[Congressional Record (Bound Edition), Volume 151 (2005), Part 19]
[Senate]
[Pages 25540-25548]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KOHL:
  S. 1979. A bill to provide for the establishment of a strategic 
refinery reserve, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. KOHL. Madam President, I rise today to speak briefly about an 
amendment Senator Jeffords and I had hoped to offer to the Defense 
authorization bill. I understand it is not considered relevant, so we 
won't get a vote. That is unfortunate. I cannot imagine what is more 
relevant to the defense of our Nation than an amendment that would do 
something concrete about high energy prices, about national security, 
and about economic security--all with one vote.
  Our amendment, which we are introducing today as a freestanding bill 
along with Senator Feinstein, would authorize the Department of Energy 
to build enough refining capacity to meet the energy needs of the 
Federal Government--primarily the Department of Defense--and also to 
supply the private market in times of shortages and price spikes.
  There is bipartisan agreement that increasing refining capacity in 
the United States would help avoid the kinds of energy price spikes we 
have seen in the last few months. There also seems to be clear evidence 
that, despite generous incentives from the Government and soaring 
profits, the oil companies are not interested in building the new 
refineries we need. And in a free market, of course, that is their 
choice.
  But in a democracy, we in Congress are charged with making a 
different choice. We need to do what is best for our national and 
economic security. And, in this case, that would be to stop begging and 
bribing the oil companies. By building our own refining capacity, we 
would be able to supply the fuel needs of the Federal Government at 
what it actually costs to make that fuel. And we would also be able to 
hold in reserve refining capacity that we could access to bring down 
the cost of gas in times when shortages raise prices.
  Today, the Senate is holding important hearings on energy. I am 
concerned, however, that instead of offering answers and solutions, the 
oil companies will blame OPEC for the high price of gasoline, diesel 
fuel, and home heating oil. We should not let them get away with that 
because OPEC is only part of the story.
  While the price of gasoline rose to record levels in recent months, 
the oil companies were earning increasingly high profits on each gallon 
of gasoline. One measure is the ``domestic spread,'' the retail 
gasoline pump price minus the cost of crude oil and taxes. During the 
1900s, the domestic spread was about 40 cents per gallon for regular 
gas. This number has grown sharply since 2000. The domestic spread 
averaged above 50 cents per gallon between 2000 and 2004, and has 
reached as high as over 70 cents per gallon in recent months. In other 
words, the oil companies are earning much more today for a gallon of 
gas, even factoring in the higher price of crude oil.
  Growing oil company profits also demonstrate this point: Oil industry 
profits, after tax, increased by $100 billion in the 5 years from 2000 
to 2004, as compared to the previous 5-year period. ExxonMobil's 
earnings for the first 9 months of 2005--over $25 billion--already 
exceeded its full-year earnings for all of 2004. So obviously, these 
companies are doing much more than just passing along higher crude oil 
prices to customers.
  One major reason for these soaring prices and profits is the oil 
industry's failure to increase refining capacity in the face of rising 
demand for refined petroleum products. A new refinery has not been 
built in the United States since the 1970s, and many oil refineries 
have been closed. In 1985, refining capacity equaled daily consumption 
of petroleum products. By 2002, daily consumption exceeded refining 
capacity by almost 20 percent.
  As domestic supply falls short of domestic demand, three very 
dangerous things happen: 1, we are forced to rely on more imports. 2, 
we pay higher and higher prices for our fuel. And, 3, our economy is 
increasingly vulnerable to disasters and disruptions--like those we saw 
in the wake of Hurricanes Katrina and Rita.
  The bill we are introducing would authorize the Department of Energy 
to create a refining capacity equal to 5 percent of current domestic 
consumption. These refineries would supply the Federal Government's 
need for petroleum products, estimated to be roughly 2 percent of U.S. 
consumption. The extra 3 percent of capacity would be available for 
emergencies and market disruptions.
  This ``Strategic Refining Reserve'' would have a direct effect on 
energy prices to the consumer. It would get the Federal Government out 
of the private market where its huge demand for

