 
     the production of a document, or a summons from an allocator, 
     submits a response that lacks the certification required 
     under subsection (i)(2), or knowingly makes a false or 
     misleading material statement or representation in any 
     statement, submission, or testimony during the allocation 
     process (including a statement or representation in 
     connection with the nomination of another potentially 
     responsible party) shall be subject to a civil penalty of not 
     more than $10,000 per day of violation.
       ``(B) Assessment of penalty.--A penalty may be assessed by 
     the Administrator in accordance with section 109 or by any 
     allocation party in a citizen suit brought under section 310.
       ``(2) Criminal.--A person that knowingly and willfully 
     makes a false material statement or representation in the 
     response to an information request or subpoena issued by the 
     allocator under subsection (i) shall be considered to have 
     made a false statement on a matter within the jurisdiction of 
     the United States within the meaning of section 1001 of title 
     18, United States Code.
       ``(k) Document Repository; Confidentiality.--
       ``(1) Document repository.--
       ``(A) In general.--The allocator shall establish and 
     maintain a document repository containing copies of all 
     documents and information provided by the Administrator or 
     any allocation party under this section or generated by the 
     allocator during the allocation process.
       ``(B) Availability.--Subject to paragraph (2), the 
     documents and information in the document repository shall be 
     available only to an allocation party for review and copying 
     at the expense of the allocation party.
       ``(2) Confidentiality.--
       ``(A) In general.--Each document or material submitted to 
     the allocator or placed in the document repository and the 
     record of any information generated or obtained during the 
     allocation process shall be confidential.

[[Page 5445]]

       ``(B) Maintenance.--The allocator, each allocation party, 
     the Administrator, and the Attorney General--
       ``(i) shall maintain the documents, materials, and records 
     of any depositions or testimony adduced during the allocation 
     as confidential; and
       ``(ii) shall not use any such document or material or the 
     record in any other matter or proceeding or for any purpose 
     other than the allocation process.
       ``(C) Disclosure.--Notwithstanding any other law, the 
     documents and materials and the record shall not be subject 
     to disclosure to any person under section 552 of title 5, 
     United States Code.
       ``(D) Discovery and admissibility.--
       ``(i) In general.--Subject to clause (ii), the documents 
     and materials and the record shall not be subject to 
     discovery or admissible in any other Federal, State, or local 
     judicial or administrative proceeding, except--

       ``(I) a new allocation under subsection (m) or (r) for the 
     same response action; or
       ``(II) an initial allocation under this section for a 
     different response action at the same facility.

       ``(ii) Otherwise discoverable or admissible.--

       ``(I) Document or material.--If the original of any 
     document or material submitted to the allocator or placed in 
     the document repository was otherwise discoverable or 
     admissible from a party, the original document, if 
     subsequently sought from the party, shall remain discoverable 
     or admissible.
       ``(II) Facts.--If a fact generated or obtained during the 
     allocation was otherwise discoverable or admissible from a 
     witness, testimony concerning the fact, if subsequently 
     sought from the witness, shall remain discoverable or 
     admissible.

       ``(3) No waiver of privilege.--The submission of testimony, 
     a document, or information under the allocation process shall 
     not constitute a waiver of any privilege applicable to the 
     testimony, document, or information under any Federal or 
     State law or rule of discovery or evidence.
       ``(4) Procedure if disclosure sought.--
       ``(A) Notice.--A person that receives a request for a 
     statement, document, or material submitted for the record of 
     an allocation proceeding, shall--
       ``(i) promptly notify the person that originally submitted 
     the item or testified in the allocation proceeding; and
       ``(ii) provide the person that originally submitted the 
     item or testified in the allocation proceeding an opportunity 
     to assert and defend the confidentiality of the item or 
     testimony.
       ``(B) Release.--No person may release or provide a copy of 
     a statement, document, or material submitted, or the record 
     of an allocation proceeding, to any person not a party to the 
     allocation except--
       ``(i) with the written consent of the person that 
     originally submitted the item or testified in the allocation 
     proceeding; or
       ``(ii) as may be required by court order.
       ``(5) Civil penalty.--
       ``(A) In general.--A person that fails to maintain the 
     confidentiality of any statement, document, or material or 
     the record generated or obtained during an allocation 
     proceeding, or that releases any information in violation of 
     this section, shall be subject to a civil penalty of not more 
     than $25,000 per violation.
       ``(B) Assessment of penalty.--A penalty may be assessed by 
     the Administrator in accordance with section 109 or by any 
     allocation party in a citizen suit brought under section 310.
       ``(C) Defenses.--In any administrative or judicial 
     proceeding, it shall be a complete defense that any 
     statement, document, or material or the record at issue under 
     subparagraph (A)--
       ``(i) was in, or subsequently became part of, the public 
     domain, and did not become part of the public domain as a 
     result of a violation of this subsection by the person 
     charged with the violation;
       ``(ii) was already known by lawful means to the person 
     receiving the information in connection with the allocation 
     process; or
       ``(iii) became known to the person receiving the 
     information after disclosure in connection with the 
     allocation process and did not become known as a result of 
     any violation of this subsection by the person charged with 
     the violation.
       ``(l) Rejection of Allocation Report.--
       ``(1) Rejection.--The Administrator and the Attorney 
     General may jointly reject a report issued by an allocator 
     only if the Administrator and the Attorney General jointly 
     publish, not later than 180 days after the Administrator 
     receives the report, a written determination that--
       ``(A) no rational interpretation of the facts before the 
     allocator, in light of the factors required to be considered, 
     would form a reasonable basis for the shares assigned to the 
     parties; or
       ``(B) the allocation process was directly and substantially 
     affected by bias, procedural error, fraud, or unlawful 
     conduct.
       ``(2) Finality.--A report issued by an allocator may not be 
     rejected after the date that is 180 days after the date on 
     which the United States accepts a settlement offer (excluding 
     an expedited settlement under section 122) based on the 
     allocation.
       ``(3) Judicial review.--Any determination by the 
     Administrator or the Attorney General under this subsection 
     shall not be subject to judicial review unless 2 successive 
     allocation reports relating to the same response action are 
     rejected, in which case any allocation party may obtain 
     judicial review of the second rejection in a United States 
     district court under subchapter II of chapter 5 of part I of 
     title 5, United States Code.
       ``(4) Delegation.--The authority to make a determination 
     under this subsection may not be delegated to any officer or 
     employee below the level of an Assistant Administrator or 
     Acting Assistant Administrator or an Assistant Attorney 
     General or Acting Assistant Attorney General with authority 
     for implementing this Act.
       ``(m) Second and Subsequent Allocations.--
       ``(1) In general.--If a report is rejected under subsection 
     (l), the allocation parties shall select an allocator to 
     perform, on an expedited basis, a new allocation based on the 
     same record available to the previous allocator.
       ``(2) Moratorium and tolling.--The moratorium and tolling 
     provisions of subsection (c) shall be extended until the date 
     that is 180 days after the date of the issuance of any second 
     or subsequent allocation report under paragraph (1).
       ``(3) Same allocator.--The allocation parties may select 
     the same allocator who performed 1 or more previous 
     allocations at the facility, except that the Administrator 
     may determine that an allocator whose previous report at the 
     same facility has been rejected under subsection (l) is 
     unqualified to serve.
       ``(n) Settlements Based on Allocations.--
       ``(1) Definition.--In this subsection, the term `all 
     settlements' includes any orphan share allocated under 
     subsection (h).
       ``(2) Settlements.--Unless an allocation report is rejected 
     under subsection (l), any allocation party at a mandatory 
     allocation facility (including an allocation party whose 
     allocated share is funded partially or fully by orphan share 
     funding under subsection (h)) shall be entitled to resolve 
     the liability of the party to the United States for response 
     actions subject to allocation if, not later than 90 days 
     after the date of issuance of a report by the allocator, the 
     party--
       ``(A) offers to settle with the United States based on the 
     allocated share specified by the allocator; and
       ``(B) agrees to the other terms and conditions stated in 
     this subsection.
       ``(3) Provisions of settlements.--
       ``(A) In general.--A settlement based on an allocation 
     under this section--
       ``(i) may consist of a cash-out settlement or an agreement 
     for the performance of a response action; and
       ``(ii) shall include--

       ``(I) a waiver of contribution rights against all persons 
     that are potentially responsible parties for any response 
     action addressed in the settlement;
       ``(II) a covenant not to sue that is consistent with 
     section 122(f) and, except in the case of a cash-out 
     settlement, provisions regarding performance or adequate 
     assurance of performance of the response action;
       ``(III) a premium, calculated on a facility-specific basis 
     and subject to the limitations on premiums stated in 
     paragraph (5), that reflects the actual risk to the United 
     States of not collecting unrecovered response costs for the 
     response action, despite the diligent prosecution of 
     litigation against any viable allocation party that has not 
     resolved the liability of the party to the United States, 
     except that no premium shall apply if all allocation parties 
     participate in the settlement or if the settlement covers 100 
     percent of the response costs subject to the allocation;
       ``(IV) complete protection from all claims for contribution 
     regarding the response action addressed in the settlement; 
     and
       ``(V) provisions through which a settling party shall 
     receive prompt contribution from the Fund under subsection 
     (o) of any response costs incurred by the party for any 
     response action that is the subject of the allocation in 
     excess of the allocated share of the party, including the 
     allocated portion of any orphan share.

       ``(B) Right to contribution.--A right to contribution under 
     subparagraph (A)(ii)(V) shall not be contingent on recovery 
     by the United States of any response costs from any person 
     other than the settling party.
       ``(4) Report.--The Administrator shall report annually to 
     Congress on the administration of the allocation process 
     under this section, providing in the report--
       ``(A) information comparing allocation results with actual 
     settlements at multiparty facilities;
       ``(B) a cumulative analysis of response action costs 
     recovered through post-allocation litigation or settlements 
     of post-allocation litigation;
       ``(C) a description of any impediments to achieving 
     complete recovery; and
       ``(D) a complete accounting of the costs incurred in 
     administering and participating in the allocation process.
       ``(5) Premium.--In each settlement under this subsection, 
     the premium authorized--
       ``(A) shall be determined on a case-by-case basis to 
     reflect the actual litigation risk faced by the United States 
     with respect to any response action addressed in the 
     settlement;

[[Page 5446]]

       ``(B) shall not exceed--
       ``(i) 5 percent of the total costs assumed by a settling 
     party if all settlements (including any orphan share) account 
     for more than 80 percent and less than 100 percent of 
     responsibility for the response action;
       ``(ii) 10 percent of the total costs assumed by a settling 
     party if all settlements (including any orphan share) account 
     for more than 60 percent and not more than 80 percent of 
     responsibility for the response action;
       ``(iii) 15 percent of the total costs assumed by a settling 
     party if all settlements (including any orphan share) account 
     for more than 40 percent and not more than 60 percent of 
     responsibility for the response action; or
       ``(iv) 20 percent of the total costs assumed by a settling 
     party if all settlements (including any orphan share) account 
     for 40 percent or less of responsibility for the response; 
     and
       ``(C) shall be reduced proportionally by the percentage of 
     the allocated share for that party paid through orphan 
     funding under subsection (h).
       ``(o) Funding of Orphan Shares.--
       ``(1) Contribution.--For each settlement agreement entered 
     into under subsection (n), the Administrator shall promptly 
     reimburse the allocation parties for any costs incurred that 
     are attributable to the orphan share, as determined by the 
     allocator.
       ``(2) Entitlement.--Paragraph (1) constitutes an 
     entitlement to any allocation party eligible to receive a 
     reimbursement.
       ``(3) Amounts owed.--
       ``(A) Delay if funds are unavailable.--If funds are 
     unavailable in any fiscal year to reimburse all allocation 
     parties pursuant to paragraph (1), the Administrator may 
     delay payment until funds are available.
       ``(B) Priority.--The priority for reimbursement shall be 
     based on the length of time that has passed since the 
     settlement between the United States and the allocation 
     parties pursuant to subsection (n).
       ``(C) Payment from funds made available in subsequent 
     fiscal years.--Any amount due and owing in excess of 
     available appropriations in any fiscal year shall be paid 
     from amounts made available in subsequent fiscal years, along 
     with interest on the unpaid balances at the rate equal to 
     that of the current average market yield on outstanding 
     marketable obligations of the United States with a maturity 
     of 1 year.
       ``(4) Documentation and auditing.--The Administrator--
       ``(A) shall require that any claim for contribution be 
     supported by documentation of actual costs incurred; and
       ``(B) may require an independent auditing of any claim for 
     contribution.
       ``(p) Post-Allocation Contribution.--
       ``(1) In general.--An allocation party (including a party 
     that is subject to an order under section 106 or a settlement 
     decree) that incurs costs after the date of enactment of this 
     section for implementation of a response action that is the 
     subject of an allocation under this section to an extent that 
     exceeds the percentage share of the allocation party, as 
     determined by the allocator, shall be entitled to prompt 
     payment of contribution for the excess amount, including any 
     orphan share, from the Fund, unless the allocation report is 
     rejected under subsection (l).
       ``(2) Not contingent.--The right to contribution under 
     paragraph (1) shall not be contingent on recovery by the 
     United States of a response cost from any other person.
       ``(3) Terms and conditions.--
       ``(A) Risk premium.--A contribution payment shall be 
     reduced by the amount of the litigation risk premium under 
     subsection (n)(5) that would apply to a settlement by the 
     allocation party concerning the response action, based on the 
     total allocated shares of the parties that have not reached a 
     settlement with the United States.
       ``(B) Timing.--
       ``(i) In general.--A contribution payment shall be paid out 
     during the course of the response action that was the subject 
     of the allocation, using reasonable progress payments at 
     significant milestones.
       ``(ii) Construction.--Contribution for the construction 
     portion of the work shall be paid out not later than 120 days 
     after the date of completion of the construction.
       ``(C) Equitable offset.--A contribution payment is subject 
     to equitable offset or recoupment by the Administrator at any 
     time if the allocation party fails to perform the work in a 
     proper and timely manner.
       ``(D) Independent auditing.--The Administrator may require 
     independent auditing of any claim for contribution.
       ``(E) Waiver.--An allocation party seeking contribution 
     waives the right to seek recovery of response costs in 
     connection with the response action, or contribution toward 
     the response costs, from any other person.
       ``(F) Bar.--An administrative order shall be in lieu of any 
     action by the United States or any other person against the 
     allocation party for recovery of response costs in connection 
     with the response action, or for contribution toward the 
     costs of the response action.
       ``(q) Post-Settlement Litigation.--
       ``(1) In general.--Subject to subsections (m) and (n), and 
     on the expiration of the moratorium period under subsection 
     (c)(4), the Administrator may commence an action under 
     section 107 against an allocation party that has not resolved 
     the liability of the party to the United States following 
     allocation and may seek to recover response costs not 
     recovered through settlements with other persons.
       ``(2) Orphan share.--The recoverable costs shall include 
     any orphan share determined under subsection (h), but shall 
     not include any share allocated to a Federal, State, or local 
     governmental agency, department, or instrumentality.
       ``(3) Impleader.--A defendant in an action under paragraph 
     (1) may implead an allocation party only if the allocation 
     party did not resolve liability to the United States.
       ``(4) Certification.--In commencing or maintaining an 
     action under section 107 against an allocation party after 
     the expiration of the moratorium period under subsection 
     (c)(4), the Attorney General shall certify in the complaint 
     that the defendant failed to settle the matter based on the 
     share that the allocation report assigned to the party.
       ``(5) Response costs.--
       ``(A) Allocation procedure.--The cost of implementing the 
     allocation procedure under this section, including reasonable 
     fees and expenses of the allocator, shall be considered as a 
     necessary response cost.
       ``(B) Funding of orphan shares.--The cost attributable to 
     funding an orphan share under this section--
       ``(i) shall be considered as a necessary cost of response 
     cost; and
       ``(ii) shall be recoverable in accordance with section 107 
     only from an allocation party that does not reach a 
     settlement and does not receive an administrative order under 
     subsection (n).
       ``(r) New Information.--
       ``(1) In general.--An allocation under this section shall 
     be final, except that any settling party, including the 
     United States, may seek a new allocation with respect to the 
     response action that was the subject of the settlement by 
     presenting the Administrator with clear and convincing 
     evidence that--
       ``(A) the allocator did not have information concerning--
       ``(i) 35 percent or more of the materials containing 
     hazardous substances at the facility; or
       ``(ii) 1 or more persons not previously named as an 
     allocation party that contributed 15 percent or more of 
     materials containing hazardous substances at the facility; 
     and
       ``(B) the information was discovered subsequent to the 
     issuance of the report by the allocator.
       ``(2) New allocation.--Any new allocation of 
     responsibility--
       ``(A) shall proceed in accordance with this section;
       ``(B) shall be effective only after the date of the new 
     allocation report; and
       ``(C) shall not alter or affect the original allocation 
     with respect to any response costs previously incurred.
       ``(s) Discretion of Allocator.--A contract by which the 
     Administrator retain an allocator shall give the allocator 
     broad discretion to conduct the allocation process in a fair, 
     efficient, and impartial manner, and the Administrator shall 
     not issue any rule or order that limits the discretion of the 
     allocator in the conduct of the allocation.
       ``(t) Illegal Activities.--Subsections (s), (t), and (u) of 
     section 107 and section 112(g) shall not apply to any person 
     whose liability for response costs under section 107(a)(1) is 
     otherwise based on any act, omission, or status that is 
     determined by a court or administrative body of competent 
     jurisdiction, within the applicable statute of limitation, to 
     have been a violation of any Federal or State law pertaining 
     to the treatment, storage, disposal, or handling of hazardous 
     substances if the violation pertains to a hazardous 
     substance, the release or threat of release of which caused 
     the incurrence of response costs at the vessel or 
     facility.''.

     SEC. 1933. LIABILITY OF RESPONSE ACTION CONTRACTORS.

       (a) Liability of Contractors.--Section 101(20) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(20)) is amended by 
     adding at the end the following:
       ``(H) Liability of contractors.--
       ``(i) In general.--The term `owner or operator' does not 
     include a response action contractor (as defined in section 
     119(e)).
       ``(ii) Liability limitations.--A person described in clause 
     (i) shall not, in the absence of negligence by the person, be 
     considered to--

       ``(I) cause or contribute to any release or threatened 
     release of a hazardous substance, pollutant, or contaminant;
       ``(II) arrange for disposal or treatment of a hazardous 
     substance, pollutant, or contaminant;
       ``(III) arrange with a transporter for transport or 
     disposal or treatment of a hazardous substance, pollutant, or 
     contaminant; or
       ``(IV) transport a hazardous substance, pollutant, or 
     contaminant.

       ``(iii) Exception.--This subparagraph does not apply to a 
     person potentially responsible under section 106 or 107 other 
     than a person associated solely with the provision of a 
     response action or a service or equipment ancillary to a 
     response action.''.
       (b) National Uniform Negligence Standard.--Section 119(a) 
     of the Comprehensive

[[Page 5447]]

     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9619(a)) is amended--
       (1) in paragraph (1) by striking ``title or under any other 
     Federal law'' and inserting ``title or under any other 
     Federal or State law''; and
       (2) in paragraph (2)--
       (A) by striking ``(2) Negligence, etc.--Paragraph (1)'' and 
     inserting the following:
       ``(2) Negligence and intentional misconduct; application of 
     state law.--
       ``(A) Negligence and intentional misconduct.--
       ``(i) In general.--Paragraph (1)''; and
       (B) by adding at the end the following:
       ``(ii) Standard.--Conduct under clause (i) shall be 
     evaluated based on the generally accepted standards and 
     practices in effect at the time and place at which the 
     conduct occurred.
       ``(iii) Plan.--An activity performed in accordance with a 
     plan that was approved by the Administrator shall not be 
     considered to constitute negligence under clause (i).
       ``(B) Application of state law.--Paragraph (1) shall not 
     apply in determining the liability of a response action 
     contractor under the law of a State if the State has adopted 
     by statute a law determining the liability of a response 
     action contractor.''.
       (c) Extension of Indemnification Authority.--Section 
     119(c)(1) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9619(c)(1)) is amended by adding at the end the following: 
     ``The agreement may apply to a claim for negligence arising 
     under Federal or State law.''.
       (d) Indemnification Determinations.--Section 119(c) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9619(c)) is amended by 
     striking paragraph (4) and inserting the following:
       ``(4) Decision to indemnify.--
       ``(A) In general.--For each response action contract for a 
     vessel or facility, the Administrator shall make a decision 
     whether to enter into an indemnification agreement with a 
     response action contractor.
       ``(B) Standard.--The Administrator shall enter into an 
     indemnification agreement to the extent that the potential 
     liability (including the risk of harm to public health, 
     safety, environment, and property) involved in a response 
     action exceed or are not covered by insurance available to 
     the contractor at the time at which the response action 
     contract is entered into that is likely to provide adequate 
     long-term protection to the public for the potential 
     liability on fair and reasonable terms (including 
     consideration of premium, policy terms, and deductibles).
       ``(C) Diligent efforts.--The Administrator shall enter into 
     an indemnification agreement only if the Administrator 
     determines that the response action contractor has made 
     diligent efforts to obtain insurance coverage from non-
     Federal sources to cover potential liabilities.
       ``(D) Continued diligent efforts.--An indemnification 
     agreement shall require the response action contractor to 
     continue, not more frequently than annually, to make diligent 
     efforts to obtain insurance coverage from non-Federal sources 
     to cover potential liabilities.
       ``(E) Limitations on indemnification.--An indemnification 
     agreement provided under this subsection shall include 
     deductibles and shall place limits on the amount of 
     indemnification made available in amounts determined by the 
     contracting agency to be appropriate in light of the unique 
     risk factors associated with the cleanup activity.''.
       (e) Indemnification for Threatened Releases.--Section 
     119(c)(5)(A) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9619(c)(5)(A)) is amended by inserting ``or threatened 
     release'' after ``release'' each place it appears.
       (f) Extension of Coverage to All Response Actions.--Section 
     119(e)(1) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9619(e)(1)) is amended--
       (1) in subparagraph (D), by striking ``carrying out an 
     agreement under section 106 or 122''; and
       (2) in the matter following subparagraph (D)--
       (A) by striking ``any remedial action under this Act at a 
     facility listed on the National Priorities List, or any 
     removal under this Act,'' and inserting ``any response 
     action,''; and
       (B) by inserting before the period at the end the 
     following: ``or to undertake appropriate action necessary to 
     protect and restore any natural resource damaged by the 
     release or threatened release''.
       (g) Definition of Response Action Contractor.--Section 
     119(e)(2)(A)(i) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9619(e)(2)(A)(i)) is amended--
       (1) by striking ``and'' at the end; and
       (2) by striking ``and is carrying out such contract'' and 
     inserting ``covered by this section and any person (including 
     any subcontractor) hired by a response action contractor''.
       (h) National Uniform Statute of Repose.--Section 119 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9619) is amended by adding 
     at the end the following:
       ``(h) Limitation on Actions Against Response Action 
     Contractors.--
       ``(1) In general.--No action may be brought as a result of 
     the performance of services under a response contract against 
     a response action contractor after the date that is 7 years 
     after the date of completion of work at any facility under 
     the contract to recover--
       ``(A) injury to property, real or personal;
       ``(B) personal injury or wrongful death;
       ``(C) other expenses or costs arising out of the 
     performance of services under the contract; or
       ``(D) contribution or indemnity for damages sustained as a 
     result of an injury described in subparagraphs (A) through 
     (C).
       ``(2) Exception.--Paragraph (1) does not bar recovery for a 
     claim caused by the conduct of the response action contractor 
     that is grossly negligent or that constitutes intentional 
     misconduct.
       ``(3) Indemnification.--This subsection does not affect any 
     right of indemnification that a response action contractor 
     may have under this section or may acquire by contract with 
     any person.
       ``(i) State Standards of Repose.--Subsections (a)(1) and 
     (h) shall not apply in determining the liability of a 
     response action contractor if the State has enacted a statute 
     of repose determining the liability of a response action 
     contractor.''.