[[Page 25541]]

energy drives up prices. And it would increase the amount of oil that 
can be refined in this country in times when the oil companies' 
refining capacity is tapped out.
  We have a duty to protect consumers, our economy, and our national 
security from an industry that often seems focused only on the short-
term bottom line. We have a duty to respond with concrete help for the 
families and businesses that tell us daily of the enormous financial 
threat posed by soaring energy prices. And we have a duty to make sure 
our military has access to a steady, affordable supply of domestically 
refined fuel.
  Though we will not be able to offer this proposal as an amendment to 
the DOD authorization bill, we have introduced it as a bill, and we 
plan to continue to look for opportunities for a vote. We need to take 
sole control of fuel prices away from the oil companies. We need to 
take charge and bring the price of fuel down by building this 
``Strategic Refinery Reserve.''
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1979

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. STRATEGIC REFINERY RESERVE.

       (a) Establishment.--
       (1) In general.--The Secretary of Energy shall establish 
     and operate a Strategic Refinery Reserve (referred to in this 
     section as the ``Reserve'') in the United States.
       (2) Authorities.--To carry out this subsection, the 
     Secretary of Energy may contract for--
       (A) the construction or operation of new refineries; or
       (B) the acquisition or reopening of closed refineries.
       (b) Operation.--The Secretary of Energy shall operate the 
     Reserve--
       (1) to provide petroleum products to--
       (A) the Federal Government (including the Department of 
     Defense); and
       (B) any State governments and political subdivisions of 
     States that opt to purchase refined petroleum products from 
     the Reserve; and
       (2) to provide petroleum products to the general public 
     during any period described in subsection (c).
       (c) Emergency Periods.--The Secretary of Energy shall make 
     petroleum products from the Reserve available under 
     subsection (b)(2) only if the President determines that--
       (1) there is a severe energy supply interruption within the 
     meaning of the term under section 3 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6202); or
       (2)(A) there is a regional petroleum product supply 
     shortage of significant scope and duration; and
       (B) action taken under subsection (b)(2) would directly and 
     significantly assist in reducing the adverse impact of the 
     shortage.
       (d) Locations.--In determining the location of a refinery 
     for inclusion in the Reserve, the Secretary of Energy shall 
     take into account--
       (1) the impact of the refinery on the local community, as 
     determined after requesting and reviewing any comments from 
     State and local governments and the public;
       (2) regional vulnerability to--
       (A) natural disasters; and
       (B) terrorist attacks;
       (3) the proximity of the refinery to the Strategic 
     Petroleum Reserve;
       (4) the accessibility of the refinery to energy 
     infrastructure and Federal facilities (including facilities 
     under the jurisdiction of the Department of Defense);
       (5) the need to minimize adverse public health and 
     environmental impacts; and
       (6) the energy needs of the Federal Government (including 
     the Department of Defense).
       (e) Increased Capacity.--The Secretary of Energy shall 
     ensure that refineries in the Reserve are designed to provide 
     a rapid increase in production capacity during periods 
     described in subsection (c).
       (f) Implementation Plan.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Energy shall 
     submit to Congress a plan for the establishment and operation 
     of the Reserve under this section.
       (2) Requirements.--The plan required under paragraph (1) 
     shall--
       (A)(i)(I) provide for, within 2 years after the date of 
     enactment of this Act, a capacity within the Reserve equal to 
     5 percent of the total United States daily demand for 
     gasoline, diesel, and aviation fuel; and
       (II) provide for a capacity within the Reserve such that 
     not less than 75 percent of the gasoline and diesel fuel 
     produced by the Reserve contain an average of 10 percent 
     renewable fuel (as that term is defined in 211(o)(1)(C) of 
     the Clean Air Act (42 U.S.C. 7545(o)(1)(C)); or
       (ii) if the Secretary of Energy finds that achieving the 
     capacity described in either subclause (I) or (II) of clause 
     (i) is not feasible within 2 years, include--
       (I) an explanation from the Secretary of Energy of the 
     reasons why achieving the capacity within the timeframe is 
     not feasible; and
       (II) provisions for achieving the required capacity as soon 
     as practicable; and
       (B) provide for adequate delivery systems capable of 
     providing Reserve product to the entities described in 
     subsection (b)(1).
       (g) Coordination.--The Secretary of Energy shall carry out 
     this section in coordination with the Secretary of Defense.
       (h) Compliance With Federal Environmental Requirements.--
     Nothing in this section affects any requirement to comply 
     with Federal or State environmental or other laws.