     SEC. 1934. RELEASE OF EVIDENCE.

       (a) Timely Access to Information Furnished Under Section 
     104(e).--Section 104(e)(7)(A) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9604(e)(7)(A)) is amended by inserting after 
     ``shall be available to the public'' the following: ``not 
     later than 14 days after the records, reports, or information 
     is obtained''.
       (b) Requirement To Provide Potentially Responsible Parties 
     Evidence of Liability.--
       (1) Abatement actions.--Section 106(a) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9606(a)) is amended--
       (A) by striking ``(a) In addition'' and inserting the 
     following: ``(a) Order.--''
       ``(1) In general.--In addition''; and
       (B) by adding at the end the following:
       ``(2) Contents of order.--An order under paragraph (1) 
     shall provide information concerning the evidence that 
     indicates that each element of liability described in 
     subparagraphs (A) through (D) of section 107(a)(1), as 
     applicable, is present.''.
       (2) Settlements.--Section 122(e)(1) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9622(e)(1)) is amended by inserting after 
     subparagraph (C) the following:
       ``(D) For each potentially responsible party, the evidence 
     that indicates that each element of liability contained in 
     subparagraphs (A) through (D) of section 107(a)(1), as 
     applicable, is present.''.

     SEC. 1935. CONTRIBUTION PROTECTION.

       Section 113(f)(2) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9613(f)(2)) is amended in the first sentence by inserting 
     ``or cost recovery'' after ``contribution''.

     SEC. 1936. TREATMENT OF RELIGIOUS, CHARITABLE, SCIENTIFIC, 
                   AND EDUCATIONAL ORGANIZATIONS AS OWNERS OR 
                   OPERATORS.

       (a) Definition.--Section 101(20) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(20)) (as amended by section 1933(a)) is 
     amended by adding at the end the following:
       ``(I) Religious, charitable, scientific, and educational 
     organizations.--The term `owner or operator' includes an 
     organization described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 that is organized and operated 
     exclusively for religious, charitable, scientific, or 
     educational purposes and that holds legal or equitable title 
     to a vessel or facility.''.
       (b) Limitation on Liability.--Section 107 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607) is amended by adding 
     at the end the following:
       ``(s) Religious, Charitable, Scientific, and Educational 
     Organizations.--
       ``(1) Limitation on liability.--Subject to paragraph (2), 
     if an organization described in section 101(20)(I) holds 
     legal or equitable title to a vessel or facility as a result 
     of a charitable gift that is allowable as a deduction under 
     section 170, 2055, or 2522 of the Internal Revenue Code of 
     1986 (determined without regard to dollar limitations), the 
     liability of the organization shall be limited to the lesser 
     of the fair market value of the vessel or facility or the 
     actual proceeds of the sale of the vessel or facility 
     received by the organization.
       ``(2) Conditions.--In order for an organization described 
     in section 101(20)(I) to be eligible for the limited 
     liability described in paragraph (1), the organization 
     shall--
       ``(A) provide full cooperation, assistance, and vessel or 
     facility access to persons authorized to conduct response 
     actions at the vessel or facility, including the cooperation

[[Page 5448]]

     and access necessary for the installation, preservation of 
     integrity, operation, and maintenance of any complete or 
     partial response action at the vessel or facility;
       ``(B) provide full cooperation and assistance to the United 
     States in identifying and locating persons who recently 
     owned, operated, or otherwise controlled activities at the 
     vessel or facility;
       ``(C) establish by a preponderance of the evidence that all 
     active disposal of hazardous substances at the vessel or 
     facility occurred before the organization acquired the vessel 
     or facility; and
       ``(D) establish by a preponderance of the evidence that the 
     organization did not cause or contribute to a release or 
     threatened release of hazardous substances at the vessel or 
     facility.
       ``(3) Limitation.--Nothing in this subsection affects the 
     liability of a person other than a person described in 
     section 101(20)(I) that meets the conditions specified in 
     paragraph (2).''.

     SEC. 1937. COMMON CARRIERS.

       Section 107(b)(3) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(b)(3)) is amended by striking ``a published tariff and 
     acceptance'' and inserting ``a contract''.

     SEC. 1938. LIMITATION ON LIABILITY OF RAILROAD OWNERS.

       Section 107 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9607) (as 
     amended by section 1936(b)) is amended by adding at the end 
     the following:
       ``(t) Limitation on Liability of Railroad Owners.--
     Notwithstanding subsection (a)(1), a person that does not 
     impede the performance of a response action or natural 
     resource restoration shall not be liable under this Act to 
     the extent that liability is based solely on the status of 
     the person as a railroad owner or operator of a spur track, 
     including a spur track over land subject to an easement, to a 
     facility that is owned or operated by a person that is not 
     affiliated with the railroad owner or operator, if--
       ``(1) the spur track provides access to a main line or 
     branch line track that is owned or operated by the railroad;
       ``(2) the spur track is 10 miles long or less; and
       ``(3) the railroad owner or operator does not cause or 
     contribute to a release or threatened release at the spur 
     track.''.

                     Subtitle E--Federal Facilities

     SEC. 1951. TRANSFER OF AUTHORITIES.

       Section 120 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620) is 
     amended by striking subsection (g) and inserting the 
     following:
       ``(g) Transfer of Authorities.--
       ``(1) Definitions.--In this section:
       ``(A) Interagency agreement.--The term `interagency 
     agreement' means an interagency agreement under this section.
       ``(B) Transfer agreement.--The term `transfer agreement' 
     means a transfer agreement under paragraph (3).
       ``(C) Transferee state.--The term `transferee State' means 
     a State to which authorities have been transferred under a 
     transfer agreement.
       ``(2) State application for transfer of authorities.--A 
     State may apply to the Administrator to exercise the 
     authorities vested in the Administrator under this Act at any 
     facility located in the State that is--
       ``(A) owned or operated by any department, agency, or 
     instrumentality of the United States (including the 
     executive, legislative, and judicial branches of government); 
     and
       ``(B) listed on the National Priorities List.
       ``(3) Transfer of authorities.--
       ``(A) Determinations.--The Administrator shall enter into a 
     transfer agreement to transfer to a State the authorities 
     described in paragraph (2) if the Administrator determines 
     that--
       ``(i) the State has the ability to exercise such 
     authorities in accordance with this Act, including adequate 
     legal authority, financial and personnel resources, 
     organization, and expertise;
       ``(ii) the State has demonstrated experience in exercising 
     similar authorities;
       ``(iii) the State has agreed to be bound by all Federal 
     requirements and standards under section 132 governing the 
     design and implementation of the facility evaluation, 
     remedial action plan, and remedial design; and
       ``(iv) the State has agreed to abide by the terms of any 
     interagency agreement or agreements covering the Federal 
     facility or facilities with respect to which authorities are 
     being transferred in effect at the time of the transfer of 
     authorities.
       ``(B) Contents of transfer agreement.--A transfer 
     agreement--
       ``(i) shall incorporate the determinations of the 
     Administrator under subparagraph (A);
       ``(ii) in the case of a transfer agreement covering a 
     facility with respect to which there is no interagency 
     agreement that specifies a dispute resolution process, shall 
     require that within 120 days after the effective date of the 
     transfer agreement, the State shall agree with the head of 
     the Federal department, agency, or instrumentality that owns 
     or operates the facility on a process for resolution of any 
     disputes between the State and the Federal department, 
     agency, or instrumentality regarding the selection of a 
     remedial action for the facility; and
       ``(iii) shall not impose on the transferee State any term 
     or condition other than that the State meet the requirements 
     of subparagraph (A).
       ``(4) Effect of transfer.--
       ``(A) State authorities.--A transferee State--
       ``(i) shall not be deemed to be an agent of the 
     Administrator but shall exercise the authorities transferred 
     under a transfer agreement in the name of the State; and
       ``(ii) shall have exclusive authority to exercise 
     authorities that have been transferred.
       ``(B) Effect on interagency agreements.--Nothing in this 
     subsection shall require, authorize, or permit the 
     modification or revision of an interagency agreement covering 
     a facility with respect to which authorities have been 
     transferred to a State under a transfer agreement (except for 
     the substitution of the transferee State for the 
     Administrator in the terms of the interagency agreement, 
     including terms stating obligations intended to preserve the 
     confidentiality of information) without the written consent 
     of the Governor of the State and the head of the department, 
     agency, or instrumentality.
       ``(5) Selected remedial action.--The remedial action 
     selected for a facility under section 132 by a transferee 
     State shall constitute the only remedial action required to 
     be conducted at the facility, and the transferee State shall 
     be precluded from enforcing any other remedial action 
     requirement under Federal or State law, except for--
       ``(A) any corrective action under the Solid Waste Disposal 
     Act (42 U.S.C. 6901 et seq.) that was initiated prior to the 
     date of enactment of this subsection; and
       ``(B) any remedial action in excess of remedial action 
     under section 132 that the State selects in accordance with 
     paragraph (10).
       ``(6) Deadline.--
       ``(A) In general.--The Administrator shall make a 
     determination on an application by a State under paragraph 
     (2) not later than 120 days after the date on which the 
     Administrator receives the application.
       ``(B) Failure to act.--If the Administrator does not issue 
     a notice of approval or notice of disapproval of an 
     application within the time period stated in subparagraph 
     (A), the application shall be deemed to have been granted.
       ``(7) Resubmission of application.--
       ``(A) In general.--If the Administrator disapproves an 
     application under paragraph (1), the State may resubmit the 
     application at any time after receiving the notice of 
     disapproval.
       ``(B) Failure to act.--If the Administrator does not issue 
     a notice of approval or notice of disapproval of a 
     resubmitted application within the time period stated in 
     paragraph (6)(A), the resubmitted application shall be deemed 
     to have been granted.
       ``(8) Judicial review.--The State (but no other person) 
     shall be entitled to judicial review under section 113(b) of 
     a disapproval of a resubmitted application.
       ``(9) Withdrawal of authorities.--The Administrator may 
     withdraw the authorities transferred under a transfer 
     agreement in whole or in part if the Administrator determines 
     that the State--
       ``(A) is exercising the authorities, in whole or in part, 
     in a manner that is inconsistent with the requirements of 
     this Act;
       ``(B) has violated the transfer agreement, in whole or in 
     part; or
       ``(C) no longer meets one of the requirements of paragraph 
     (3).
       ``(10) State cost responsibility.--The State may require a 
     remedial action that exceeds the remedial action selection 
     requirements of section 121 if the State pays the incremental 
     cost of implementing that remedial action over the most cost-
     effective remedial action that would result from the 
     application of section 132.
       ``(11) Dispute resolution and enforcement.--
       ``(A) Dispute resolution.--
       ``(i) Facilities covered by both a transfer agreement and 
     an interagency agreements.--In the case of a facility with 
     respect to which there is both a transfer agreement and an 
     interagency agreement, if the State does not concur in the 
     remedial action proposed for selection by the Federal 
     department, agency, or instrumentality, the Federal 
     department, agency, or instrumentality and the State shall 
     engage in the dispute resolution process provided for in the 
     interagency agreement, except that the final level for 
     resolution of the dispute shall be the head of the Federal 
     department, agency, or instrumentality and the Governor of 
     the State.
       ``(ii) Facilities covered by a transfer agreement but not 
     an interagency agreement.--In the case of a facility with 
     respect to which there is a transfer agreement but no 
     interagency agreement, if the State does not concur in the 
     remedial action proposed for selection by the Federal 
     department, agency, or instrumentality, the Federal 
     department, agency, or instrumentality and the State shall 
     engage in dispute resolution as provided in paragraph 
     (3)(B)(ii) under which the final level for resolution of the

[[Page 5449]]

     dispute shall be the head of the Federal department, agency, 
     or instrumentality and the Governor of the State.
       ``(iii) Failure to resolve.--If no agreement is reached 
     between the head of the Federal department, agency, or 
     instrumentality and the Governor in a dispute resolution  
     process  under  clause  (i)  or (ii), the Governor of the 
     State shall make the final determination regarding selection 
     of a remedial action. To compel implementation of the 
     selected remedy of the State, the State must bring a civil 
     action in United States district court.
       ``(B) Enforcement.--
       ``(i) Authority; jurisdiction.--An interagency agreement 
     with respect to which there is a transfer agreement or an 
     order issued by a transferee State shall be enforceable by a 
     transferee State or by the Federal department, agency, or 
     instrumentality that is a party to the interagency agreement 
     only in the United States district court for the district in 
     which the facility is located.
       ``(ii) Remedies.--The district court shall--

       ``(I) enforce compliance with any provision, standard, 
     regulation, condition, requirement, order, or final 
     determination that has become effective under the interagency 
     agreement;
       ``(II) impose any appropriate civil penalty provided for 
     any violation of an interagency agreement, not to exceed 
     $25,000 per day;
       ``(III) compel implementation of the selected remedial 
     action; and
       ``(IV) review a challenge by the Federal department, 
     agency, or instrumentality to the remedial action selected by 
     the State under this section, in accordance with section 
     113(j).

       ``(12) Community participation.--If, prior to the date of 
     enactment of this section, a Federal department, agency, or 
     instrumentality had established for a facility covered by a 
     transfer agreement a facility-specific advisory board or 
     other community-based advisory group (designated as a `site-
     specific advisory board', a `restoration advisory board', or 
     otherwise), and the Administrator determines that the board 
     or group is willing and able to perform the responsibilities 
     of a community response organization under section 117(e)(2), 
     the board or group--
       ``(A) shall be considered to be a community response 
     organization for the purposes of--
       ``(i) paragraphs (2), (3), (4), and (9) of section 117(e);
       ``(ii) this subsection;
       ``(iii) section 130; and
       ``(iv) section 132; but
       ``(B) shall not be required to comply with, and shall not 
     be considered to be a community response organization for the 
     purposes of--
       ``(i) paragraph (1), (5), (6), (7), or (8) of section 
     117(e); or
       ``(ii) subsection (f).''.

     SEC. 1952. LIMITATION ON CRIMINAL LIABILITY OF FEDERAL 
                   OFFICERS, EMPLOYEES, AND AGENTS.

       Section 120 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620) is 
     amended by adding at the end the following:
       ``(k) Criminal Liability.--Notwithstanding any other 
     provision of this Act or any other law, an officer, employee, 
     or agent of the United States shall not be held criminally 
     liable for a failure to comply, in any fiscal year, with a 
     requirement to take a response action at a facility that is 
     owned or operated by a department, agency, or instrumentality 
     of the United States, under this Act, the Solid Waste 
     Disposal Act (42 U.S.C. 6901 et seq.), or any other Federal 
     or State law unless--
       ``(1) the officer, employee, or agent has not fully 
     performed any direct responsibility or delegated 
     responsibility that the officer, employee, or agent had under 
     Executive Order 12088 (42 U.S.C. 4321 note) or any other 
     delegation of authority to ensure that a request for funds 
     sufficient to take the response action was included in the 
     President's budget request under section 1105 of title 31, 
     United States Code, for that fiscal year; or
       ``(2) appropriated funds were available to pay for the 
     response action.''.

     SEC. 1953. INNOVATIVE TECHNOLOGIES FOR REMEDIAL ACTION AT 
                   FEDERAL FACILITIES.

       (a) In General.--Section 311 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9660) is amended by adding at the end the 
     following:
       ``(h) Federal Facilities.--
       ``(1) Designation.--The President may designate a facility 
     that is owned or operated by any department, agency, or 
     instrumentality of the United States, and that is listed or 
     proposed for listing on the National Priorities List, to 
     facilitate the research, development, and application of 
     innovative technologies for remedial action at the facility.
       ``(2) Use of facilities.--
       ``(A) In general.--A facility designated under paragraph 
     (1) shall be made available to Federal departments and 
     agencies, State departments and agencies, and public and 
     private instrumentalities, to carry out activities described 
     in paragraph (1).
       ``(B) Coordination.--The Administrator--
       ``(i) shall coordinate the use of the facilities with the 
     departments, agencies, and instrumentalities of the United 
     States; and
       ``(ii) may approve or deny the use of a particular 
     innovative technology for remedial action at any such 
     facility.
       ``(3) Considerations.--
       ``(A) Evaluation of schedules and penalties.--In 
     considering whether to permit the application of a particular 
     innovative technology for remedial action at a facility 
     designated under paragraph (1), the Administrator shall 
     evaluate the schedules and penalties applicable to the 
     facility under any agreement or order entered into under 
     section 120.
       ``(B) Amendment of agreement or order.--If, after an 
     evaluation under subparagraph (A), the Administrator 
     determines that there is a need to amend any agreement or 
     order entered into pursuant to section 120, the Administrator 
     shall comply with all provisions of the agreement or order, 
     respectively, relating to the amendment of the agreement or 
     order.''.
       (b) Report to Congress.--Section 311(e) of Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9660(e)) is amended--
       (1) by striking ``At the time'' and inserting the 
     following:
       ``(1) In general.--At the time''; and
       (2) by adding at the end the following:
       ``(2) Additional information.--A report under paragraph (1) 
     shall include information on the use of facilities described 
     in subsection (h)(1) for the research, development, and 
     application of innovative technologies for remedial activity, 
     as authorized under subsection (h).''.

                  Subtitle F--Natural Resource Damages

     SEC. 1961. RESTORATION OF NATURAL RESOURCES.

       Section 107(f) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)) 
     is amended--
       (1) by inserting ``Natural Resource Damages.--'' after 
     ``(f)'';
       (2) by striking ``(1) Natural Resources Liability.--In the 
     case'' and inserting the following:
       ``(1) Liability.--
       ``(A) In general.--In the case''; and
       (3) in paragraph (1)(A) (as designated by paragraph (2))--
       (A) by inserting after the fourth sentence the following: 
     ``Sums recovered by an Indian tribe as trustee under this 
     subsection shall be available for use only for restoration, 
     replacement, or acquisition of the equivalent of such natural 
     resources by the Indian tribe. A restoration, replacement, or 
     acquisition conducted by the United States, a State, or an 
     Indian tribe shall proceed only if it is technologically 
     feasible from an engineering perspective at a reasonable cost 
     and consistent with all known or anticipated response actions 
     at or near the facility.''; and
       (B) by striking ``The measure of damages in any action'' 
     and all that follows through the end of the paragraph and 
     inserting the following:
       ``(B) Limitations on liability.--
       ``(i) Measure of damages.--The measure of damages in any 
     action for damages for injury to, destruction of, or loss of 
     natural resources shall be limited to--

       ``(I) the reasonable costs of restoration, replacement, or 
     acquisition of the equivalent of natural resources that 
     suffer injury, destruction, or loss caused by a release; and
       ``(II) the reasonable costs of assessing damages.

       ``(ii) Nonuse values.--There shall be no recovery under 
     this Act for any impairment of nonuse values.
       ``(iii) No double recovery.--A person that obtains a 
     recovery of damages, response costs, assessment costs, or any 
     other costs under this Act for the costs of restoring an 
     injury to or destruction or loss of a natural resource 
     (including injury assessment costs) shall not be entitled to 
     recovery under this Act or any other Federal or State law for 
     the same injury to or destruction or loss of the natural 
     resource.
       ``(iv) Restrictions on recovery.--

       ``(I) Limitation on lost use damages.--There shall be no 
     recovery from any person under this section for the costs of 
     a loss of use of a natural resource for a natural resource 
     injury, destruction, or loss that occurred before December 
     11, 1980.
       ``(II) Restoration, replacement, or acquisition.--There 
     shall be no recovery from any person under this section for 
     the costs of restoration, replacement, or acquisition of the 
     equivalent of a natural resource if the natural resource 
     injury, destruction, or loss for which the restoration, 
     replacement, or acquisition is sought and the release of the 
     hazardous substance from which the injury resulted occurred 
     wholly before December 11, 1980.''.

     SEC. 1962. ASSESSMENT OF INJURY TO AND RESTORATION OF NATURAL 
                   RESOURCES.

       (a) Natural Resource Injury and Restoration Assessments.--
     Section 107(f)(2) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607(f)(2)) is amended by striking subparagraph (C) and 
     inserting the following:
       ``(C) Natural resource injury and restoration 
     assessments.--
       ``(i) Regulation.--A natural resource injury and 
     restoration assessment conducted

[[Page 5450]]

     for the purposes of this Act made by a Federal, State, or 
     tribal trustee shall be performed, to the extent practicable, 
     in accordance with--

       ``(I) the regulation issued under section 301(c); and
       ``(II) generally accepted scientific and technical 
     standards and methodologies to ensure the validity and 
     reliability of assessment results.

       ``(ii) Facility-specific conditions.--Injury assessment, 
     restoration planning, and quantification of restoration costs 
     shall, to the extent practicable, be based on facility-
     specific information.
       ``(iii) Recoverable costs.--A claim by a trustee for 
     assessment costs--

       ``(I) may include only--

       ``(aa) costs that arise from work performed for the purpose 
     of assessing injury to a natural resource to support a claim 
     for restoration of the natural resource; and
       ``(bb) costs that arise from developing and evaluating a 
     reasonable range of alternative restoration measures; but

       ``(II) may not include the costs of conducting any type of 
     study relying on the use of contingent valuation methodology.

       ``(iv) Payment period.--In a case in which injury to or 
     destruction or loss of a natural resource was caused by a 
     release that occurred over a period of years, payment of 
     damages shall be permitted to be made over a period of years 
     that is appropriate in view of the period of time over which 
     the damages occurred, the amount of the damages, the 
     financial ability of the responsible party to pay the 
     damages, and the time period over which and the pace at which 
     expenditures are expected to be made for restoration, 
     replacement, and acquisition activities.
       ``(v) Trustee restoration plans.--

       ``(I) Administrative record.--Participating natural 
     resource trustees may designate a lead administrative trustee 
     or trustees. The lead administrative trustee may establish an 
     administrative record on which the trustees will base the 
     selection of a plan for restoration of a natural resource. 
     The restoration plan shall include a determination of the 
     nature and extent of the natural resource injury. The 
     administrative record shall be made available to the public 
     at or near the facility at which the release occurred.
       ``(II) Public participation.--The Administrator shall issue 
     a regulation for the participation of interested persons, 
     including potentially responsible parties, in the development 
     of the administrative record on which the trustees will base 
     selection of a restoration plan and on which judicial review 
     of restoration plans will be based. The procedures for 
     participation shall include, at a minimum, each of the 
     requirements stated in section 113(k)(2)(B).''.

       (b) Regulations.--Section 301 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9651) is amended by striking subsection (c) 
     and inserting the following:
       ``(c) Regulations for Injury and Restoration Assessments.--
       ``(1) In general.--The President, acting through Federal 
     officials designated by the National Contingency Plan under 
     section 107(f)(2), shall issue a regulation for the 
     assessment of injury to natural resources and the costs of 
     restoration of natural resources (including the costs of 
     assessment) for the purposes of this Act and for 
     determination of the time periods in which payment of damages 
     will be required.
       ``(2) Contents.--The regulation under paragraph (1) shall--
       ``(A) specify protocols for conducting assessments in 
     individual cases to determine the injury, destruction, or 
     loss of natural resources;
       ``(B) identify the best available procedures to determine 
     the reasonable costs of restoration and assessment;
       ``(C) take into consideration the ability of a natural 
     resource to recover naturally and the availability of 
     replacement or alternative resources;
       ``(D) provide for the designation of a single lead Federal 
     decisionmaking trustee for each facility at which an injury 
     to natural resources has occurred within 180 days after the 
     date of first notice to the responsible parties that an 
     assessment of injury and restoration alternatives will be 
     made; and
       ``(E) set forth procedures under which--
       ``(i) all pending and potential trustees identify the 
     injured natural resources within their respective trust 
     responsibilities, and the authority under which such 
     responsibilities are established, as soon as practicable 
     after the date on which a release occurs;
       ``(ii) assessment of injury and restoration alternatives 
     will be coordinated to the greatest extent practicable 
     between the lead Federal decisionmaking trustee and any 
     present or potential State or tribal trustees, as applicable; 
     and
       ``(iii) time periods for payment of damages in accordance 
     with section 107(f)(2)(C)(iv) shall be determined.
       ``(3) Deadline for issuance of regulation; periodic 
     review.--The regulation under paragraph (1) shall be issued 
     not later than 1 year after the date of enactment of the 
     Energy Policy Act of 2002 and shall be reviewed and revised 
     as appropriate every 5 years.''.

     SEC. 1963. CONSISTENCY BETWEEN RESPONSE ACTIONS AND RESOURCE 
                   RESTORATION STANDARDS.

       (a) Restoration Standards and Alternatives.--Section 107(f) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9607(f)) is amended by 
     adding at the end the following:
       ``(3) Compatibility with remedial action.--Both response 
     actions and restoration measures may be implemented at the 
     same facility, or to address releases from the same facility. 
     Such response actions and restoration measures shall not be 
     inconsistent with one another and shall be implemented, to 
     the extent practicable, in a coordinated and integrated 
     manner.''.
       (b) Consideration of Natural Resources in Response 
     Actions.--Section 121(a) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9621(a)) (as amended by section 1922) is amended by adding at 
     the end the following:
       ``(6) Coordination.--In evaluating and selecting remedial 
     actions, the Administrator shall take into account the 
     potential for injury to a natural resource resulting from 
     those actions.''.

     SEC. 1964. CONTRIBUTION.

       Subparagraph (A) of section 113(f)(1) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9613(f)(1)) is amended in the third sentence 
     by inserting ``and natural resource damages'' after 
     ``costs''.

                       Subtitle G--Miscellaneous

     SEC. 1971. RESULT-ORIENTED CLEANUPS.

       (a) Amendment.--Section 105(a) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9605(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (9);
       (2) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (10) the following:
       ``(11) procedures for conducting response actions, 
     including facility evaluations, remedial investigations, 
     feasibility studies, remedial action plans, remedial designs, 
     and remedial actions, which procedures shall--
       ``(A) use a results-oriented approach to minimize the time 
     required to conduct response measures and reduce the 
     potential for exposure to the hazardous substances, 
     pollutants, and contaminants in an efficient, timely, and 
     cost-effective manner;
       ``(B) require, at a minimum, expedited facility evaluations 
     and risk assessments, timely negotiation of response action 
     goals, a single engineering study, streamlined oversight of 
     response actions, and consultation with interested parties 
     throughout the response action process;
       ``(C) be subject to the requirements of sections 117, 120, 
     121, and 132 in the same manner and to the same degree as 
     those sections apply to response actions; and
       ``(D) be required to be used for each remedial action 
     conducted under this Act unless the Administrator determines 
     that their use would not be cost-effective or result in the 
     selection of a response action that achieves the goals of 
     protecting human health and the environment stated in section 
     121(a)(1)(B).''.
       (b) Amendment of National Hazardous Substance Response 
     Plan.--Not later than 180 days after the date of enactment of 
     this Act, the Administrator, after notice and opportunity for 
     public comment, shall amend the National Hazardous Substance 
     Response Plan under section 105(a) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9605(a)) to include the procedures required 
     by the amendment made by subsection (a).

     SEC. 1972. NATIONAL PRIORITIES LIST.

       Section 105 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9605) (as 
     amended by section 1927(a)(2)) is amended by adding at the 
     end the following:
       ``(j) National Priorities List.--
       ``(1) Limitation.--
       ``(A) In general.--After the date of the enactment of this 
     subsection, the President may add vessels and facilities to 
     the National Priorities List only in accordance with the 
     following schedule:
       ``(i) Not more than 30 vessels and facilities in 2002.
       ``(ii) Not more than 25 vessels and facilities in 2003.
       ``(iii) Not more than 20 vessels and facilities in 2004.
       ``(iv) Not more than 15 vessels and facilities in 2005.
       ``(v) Not more than 10 vessels and facilities in any year 
     after 2005.
       ``(B) Relisting.--The relisting of a vessel or facility 
     under section 129(d)(5)(C)(ii) shall not be considered to be 
     an addition to the National Priorities List for purposes of 
     this subsection.
       ``(2) Prioritization.--The Administrator shall prioritize 
     the vessels and facilities added under paragraph (1) on a 
     national basis in accordance with the threat to human health 
     and the environment presented by each of the vessels and 
     facilities, respectively.
       ``(3) State concurrence.--A vessel or facility may be added 
     to the National Priorities List under paragraph (1) only with 
     the concurrence of the Governor of the State in which the 
     vessel or facility is located.''.

[[Page 5451]]



     SEC. 1973. OBLIGATIONS FROM THE FUND FOR RESPONSE ACTIONS.

       Section 104(c)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9604(c)(1)) is amended--
       (1) in subparagraph (C), by striking ``consistent with the 
     remedial action to be taken'' and inserting ``and not 
     inconsistent with any remedial action that has been selected 
     or is anticipated at the time of any removal action at a 
     facility,'';
       (2) by striking ``$2,000,000'' and inserting 
     ``$4,000,000''; and
       (3) by striking ``12 months'' and inserting ``2 years''.

                          Subtitle H--Funding

     SEC. 1981. AUTHORIZATION OF APPROPRIATIONS FROM THE FUND.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)) 
     is amended in the first sentence by striking ``not more than 
     $8,500,000,000 for the 5-year period beginning on the date of 
     enactment of the Superfund Amendments and Reauthorization Act 
     of 1986, and not more than $5,100,000,000 for the period 
     commencing October 1, 1991, and ending September 30, 1994'' 
     and inserting ``a total of $8,500,000,000 for the period of 
     fiscal years 2003 through 2007''.

     SEC. 1982. ORPHAN SHARE FUNDING.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)), 
     (as amended by section 1901(c)), is amended by inserting 
     after paragraph (7) the following:
       ``(8) Orphan share funding.--Payment of orphan shares under 
     section 135.''.

     SEC. 1983. DEPARTMENT OF HEALTH AND HUMAN SERVICES.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by striking subsection (m) and inserting the 
     following:
       ``(m) Health Authorities.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Fund to the Secretary of Health and Human Services 
     to be used for the purposes of carrying out the activities 
     described in subsection (c)(4) and the activities described 
     in section 104(i), $50,000,000 for each of fiscal years 2003 
     through 2007.
       ``(2) Unobligated funds.--Funds appropriated under this 
     subsection for a fiscal year, but not obligated by the end of 
     the fiscal year, shall be returned to the Fund.''.

     SEC. 1984. LIMITATIONS ON RESEARCH, DEVELOPMENT, AND 
                   DEMONSTRATION PROGRAMS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by striking subsection (n) and inserting the 
     following:
       ``(n) Limitations on Research, Development, and 
     Demonstration Programs.--
       ``(1) Alternative or innovative technologies research, 
     development, and demonstration programs.--
       ``(A) Limitation.--For each of fiscal years 2003 through 
     2007, not more than $30,000,000 of the amounts available in 
     the Fund may be used for the purposes of carrying out the 
     applied research, development, and demonstration program for 
     alternative or innovative technologies and training program 
     authorized under section 311(b) other than basic research.
       ``(B) Continuing availability.--Amounts described in 
     subparagraph (A) shall remain available until expended.
       ``(2) Hazardous substance research, demonstration, and 
     training.--
       ``(A) Limitation.--From the amounts available in the Fund, 
     not more than the following amounts may be used for the 
     purposes of section 311(a):
       ``(i) For fiscal year 2003, $37,000,000.
       ``(ii) For fiscal year 2004, $39,000,000.
       ``(iii) For fiscal year 2005, $41,000,000.
       ``(iv) For each of fiscal years 2006 and 2007, $43,000,000.
       ``(B) Further limitation.--No more than 15 percent of those 
     amounts shall be used for training under section 311(a) for 
     any fiscal year.
       ``(3) University hazardous substance research centers.--For 
     each of fiscal years 2003 through 2007, not more than 
     $5,000,000 of the amounts available in the Fund may be used 
     for the purposes of section 311(d).''.

     SEC. 1985. AUTHORIZATION OF APPROPRIATIONS FROM GENERAL 
                   REVENUES.

       Section 111(p) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(p)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated, 
     out of any money in the Treasury not otherwise appropriated, 
     to the Hazardous Substance Superfund--
       ``(i) for fiscal year 2003, $250,000,000;
       ``(ii) for fiscal year 2004, $250,000,000;
       ``(iii) for fiscal year 2005, $250,000,000;
       ``(iv) for fiscal year 2006, $250,000,000; and
       ``(v) for fiscal year 2007, $250,000,000.
       ``(B) Additional amounts.--There is authorized to be 
     appropriated to the Hazardous Substance Superfund for each 
     such fiscal year an amount, in addition to the amount 
     authorized by subparagraph (A), equal to so much of the 
     aggregate amount authorized to be appropriated under this 
     subsection and section 9507(b) of the Internal Revenue Code 
     of 1986 as has not been appropriated before the beginning of 
     the fiscal year.''.

     SEC. 1986. ADDITIONAL LIMITATIONS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by adding at the end the following:
       ``(q) Community Response Organization.--For the period 
     commencing January 1, 2003, and ending September 30, 2007, 
     not more than $15,000,000 of the amounts available in the 
     Fund may be used to make grants under section 117(f) 
     (relating to Community Response Organizations).
       ``(r) Recoveries.--Effective beginning January 1, 2003, any 
     response cost recoveries collected by the United States under 
     this Act shall be credited as offsetting collections to the 
     Superfund appropriations account.''.

     SEC. 1987. REIMBURSEMENT OF POTENTIALLY RESPONSIBLE PARTIES.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)) 
     (as amended by section 1982) is amended by inserting after 
     paragraph (8) the following:
       ``(9) Reimbursement of potentially responsible parties.--
     If--
       ``(A) a potentially responsible party and the Administrator 
     enter into a settlement under this Act under which the 
     Administrator is reimbursed for the response costs of the 
     Administrator; and
       ``(B) the Administrator determines, through a Federal audit 
     of response costs, that the costs for which the Administrator 
     is reimbursed--
       ``(i) are unallowable due to contractor fraud;
       ``(ii) are unallowable under the Federal Acquisition 
     Regulation; or
       ``(iii) should be adjusted due to routine contract and 
     Environmental Protection Agency response cost audit 
     procedures,

     a potentially responsible party may be reimbursed for those 
     costs.''.
                                  ____

  SA 3310. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an 
amendment intended to be proposed by her to the bill S. 517, to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter proposed to be inserted, strike line 
     15 on page 204 and all that follows through line 8 on page 
     205.
                                  ____


  SA 3311. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an 
amendment intended to be proposed by her to the bill S. 517, to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:
       ``(1) In general.--Notwithstanding any other provision of 
     federal or state law, a renewable fuel, as defined by this 
     Act, used or intended to be used as a motor vehicle fuel, or 
     any motor vehicle fuel containing such renewable fuel, shall 
     be subject to liability standards no less protective of human 
     health, welfare and the environment than any other motor 
     vehicle fuel or fuel additive.
       ``(2) Effective date.--This subsection shall be effective 
     one day after the enactment of this Act.''.
                                  ____

  SA 3312. Mrs. BOXER (for herself and Mrs. Feinstein) submitted an 
amendment intended to be proposed by her to the bill S. 517, to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter proposed to be stricken, insert the 
     following:
       ``(e) Renewable Fuels Safe Harbor.--Notwithstanding any 
     other provision of federal or state law, a renewable fuel, as 
     defined by this Act, used or intended to be used as a motor 
     vehicle fuel, or any motor vehicle fuel containing such 
     renewable fuel, shall be subject to liability standards no 
     less protective of human health, welfare and the environment 
     than any other motor vehicle fuel or fuel additive.''.
                                  ____

  SA 3313. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3281 submitted by Mr. Schumer and intended to be 
proposed to the amendment SA 2917 proposed by Mr. Daschle (for himself 
and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas

[[Page 5452]]

through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC.   . AUTHORITY TO CARRY FIREARMS AND MAKE ARRESTS.

       Section 161 k. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2201(k)) is amended to read as follows:
       ``k. (1) authorize such of its members, officers, and 
     employees as it deems necessary in the interest of the common 
     defense and security to carry firearms while in the discharge 
     of their official duties;
       ``(2) authorize--
       ``(A) such of those employees of its contractors and 
     subcontractors (at any tier) engaged in the protection of 
     property under the jurisdiction of the United States located 
     at facilities owned by or contracted to the United States or 
     being transported to or from such facilities as it deems 
     necessary in the interests of the common defense and 
     security; and
       ``(B) such of those employees of persons licensed or 
     certified by the Nuclear Regulatory Commission (including 
     employees of contractors or licensees or certificate holders) 
     engaged in the protection of (i) facilities owned or operated 
     by a Commission licensee or certificate holder that are 
     designated by the Commission, or (ii) property of 
     significance to the common defense and security located at 
     facilities or operated by a Commission licensee or 
     certificate holder or being transported to or from such 
     facilities--

     to carry firearms while in the discharge of their official 
     duties.
       ``(3) authorize employees of persons licensed or certified 
     by the Nuclear Regulatory Commission (including employees of 
     contractors of licensees or certificate holders) who are 
     trained and qualified as guards and whose duty is the 
     protection of facilities designated under paragraph (2)(B)(i) 
     or property described in paragraph (2)(B)(ii) to carry and 
     use, where necessary to the discharge of their official 
     duties, such weapons, devices, or ammunition as the 
     Commission may require. Such employees shall have the power 
     to carry and use such weapons while in the discharge of their 
     official duties, regardless of whether such employees have 
     been designated as Federal, State, or local law enforcement 
     officers. Such employees shall have such law enforcement 
     powers as are provided to them under this section and section 
     161 i. of this Act. The Nuclear Regulatory Commission shall 
     issue guidelines, with the approval of the Attorney General, 
     to implement this paragraph. The authority conferred by this 
     paragraph with respect to employees of persons licensed or 
     certified by the Nuclear Regulatory Commission (including 
     employees of contractors of licensees or certificate holders) 
     who are trained and qualified as guards and whose duty is the 
     protection of facilities designated under paragraph (2)(B)(i) 
     or property described under paragraph (2)(B)(ii) shall not be 
     implemented until such guidelines have become effective.
       ``(4) A person authorized to carry firearms under this 
     subsection may, while in the performance of, and in 
     connection with, official duties, make arrests without a 
     warrant for any offense against the United States committed 
     in that person's presence or for any felony cognizable under 
     the laws of the United States if that person has reasonable 
     grounds to believe that the individual to be arrested has 
     committed or is committing such felony. An employee of a 
     contractor or subcontractor or of a Commission licensee or 
     certificate holder (or a contractor of a licensee or 
     certificate holder) authorized to carry firearms under this 
     subsection may make such arrests only when the individual to 
     be arrested is within, or in direct flight from, the area of 
     such offense. A person granted authority to make arrests by 
     this subsection may exercise that authority only in the 
     enforcement of--
       ``(A) laws regarding the property of the United States in 
     the custody of the Department of Energy, the Nuclear 
     Regulatory Commission, or a contractor of the Department of 
     Energy or Nuclear Regulatory Commission, or a licensee or 
     certificate holder of the Commission;
       ``(B) laws applicable to facilities owned or operated by a 
     Commission licensee or certificate holder that are designated 
     by the Commission pursuant to this subsection, and property 
     of significance to the common defense and security that is in 
     the custody of a licensee or certificate holder or a 
     contractor of a licensee or certificate holder of the 
     Commission; or
       ``(C) any provision of this chapter that may subject an 
     offender to a fine, imprisonment, or both.
       ``(5) The arrest authority conferred by this subsection is 
     in addition to any arrest authority under other laws. The 
     Secretary and the Nuclear Regulatory Commission, with the 
     approval of the Attorney General, shall issue guidelines to 
     implement this subsection;''.

     SEC.  . UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

       Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2278a(a)) is amended by inserting before the period at the 
     end of the first sentence the following: ``or subject to the 
     licensing authority of the Commission or to certification by 
     the Commission under this Act or any other Act''.

     SEC.  . SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

       Section 236 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2284(a)) is amended to read as follows:
       ``a. Any person who intentionally and willfully destroys or 
     causes physical damage to, or who attempts or conspires to 
     destroy or cause physical damage to--
       ``(1) any production facility or utilization facility 
     licensed under this Act;
       ``(2) any nuclear waste storage, treatment, or disposal 
     facility licensed under this Act;
       ``(3) any nuclear fuel for a utilization facility licensed 
     under this act, or any spent nuclear fuel from such a 
     facility;
       ``(4) any uranium enrichment or nuclear fuel fabrication 
     facility licensed or certified by the Nuclear Regulatory 
     Commission; or
       ``(5) any production, utilization, waste storage, waste 
     treatment, waste disposal, uranium enrichment, or nuclear 
     fabrication facility subject to licensing or certification 
     under this Act during its construction where the destruction 
     or damage caused or attempted to be caused could affect 
     public health and safety during the operation of the 
     facility--

     shall be fined not more than $10,000 or imprisoned for not 
     more than 20 years or both, or shall be imprisoned for any 
     term of years or for life if death results to any person.''.
                                  ____

  SA 3314. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3203 submitted by Mr. Jeffords for himself and Mr. 
Smith of New Hampshire) and intended to be proposed to the amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes, which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 510. AUTHORITY TO CARRY FIREARMS AND MAKE ARRESTS.

       Section 161 k. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2201(k)) is amended to read as follows:
       ``k. (1) authorize such of its members, officers, and 
     employees as it deems necessary in the interest of the common 
     defense and security to carry firearms while in the discharge 
     of their official duties;
       ``(2) authorize--
       ``(A) such of those employees of its contractors and 
     subcontractors (at any tier) engaged in the protection of 
     property under the jurisdiction of the United States located 
     at facilities owned by or contracted to the United States or 
     being transported to or from such facilities as it deems 
     necessary in the interests of the common defense and 
     security; and
       ``(B) such of those employees of persons licensed or 
     certified by the Nuclear Regulatory Commission (including 
     employees of contractors or licensees or certificate holders) 
     engaged in the protection of (i) facilities owned or operated 
     by a Commission licensee or certificate holder that are 
     designated by the Commission, or (ii) property of 
     significance to the common defense and security located at 
     facilities owned or operated by a Commission licensee or 
     certificate holder or being transported to or from such 
     facilities--

     to carry firearms while in the discharge of their official 
     duties.
       ``(3) authorize employees of persons licensed or certified 
     by the Nuclear Regulatory Commission (including employees of 
     contractors of licensees or certificate holders) who are 
     trained and qualified as guards and whose duty is the 
     protection of facilities designated under paragraph (2)(B)(i) 
     or property described in paragraph (2)(B)(ii) to carry and 
     use, where necessary to the discharge of their official 
     duties, such weapons, devices, or ammunition as the 
     Commission may require. Such employees shall have the power 
     to carry and use such weapons while in the discharge of their 
     official duties, regardless of whether such employees have 
     been designated as Federal, State, or local law enforcement 
     officers. Such employees shall have such law enforcement 
     powers as are provided to them under this section and section 
     161 i. of this Act. The Nuclear Regulatory Commission shall 
     issue guidelines, with the approval of the Attorney General, 
     to implement this paragraph. The authority conferred by this 
     paragraph with respect to employees of persons licensed or 
     certified by the Nuclear Regulatory Commission (including 
     employees of contractors of licensees or certificate holders) 
     who are trained and qualified as guards and whose duty is the 
     protection of facilities designated under paragraph (2)(B)(i) 
     or property described under paragraph (2)(B)(ii) shall not be 
     implemented until such guidelines have become effective.
       ``(4) A person authorized to carry firearms under this 
     subsection may, while in the performance of, and in 
     connection with, official

[[Page 5453]]

     duties, make arrests without a warrant for any offense 
     against the United States committed in that person's presence 
     or for any felony cognizable under the laws of the United 
     States if that person has reasonable grounds to believe that 
     the individual to be arrested has committed or is committing 
     such felony. An employee of a contractor or subcontractors or 
     of a Commission licensee or certificate holder (or a 
     contractor of a licensee or certificate holder) authorized to 
     carry firearms under this subsection may make such arrests 
     only when the individual to be arrested is within, or in 
     direct flight from, the area of such offense. A person 
     granted authority to make arrests by this subsection may 
     exercise that authority only in the enforcement of--
       ``(A) laws regarding the property of the United States in 
     the custody of the Department of Energy, the Nuclear 
     Regulatory Commission, or a contractor of the Department of 
     Energy or Nuclear Regulatory Commission, or a licensee or 
     certificate holder of the Commission;
       ``(B) laws applicable to facilities owned or operated by a 
     Commission licensee or certificate holder that are designated 
     by the Commission pursuant to this subsection, and property 
     of significance to the common defense and security that is in 
     the custody of a licensee or certificate holder or a 
     contractor of a licensee or certificate holder of the 
     Commission; or
       ``(C) any provision of this chapter that may subject an 
     offender to a fine, imprisonment, or both.
       ``(5) The arrest authority conferred by this subsection is 
     in addition to any arrest authority under other laws. The 
     Secretary and the Nuclear Regulatory Commission, with the 
     approval of the Attorney General, shall issue guidelines to 
     implement this subsection;''.