     SEC. 2. REPORTS ON REFINERY CLOSURES.

       (a) Reports to Secretary of Energy.--
       (1) In general.--Not later than 180 days before permanently 
     closing a refinery in the United States, the owner or 
     operator of the refinery shall provide to the Secretary of 
     Energy notice of the closing.
       (2) Requirements.--The notice required under paragraph (1) 
     with respect to a refinery to be closed shall include an 
     explanation of the reasons for the closing of the refinery.
       (b) Reports to Congress.--The Secretary of Energy shall, in 
     consultation with the Secretary of Defense, the Administrator 
     of the Environmental Protection Agency, and the Federal Trade 
     Commission and as soon as practicable after receipt of a 
     report under subsection (a), submit to Congress--
       (1) the report; and
       (2) an analysis of the effects of the proposed closing 
     covered by the report on--
       (A) in accordance with the Clean Air Act (42 U.S.C. 7401 et 
     seq.), supplies of clean fuel;
       (B) petroleum product prices;
       (C) competition in the refining industry;
       (D) the national economy;
       (E) regional economies;
       (F) regional supplies of refined petroleum products;
       (G) the supply of fuel to the Department of Defense; and
       (H) energy security.
                                 ______
                                 
      By Ms. MURKOWSKI:
  S. 1980. A bill to provide habitable living quarters for teachers, 
administrators, and other school staff, and their households, in rural 
areas of Alaska located in or near Alaska Native villages; to the 
Committee on Indian Affairs.
  Ms. MURKOWSKI. Mr. President, I rise to introduce a bill that will 
have a profound effect on the retention of teachers, administrators, 
and other school staff in remote and rural areas of Alaska.
  In rural areas of Alaska, school districts face the challenge of 
recruiting and retaining teachers, administrators and other school 
staff due to the lack of housing. In one particular year in the Lower 
Kuskokwim School District in western Alaska, they hired one teacher for 
every six who decided not to accept job offers. Half of the applicants 
who did not accept a teaching position in that district indicated that 
their decision was related to the lack of housing.
  In 2003, I traveled through rural Alaska with then-Education 
Secretary Rod Paige. I wanted him to see the challenges of educating 
children in such a remote and rural environment. At the village school 
in Savoonga, the principal slept in a broom closet in the school due to 
the lack of housing in that village. The special education teacher 
slept in her classroom, bringing a mattress out each evening to sleep 
on the floor. The other teachers shared housing in a single home. 
Needless to say, there is not enough room for the teachers' spouses. 
Unfortunately, Savoonga is not an isolated example of the teacher 
housing situation in rural Alaska.
  Rural Alaskan school districts experience a high rate of teacher 
turnover due to the lack of housing. Turnover is as high as 30 percent 
each year in some rural areas with housing issues being a major factor. 
How can we expect our children to receive a quality education when the 
good teachers don't stay? How can we meet the mandates of No Child Left 
Behind in such an educational environment? Clearly, the lack of teacher 
housing in rural Alaska is an issue that must be addressed in order to 
ensure that children in rural Alaska receive the same level of 
education as their peers in more urban settings.
  My bill authorizes the Department of Housing and Urban Development to 
provide teacher housing funds to the

[[Page 25542]]

Alaska Housing Finance Corporation, which is a State agency. In turn, 
the corporation is authorized to provide grant and loan funds to rural 
school districts in Alaska for teacher housing projects.
  This legislation will allow school districts in rural Alaska to 
address the housing shortage in the following ways: construct housing 
units; purchase housing units; lease housing units; rehabilitate 
housing units; purchase or lease property on which housing units will 
be constructed, purchased or rehabilitated; repay loans secured for 
teacher housing projects; and conduct any other activities normally 
related to the construction, purchase, or rehabilitation of teacher 
housing projects.
  Eligible school districts that accept funds under this legislation 
will be required to provide the housing to teachers, administrators, 
other school staff, and members of their households.
  It is imperative that we address this important issue and allow the 
disbursement of funds to be handled at the State level. The quality of 
education of our rural students is at stake.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1980