     SEC. 510A. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

       Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2278a(a)) is amended by inserting before the period at the 
     end of the first sentence the following: ``or subject to the 
     licensing authority of the Commission or to certification by 
     the Commission under this Act or any other Act''.

     SEC. 510B. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

       Section 236 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2284(a)) is amended to read as follows:
       ``a. Any person who intentionally and willfully destroys or 
     causes physical damage to, or who attempts or conspires to 
     destroy or cause physical damage to--
       ``(1) any production facility or utilization facility 
     licensed under this Act;
       ``(2) any nuclear waste storage, treatment, or disposal 
     facility licensed under this Act;
       ``(3) any nuclear fuel for a utilization facility licensed 
     under this act, or any spent nuclear fuel from such a 
     facility;
       ``(4) any uranium enrichment or nuclear fuel fabrication 
     facility licensed or certified by the Nuclear Regulatory 
     Commission; or
       ``(5) any production, utilization, waste storage, waste 
     treatment, waste disposal, uranium enrichment, or nuclear 
     fabrication facility subject to licensing or certification 
     under this Act during its construction where the destruction 
     or damage caused or attempted to be caused could affect 
     public health and safety during the operation of the 
     facility--

     shall be fined not more than $10,000 or imprisoned for not 
     more than 20 years or both, or shall be imprisoned for any 
     term of years or for life if death results to any person.''.
                                  ____

  SA 3315. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3275 submitted by Ms. Cantwell and intended to be 
proposed to the amendment SA 2917 proposed by Mr. Daschle (for himself 
and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                    TITLE III--HYDROELECTRIC ENERGY

     SEC. 301. ALTERNATIVE MANDATORY CONDITIONS

       (a) Review of Alternative Mandatory Conditions.--The 
     Federal Energy Regulatory Commission, the Secretary of the 
     Interior, the Secretary of Commerce, and the Secretary of 
     Agriculture, in consultation with the affected states and 
     tribes, shall undertake a review of: (1) options for a 
     process whereby license applicants and third parties to a 
     relicensing proceeding being undertaken pursuant to Part I of 
     the Federal Power Act could propose alternative mandatory 
     conditions and alternative mandatory fishway prescriptions to 
     be included in the license in lieu of conditions and 
     prescriptions initially deemed necessary or required pursuant 
     to section 4(e) and section 18, respectively, of the Federal 
     Power Act; (2) the standards which should be applicable in 
     evaluating and accepting such conditions and prescriptions; 
     (3) the nature of participation of parties other than the 
     license applicants in such a process; (4) the advantages and 
     disadvantages of providing for such a process, including the 
     impact of such a process on the length of time needed to 
     complete the relicensing proceedings and the potential 
     economic and operational improvement benefits of providing 
     for such a process; and (5) the level of interest among 
     parties to relicensing proceedings in proposing such 
     alternative conditions and prescriptions and participating in 
     such a process.
       (b) Report.--Within twelve months after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission and the Secretaries of the Interior, Commerce, and 
     Agriculture, shall jointly submit a report to the Committee 
     on Energy and Natural Resources of the Senate and the 
     appropriate committees of the House of Representatives 
     addressing the issues specified in subsection (a) of this 
     section. The report shall contain any legislative or 
     administrative recommendations relating to implementation of 
     the process described in subsection (a).

     SEC. 302. STREAMLINING HYDROELECTRIC RELICENSING PROCEDURES

       (a) Review of Licensing Process.--The Federal Energy 
     Regulatory Commission, the Secretary of the Interior, the 
     Secretary of Commerce, and the Secretary of Agriculture, in 
     consultation with the affected states and tribes, shall 
     undertake a review of the process for issuance of a license 
     under section Part I of the Federal Power Act in order to: 
     (1) improve coordination of their respective 
     responsibilities; (2) coordinate the schedule for all major 
     actions by the applicant, the Commission, affected Federal 
     and State agencies, Indian Tribes, and other affected 
     parties; (3) ensure resolution at an early stage of the 
     process of the scope and type of reasonable and necessary 
     information, studies, data, and analysis to be provided by 
     the license applicant; (4) facilitate coordination between 
     the Commission and the resource agencies of analysis under 
     the National Environmental Policy Act; and (5) provide for 
     streamlined procedures.
       (b) Report.--Within twelve months after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission and the Secretaries of the Interior, Commerce, and 
     Agriculture, shall jointly submit a report to the Committee 
     on Energy and Natural Resources of the Senate and the 
     appropriate committees of the House of Representatives 
     addressing the issues specified in subsection (a) of this 
     section and reviewing the responsibilities and procedures of 
     each agency involved in the licensing process. The report 
     shall contain any legislative or administrative 
     recommendations to improve coordination and streamline 
     procedures for the issuance of licenses under Part I of the 
     Federal Power Act. The Commission and each Secretary shall 
     set forth a plan and schedule to implement any administrative 
     recommendations contained in the report, which shall also be 
     contained in the report.
                                  ____

  SA 3316. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3140 submitted by Mr. Nelson of Nebraska and intended 
to be proposed to the amendment SA 2917 proposed by Mr. Daschle (for 
himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                    TITLE III--HYDROELECTRIC ENERGY

     SEC. 301. ALTERNATIVE MANDATORY CONDITIONS.

       (a) Review of Alternative Mandatory Conditions.--The 
     Federal Energy Regulatory Commission, the Secretary of the 
     Interior, the Secretary of Commerce, and the Secretary of 
     Agriculture, in consultation with the affected states and 
     tribes, shall undertake a review of: (1) options for a 
     process whereby license applicants and third parties to a 
     relicensing proceeding being undertaken pursuant to Part I of 
     the Federal Power Act could propose alternative mandatory 
     conditions and alternative mandatory fishway prescriptions to 
     be included in the license in lieu of conditions and 
     prescriptions initially deemed necessary or required pursuant 
     to section 4(c) and section 18, respectively, of the Federal 
     Power Act; (2) the standards which should be applicable in 
     evaluating and accepting such conditions and prescriptions; 
     (3) the nature of participation of parties other than the 
     license applicants in such a process; (4) the advantages and 
     disadvantages of providing for such a process, including the 
     impact of such a process on the length of time needed to 
     complete the relicensing proceedings and the potential 
     economic and operational improvement benefits of providing 
     for such a process; and (5) the level of interest among 
     parties to relicensing proceedings in proposing such 
     alternative conditions and prescriptions and participating in 
     such a process.
       (b) Report.--Within twelve months after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission and the Secretaries of the Interior, Commerce, and

[[Page 5454]]

     Agriculture, shall jointly submit a report to the Committee 
     on Energy and Natural Resources of the Senate and the 
     appropriate committees of the House of Representatives 
     addressing the issues specified in subsection (a) of this 
     section. The report shall contain any legislative or 
     administrative recommendations relating to implementation of 
     the process described in subsection (a).

     SEC. 302. STREAMLINING HYDROELECTRIC RELICENSING PROCEDURES.

       (a) Review of Licensing Process.--The Federal Energy 
     Regulatory Commission, the Secretary of the Interior, the 
     Secretary of Commerce, and the Secretary of Agriculture, in 
     consultation with the affected states and tribes, shall 
     undertake a review of the process for issuance of a license 
     under section Part I of the Federal Power Act in order to: 
     (1) improve coordination of their respective 
     responsibilities; (2) coordinate the schedule for all major 
     actions by the applicant, the Commission, affected Federal 
     and State agencies, Indian Tribes, and other affected 
     parties; (3) ensure resolution at an early stage of the 
     process of the scope and type of reasonable and necessary 
     information, studies, data, and analysis to be provided by 
     the license applicant; (4) facilitate coordination between 
     the Commission and the resource agencies of analysis under 
     the National Environmental Policy Act; and (5) provide for 
     streamlined procedures.
       (b) Report.--Within twelve months after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission and the Secretaries of the Interior, Commerce, and 
     Agriculture, shall jointly submit a report to the Commission 
     on Energy and Natural Resources of the Senate and the 
     appropriate committees of the House of Representatives 
     addressing the issues specified in subsection (a) of this 
     section and reviewing the responsibilities and procedures of 
     each agency involved in the licensing process. The report 
     shall contain any legislative or administrative 
     recommendations to improve coordination and streamline 
     procedures for the issuance of licenses under Part I of the 
     Federal Power Act. The Commission and each Secretary shall 
     set forth a plan and schedule to implement any administrative 
     recommendations contained in the report, which shall also be 
     contained in the report.
                                  ____

  SA 3317. Mr. TORRICELLI (for himself and Mr. Graham) submitted an 
amendment intended to be proposed to amendment SA 3286 proposed by Mr. 
Baucus (for himself, Mr. Grassley, Mr. Rockefeller, Mr. Hatch, Mr. 
Thomas, Mr. Hagel, and Mrs. Carnahan) to the amendment SA 2917 proposed 
by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal year 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

TITLE __--ENVIRONMENTAL CLEANUP FINANCING AND REINSURANCE AND CORPORATE 
                         INVERSION LIMITATIONS

              Subtitle A--Environmental Cleanup Financing

     SEC. __01. EXTENSION OF SUPERFUND, OIL SPILL LIABILITY, AND 
                   LEAKING UNDERGROUND STORAGE TANK TAXES.

       (a) Excise Taxes.--
       (1) Superfund taxes.--Section 4611(e) is amended to read as 
     follows:
       ``(e) Application of Hazardous Substance Superfund 
     Financing Rate.--The Hazardous Substance Superfund financing 
     rate under this section shall apply after December 31, 1986, 
     and before January 1, 1996, and after the date of the 
     enactment of the Energy Policy Act of 2002 and before October 
     1, 2007.''.
       (2) Oil spill liability tax.--Section 4611(f) is amended to 
     read as follows:
       ``(f) Application of Oil Spill Liability Trust Fund 
     Financing Rate.--The Oil Spill Liability Trust Fund financing 
     rate under subsection (c) shall apply after December 31, 
     1989, and before January 1, 1995, and after the date of the 
     enactment of the Energy Policy Act of 2002 and before October 
     1, 2007.''.
       (3) Leaking underground storage tank rate.--Section 
     4081(d)(3) is amended by striking ``April 1, 2005'' and 
     inserting ``October 1, 2007.''.
       (b) Corporate Environmental Income Tax.--Section 59A is 
     amended--
       (1) by striking ``0.12 percent'' in subsection (a) and 
     inserting ``0.06 percent'', and
       (2) by striking subsection (e) and inserting the following:
       ``(e) Application of Tax.--The tax imposed by this section 
     shall apply to taxable years beginning after December 31, 
     1986, and before January 1, 1996, and to taxable years 
     beginning after the date of the enactment of the Energy 
     Policy Act of 2002 and before January 1, 2007.''.
       (c) Technical Amendments.--
       (1) Section 4611(b) is amended--
       (A) by striking ``or exported from'' in paragraph (1)(A),
       (B) by striking ``or exportation'' in paragraph (1)(B), and
       (C) by striking ``and Exportation'' in the heading.
       (2) Section 4611(d)(3) is amended--
       (A) by striking ``or exporting the crude oil, as the case 
     may be'' in the text and inserting ``the crude oil'', and
       (B) by striking ``or exports'' in the heading.
       (d) Effective Dates.--
       (1) Excise taxes.--The amendments made by subsections (a) 
     and (c) shall take effect on the date of the enactment of 
     this Act.
       (2) Income tax.--The amendment made by subsection (b) shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.

             Subtitle B--Reinsurance Inversion Limitations

     SEC. __11. PREVENTION OF EVASION OF UNITED STATES INCOME TAX 
                   ON NONLIFE INSURANCE COMPANIES THROUGH USE OF 
                   REINSURANCE WITH FOREIGN PERSONS.

       (a) In General.--Subparagraph (A) of section 832(b)(4) 
     (relating to insurance company taxable income) is amended to 
     read as follows:
       ``(A) From the amount of gross premiums written on 
     insurance contracts during the taxable year, deduct return 
     premiums and premiums paid for reinsurance (except as 
     provided in paragraph (9)).''
       (b) Treatment of Reinsurance With Related Reinsurers.--
     Subsection (b) of section 832 is amended by adding at the end 
     the following new paragraph:
       ``(9) Denial of deduction under paragraph (4) for 
     reinsurance of u.s. risks with certain related persons.--
       ``(A) In general.--No deduction shall be allowed under 
     paragraph (4) for premiums paid for the direct or indirect 
     reinsurance of United States risks with a related reinsurer.
       ``(B) Exceptions.--This paragraph shall not apply to any 
     premium to the extent that--
       ``(i) the income attributable to the reinsurance to which 
     such premium relates is includible in the gross income of--

       ``(I) such reinsurer, or
       ``(II) 1 or more domestic corporations or citizens or 
     residents of the United States, or

       ``(ii) the related insurer establishes to the satisfaction 
     of the Secretary that the taxable income (determined in 
     accordance with this section 832) attributable to such 
     reinsurance is subject to an effective rate of income tax 
     imposed by a foreign country at a rate greater than 20 
     percent of the maximum rate of tax specified in section 11.
       ``(C) Election by reinsurer to be taxed on income.--Income 
     of a related reinsurer attributable to the reinsurance of 
     United States risks which is not otherwise includible in 
     gross income shall be treated as gross income which is 
     effectively connected with the conduct of a trade or business 
     in the United States if such reinsurer--
       ``(i) elects to so treat such income, and
       ``(ii) meets such requirements as the Secretary shall 
     prescribe to ensure that the taxes imposed by this chapter on 
     such income are paid.
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) United states risk.--The term `United States risk' 
     means any risk related to property in the United States, or 
     liability arising out of activity in, or in connection with 
     the lives or health of residents of, the United States.
       ``(ii) Related insurer.--The term `related insurer' means 
     any reinsurer owned or controlled directly or indirectly by 
     the same interests (within the meaning of section 482) as the 
     person making the premium payment.''
       (c) Technical Amendment.--Subparagraph (A) of section 
     832(b)(5) is amended by inserting after clause (iii) the 
     following new clause:
       ``(iv) To the results so obtained, add reinsurance 
     recovered from a related reinsurer to the extent a deduction 
     for the premium paid for the reinsurance was disallowed under 
     paragraph (9).''
       (d) Effective Date.--The amendments made by this section 
     shall apply to premiums paid after the date that the 
     Committee on Ways and Means of the House of Representatives 
     or the Committee on Finance of the Senate votes to report 
     this bill.

              Subtitle C--Corporate Inversion Limitations

     SEC. __21. PREVENTION OF CORPORATE EXPATRIATION TO AVOID 
                   UNITED STATES INCOME TAX.

       (a) In General.--Paragraph (4) of section 7701(a) (defining 
     domestic) is amended to read as follows:
       ``(4) Domestic.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `domestic' when applied to a corporation or 
     partnership means created or organized in the United States 
     or under the law of the United States or of any State unless, 
     in the case of a partnership, the Secretary provides 
     otherwise by regulations.
       ``(B) Certain corporations treated as domestic.--
       ``(i) In general.--The acquiring corporation in a corporate 
     expatriation transaction shall be treated as a domestic 
     corporation.
       ``(ii) Corporate expatriation transaction.--For purposes of 
     this subparagraph, the term `corporate expatriation 
     transaction' means any transaction if--

[[Page 5455]]

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly 
     substantially all of the properties held directly or 
     indirectly by a domestic corporation, and
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation.

       ``(iii) Lower stock ownership requirement in certain 
     cases.--Subclause (II) of clause (ii) shall be applied by 
     substituting `50 percent' for `80 percent' with respect to 
     any nominally foreign corporation if--

       ``(I) such corporation does not have substantial business 
     activities (when compared to the total business activities of 
     the expanded affiliated group) in the foreign country in 
     which or under the law of which the corporation is created or 
     organized, and
       ``(II) the stock of the corporation is publicly traded and 
     the principal market for the public trading of such stock is 
     in the United States.

       ``(iv) Partnership transactions.--The term `corporate 
     expatriation transaction' includes any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly properties 
     constituting a trade or business of a domestic partnership,
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former partners of the domestic 
     partnership (determined without regard to stock of the 
     acquiring corporation which is sold in a public offering 
     related to the transaction), and
       ``(III) the acquiring corporation meets the requirements of 
     subclauses (I) and (II) of clause (iii).

       ``(v) Special rules.--For purposes of this subparagraph--

       ``(I) a series of related transactions shall be treated as 
     1 transaction, and
       ``(II) stock held by members of the expanded affiliated 
     group which includes the acquiring corporation shall not be 
     taken into account in determining ownership.

       ``(vi) Other definitions.--For purposes of this 
     subparagraph--

       ``(I) Nominally foreign corporation.--The term `nominally 
     foreign corporation' means any corporation which would (but 
     for this subparagraph) be treated as a foreign corporation.
       ``(II) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group (as defined in 
     section 1504(a) without regard to section 1504(b)).''

       (b) Effective Dates.--
       (1) In general.--The amendment made by this section shall 
     apply to corporate expatriation transactions completed after 
     September 11, 2001.
       (2) Special rule.--The amendment made by this section shall 
     also apply to corporate expatriation transactions completed 
     on or before September 11, 2001, but only with respect to 
     taxable years of the acquiring corporation beginning after 
     December 31, 2003.
                                  ____

  SA 3318. Mr. TORRICELLI (for himself and Mr. Graham) submitted an 
amendment intended to be proposed to amendment SA 3286 proposed by Mr. 
Baucus (for himself, Mr. Grassley, Mr. Rockefeller, Mr. Hatch, Mr. 
Thomas, Mr. Hagel, and Mrs. Carnahan) to the amendment SA 2917 proposed 
by Mr. Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

TITLE __--ENVIRONMENTAL CLEANUP FINANCING AND REINSURANCE AND CORPORATE 
                         INVERSION LIMITATIONS

              Subtitle A--Environmental Cleanup Financing

     SEC. __01. EXTENSION OF SUPERFUND, OIL SPILL LIABILITY, AND 
                   LEAKING UNDERGROUND STORAGE TANK EXCISE TAXES.

       (a) Superfund Taxes.--Section 4611(e) is amended to read as 
     follows:
       ``(e) Application of Hazardous Substance Superfund 
     Financing Rate.--The Hazardous Substance Superfund financing 
     rate under this section shall apply after December 31, 1986, 
     and before January 1, 1996, and after the date of the 
     enactment of the Energy Policy Act of 2002 and before October 
     1, 2007.''.
       (b) Oil Spill Liability Tax.--Section 4611(f) is amended to 
     read as follows:
       ``(f) Application of Oil Spill Liability Trust Fund 
     Financing Rate.--The Oil Spill Liability Trust Fund financing 
     rate under subsection (c) shall apply after December 31, 
     1989, and before January 1, 1995, and after the date of the 
     enactment of the Energy Policy Act of 2002 and before October 
     1, 2007.''.
       (c) Leaking Underground Storage Tank Rate.--Section 
     4081(d)(3) is amended by striking ``April 1, 2005'' and 
     inserting ``October 1, 2007.''.
       (d) Technical Amendments.--
       (1) Section 4611(b) is amended--
       (A) by striking ``or exported from'' in paragraph (1)(A),
       (B) by striking ``or exportation'' in paragraph (1)(B), and
       (C) by striking ``and Exportation'' in the heading.
       (2) Section 4611(d)(3) is amended--
       (A) by striking ``or exporting the crude oil, as the case 
     may be'' in the text and inserting ``the crude oil'', and
       (B) by striking ``or exports'' in the heading.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

             Subtitle B--Reinsurance Inversion Limitations

     SEC. __11. PREVENTION OF EVASION OF UNITED STATES INCOME TAX 
                   ON NONLIFE INSURANCE COMPANIES THROUGH USE OF 
                   REINSURANCE WITH FOREIGN PERSONS.

       (a) In General.--Subparagraph (A) of section 832(b)(4) 
     (relating to insurance company taxable income) is amended to 
     read as follows:
       ``(A) From the amount of gross premiums written on 
     insurance contracts during the taxable year, deduct return 
     premiums and premiums paid for reinsurance (except as 
     provided in paragraph (9)).''
       (b) Treatment of Reinsurance With Related Reinsurers.--
     Subsection (b) of section 832 is amended by adding at the end 
     the following new paragraph:
       ``(9) Denial of deduction under paragraph (4) for 
     reinsurance of u.s. risks with certain related persons.--
       ``(A) In general.--No deduction shall be allowed under 
     paragraph (4) for premiums paid for the direct or indirect 
     reinsurance of United States risks with a related reinsurer.
       ``(B) Exceptions.--This paragraph shall not apply to any 
     premium to the extent that--
       ``(i) the income attributable to the reinsurance to which 
     such premium relates is includible in the gross income of--

       ``(I) such reinsurer, or
       ``(II) 1 or more domestic corporations or citizens or 
     residents of the United States, or

       ``(ii) the related insurer establishes to the satisfaction 
     of the Secretary that the taxable income (determined in 
     accordance with this section 832) attributable to such 
     reinsurance is subject to an effective rate of income tax 
     imposed by a foreign country at a rate greater than 20 
     percent of the maximum rate of tax specified in section 11.
       ``(C) Election by reinsurer to be taxed on income.--Income 
     of a related reinsurer attributable to the reinsurance of 
     United States risks which is not otherwise includible in 
     gross income shall be treated as gross income which is 
     effectively connected with the conduct of a trade or business 
     in the United States if such reinsurer--
       ``(i) elects to so treat such income, and
       ``(ii) meets such requirements as the Secretary shall 
     prescribe to ensure that the taxes imposed by this chapter on 
     such income are paid.
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) United states risk.--The term `United States risk' 
     means any risk related to property in the United States, or 
     liability arising out of activity in, or in connection with 
     the lives or health of residents of, the United States.
       ``(ii) Related insurer.--The term `related insurer' means 
     any reinsurer owned or controlled directly or indirectly by 
     the same interests (within the meaning of section 482) as the 
     person making the premium payment.''
       (c) Technical Amendment.--Subparagraph (A) of section 
     832(b)(5) is amended by inserting after clause (iii) the 
     following new clause:
       ``(iv) To the results so obtained, add reinsurance 
     recovered from a related reinsurer to the extent a deduction 
     for the premium paid for the reinsurance was disallowed under 
     paragraph (9).''
       (d) Effective Date.--The amendments made by this section 
     shall apply to premiums paid after the date that the 
     Committee on Ways and Means of the House of Representatives 
     or the Committee on Finance of the Senate votes to report 
     this bill.

              Subtitle C--Corporate Inversion Limitations

     SEC. __21. PREVENTION OF CORPORATE EXPATRIATION TO AVOID 
                   UNITED STATES INCOME TAX.

       (a) In General.--Paragraph (4) of section 7701(a) (defining 
     domestic) is amended to read as follows:
       ``(4) Domestic.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `domestic' when applied to a corporation or 
     partnership means created or organized in the United States 
     or under the law of the United States or of any State unless, 
     in the case of a partnership, the Secretary provides 
     otherwise by regulations.
       ``(B) Certain corporations treated as domestic.--
       ``(i) In general.--The acquiring corporation in a corporate 
     expatriation transaction shall be treated as a domestic 
     corporation.
       ``(ii) Corporate expatriation transaction.--For purposes of 
     this subparagraph,

[[Page 5456]]

     the term `corporate expatriation transaction' means any 
     transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly 
     substantially all of the properties held directly or 
     indirectly by a domestic corporation, and
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation.

       ``(iii) Lower stock ownership requirement in certain 
     cases.--Subclause (II) of clause (ii) shall be applied by 
     substituting `50 percent' for `80 percent' with respect to 
     any nominally foreign corporation if--

       ``(I) such corporation does not have substantial business 
     activities (when compared to the total business activities of 
     the expanded affiliated group) in the foreign country in 
     which or under the law of which the corporation is created or 
     organized, and
       ``(II) the stock of the corporation is publicly traded and 
     the principal market for the public trading of such stock is 
     in the United States.

       ``(iv) Partnership transactions.--The term `corporate 
     expatriation transaction' includes any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly properties 
     constituting a trade or business of a domestic partnership,
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former partners of the domestic 
     partnership (determined without regard to stock of the 
     acquiring corporation which is sold in a public offering 
     related to the transaction), and
       ``(III) the acquiring corporation meets the requirements of 
     subclauses (I) and (II) of clause (iii).

       ``(v) Special rules.--For purposes of this subparagraph--

       ``(I) a series of related transactions shall be treated as 
     1 transaction, and
       ``(II) stock held by members of the expanded affiliated 
     group which includes the acquiring corporation shall not be 
     taken into account in determining ownership.

       ``(vi) Other definitions.--For purposes of this 
     subparagraph--

       ``(I) Nominally foreign corporation.--The term `nominally 
     foreign corporation' means any corporation which would (but 
     for this subparagraph) be treated as a foreign corporation.
       ``(II) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group (as defined in 
     section 1504(a) without regard to section 1504(b)).''

       (b) Effective Dates.--
       (1) In general.--The amendment made by this section shall 
     apply to corporate expatriation transactions completed after 
     September 11, 2001.
       (2) Special rule.--The amendment made by this section shall 
     also apply to corporate expatriation transactions completed 
     on or before September 11, 2001, but only with respect to 
     taxable years of the acquiring corporation beginning after 
     December 31, 2003.
                                  ____

  SA 3319. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 3286 proposed by Mr. Baucus (for himself, Mr. Grassley, 
Mr. Rockefeller, Mr. Hatch, Mr. Thomas, Mr. Hagel, and Mrs. Carnahan) 
to the amendment SA 2917 proposed by Mr. Daschle (for himself, and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--CURB TAX ABUSES

                        Subtitle A--Tax Shelters

     SEC. __01. SHORT TITLE.

       This subtitle may be cited as the ``Abusive Tax Shelter 
     Shutdown Act of 2002''.

     SEC. __02. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress hereby finds that:
       (1) Many corporate tax shelter transactions are complicated 
     ways of accomplishing nothing aside from claimed tax 
     benefits, and the legal opinions justifying those 
     transactions take an inappropriately narrow and restrictive 
     view of well-developed court doctrines under which--
       (A) the taxation of a transaction is determined in 
     accordance with its substance and not merely its form,
       (B) transactions which have no significant effect on the 
     taxpayer's economic or beneficial interests except for tax 
     benefits are treated as sham transactions and disregarded,
       (C) transactions involving multiple steps are collapsed 
     when those steps have no substantial economic meaning and are 
     merely designed to create tax benefits,
       (D) transactions with no business purpose are not given 
     effect, and
       (E) in the absence of a specific congressional 
     authorization, it is presumed that Congress did not intend a 
     transaction to result in a negative tax where the taxpayer's 
     economic position or rate of return is better after tax than 
     before tax.
       (2) Permitting aggressive and abusive tax shelters not only 
     results in large revenue losses but also undermines voluntary 
     compliance with the Internal Revenue Code of 1986.
       (b) Purpose.--The purpose of this subtitle is to eliminate 
     abusive tax shelters by denying tax attributes claimed to 
     arise from transactions that do not meet a heightened 
     economic substance requirement and by repealing the provision 
     that permits legal opinions to be used to avoid penalties on 
     tax underpayments resulting from transactions without 
     significant economic substance or business purpose.

          PART I--CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE

     SEC. __11. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (m) as subsection (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Clarification of Economic Substance Doctrine; Etc.--
       ``(1) General rules.--
       ``(A) In general.--In applying the economic substance 
     doctrine, the determination of whether a transaction has 
     economic substance shall be made as provided in this 
     paragraph.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal income tax effects) the taxpayer's economic 
     position, and
       ``(II) the taxpayer has a substantial nontax purpose for 
     entering into such transaction and the transaction is a 
     reasonable means of accomplishing such purpose.

       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance by reason of having a potential for profit 
     unless--

       ``(I) the present value of the reasonably expected pre-tax 
     profit from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected, and
       ``(II) the reasonably expected pre-tax profit from the 
     transaction exceeds a risk-free rate of return.

       ``(C) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (B)(ii).
       ``(2) Special rules for transactions with tax-indifferent 
     parties.--
       ``(A) Special rules for financing transactions.--The form 
     of a transaction which is in substance the borrowing of money 
     or the acquisition of financial capital directly or 
     indirectly from a tax-indifferent party shall not be 
     respected if the present value of the deductions to be 
     claimed with respect to the transaction are substantially in 
     excess of the present value of the anticipated economic 
     returns of the person lending the money or providing the 
     financial capital. A public offering shall be treated as a 
     borrowing, or an acquisition of financial capital, from a 
     tax-indifferent party if it is reasonably expected that at 
     least 50 percent of the offering will be placed with tax-
     indifferent parties.
       ``(B) Artificial income shifting and basis adjustments.--
     The form of a transaction with a tax-indifferent party shall 
     not be respected if--
       ``(i) it results in an allocation of income or gain to the 
     tax-indifferent party in excess of such party's economic 
     income or gain, or
       ``(ii) it results in a basis adjustment or shifting of 
     basis on account of overstating the income or gain of the 
     tax-indifferent party.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity not subject to tax imposed 
     by subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if the items taken into 
     account with respect to the transaction have no substantial 
     impact on such person's liability under subtitle A.
       ``(C) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection with a trade 
     or business or an activity engaged in for the production of 
     income.
       ``(D) Treatment of lessors.--In applying subclause (I) of 
     paragraph (1)(B)(ii) to the lessor of tangible property 
     subject to a lease, the expected net tax benefits shall not 
     include the benefits of depreciation, or any tax credit, with 
     respect to the leased property

[[Page 5457]]

     and subclause (II) of paragraph (1)(B)(ii) shall be 
     disregarded in determining whether any of such benefits are 
     allowable.
       ``(4) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law referred to in section 
     6662(i)(2), and the requirements of this subsection shall be 
     construed as being in addition to any such other rule of 
     law.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act.

                           PART II--PENALTIES

     SEC. __21. INCREASE IN PENALTY ON UNDERPAYMENTS RESULTING 
                   FROM FAILURE TO SATISFY CERTAIN COMMON LAW 
                   RULES.

       (a) In General.--Section 6662 (relating to imposition of 
     accuracy-related penalty) is amended by adding at the end the 
     following new subsection:
       ``(i) Increase in Penalty in Case of Failure To Satisfy 
     Certain Common Law Rules.--
       ``(1) In general.--To the extent that an underpayment is 
     attributable to a disallowance described in paragraph (2)--
       ``(A) subsection (a) shall be applied with respect to such 
     portion by substituting `40 percent' for `20 percent', and
       ``(B) subsection (d)(2)(B) and section 6664(c) shall not 
     apply.
       ``(2) Disallowances described.--A disallowance is described 
     in this subsection if such disallowance is on account of--
       ``(A) a lack of economic substance (within the meaning of 
     section 7701(m)(1)) for the transaction giving rise to the 
     claimed benefit or the transaction was not respected under 
     section 7701(m)(2),
       ``(B) a lack of business purpose for such transaction or 
     because the form of the transaction does not reflect its 
     substance, or
       ``(C) a failure to meet the requirements of any other 
     similar rule of law.
       ``(3) Increase in penalty not to apply if compliance with 
     disclosure requirements.--Paragraph (1)(A) shall not apply if 
     the taxpayer discloses to the Secretary (as such time and in 
     such manner as the Secretary shall prescribe) such 
     information as the Secretary shall prescribe with respect to 
     such transaction.''.
       (b) Modifications to Penalty on Substantial Understatement 
     of Income Tax.--
       (1) Modification of threshold.--Subparagraph (A) of section 
     6662(d)(1) is amended to read as follows:
       ``(A) In general.--For purposes of this section, there is a 
     substantial understatement of income tax for any taxable year 
     if the amount of the understatement for the taxable year 
     exceeds the lesser of--
       ``(i) $500,000, or
       ``(ii) the greater of 10 percent of the tax required to be 
     shown on the return for the taxable year or $5,000.''
       (2) Modification of penalty on tax shelters, etc.--Clauses 
     (i) and (ii) of section 6662(d)(2)(C) are amended to read as 
     follows:
       ``(i) In general.--Subparagraph (B) shall not apply to any 
     item attributable to a tax shelter.''
       ``(ii) Determination of understatements with respect to tax 
     shelters, etc.--In any case in which there are one or more 
     items attributable to a tax shelter, the amount of the 
     understatement under subparagraph (A) shall in no event be 
     less than the amount of understatement which would be 
     determined for the taxable year if all items shown on the 
     return which are not attributable to any tax shelter were 
     treated as being correct. A similar rule shall apply in cases 
     to which subsection (i) applies, whether or not the items are 
     attributable to a tax shelter.''
       (c) Treatment of Amended Returns.--Subsection (a) of 
     section 6664 is amended by adding at the end the following 
     new sentence: ``For purposes of this subsection, an amended 
     return shall be disregarded if such return is filed on or 
     after the date the taxpayer is first contacted by the 
     Secretary regarding the examination of the return.''

     SEC. __22. PENALTY ON PROMOTERS OF TAX AVOIDANCE STRATEGIES 
                   WHICH HAVE NO ECONOMIC SUBSTANCE, ETC.

       (a) Penalty.--
       (1) In general.--Section 6700 (relating to promoting 
     abusive tax shelters, etc.) is amended by redesignating 
     subsection (c) as subsection (d) and by inserting after 
     subsection (b) the following new subsection:
       ``(c) Penalty on Substantial Promoters for Promoting Tax 
     Avoidance Strategies Which Have No Economic Substance, Etc.--
       ``(1) Imposition of penalty.--Any substantial promoter of a 
     tax avoidance strategy shall pay a penalty in the amount 
     determined under paragraph (2) with respect to such strategy 
     if such strategy (or any similar strategy promoted by such 
     promoter) fails to meet the requirements of any rule of law 
     referred to in section 6662(i)(2).
       ``(2) Amount of penalty.--The penalty under paragraph (1) 
     with respect to a promoter of a tax avoidance strategy is an 
     amount equal to 100 percent of the gross income derived (or 
     to be derived) by such promoter from such strategy.
       ``(3) Tax avoidance strategy.--For purposes of this 
     subsection, the term `tax avoidance strategy' means any 
     entity, plan, arrangement, or transaction a significant 
     purpose of the structure of which is the avoidance or evasion 
     of Federal income tax.
       ``(4) Substantial promoter.--For purposes of this 
     subsection--
       ``(A) In general.--The term `substantial promoter' means, 
     with respect to any tax avoidance strategy, any promoter if--
       ``(i) such promoter offers such strategy to more than 1 
     potential participant, and
       ``(ii) such promoter may receive fees in excess of $500,000 
     in the aggregate with respect to such strategy.
       ``(B) Aggregation rules.--For purposes of this paragraph--
       ``(i) Related persons.--A promoter and all persons related 
     to such promoter shall be treated as 1 person who is a 
     promoter.
       ``(ii) Similar strategies.--All similar tax avoidance 
     strategies of a promoter shall be treated as 1 tax avoidance 
     strategy.
       ``(C) Promoter.--The term `promoter' means any person who 
     participates in the promotion, offering, or sale of the tax 
     avoidance strategy.
       ``(D) Related person.--Persons are related if they bear a 
     relationship to each other which is described in section 
     267(b) or 707(b).
       ``(4) Coordination with subsection (a).--No penalty shall 
     be imposed by this subsection on any promoter with respect to 
     a tax avoidance strategy if a penalty is imposed under 
     subsection (a) on such promoter with respect to such 
     strategy.''
       (2) Conforming amendment.--Subsection (d) of section 6700 
     is amended--
       (A) by striking ``Penalty'' and inserting ``Penalties'', 
     and
       (B) by striking ``penalty'' the first place it appears in 
     the text and inserting ``penalties''.
       (b) Increase in Penalty on Promoting Abusive Tax 
     Shelters.--The first sentence of section 6700(a) is amended 
     by striking ``a penalty equal to'' and all that follows and 
     inserting ``a penalty equal to the greater of $1,000 or 100 
     percent of the gross income derived (or to be derived) by 
     such person from such activity.''

     SEC. __23. MODIFICATIONS OF PENALTIES FOR AIDING AND ABETTING 
                   UNDERSTATEMENT OF TAX LIABILITY INVOLVING TAX 
                   SHELTERS.

       (a) Imposition of Penalty.--Section 6701(a) (relating to 
     imposition of penalty) is amended to read as follows:
       ``(a) Imposition of Penalties.--
       ``(1) In general.--Any person--
       ``(A) who aids or assists in, procures, or advises with 
     respect to, the preparation or presentation of any portion of 
     a return, affidavit, claim, or other document,
       ``(B) who knows (or has reason to believe) that such 
     portion will be used in connection with any material matter 
     arising under the internal revenue laws, and
       ``(C) who knows that such portion (if so used) would result 
     in an understatement of the liability for tax of another 
     person,
     shall pay a penalty with respect to each such document in the 
     amount determined under subsection (b).
       ``(2) Certain tax shelters.--If--
       ``(A) any person--
       ``(i) aids or assists in, procures, or advises with respect 
     to the creation, organization, sale, implementation, 
     management, or reporting of a tax shelter (as defined in 
     section 6662(d)(2)(C)(iii)) or of any entity, plan, 
     arrangement, or transaction that fails to meet the 
     requirements of any rule of law referred to in section 
     6662(i)(2), and
       ``(ii) opines, advises, represents, or otherwise indicates 
     (directly or indirectly) that the taxpayer's tax treatment of 
     items attributable to such tax shelter or such entity, plan, 
     arrangement, or transaction and giving rise to an 
     understatement of tax liability would more likely than not 
     prevail or not give rise to a penalty,
       ``(B) such opinion, advice, representation, or indication 
     is unreasonable,

     then such person shall pay a penalty in the amount determined 
     under subsection (b). If a standard higher than the more 
     likely than not standard was used in any such opinion, 
     advice, representation, or indication, then subparagraph 
     (A)(ii) shall be applied as if such standard were substituted 
     for the more likely than not standard.''
       (b) Amount of Penalty.--Section 6701(b) (relating to amount 
     of penalty) is amended--
       (1) by inserting ``or (3)'' after ``paragraph (2)'' in 
     paragraph (1),
       (2) by striking ``subsection (a)'' each place it appears 
     and inserting ``subsection (a)(1)'', and
       (3) by redesignating paragraph (3) as paragraph (4) and by 
     adding after paragraph (2) the following:
       ``(3) Tax shelters.--In the case of--
       ``(A) a penalty imposed by subsection (a)(1) which involves 
     a return, affidavit, claim, or other document relating to a 
     tax shelter or an entity, plan, arrangement, or transaction 
     that fails to meet the requirements of any rule of law 
     referred to in section 6662(i)(2), and
       ``(B) any penalty imposed by subsection (a)(2),

     the amount of the penalty shall be equal to 100 percent of 
     the gross proceeds derived (or to be derived) by the person 
     in connection with the tax shelter or entity, plan, 
     arrangement, or transaction.''

[[Page 5458]]

       (c) Referral and Publication.--If a penalty is imposed 
     under section 6701(a)(2) of the Internal Revenue Code of 1986 
     (as added by subsection (a)) on any person, the Secretary of 
     the Treasury shall--
       (1) notify the Director of Practice of the Internal Revenue 
     Service and any appropriate State licensing authority of the 
     penalty and the circumstances under which it was imposed, and
       (2) publish the identity of the person and the fact the 
     penalty was imposed on the person.
       (d) Conforming Amendments.--
       (1) Section 6701(d) is amended by striking ``Subsection 
     (a)'' and inserting ``Subsection (a)(1)''.
       (2) Section 6701(e) is amended by striking ``subsection 
     (a)(1)'' and inserting ``subsection (a)(1)(A)''.
       (3) Section 6701(f) is amended by inserting ``, tax 
     shelter, or entity, plan, arrangement, or transaction'' after 
     ``document'' each place it appears.

     SEC. __24. FAILURE TO MAINTAIN LISTS.

       Section 6708(a) (relating to failure to maintain lists of 
     investors in potentially abusive tax shelters) is amended by 
     adding at the end the following: ``In the case of a tax 
     shelter (as defined in section 6662(d)(2)(C)(iii)) or entity, 
     plan, arrangement, or transaction that fails to meet the 
     requirements of any rule of law referred to in section 
     6662(i)(2), the penalty shall be equal to 50 percent of the 
     gross proceeds derived (or to be derived) from each person 
     with respect to which there was a failure and the limitation 
     of the preceding sentence shall not apply.''

     SEC. __25. PENALTY FOR FAILING TO DISCLOSE REPORTABLE 
                   TRANSACTION.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by inserting 
     after section 6707 the following new section:

     ``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE TAX SHELTER 
                   INFORMATION WITH RETURN.

       ``(a) Imposition of Penalty.--Any person who fails to 
     include with its return of Federal income tax any information 
     required to be included under section 6011 with respect to a 
     reportable transaction shall pay a penalty in the amount 
     determined under subsection (b). No penalty shall be imposed 
     on any such failure if it is shown that such failure is due 
     to reasonable cause.
       ``(b) Amount of Penalty.--
       ``(1) In general.--The amount of the penalty under 
     subsection (a) shall be equal to the greater of--
       ``(A) 5 percent of any increase in Federal tax which 
     results from a difference between the taxpayer's treatment 
     (as shown on its return) of items attributable to the 
     reportable transaction to which the failure relates and the 
     proper tax treatment of such items, or
       ``(B) $100,000.

     For purposes of subparagraph (A), the last sentence of 
     section 6664(a) shall apply.
       ``(2) Listed transaction.--If the failure under subsection 
     (a) relates to a reportable transaction which is the same as, 
     or substantially similar to, a transaction specifically 
     identified by the Secretary as a tax avoidance transaction 
     for purposes of section 6011, paragraph (1)(A) shall be 
     applied by substituting `10 percent' for `5 percent'.
       ``(c) Reportable Transaction.--For purposes of this 
     section, the term `reportable transaction' means any 
     transaction with respect to which information is required 
     under section 6011 to be included with a taxpayer's return of 
     tax because, as determined under regulations prescribed under 
     section 6011, such transaction has characteristics which may 
     be indicative of a tax avoidance transaction.
       ``(d) Coordination With Other Penalties.--The penalty 
     imposed by this section is in addition to any penalty imposed 
     under section 6662.''
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by inserting after 
     the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include tax shelter information on 
              return.''

     SEC. __26. REGISTRATION OF CERTAIN TAX SHELTERS WITHOUT 
                   CORPORATE PARTICIPANTS.

       Section 6111(d)(1)(A) (relating to certain confidential 
     arrangements treated as tax shelters) is amended by striking 
     ``for a direct or indirect participant which is a 
     corporation''.

     SEC. __27. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsections (b) and 
     (c), the amendments made by this part shall apply to 
     transactions after the date of the enactment of this Act.
       (b) Section __21.--The amendments made by subsections (b) 
     and (c) of section __21 shall apply to taxable years ending 
     after the date of the enactment of this Act.
       (c) Section __22.--The amendments made by subsection (a) of 
     section __22 shall apply to any tax avoidance strategy (as 
     defined in section 6700(c) of the Internal Revenue Code of 
     1986, as amended by this part) interests in which are offered 
     to potential participants after the date of the enactment of 
     this Act.
       (d) Section __26.--The amendment made by section __26 shall 
     apply to any tax shelter interest which is offered to 
     potential participants after the date of the enactment of 
     this Act.

  PART III--LIMITATIONS ON IMPORTATION OR TRANSFER OF BUILT-IN LOSSES

     SEC. __31. LIMITATION ON IMPORTATION OF BUILT-IN LOSSES.

       (a) In General.--Section 362 (relating to basis to 
     corporations) is amended by adding at the end the following 
     new subsection:
       ``(e) Limitation on Importation of Built-in Losses.--
       ``(1) In general.--If in any transaction described in 
     subsection (a) or (b) there would (but for this subsection) 
     be an importation of a net built-in loss, the basis of each 
     property described in paragraph (2) which is acquired in such 
     transaction shall (notwithstanding subsections (a) and (b)) 
     be its fair market value immediately after such transaction.
       ``(2) Property described.--For purposes of paragraph (1), 
     property is described in this paragraph if--
       ``(A) gain or loss with respect to such property is not 
     subject to tax under this subtitle in the hands of the 
     transferor immediately before the transfer, and
       ``(B) gain or loss with respect to such property is subject 
     to such tax in the hands of the transferee immediately after 
     such transfer.

     In any case in which the transferor is a partnership, the 
     preceding sentence shall be applied by treating each partner 
     in such partnership as holding such partner's proportionate 
     share of the property of such partnership.
       ``(3) Importation of net built-in loss.--For purposes of 
     paragraph (1), there is an importation of a net built-in loss 
     in a transaction if the transferee's aggregate adjusted bases 
     of property described in paragraph (2) which is transferred 
     in such transaction would (but for this subsection) exceed 
     the fair market value of such property immediately after such 
     transaction.''
       (b) Comparable Treatment Where Liquidation.--Paragraph (1) 
     of section 334(b) (relating to liquidation of subsidiary) is 
     amended to read as follows:
       ``(1) In general.--If property is received by a corporate 
     distributee in a distribution in a complete liquidation to 
     which section 332 applies (or in a transfer described in 
     section 337(b)(1)), the basis of such property in the hands 
     of such distributee shall be the same as it would be in the 
     hands of the transferor; except that the basis of such 
     property in the hands of such distributee shall be the fair 
     market value of the property at the time of the 
     distribution--
       ``(A) in any case in which gain or loss is recognized by 
     the liquidating corporation with respect to such property, or
       ``(B) in any case in which the liquidating corporation is a 
     foreign corporation, the corporate distributee is a domestic 
     corporation, and the corporate distributee's aggregate 
     adjusted bases of property described in section 362(e)(2) 
     which is distributed in such liquidation would (but for this 
     subparagraph) exceed the fair market value of such property 
     immediately after such liquidation.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act.

     SEC. __32. DISALLOWANCE OF PARTNERSHIP LOSS TRANSFERS.

       (a) Treatment of Contributed Property With Built-In Loss.--
     Paragraph (1) of section 704(c) is amended by striking 
     ``and'' at the end of subparagraph (A), by striking the 
     period at the end of subparagraph (B) and inserting ``, 
     and'', and by adding at the end the following:
       ``(C) if any property so contributed has a built-in loss--
       ``(i) such built-in loss shall be taken into account only 
     in determining the amount of items allocated to the 
     contributing partner, and
       ``(ii) except as provided in regulations, in determining 
     the amount of items allocated to other partners, the basis of 
     the contributed property in the hands of the partnership 
     shall be treated as being equal to its fair market value 
     immediately after the contribution.

     For purposes of subparagraph (C), the term `built-in loss' 
     means the excess of the adjusted basis of the property over 
     its fair market value immediately after the contribution.''
       (b) Adjustment to Basis of Partnership Property on Transfer 
     of Partnership Interest If There Is Substantial Built-In 
     Loss.--
       (1) Adjustment required.--Subsection (a) of section 743 
     (relating to optional adjustment to basis of partnership 
     property) is amended by inserting before the period ``or 
     unless the partnership has a substantial built-in loss 
     immediately after such transfer''.
       (2) Adjustment.--Subsection (b) of section 743 is amended 
     by inserting ``or with respect to which there is a 
     substantial built-in loss immediately after such transfer'' 
     after ``section 754 is in effect''.
       (3) Substantial built-in loss.--Section 743 is amended by 
     adding at the end the following new subsection:
       ``(d) Substantial Built-In Loss.--For purposes of this 
     section, a partnership has a substantial built-in loss with 
     respect to a transfer of an interest in a partnership if the

[[Page 5459]]

     transferee partner's proportionate share of the adjusted 
     basis of the partnership property exceeds 110 percent of the 
     basis of such partner's interest in the partnership.''
       (4) Clerical amendments.--
       (A) The section heading for section 743 is amended to read 
     as follows:

     ``SEC. 743. ADJUSTMENT TO BASIS OF PARTNERSHIP PROPERTY WHERE 
                   SECTION 754 ELECTION OR SUBSTANTIAL BUILT-IN 
                   LOSS.''

       (B) The table of sections for subpart C of part II of 
     subchapter K of chapter 1 is amended by striking the item 
     relating to section 743 and inserting the following new item:

``Sec. 743. Adjustment to basis of partnership property where section 
              754 election or substantial built-in loss.''

       (c) Adjustment to Basis of Undistributed Partnership 
     Property if There Is Substantial Basis Reduction.--
       (1) Adjustment required.--Subsection (a) of section 734 
     (relating to optional adjustment to basis of undistributed 
     partnership property) is amended by inserting before the 
     period ``or unless there is a substantial basis reduction''.
       (2) Adjustment.--Subsection (b) of section 734 is amended 
     by inserting ``or unless there is a substantial basis 
     reduction'' after ``section 754 is in effect''.
       (3) Substantial basis reduction.--Section 734 is amended by 
     adding at the end the following new subsection:
       ``(d) Substantial Basis Reduction.--For purposes of this 
     section, there is a substantial basis reduction with respect 
     to a distribution if the sum of the amounts described in 
     subparagraphs (A) and (B) of subsection (b)(2) exceeds 10 
     percent of the aggregate adjusted basis of partnership 
     property immediately after the distribution.''
       (4) Clerical amendments.--
       (A) The section heading for section 734 is amended to read 
     as follows:

     ``SEC. 734. ADJUSTMENT TO BASIS OF UNDISTRIBUTED PARTNERSHIP 
                   PROPERTY WHERE SECTION 754 ELECTION OR 
                   SUBSTANTIAL BASIS REDUCTION.''

       (B) The table of sections for subpart B of part II of 
     subchapter K of chapter 1 is amended by striking the item 
     relating to section 734 and inserting the following new item:

``Sec. 734. Adjustment to basis of undistributed partnership property 
              where section 754 election or substantial basis 
              reduction.''

       (d) Effective Dates.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to contributions made after the date of the 
     enactment of this Act.
       (2) Subsection (b).--The amendments made by subsection (a) 
     shall apply to transfers after the date of the enactment of 
     this Act.
       (3) Subsection (c).--The amendments made by subsection (a) 
     shall apply to distributions after the date of the enactment 
     of this Act.

                        Subtitle B--Reinsurance

     SEC. __41. SHORT TITLE.

       This subtitle may be cited as the ``Reinsurance Tax Equity 
     Act of 2002''.

     SEC. __42. PREVENTION OF EVASION OF UNITED STATES INCOME TAX 
                   ON NONLIFE INSURANCE COMPANIES THROUGH USE OF 
                   REINSURANCE WITH FOREIGN PERSONS.

       (a) In General.--Subparagraph (A) of section 832(b)(4) 
     (relating to insurance company taxable income) is amended to 
     read as follows:
       ``(A) From the amount of gross premiums written on 
     insurance contracts during the taxable year, deduct return 
     premiums and premiums paid for reinsurance (except as 
     provided in paragraph (9)).''
       (b) Treatment of Reinsurance With Related Reinsurers.--
     Subsection (b) of section 832 is amended by adding at the end 
     the following new paragraph:
       ``(9) Denial of deduction under paragraph (4) for 
     reinsurance of u.s. risks with certain related persons.--
       ``(A) In general.--No deduction shall be allowed under 
     paragraph (4) for premiums paid for the direct or indirect 
     reinsurance of United States risks with a related reinsurer.
       ``(B) Exceptions.--This paragraph shall not apply to any 
     premium to the extent that--
       ``(i) the income attributable to the reinsurance to which 
     such premium relates is includible in the gross income of--

       ``(I) such reinsurer, or
       ``(II) 1 or more domestic corporations or citizens or 
     residents of the United States, or

       ``(ii) the related insurer establishes to the satisfaction 
     of the Secretary that the taxable income (determined in 
     accordance with this section 832) attributable to such 
     reinsurance is subject to an effective rate of income tax 
     imposed by a foreign country at a rate greater than 20 
     percent of the maximum rate of tax specified in section 11.
       ``(C) Election by reinsurer to be taxed on income.--Income 
     of a related reinsurer attributable to the reinsurance of 
     United States risks which is not otherwise includible in 
     gross income shall be treated as gross income which is 
     effectively connected with the conduct of a trade or business 
     in the United States if such reinsurer--
       ``(i) elects to so treat such income, and
       ``(ii) meets such requirements as the Secretary shall 
     prescribe to ensure that the taxes imposed by this chapter on 
     such income are paid.
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) United states risk.--The term `United States risk' 
     means any risk related to property in the United States, or 
     liability arising out of activity in, or in connection with 
     the lives or health of residents of, the United States.
       ``(ii) Related insurer.--The term `related insurer' means 
     any reinsurer owned or controlled directly or indirectly by 
     the same interests (within the meaning of section 482) as the 
     person making the premium payment.''
       (c) Technical Amendment.--Subparagraph (A) of section 
     832(b)(5) is amended by inserting after clause (iii) the 
     following new clause:
       ``(iv) To the results so obtained, add reinsurance 
     recovered from a related reinsurer to the extent a deduction 
     for the premium paid for the reinsurance was disallowed under 
     paragraph (9).''
       (d) Effective Date.--The amendments made by this section 
     shall apply to premiums paid after the date that the 
     Committee on Ways and Means of the House of Representatives 
     or the Committee on Finance of the Senate votes to report 
     this bill.

                    Subtitle C--Corporate Inversions

     SEC. __51. SHORT TITLE.

       This subtitle may be cited as the ``Corporate Patriot 
     Enforcement Act of 2002''.

     SEC. __52. PREVENTION OF CORPORATE EXPATRIATION TO AVOID 
                   UNITED STATES INCOME TAX.

       (a) In General.--Paragraph (4) of section 7701(a) (defining 
     domestic) is amended to read as follows:
       ``(4) Domestic.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `domestic' when applied to a corporation or 
     partnership means created or organized in the United States 
     or under the law of the United States or of any State unless, 
     in the case of a partnership, the Secretary provides 
     otherwise by regulations.
       ``(B) Certain corporations treated as domestic.--
       ``(i) In general.--The acquiring corporation in a corporate 
     expatriation transaction shall be treated as a domestic 
     corporation.
       ``(ii) Corporate expatriation transaction.--For purposes of 
     this subparagraph, the term `corporate expatriation 
     transaction' means any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly 
     substantially all of the properties held directly or 
     indirectly by a domestic corporation, and
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation.

       ``(iii) Lower stock ownership requirement in certain 
     cases.--Subclause (II) of clause (ii) shall be applied by 
     substituting `50 percent' for `80 percent' with respect to 
     any nominally foreign corporation if--

       ``(I) such corporation does not have substantial business 
     activities (when compared to the total business activities of 
     the expanded affiliated group) in the foreign country in 
     which or under the law of which the corporation is created or 
     organized, and
       ``(II) the stock of the corporation is publicly traded and 
     the principal market for the public trading of such stock is 
     in the United States.

       ``(iv) Partnership transactions.--The term `corporate 
     expatriation transaction' includes any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly properties 
     constituting a trade or business of a domestic partnership,
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former partners of the domestic 
     partnership (determined without regard to stock of the 
     acquiring corporation which is sold in a public offering 
     related to the transaction), and
       ``(III) the acquiring corporation meets the requirements of 
     subclauses (I) and (II) of clause (iii).

       ``(v) Special rules.--For purposes of this subparagraph--

       ``(I) a series of related transactions shall be treated as 
     1 transaction, and
       ``(II) stock held by members of the expanded affiliated 
     group which includes the acquiring corporation shall not be 
     taken into account in determining ownership.

       ``(vi) Other definitions.--For purposes of this 
     subparagraph--

       ``(I) Nominally foreign corporation.--The term `nominally 
     foreign corporation' means any corporation which would (but 
     for this subparagraph) be treated as a foreign corporation.
       ``(II) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group (as defined in 
     section 1504(a) without regard to section 1504(b)).''

       (b) Effective Dates.--

[[Page 5460]]

       (1) In general.--The amendment made by this section shall 
     apply to corporate expatriation transactions completed after 
     September 11, 2001.
       (2) Special rule.--The amendment made by this section shall 
     also apply to corporate expatriation transactions completed 
     on or before September 11, 2001, but only with respect to 
     taxable years of the acquiring corporation beginning after 
     December 31, 2003.
                                  ____

  SA 3320. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 3286 proposed by Mr. Baucus (for himself, Mr. Grassley, 
Mr. Rockefeller, Mr. Hatch, Mr. Thomas, Mr. Hagel, and Mrs. Carnahan) 
to the amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.  . CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``2003'' and inserting ``2012''.
                                  ____

  SA 3321. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO THE INCENTIVES FOR ALTERNATIVE 
                   VEHICLES AND FUELS.

       (a) Modifications to New Qualified Fuel Cell Motor Vehicle 
     Credit.--Subsection (b) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking ``$4,000'' in paragraph (1)(A) and 
     inserting ``$6,000'',
       (2) by striking ``$1,000'' in paragraph (2)(A)(i) and 
     inserting ``$2,000'',
       (3) by striking ``$1,500'' in paragraph (2)(A)(ii) and 
     inserting ``$2,500'',
       (4) by striking ``$2,000'' in paragraph (2)(A)(iii) and 
     inserting ``$3,000'',
       (5) by striking ``$2,500'' in paragraph (2)(A)(iv) and 
     inserting ``$3,500'',
       (6) by striking ``$3,000'' in paragraph (2)(A)(v) and 
     inserting ``$4,000'',
       (7) by striking ``$3,500'' in paragraph (2)(A)(vi) and 
     inserting ``$4,500'',
       (8) by striking ``$4,000'' in paragraph (2)(A)(vii) and 
     inserting ``$5,000'', and
       (9) by striking the dash and all that follows through ``for 
     2004'' in paragraph (3)(B) and inserting ``for 2004''.
       (b) Modifications to New Qualified Hybrid Motor Vehicle 
     Credit.--Subsection (c) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking the table contained in paragraph (2)(A)(i) 
     and inserting the following new table:

``If percentage of the maximum available power is:The credit amount is:
At least 5 percent but less than 10 percent.......................$500 
At least 10 percent but less than 20 percent......................$750 
At least 20 percent but less than 30 percent....................$1,000 
At least 30 percent..........................................$1,500.'',
       (2) by striking ``$500'' in paragraph (2)(B)(i)(I) and 
     inserting ``$1,000'',
       (3) by striking ``$1,000'' in paragraph (2)(B)(i)(II) and 
     inserting ``$1,500'',
       (4) by striking ``$1,500'' in paragraph (2)(B)(i)(III) and 
     inserting ``$2,000'',
       (5) by striking ``$2,000'' in paragraph (2)(B)(i)(IV) and 
     inserting ``$2,500'',
       (6) by striking ``$2,500'' in paragraph (2)(B)(i)(V) and 
     inserting ``$3,000'',
       (7) by striking ``$3,000'' in paragraph (2)(B)(i)(VI) and 
     inserting ``$3,500'', and
       (8) by striking ``for 2002'' in paragraph (3)(B)(i) and 
     inserting ``for 2003''.
       (c) Conforming Amendments for Vehicle Credits.--
       (1) Section 30B(f)(11)(A) of the Internal Revenue Code of 
     1986, as added by this Act, is amended by striking 
     ``September 30, 2002'' and inserting ``the effective date of 
     this section''.
       (2) Subsection (h) of section 30B of such Code, as added by 
     this Act, is amended to read as follows:
       ``(h) Application of Section.--This section shall apply 
     to----
       ``(1) any new qualified fuel cell motor vehicle placed in 
     service after December 31, 2003, and purchased before January 
     1, 2012,
       ``(2) any new qualified hybrid motor vehicle which is a 
     passenger automobile or a light truck placed in service after 
     December 31, 2002, and purchased before January 1, 2010, and
       ``(3) any other property placed in service after September 
     30, 2002, and purchased before January 1, 2007.''.
       (d) Additional Modifications to Credit for Qualified 
     Electric Vehicles.--Section 30 of the Internal Revenue Code 
     of 1986, as amended by this Act, is amended--
       (1) by striking ``$3,500'' in subsection (b)(1)(B)(i) and 
     inserting ``$6,000'',
       (2) by striking ``$6,000'' in subsection (b)(1)(B)(ii) and 
     inserting ``$9,000'', and
       (3) by striking ``2006'' in subsection (e) and inserting 
     ``2007''.
       (e) Modifications to Extension of Deduction for Certain 
     Refueling Property.--
       (1) In general.--Subsection (f) of section 179A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (2) Extension of phaseout.--Section 179A(b)(1)(B) of such 
     Code, as amended by section 606(a) of the Job Creation and 
     Worker Assistance Act of 2002, is amended--
       (A) by striking ``calendar year 2004'' in clause (i) and 
     inserting ``calendar years 2004 and 2005 (calendar years 2004 
     through 2009 in the case of property relating to hydrogen) 
     '',
       (B) by striking ``2005'' in clause (ii) and inserting 
     ``2006 (calendar year 2010 in the case of property relating 
     to hydrogen)'', and
       (C) by striking ``2006'' in clause (iii) and inserting 
     ``2007 (calendar year 2011 in the case of property relating 
     to hydrogen)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2003, in taxable years ending after such date.
       (f) Modification to Credit for Installation of Alternative 
     Fueling Stations.--Subsection (l) of section 30C of the 
     Internal Revenue Code of 1986, as added by this Act, is 
     amended to read as follows:
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (g) Effective Date.--Except as provided in subsection 
     (e)(3), the amendments made by this section shall apply to 
     property placed in service after September 30, 2002, in 
     taxable years ending after such date.
                                  ____

  SA 3322. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself, and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO THE INCENTIVES FOR ALTERNATIVE 
                   VEHICLES AND FUELS.

       (a) Modifications to New Qualified Fuel Cell Motor Vehicle 
     Credit.--Subsection (b) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking ``$4,000'' in paragraph (1)(A) and 
     inserting ``$6,000'',
       (2) by striking ``$1,000'' in paragraph (2)(A)(i) and 
     inserting ``$2,000'',
       (3) by striking ``$1,500'' in paragraph (2)(A)(ii) and 
     inserting ``$2,500'',
       (4) by striking ``$2,000'' in paragraph (2)(A)(iii) and 
     inserting ``$3,000'',
       (5) by striking ``$2,500'' in paragraph (2)(A)(iv) and 
     inserting ``$3,500'',
       (6) by striking ``$3,000'' in paragraph (2)(A)(v) and 
     inserting ``$4,000'',
       (7) by striking ``$3,500'' in paragraph (2)(A)(vi) and 
     inserting ``$4,500'',
       (8) by striking ``$4,000'' in paragraph (2)(A)(vii) and 
     inserting ``$5,000'', and
       (9) by striking the dash and all that follows through ``for 
     2004'' in paragraph (3)(B) and inserting ``for 2004''.
       (b) Modifications to New Qualified Hybrid Motor Vehicle 
     Credit.--Subsection (c) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking the table contained in paragraph (2)(A)(i) 
     and inserting the following new table:

``If percentage of the maximum available power is:The credit amount is:
At least 2.5 percent but less than 5 percent......................$250 
At least 5 percent but less than 10 percent.......................$500 
At least 10 percent but less than 20 percent......................$750 
At least 20 percent but less than 30 percent....................$1,000 
At least 30 percent..........................................$1,500.'',
       (2) by striking ``$500'' in paragraph (2)(B)(i)(I) and 
     inserting ``$1,000'',
       (3) by striking ``$1,000'' in paragraph (2)(B)(i)(II) and 
     inserting ``$1,500'',
       (4) by striking ``$1,500'' in paragraph (2)(B)(i)(III) and 
     inserting ``$2,000'',

[[Page 5461]]

       (5) by striking ``$2,000'' in paragraph (2)(B)(i)(IV) and 
     inserting ``$2,500'',
       (6) by striking ``$2,500'' in paragraph (2)(B)(i)(V) and 
     inserting ``$3,000'',
       (7) by striking ``$3,000'' in paragraph (2)(B)(i)(VI) and 
     inserting ``$3,500'', and
       (8) by striking ``for 2002'' in paragraph (3)(B)(i) and 
     inserting ``for 2003''.
       (c) Conforming Amendments for Vehicle Credits.--
       (1) Section 30B(f)(11)(A) of the Internal Revenue Code of 
     1986, as added by this Act, is amended by striking 
     ``September 30, 2002'' and inserting ``the effective date of 
     this section''.
       (2) Subsection (h) of section 30B of such Code, as added by 
     this Act, is amended to read as follows:
       ``(h) Application of Section.--This section shall apply 
     to----
       ``(1) any new qualified fuel cell motor vehicle placed in 
     service after December 31, 2003, and purchased before January 
     1, 2012,
       ``(2) any new qualified hybrid motor vehicle which is a 
     passenger automobile or a light truck placed in service after 
     December 31, 2002, and purchased before January 1, 2010, and
       ``(3) any other property placed in service after September 
     30, 2002, and purchased before January 1, 2007.''.
       (d) Additional Modifications to Credit for Qualified 
     Electric Vehicles.--Section 30 of the Internal Revenue Code 
     of 1986, as amended by this Act, is amended--
       (1) by striking ``$3,500'' in subsection (b)(1)(B)(i) and 
     inserting ``$6,000'',
       (2) by striking ``$6,000'' in subsection (b)(1)(B)(ii) and 
     inserting ``$9,000'', and
       (3) by striking ``2006'' in subsection (e) and inserting 
     ``2007''.
       (e) Modifications to Extension of Deduction for Certain 
     Refueling Property.--
       (1) In general.--Subsection (f) of section 179A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (2) Extension of phaseout.--Section 179A(b)(1)(B) of such 
     Code, as amended by section 606(a) of the Job Creation and 
     Worker Assistance Act of 2002, is amended--
       (A) by striking ``calendar year 2004'' in clause (i) and 
     inserting ``calendar years 2004 and 2005 (calendar years 2004 
     through 2009 in the case of property relating to hydrogen) 
     '',
       (B) by striking ``2005'' in clause (ii) and inserting 
     ``2006 (calendar year 2010 in the case of property relating 
     to hydrogen)'', and
       (C) by striking ``2006'' in clause (iii) and inserting 
     ``2007 (calendar year 2011 in the case of property relating 
     to hydrogen)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2003, in taxable years ending after such date.
       (f) Modification to Credit for Installation of Alternative 
     Fueling Stations.--Subsection (l) of section 30C of the 
     Internal Revenue Code of 1986, as added by this Act, is 
     amended to read as follows:
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (g) Effective Date.--Except as provided in subsection 
     (e)(3), the amendments made by this section shall apply to 
     property placed in service after September 30, 2002, in 
     taxable years ending after such date.
                                  ____

  SA 3323. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself, and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO THE INCENTIVES FOR ALTERNATIVE 
                   VEHICLES AND FUELS.

       (a) Modifications to New Qualified Fuel Cell Motor Vehicle 
     Credit.--Subsection (b) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking ``$4,000'' in paragraph (1)(A) and 
     inserting ``$6,000'',
       (2) by striking ``$1,000'' in paragraph (2)(A)(i) and 
     inserting ``$2,000'',
       (3) by striking ``$1,500'' in paragraph (2)(A)(ii) and 
     inserting ``$2,500'',
       (4) by striking ``$2,000'' in paragraph (2)(A)(iii) and 
     inserting ``$3,000'',
       (5) by striking ``$2,500'' in paragraph (2)(A)(iv) and 
     inserting ``$3,500'',
       (6) by striking ``$3,000'' in paragraph (2)(A)(v) and 
     inserting ``$4,000'',
       (7) by striking ``$3,500'' in paragraph (2)(A)(vi) and 
     inserting ``$4,500'',
       (8) by striking ``$4,000'' in paragraph (2)(A)(vii) and 
     inserting ``$5,000'', and
       (9) by striking the dash and all that follows through ``for 
     2004'' in paragraph (3)(B) and inserting ``for 2004''.
       (b) Modifications to New Qualified Hybrid Motor Vehicle 
     Credit.--Subsection (c) of section 30B of the Internal 
     Revenue Code of 1986, as added by this Act, is amended--
       (1) by striking the table contained in paragraph (2)(A)(i) 
     and inserting the following new table:

``If percentage of the maximum available power is:The credit amount is:
At least 4 percent but less than 10 percent.......................$500 
At least 10 percent but less than 20 percent......................$750 
At least 20 percent but less than 30 percent....................$1,000 
At least 30 percent..........................................$1,500.'',
       (2) by striking ``$500'' in paragraph (2)(B)(i)(I) and 
     inserting ``$1,000'',
       (3) by striking ``$1,000'' in paragraph (2)(B)(i)(II) and 
     inserting ``$1,500'',
       (4) by striking ``$1,500'' in paragraph (2)(B)(i)(III) and 
     inserting ``$2,000'',
       (5) by striking ``$2,000'' in paragraph (2)(B)(i)(IV) and 
     inserting ``$2,500'',
       (6) by striking ``$2,500'' in paragraph (2)(B)(i)(V) and 
     inserting ``$3,000'',
       (7) by striking ``$3,000'' in paragraph (2)(B)(i)(VI) and 
     inserting ``$3,500'', and
       (8) by striking ``for 2002'' in paragraph (3)(B)(i) and 
     inserting ``for 2003''.
       (c) Conforming Amendments for Vehicle Credits.--
       (1) Section 30B(f)(11)(A) of the Internal Revenue Code of 
     1986, as added by this Act, is amended by striking 
     ``September 30, 2002'' and inserting ``the effective date of 
     this section''.
       (2) Subsection (h) of section 30B of such Code, as added by 
     this Act, is amended to read as follows:
       ``(h) Application of Section.--This section shall apply 
     to----
       ``(1) any new qualified fuel cell motor vehicle placed in 
     service after December 31, 2003, and purchased before January 
     1, 2012,
       ``(2) any new qualified hybrid motor vehicle which is a 
     passenger automobile or a light truck placed in service after 
     December 31, 2002, and purchased before January 1, 2010, and
       ``(3) any other property placed in service after September 
     30, 2002, and purchased before January 1, 2007.''.
       (d) Additional Modifications to Credit for Qualified 
     Electric Vehicles.--Section 30 of the Internal Revenue Code 
     of 1986, as amended by this Act, is amended--
       (1) by striking ``$3,500'' in subsection (b)(1)(B)(i) and 
     inserting ``$6,000'',
       (2) by striking ``$6,000'' in subsection (b)(1)(B)(ii) and 
     inserting ``$9,000'', and
       (3) by striking ``2006'' in subsection (e) and inserting 
     ``2007''.
       (e) Modifications to Extension of Deduction for Certain 
     Refueling Property.--
       (1) In general.--Subsection (f) of section 179A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (2) Extension of phaseout.--Section 179A(b)(1)(B) of such 
     Code, as amended by section 606(a) of the Job Creation and 
     Worker Assistance Act of 2002, is amended--
       (A) by striking ``calendar year 2004'' in clause (i) and 
     inserting ``calendar years 2004 and 2005 (calendar years 2004 
     through 2009 in the case of property relating to hydrogen) 
     '',
       (B) by striking ``2005'' in clause (ii) and inserting 
     ``2006 (calendar year 2010 in the case of property relating 
     to hydrogen)'', and
       (C) by striking ``2006'' in clause (iii) and inserting 
     ``2007 (calendar year 2011 in the case of property relating 
     to hydrogen)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2003, in taxable years ending after such date.
       (f) Modification to Credit for Installation of Alternative 
     Fueling Stations.--Subsection (l) of section 30C of the 
     Internal Revenue Code of 1986, as added by this Act, is 
     amended to read as follows:
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (g) Effective Date.--Except as provided in subsection 
     (e)(3), the amendments made by this section shall apply to 
     property placed in service after September 30, 2002, in 
     taxable years ending after such date.
                                  ____

  SA 3324. Mr. BROWNBACK (for himself, Mr. Corzine, Mr. Chafee, and Mr. 
Jeffords) submitted an amendment intended to be proposed to amendment 
SA 3239 submitted by Mr. Brownback (for himself, Mr. Corzine, Mr. 
Lieberman, Mr. McCain, Mr. Jeffords, Mr. Chafee, Mr. Nelson of 
Nebraska, and Mr. Reid) and intended to be proposed to the amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas

[[Page 5462]]

through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike all after the title heading and insert the 
     following:

     SEC. 1101. PURPOSE.

       The purpose of this title is to establish a greenhouse gas 
     inventory, reductions registry, and information system that--
       (1) are complete, consistent, transparent, and accurate;
       (2) will create reliable and accurate data that can be used 
     by public and private entities to design efficient and 
     effective greenhouse gas emission reduction strategies; and
       (3) will acknowledge and encourage greenhouse gas emission 
     reductions.

     SEC. 1102. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Baseline.--The term ``baseline'' means the historic 
     greenhouse gas emission levels of an entity, as adjusted 
     upward by the designated agency to reflect actual reductions 
     that are verified in accordance with--
       (A) regulations promulgated under section 1104(c)(1); and
       (B) relevant standards and methods developed under this 
     title.
       (3) Database.--The term ``database'' means the National 
     Greenhouse Gas Database established under section 1104.
       (4) Designated agency.--The term ``designated agency'' 
     means a department or agency to which responsibility for a 
     function or program is assigned under the memorandum of 
     agreement entered into under section 1103(a).
       (5) Direct emissions.--The term ``direct emissions'' means 
     greenhouse gas emissions by an entity from a facility that is 
     owned or controlled by that entity.
       (6) Entity.--The term ``entity'' means--
       (A) a person located in the United States; or
       (B) a public or private entity, to the extent that the 
     entity operates in the United States.
       (7) Facility.--The term ``facility'' means--
       (A) all buildings, structures, or installations located on 
     any 1 or more contiguous or adjacent properties of an entity 
     in the United States; and
       (B) a fleet of 20 or more motor vehicles under the common 
     control of an entity.
       (8) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluorocarbons;
       (E) perfluorocarbons;
       (F) sulfur hexafluoride; and
       (G) any other anthropogenic climate-forcing emissions with 
     significant ascertainable global warming potential, as--
       (i) recommended by the National Academy of Sciences under 
     section 1107(b)(3); and
       (ii) determined in regulations promulgated under section 
     1104(c)(1) (or revisions to the regulations) to be 
     appropriate and practicable for coverage under this title.
       (9) Indirect emissions.--The term ``indirect emissions'' 
     means greenhouse gas emissions that--
       (A) are a result of the activities of an entity; but
       (B)(i) are emitted from a facility owned or controlled by 
     another entity; and
       (ii) are not reported as direct emissions by the entity the 
     activities of which resulted in the emissions.
       (10) Registry.--The term ``registry'' means the registry of 
     greenhouse gas emission reductions established as a component 
     of the database under section 1104(b)(2).
       (11) Sequestration.--
       (A) In general.--The term ``sequestration'' means the 
     capture, long-term separation, isolation, or removal of 
     greenhouse gases from the atmosphere.
       (B) Inclusions.--The term ``sequestration'' includes--
       (i) soil carbon sequestration;
       (ii) agricultural and conservation practices;
       (iii) reforestation;
       (iv) forest preservation;
       (v) maintenance of an underground reservoir; and
       (vi) any other appropriate biological or geological method 
     of capture, isolation, or removal of greenhouse gases from 
     the atmosphere, as determined by the Administrator.

     SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the President, acting through the 
     Director of the Office of National Climate Change Policy, 
     shall direct the Secretary of Energy, the Secretary of 
     Commerce, the Secretary of Agriculture, the Secretary of 
     Transportation, and the Administrator to enter into a 
     memorandum of agreement under which those heads of Federal 
     agencies will--
       (1) recognize and maintain statutory and regulatory 
     authorities, functions, and programs that--
       (A) are established as of the date of enactment of this Act 
     under other law;
       (B) provide for the collection of data relating to 
     greenhouse gas emissions and effects; and
       (C) are necessary for the operation of the database;
       (2)(A) distribute additional responsibilities and 
     activities identified under this title to Federal departments 
     or agencies in accordance with the missions and expertise of 
     those departments and agencies; and
       (B) maximize the use of available resources of those 
     departments and agencies; and
       (3) provide for the comprehensive collection and analysis 
     of data on greenhouse gas emissions relating to product use 
     (including the use of fossil fuels and energy-consuming 
     appliances and vehicles).
       (b) Minimum Requirements.--The memorandum of agreement 
     entered into under subsection (a) shall, at a minimum, retain 
     the following functions for the designated agencies:
       (1) Department of energy.--The Secretary of Energy shall be 
     primarily responsible for developing, maintaining, and 
     verifying the registry and the emission reductions reported 
     under section 1605(b) of the Energy Policy Act of 1992 (42 
     U.S.C. 13385(b)).
       (2) Department of commerce.--The Secretary of Commerce 
     shall be primarily responsible for the development of--
       (A) measurement standards for the monitoring of emissions; 
     and
       (B) verification technologies and methods to ensure the 
     maintenance of a consistent and technically accurate record 
     of emissions, emission reductions, and atmospheric 
     concentrations of greenhouse gases for the database.
       (3) Environmental protection agency.--The Administrator 
     shall be primarily responsible for--
       (A) emissions monitoring, measurement, verification, and 
     data collection under this title and title IV (relating to 
     acid deposition control) and title VIII of the Clean Air Act 
     (42 U.S.C. 7651 et seq.), including mobile source emissions 
     information from implementation of the corporate average fuel 
     economy program under chapter 329 of title 49, United States 
     Code; and
       (B) responsibilities of the Environmental Protection Agency 
     relating to completion of the national inventory for 
     compliance with the United Nations Framework Convention on 
     Climate Change, done at New York on May 9, 1992.
       (4) Department of agriculture.--The Secretary of 
     Agriculture shall be primarily responsible for--
       (A) developing measurement techniques for--
       (i) soil carbon sequestration; and
       (ii) forest preservation and reforestation activities; and
       (B) providing technical advice relating to biological 
     carbon sequestration measurement and verification standards 
     for measuring greenhouse gas emission reductions or offsets.
       (c) Draft Memorandum of Agreement.--Not later than 15 
     months after the date of enactment of this Act, the 
     President, acting through the Director of the Office of 
     National Climate Change Policy, shall publish in the Federal 
     Register, and solicit comments on, a draft version of the 
     memorandum of agreement described in subsection (a).
       (d) No Judicial Review.--The final version of the 
     memorandum of agreement shall not be subject to judicial 
     review.

     SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.

       (a) Establishment.--As soon as practicable after the date 
     of enactment of this Act, the designated agencies, in 
     consultation with the private sector and nongovernmental 
     organizations, shall jointly establish, operate, and maintain 
     a database, to be known as the ``National Greenhouse Gas 
     Database'', to collect, verify, and analyze information on 
     greenhouse gas emissions by entities.
       (b) National Greenhouse Gas Database Components.--The 
     database shall consist of--
       (1) an inventory of greenhouse gas emissions; and
       (2) a registry of greenhouse gas emission reductions.
       (c) Comprehensive System.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the designated agencies shall jointly 
     promulgate regulations to implement a comprehensive system 
     for greenhouse gas emissions reporting, inventorying, and 
     reductions registration.
       (2) Requirements.--The designated agencies shall ensure, to 
     the maximum extent practicable, that--
       (A) the comprehensive system described in paragraph (1) is 
     designed to--
       (i) maximize completeness, transparency, and accuracy of 
     information reported; and
       (ii) minimize costs incurred by entities in measuring and 
     reporting greenhouse gas emissions; and
       (B) the regulations promulgated under paragraph (1) 
     establish procedures and protocols necessary--
       (i) to prevent the reporting of some or all of the same 
     greenhouse gas emissions or emission reductions by more than 
     1 reporting entity;
       (ii) to provide for corrections to errors in data submitted 
     to the database;

[[Page 5463]]

       (iii) to provide for adjustment to data by reporting 
     entities that have had a significant organizational change 
     (including mergers, acquisitions, and divestiture), in order 
     to maintain comparability among data in the database over 
     time;
       (iv) to provide for adjustments to reflect new technologies 
     or methods for measuring or calculating greenhouse gas 
     emissions; and
       (v) to account for changes in registration of ownership of 
     emission reductions resulting from a voluntary private 
     transaction between reporting entities.

     SEC. 1105. GREENHOUSE GAS REDUCTION REPORTING.

       (a) In General.--An entity that participates in the 
     registry shall meet the requirements described in subsection 
     (b).
       (b) Requirements.--
       (1) In general.--The requirements referred to in subsection 
     (a) are that an entity (other than an entity described in 
     paragraph (2)) shall--
       (A) establish a baseline (including all of the entity's 
     greenhouse gas emissions on an entity-wide basis); and
       (B) submit the report described in subsection (c)(1).
       (2) Requirements applicable to entities entering into 
     certain agreements.--An entity that enters into an agreement 
     with a participant in the registry for the purpose of a 
     carbon sequestration project shall not be required to comply 
     with the requirements specified in paragraph (1) unless that 
     entity is required to comply with the requirements by reason 
     of an activity other than the agreement.
       (c) Reports.--
       (1) Required report.--Not later than April 1 of the third 
     calendar year that begins after the date of enactment of this 
     Act, and not later than April 1 of each calendar year 
     thereafter, subject to paragraph (3), an entity described in 
     subsection (a) shall submit to each appropriate designated 
     agency a report that describes, for the preceding calendar 
     year, the entity-wide greenhouse gas emissions (as reported 
     at the facility level), including--
       (A) the total quantity of each greenhouse gas emitted, 
     expressed in terms of mass and in terms of the quantity of 
     carbon dioxide equivalent;
       (B) an estimate of the emissions from products manufactured 
     and sold by the entity in the previous calendar year, 
     determined over the average lifetime of those products; and
       (C) such other categories of emissions as the designated 
     agency determines in the regulations promulgated under 
     section 1104(c)(1) may be practicable and useful for the 
     purposes of this title, such as--
       (i) direct emissions from stationary sources;
       (ii) indirect emissions from imported electricity, heat, 
     and steam;
       (iii) process and fugitive emissions; and
       (iv) production or importation of greenhouse gases.
       (2) Voluntary reporting.--An entity described in subsection 
     (a) may (along with establishing a baseline and reporting 
     reductions under this section)--
       (A) submit a report described in paragraph (1) before the 
     date specified in that paragraph for the purposes of 
     achieving and commoditizing greenhouse gas reductions through 
     use of the registry; and
       (B) submit to any designated agency, for inclusion in the 
     registry, information that has been verified in accordance 
     with regulations promulgated under section 1104(c)(1) and 
     that relates to--
       (i) with respect to the calendar year preceding the 
     calendar year in which the information is submitted, and with 
     respect to any greenhouse gas emitted by the entity--

       (I) project reductions from facilities owned or controlled 
     by the reporting entity in the United States;
       (II) transfers of project reductions to and from any other 
     entity;
       (III) project reductions and transfers of project 
     reductions outside the United States;
       (IV) other indirect emissions that are not required to be 
     reported under paragraph (1); and
       (V) product use phase emissions;

       (ii) with respect to greenhouse gas emission reductions 
     activities of the entity that have been carried out during or 
     after 1990, verified in accordance with regulations 
     promulgated under section 1104(c)(1), and submitted to 1 or 
     more designated agencies before the date that is 4 years 
     after the date of enactment of this Act, any greenhouse gas 
     emission reductions that have been reported or submitted by 
     an entity under--

       (I) section 1605(b) of the Energy Policy Act of 1992 (42 
     U.S.C. 13385(b)); or
       (II) any other Federal or State voluntary greenhouse gas 
     reduction program; and

       (iii) any project or activity for the reduction of 
     greenhouse gas emissions or sequestration of a greenhouse gas 
     that is carried out by the entity, including a project or 
     activity relating to--

       (I) fuel switching;
       (II) energy efficiency improvements;
       (III) use of renewable energy;
       (IV) use of combined heat and power systems;
       (V) management of cropland, grassland, or grazing land;
       (VI) a forestry activity that increases forest carbon 
     stocks or reduces forest carbon emissions;
       (VII) carbon capture and storage;
       (VIII) methane recovery;
       (IX) greenhouse gas offset investment; and
       (X) any other practice for achieving greenhouse gas 
     reductions as recognized by 1 or more designated agencies.

       (3) Exemptions from reporting.--
       (A) In general.--If the Director of the Office of National 
     Climate Change Policy determines under section 1108(b) that 
     the reporting requirements under paragraph (1) shall apply to 
     all entities (other than entities exempted by this 
     paragraph), regardless of participation or nonparticipation 
     in the registry, an entity shall be required to submit 
     reports under paragraph (1) only if, in any calendar year 
     after the date of enactment of this Act--
       (i) the total greenhouse gas emissions of at least 1 
     facility owned by the entity exceeds 10,000 metric tons of 
     carbon dioxide equivalent (or such greater quantity as may be 
     established by a designated agency by regulation); or
       (ii)(I) the total quantity of greenhouse gases produced, 
     distributed, or imported by the entity exceeds 10,000 metric 
     tons of carbon dioxide equivalent (or such greater quantity 
     as may be established by a designated agency by regulation); 
     and
       (II) the entity is not a feedlot or other farming operation 
     (as defined in section 101 of title 11, United States Code).
       (B) Entities already reporting.--
       (i) In general.--An entity that, as of the date of 
     enactment of this Act, is required to report carbon dioxide 
     emissions data to a Federal agency shall not be required to 
     re-report that data for the purposes of this title.
       (ii) Review of participation.--For the purpose of section 
     1108, emissions reported under clause (i) shall be considered 
     to be reported by the entity to the registry.
       (4) Provision of verification information by reporting 
     entities.--Each entity that submits a report under this 
     subsection shall provide information sufficient for each 
     designated agency to which the report is submitted to verify, 
     in accordance with measurement and verification methods and 
     standards developed under section 1106, that the greenhouse 
     gas report of the reporting entity--
       (A) has been accurately reported; and
       (B) in the case of each voluntary report under paragraph 
     (2), represents--
       (i) actual reductions in direct greenhouse gas emissions--

       (I) relative to historic emission levels of the entity; and
       (II) net of any increases in--

       (aa) direct emissions; and
       (bb) indirect emissions described in paragraph (1)(C)(ii); 
     or
       (ii) actual increases in net sequestration.
       (5) Failure to submit report.--An entity that participates 
     or has participated in the registry and that fails to submit 
     a report required under this subsection shall be prohibited 
     from including emission reductions reported to the registry 
     in the calculation of the baseline of the entity in future 
     years.
       (6) Independent third-party verification.--To meet the 
     requirements of this section and section 1106, an entity that 
     is required to submit a report under this section may--
       (A) obtain independent third-party verification; and
       (B) present the results of the third-party verification to 
     each appropriate designated agency.
       (7) Availability of data.--
       (A) In general.--The designated agencies shall ensure, to 
     the maximum extent practicable, that information in the 
     database is--
       (i) published;
       (ii) accessible to the public; and
       (iii) made available in electronic format on the Internet.
       (B) Exception.--Subparagraph (A) shall not apply in any 
     case in which the designated agencies determine that 
     publishing or otherwise making available information 
     described in that subparagraph poses a risk to national 
     security.
       (8) Data infrastructure.--The designated agencies shall 
     ensure, to the maximum extent practicable, that the database 
     uses, and is integrated with, Federal, State, and regional 
     greenhouse gas data collection and reporting systems in 
     effect as of the date of enactment of this Act.
       (9) Additional issues to be considered.--In promulgating 
     the regulations under section 1104(c)(1) and implementing the 
     database, the designated agencies shall take into 
     consideration a broad range of issues involved in 
     establishing an effective database, including--
       (A) the appropriate units for reporting each greenhouse 
     gas;
       (B) the data and information systems and measures necessary 
     to identify, track, and verify greenhouse gas emission 
     reductions in a manner that will encourage the development of 
     private sector trading and exchanges;
       (C) the greenhouse gas reduction and sequestration methods 
     and standards applied in other countries, as applicable or 
     relevant;
       (D) the extent to which available fossil fuels, greenhouse 
     gas emissions, and greenhouse gas production and importation 
     data are adequate to implement the database;

[[Page 5464]]

       (E) the differences in, and potential uniqueness of, the 
     facilities, operations, and business and other relevant 
     practices of persons and entities in the private and public 
     sectors that may be expected to participate in the registry; 
     and
       (F) the need of the registry to maintain valid and reliable 
     information on baselines of entities so that, in the event of 
     any future action by Congress to require entities, 
     individually or collectively, to reduce greenhouse gas 
     emissions, Congress will be able--
       (i) to take into account that information; and
       (ii) to avoid enacting legislation that penalizes entities 
     for achieving and reporting reductions.
       (d) Annual Report.--The designated agencies shall jointly 
     publish an annual report that--
       (1) describes the total greenhouse gas emissions and 
     emission reductions reported to the database during the year 
     covered by the report;
       (2) provides entity-by-entity and sector-by-sector analyses 
     of the emissions and emission reductions reported;
       (3) describes the atmospheric concentrations of greenhouse 
     gases; and
       (4) provides a comparison of current and past atmospheric 
     concentrations of greenhouse gases.
       (e) Confidentiality of Reports.--
       (1) In general.--Subject to section 552 of title 5, United 
     States Code, information collected and maintained in the 
     database by a designated agency shall be made available to 
     the public.
       (2) Exception.--Notwithstanding paragraph (1), a designated 
     agency shall not disclose information obtained under this 
     section directly or indirectly from an entity, if such 
     information would, upon being made public, disclose--
       (A) a trade secret; or
       (B) other proprietary information of the entity.
       (3) Disclosure for validity.--Notwithstanding paragraph 
     (2), proprietary information shall be made available to the 
     public if 1 or more of the designated agencies determine that 
     disclosure of the information is necessary to determine the 
     validity of emission reductions that have been--
       (A) recorded in the registry; and
       (B) transferred or traded based on value created through 
     recording in the registry.

     SEC. 1106. MEASUREMENT AND VERIFICATION.

       (a) Standards.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the designated agencies shall jointly 
     develop comprehensive measurement and verification methods 
     and standards to ensure a consistent and technically accurate 
     record of greenhouse gas emissions, emission reductions, 
     sequestration, and atmospheric concentrations for use in the 
     registry.
       (2) Requirements.--The methods and standards developed 
     under paragraph (1) shall address the need for--
       (A) standardized measurement and verification practices for 
     reports made by all entities participating in the registry, 
     taking into account--
       (i) protocols and standards in use by entities desiring to 
     participate in the registry as of the date of development of 
     the methods and standards under paragraph (1);
       (ii) boundary issues, such as leakage and shifted use;
       (iii) avoidance of double counting of greenhouse gas 
     emissions and emission reductions; and
       (iv) such other factors as the designated agencies 
     determine to be appropriate;
       (B) measurement and verification of actions taken to 
     reduce, avoid, or sequester greenhouse gas emissions;
       (C) in coordination with the Secretary of Agriculture, 
     measurement of the results of the use of carbon sequestration 
     and carbon recapture technologies, including--
       (i) organic soil carbon sequestration practices; and
       (ii) forest preservation and reforestation activities that 
     adequately address the issues of permanence, leakage, and 
     verification;
       (D) such other measurement and verification standards as 
     the Secretary of Commerce, the Secretary of Agriculture, the 
     Administrator, and the Secretary of Energy determine to be 
     appropriate; and
       (E) other factors that, as determined by the designated 
     agencies, will allow entities to adequately establish a fair 
     and reliable measurement and reporting system.
       (b) Review and Revision.--The designated agencies shall 
     periodically review, and revise as necessary, the methods and 
     standards developed under subsection (a).
       (c) Public Participation.--The Secretary of Commerce 
     shall--
       (1) make available to the public for comment, in draft form 
     and for a period of at least 90 days, the methods and 
     standards developed under subsection (a); and
       (2) after the 90-day period referred to in paragraph (1), 
     in coordination with the Secretary of Energy, the Secretary 
     of Agriculture, and the Administrator, adopt the methods and 
     standards developed under subsection (a) for use in 
     implementing the database.
       (d) Experts and Consultants.--
       (1) In general.--The designated agencies may obtain the 
     services of experts and consultants in the private and 
     nonprofit sectors in accordance with section 3109 of title 5, 
     United States Code, in the areas of greenhouse gas 
     measurement, certification, and emission trading.
       (2) Available arrangements.--In obtaining any service 
     described in paragraph (1), the designated agencies may use 
     any available grant, contract, cooperative agreement, or 
     other arrangement authorized by law.

     SEC. 1107. INDEPENDENT REVIEWS.

       (a) In General.--Not later than 5 years after the date of 
     enactment of this Act, and every 3 years thereafter, the 
     Comptroller General of the United States shall submit to 
     Congress a report that--
       (1) describes the efficacy of the implementation and 
     operation of the database; and
       (2) includes any recommendations for improvements to this 
     title and programs carried out under this title--
       (A) to achieve a consistent and technically accurate record 
     of greenhouse gas emissions, emission reductions, and 
     atmospheric concentrations; and
       (B) to achieve the purposes of this title.
       (b) Review of Scientific Methods.--The designated agencies 
     shall enter into an agreement with the National Academy of 
     Sciences under which the National Academy of Sciences shall--
       (1) review the scientific methods, assumptions, and 
     standards used by the designated agencies in implementing 
     this title;
       (2) not later than 4 years after the date of enactment of 
     this Act, submit to Congress a report that describes any 
     recommendations for improving--
       (A) those methods and standards; and
       (B) related elements of the programs, and structure of the 
     database, established by this title; and
       (3) regularly review and update as appropriate the list of 
     anthropogenic climate-forcing emissions with significant 
     global warming potential described in section 1102(8)(G).

     SEC. 1108. REVIEW OF PARTICIPATION.

       (a) In General.--Not later than 5 years after the date of 
     enactment of this Act, the Director of the Office of National 
     Climate Change Policy shall determine whether the reports 
     submitted to the registry under section 1105(c)(1) represent 
     less than 60 percent of the national aggregate anthropogenic 
     greenhouse gas emissions.
       (b) Increased Applicability of Requirements.--If the 
     Director of the Office of National Climate Change Policy 
     determines under subsection (a) that less than 60 percent of 
     the aggregate national anthropogenic greenhouse gas emissions 
     are being reported to the registry--
       (1) the reporting requirements under section 1105(c)(1) 
     shall apply to all entities (except entities exempted under 
     section 1105(c)(3)), regardless of any participation or 
     nonparticipation by the entities in the registry; and
       (2) each entity shall submit a report described in section 
     1105(c)(1)--
       (A) not later than the earlier of--
       (i) April 30 of the calendar year immediately following the 
     year in which the Director of the Office of National Climate 
     Change Policy makes the determination under subsection (a); 
     or
       (ii) the date that is 1 year after the date on which the 
     Director of the Office of National Climate Change Policy 
     makes the determination under subsection (a); and
       (B) annually thereafter.
       (c) Resolution of Disapproval.--For the purposes of this 
     section, the determination of the Director of the Office of 
     National Climate Change Policy under subsection (a) shall be 
     considered to be a major rule (as defined in section 804(2) 
     of title 5, United States Code) subject to the congressional 
     disapproval procedure under section 802 of title 5, United 
     States Code.

     SEC. 1109. ENFORCEMENT.

       If an entity that is required to report greenhouse gas 
     emissions under section 1105(c)(1) or 1108 fails to comply 
     with that requirement, the Attorney General may, at the 
     request of the designated agencies, bring a civil action in 
     United States district court against the entity to impose on 
     the entity a civil penalty of not more than $25,000 for each 
     day for which the entity fails to comply with that 
     requirement.

     SEC. 1110. REPORT ON STATUTORY CHANGES AND HARMONIZATION.

       Not later than 3 years after the date of enactment of this 
     Act, the President shall submit to Congress a report that 
     describes any modifications to this title or any other 
     provision of law that are necessary to improve the accuracy 
     or operation of the database and related programs under this 
     title.

     SEC. 1111. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.
                                  ____

  SA 3325. Mr. SHELBY (for himself, Mr. Akaka, Mr. Schumer,  and Mrs. 
Clinton) submitted an amendment intended to be proposed to amendment SA 
2917 proposed by Mr. Daschle (for himself and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002

[[Page 5465]]

through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 205, between lines 8 and 9, insert the following:
       (__) Establishment of a Program for the Production of Fuel 
     Ethanol From Municipal Solid Waste.--
       (1) Definition of municipal solid waste.--In this section, 
     the term ``municipal solid waste'' has the meaning given the 
     term ``solid waste'' in section 1004 of the Solid Waste 
     Disposal Act (42 U.S.C. 6903).
       (2) Establishment of program.--The Secretary of Energy 
     shall establish a program that promotes expedited 
     construction of facilities for the processing and conversion 
     of municipal solid waste into fuel ethanol to supplement 
     fossil fuels.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     programs that promote expedited construction of commercially 
     viable facilities for the processing and conversion of 
     municipal solid waste to fuel ethanol to supplement fossil 
     fuels including, but not limited to, loan guarantees to 
     private institutions.
       (4) Requirements.--The Secretary may provide a loan 
     guarantee under paragraph (2) to an applicant if--
       (A) without a loan guarantee, credit is not available to 
     the applicant under reasonable terms or conditions sufficient 
     to finance the construction of a facility described in 
     paragraph (2);
       (B) the prospective earning power of the applicant and the 
     character and value of the security pledged provide a 
     reasonable assurance of repayment of the loan to be 
     guaranteed in accordance with the terms of the loan; and
       (C) the loan bears interest at a rate determined by the 
     Secretary to be reasonable, taking into account the current 
     average yield on outstanding obligations of the United States 
     with remaining periods of maturity comparable to the maturity 
     of the loan.
       (5) Criteria.--In selecting recipients of loan guarantees 
     from among applicants, the Secretary shall give preference to 
     proposals that--
       (A) meet all applicable Federal and State permitting 
     requirements;
       (B) are most likely to be successful; and
       (C) are located in local markets that have the greatest 
     need for the facility because of--
       (i) the limited availability of land for waste disposal; or
       (ii) a high level of demand for fuel ethanol or other 
     commercial byproducts of the facility.
       (6) Maturity.--A loan guaranteed under paragraph (2) shall 
     have a maturity of not more than 20 years.
       (7) Terms and conditions.--The loan agreement for a loan 
     guaranteed under paragraph (2) shall provide that no 
     provision of the loan agreement may be amended or waived 
     without the consent of the Secretary.
       (8) Assurance of repayment.--The Secretary shall require 
     that an applicant for a loan guarantee under paragraph (2) 
     provide an assurance of repayment in the form of a 
     performance bond, insurance, collateral, or other means 
     acceptable to the Secretary in an amount equal to not less 
     than 20 percent of the amount of the loan.
       (9) Guarantee fee.--The recipient of a loan guarantee under 
     paragraph (2) shall pay the Secretary an amount determined by 
     the Secretary to be sufficient to cover the administrative 
     costs of the Secretary relating to the loan guarantee.
       (10) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     made under this section. Any such guarantee made by the 
     Secretary shall be conclusive evidence of the eligibility of 
     the loan for the guarantee with respect to principal and 
     interest. The validity of the guarantee shall be 
     incontestable in the hands of a holder of the guaranteed 
     loan.
       (11) Reports.--Until each guaranteed loan under this 
     section has been repaid in full, the Secretary shall annually 
     submit to Congress an report on the activities of the 
     Secretary under this section.
       (12) Termination of Authority.--The authority of the 
     Secretary to issue a loan guarantee under paragraph (2) 
     terminates on the date that is 10 years after the date of 
     enactment of this Act.
                                  ____

  SA 3326. Mrs. MURRAY (for herself and Ms. Cantwell) submitted an 
amendment intended to be proposed to amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       In Division H, beginning on page 103, line 19, strike all 
     through page 104, line 7, and insert the following:
       ``(i) generates at least 0.5 kilowatt of electricity using 
     an electrochemical process, and
       ``(ii) has an electricity-only generation efficiency 
     greater than 30 percent.
       ``(B) Limitation.--In the case of qualified fuel cell 
     property placed in service during the taxable year, the 
     credit determined under paragraph (1) for such year with 
     respect to such property shall not exceed an amount equal to 
     the lesser of--
       ``(i) 30 percent of the basis of such property, or
       ``(ii) $500 for each 0.5 kilowatt of capacity of such 
     property.
                                  ____

  SA 3327. Mr. REID (for Mr. Thompson) proposed an amendment to the 
bill H.R. 169, to require that Federal agencies be accountable for 
violations of antidiscrimination and whistleblower protection laws, and 
for other purposes; as follows:

       On page __, insert between lines __ and __ the following:
       (c) Studies on Statutory Effects on Agency Operations.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the General Accounting Office shall 
     conduct--
       (A) a study on the effects of section 201 on the operations 
     of Federal agencies; and
       (B) a study on the effects of section 13 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 612) on the operations of 
     Federal agencies.
       (2) Contents.--Each study under paragraph (1) shall 
     include, with respect to the applicable statutes of the 
     study--
       (A) a summary of the number of cases in which a payment was 
     made in accordance with section 2414, 2517, 2672, or 2677 of 
     title 28, United States Code, and under section 1304 of title 
     31, United States Code;
       (B) a summary of the length of time Federal agencies used 
     to complete reimbursements of payments described under 
     subparagraph (A); and
       (C) conclusions that assist in making determinations on how 
     the reimbursements of payments described under subparagraph 
     (A) will affect--
       (i) the operations of Federal agencies;
       (ii) funds appropriated on an annual basis;
       (iii) employee relations and other human capital matters;
       (iv) settlements; and
       (v) any other matter determined by the General Accounting 
     Office to be appropriate for consideration.
       (3) Reports.--Not later than 90 days after the completion 
     of each study under paragraph (1), the General Accounting 
     Office shall submit a report on each study, respectively, to 
     the Speaker of the House of Representatives, the President 
     pro tempore of the Senate, the Committee on Governmental 
     Affairs of the Senate, the Committee on Government Reform of 
     the House of Representatives, and the Attorney General.
                                  ____

  SA 3328. Mr. REID (for Mr. Thompson) proposed an amendment to the 
bill H.R. 169, to require that Federal agencies be accountable for 
violations of antidiscrimination and whistleblower protection laws, and 
for other purposes; as follows:

       On page __, insert between lines __ and __ the following:
       (c) Study on Administrative and Personnel Costs Incurred by 
     the Department of the Treasury.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the General Accounting Office shall 
     conduct a study on the extent of any administrative and 
     personnel costs incurred by the Department of the Treasury to 
     account for payments made in accordance with section 2414, 
     2517, 2672, or 2677 of title 28, United States Code, and 
     under section 1304 of title 31, United States Code, as a 
     result of--
       (A) this Act; and
       (B) the Contracts Dispute Act of 1978 (41 U.S.C. 601 note; 
     Public Law 95-563).
       (2) Report.--Not later than 90 days after the completion of 
     the study under paragraph (1), the General Accounting Office 
     shall submit a report on the study to the Speaker of the 
     House of Representatives, the President pro tempore of the 
     Senate, the Committee on Governmental Affairs of the Senate, 
     the Committee on Government Reform of the House of 
     Representatives, and the Attorney General.
                                  ____

  SA 3329. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       In Division H, beginning on page 68, line 22, strike all 
     through page 72, line 19, and insert:
       ``(f) Termination.--This section shall not apply to any 
     fuel sold after December 31, 2009.''.
       (2) Credit treated as part of general business credit.--
     Section 38(b), as amended by this Act, is amended by striking 
     ``plus'' at

[[Page 5466]]

     the end of paragraph (15), by striking the period at the end 
     of paragraph (16) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(17) the biodiesel fuels credit determined under section 
     40B(a).''.
       (3) Conforming amendments.--
       (A) Section 39(d), as amended by this Act, is amended by 
     adding at the end the following new paragraph:
       ``(12) No carryback of biodiesel fuels credit before 
     january 1, 2003.--No portion of the unused business credit 
     for any taxable year which is attributable to the biodiesel 
     fuels credit determined under section 40B may be carried back 
     to a taxable year beginning before January 1, 2003.''.
       (B) Section 196(c) is amended by striking ``and'' at the 
     end of paragraph (9), by striking the period at the end of 
     paragraph (10), and by adding at the end the following new 
     paragraph:
       ``(11) the biodiesel fuels credit determined under section 
     40B(a).''.
       (C) Section 6501(m), as amended by this Act, is amended by 
     inserting ``40B(e),'' after ``40(f),''.
       (D) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by adding after the item relating to section 40A the 
     following new item:

``Sec. 40B. Biodiesel used as fuel.''.

       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.
       (b) Reduction of Motor Fuel Excise Taxes on Biodiesel 
     Mixtures.--
       (1) In general.--Section 4081 (relating to manufacturers 
     tax on petroleum products) is amended by adding at the end 
     the following new subsection:
       ``(f) Biodiesel Mixtures.--Under regulations prescribed by 
     the Secretary--
       ``(1) In general.--In the case of the removal or entry of a 
     qualified biodiesel mixture, the rate of tax under subsection 
     (a) shall be the otherwise applicable rate reduced by the 
     biodiesel mixture rate (if any) applicable to the mixture.
       ``(2) Tax prior to mixing.--
       ``(A) In general.--In the case of the removal or entry of 
     diesel fuel for use in producing at the time of such removal 
     or entry a qualified biodiesel mixture, the rate of tax under 
     subsection (a) shall be the rate determined under 
     subparagraph (B).
       ``(B) Determination of rate.--For purposes of subparagraph 
     (A), the rate determined under this subparagraph is the rate 
     determined under paragraph (1), divided by a percentage equal 
     to 100 percent minus the percentage of biodiesel which will 
     be in the mixture.
       ``(3) Definitions.--For purposes of this subsection, any 
     term used in this subsection which is also used in section 
     40B shall have the meaning given such term by section 40B.
       ``(4) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (6) and (7) of subsection (c) shall apply for 
     purposes of this subsection.''.
       (2) Conforming amendments.--
       (A) Section 4041 is amended by adding at the end the 
     following new subsection:
       ``(n) Biodiesel Mixtures.--Under regulations prescribed by 
     the Secretary, in the case of the sale or use of a qualified 
     biodiesel mixture (as defined in section 40B(b)(2)), the 
     rates under paragraphs (1) and (2) of subsection (a) shall be 
     the otherwise applicable rates, reduced by any applicable 
     biodiesel mixture rate (as defined in section 
     40B(b)(1)(B)).''.
       (B) Section 6427 is amended by redesignating subsection (p) 
     as subsection (q) and by inserting after subsection (o) the 
     following new subsection:
       ``(p) Biodiesel Mixtures.--Except as provided in subsection 
     (k), if any diesel fuel on which tax was imposed by section 
     4081 at a rate not determined under section 4081(f) is used 
     by any person in producing a qualified biodiesel mixture (as 
     defined in section 40B(b)(2)) which is sold or used in such 
     person's trade or business, the Secretary shall pay (without 
     interest) to such person an amount equal to the per gallon 
     applicable biodiesel mixture rate (as defined in section 
     40B(b)(1)(B)) with respect to such fuel.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to any fuel sold after December 31, 2002, and 
     before January 1, 2010.
                                  ____

  SA 3330. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself, and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       In Division H, beginning on page 68, line 22, strike all 
     through page 72, line 19, and insert:
       ``(f) Termination.--This section shall not apply to any 
     fuel sold after December 31, 2007.''.
       (2) Credit treated as part of general business credit.--
     Section 38(b), as amended by this Act, is amended by striking 
     ``plus'' at the end of paragraph (15), by striking the period 
     at the end of paragraph (16) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(17) the biodiesel fuels credit determined under section 
     40B(a).''.
       (3) Conforming amendments.--
       (A) Section 39(d), as amended by this Act, is amended by 
     adding at the end the following new paragraph:
       ``(12) No carryback of biodiesel fuels credit before 
     january 1, 2003.--No portion of the unused business credit 
     for any taxable year which is attributable to the biodiesel 
     fuels credit determined under section 40B may be carried back 
     to a taxable year beginning before January 1, 2003.''.
       (B) Section 196(c) is amended by striking ``and'' at the 
     end of paragraph (9), by striking the period at the end of 
     paragraph (10), and by adding at the end the following new 
     paragraph:
       ``(11) the biodiesel fuels credit determined under section 
     40B(a).''.
       (C) Section 6501(m), as amended by this Act, is amended by 
     inserting ``40B(e),'' after ``40(f),''.
       (D) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by adding after the item relating to section 40A the 
     following new item:

``Sec. 40B. Biodiesel used as fuel.''.

       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.
       (b) Reduction of Motor Fuel Excise Taxes on Biodiesel 
     Mixtures.--
       (1) In general.--Section 4081 (relating to manufacturers 
     tax on petroleum products) is amended by adding at the end 
     the following new subsection:
       ``(f) Biodiesel Mixtures.--Under regulations prescribed by 
     the Secretary--
       ``(1) In general.--In the case of the removal or entry of a 
     qualified biodiesel mixture, the rate of tax under subsection 
     (a) shall be the otherwise applicable rate reduced by the 
     biodiesel mixture rate (if any) applicable to the mixture.
       ``(2) Tax prior to mixing.--
       ``(A) In general.--In the case of the removal or entry of 
     diesel fuel for use in producing at the time of such removal 
     or entry a qualified biodiesel mixture, the rate of tax under 
     subsection (a) shall be the rate determined under 
     subparagraph (B).
       ``(B) Determination of rate.--For purposes of subparagraph 
     (A), the rate determined under this subparagraph is the rate 
     determined under paragraph (1), divided by a percentage equal 
     to 100 percent minus the percentage of biodiesel which will 
     be in the mixture.
       ``(3) Definitions.--For purposes of this subsection, any 
     term used in this subsection which is also used in section 
     40B shall have the meaning given such term by section 40B.
       ``(4) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (6) and (7) of subsection (c) shall apply for 
     purposes of this subsection.''.
       (2) Conforming amendments.--
       (A) Section 4041 is amended by adding at the end the 
     following new subsection:
       ``(n) Biodiesel Mixtures.--Under regulations prescribed by 
     the Secretary, in the case of the sale or use of a qualified 
     biodiesel mixture (as defined in section 40B(b)(2)), the 
     rates under paragraphs (1) and (2) of subsection (a) shall be 
     the otherwise applicable rates, reduced by any applicable 
     biodiesel mixture rate (as defined in section 
     40B(b)(1)(B)).''.
       (B) Section 6427 is amended by redesignating subsection (p) 
     as subsection (q) and by inserting after subsection (o) the 
     following new subsection:
       ``(p) Biodiesel Mixtures.--Except as provided in subsection 
     (k), if any diesel fuel on which tax was imposed by section 
     4081 at a rate not determined under section 4081(f) is used 
     by any person in producing a qualified biodiesel mixture (as 
     defined in section 40B(b)(2)) which is sold or used in such 
     person's trade or business, the Secretary shall pay (without 
     interest) to such person an amount equal to the per gallon 
     applicable biodiesel mixture rate (as defined in section 
     40B(b)(1)(B)) with respect to such fuel.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to any fuel sold after December 31, 2002, and 
     before January 1, 2008.
                                  ____

  SA 3331. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself, and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       In Division H, on page 50, strike lines 23 and 24, and 
     insert the following:
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2006.''.

[[Page 5467]]

       (b) Incentive for Production of Hydrogen at Qualified 
     Clean-Fuel Vehicle Refueling Property.--Section 179A(d) 
     (defining qualified clean-fuel vehicle refueling property) is 
     amended by adding at the end the following new flush 
     sentence:

     ``In the case of clean-burning fuel which is hydrogen 
     produced from another clean-burning fuel, paragraph (3)(A) 
     shall be applied by substituting `production, storage, or 
     dispensing' for `storage or dispensing' both places it 
     appears.''.

                          ____________________