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Rural Teacher Housing Act of 
     2005''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) housing for teachers, administrators, other school 
     staff, and the households of such staff in remote and rural 
     areas of the State of Alaska is often substandard, if 
     available at all;
       (2) teachers, administrators, other school staff, and the 
     households of such staff are often forced to find alternate 
     shelter, sometimes even in school buildings; and
       (3) rural school districts in the State of Alaska face 
     increased challenges, including meeting the requirements of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.), in recruiting employees due to the lack of 
     affordable, quality housing.
       (b) Purpose.--The purpose of this Act is to provide 
     habitable living quarters for teachers, administrators, other 
     school staff, and the households of such staff in rural areas 
     of the State of Alaska located in or near Alaska Native 
     villages.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Alaska housing finance corporation.--The term ``Alaska 
     Housing Finance Corporation'' means the State housing 
     authority for the State of Alaska created under the laws of 
     the State of Alaska (or a successor authority).
       (2) Elementary school.--The term ``elementary school'' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       (3) Eligible school district.--The term ``eligible school 
     district'' means a public school district (as defined under 
     the laws of the State of Alaska) located in the State of 
     Alaska that operates 1 or more schools in a qualified 
     community.
       (4) Native village.--
       (A) In general.--The term ``Native village'' has the 
     meaning given the term in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602).
       (B) Inclusion.--The term ``Native village'' includes the 
     Metlakatla Indian Community of the Annette Islands Reserve.
       (5) Other school staff.--The term ``other school staff'' 
     means--
       (A) pupil services personnel;
       (B) librarians;
       (C) career guidance and counseling personnel;
       (D) education aides; and
       (E) other instructional and administrative school 
     personnel.
       (6) Qualified community.--The term ``qualified community'' 
     means a home rule city or a general law city incorporated 
     under the laws of the State of Alaska, or an unincorporated 
     community (as defined under the laws of the State of Alaska) 
     in the State of Alaska located outside the boundaries of such 
     a city, that, as determined by the Alaska Housing Finance 
     Corporation--
       (A) has a population of not greater than 6,500 individuals;
       (B) is located in or near a Native village; and
       (C) is not connected by road or railroad to the 
     municipality of Anchorage, Alaska, excluding any connection--
       (i) by the Alaska Marine Highway System created under the 
     laws of the State of Alaska; or
       (ii) that requires travel by road through Canada.
       (7) Secondary school.--The term ``secondary school'' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (9) Teacher.--The term ``teacher'' means an individual 
     who--
       (A) is employed as a teacher in a public elementary school 
     or secondary school; and
       (B) meets the teaching certification or licensure 
     requirements of the State of Alaska.
       (10) Tribally designated housing entity.--The term 
     ``tribally designated housing entity'' has the meaning given 
     the term in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4103).
       (11) Village corporation.--
       (A) In general.--The term ``Village Corporation'' has the 
     meaning given the term in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602).
       (B) Inclusions.--The term ``Village Corporation'' includes, 
     as defined in section 3 of that Act (43 U.S.C. 1602)--
       (i) Urban Corporations; and
       (ii) Group Corporations.

     SEC. 4. RURAL TEACHER HOUSING PROGRAM.

       (a) In General.--The Secretary shall provide funds to the 
     Alaska Housing Finance Corporation in accordance with 
     regulations promulgated under section 5 for use in accordance 
     with subsection (b).
       (b) Use of Funds.--
       (1) In general.--The Alaska Housing Finance Corporation 
     shall use funds provided under subsection (a) to provide 
     grants and loans to eligible school districts for use in 
     accordance with paragraph (2).
       (2) Use of funds by eligible school districts.--An eligible 
     school district shall use a grant or loan under paragraph (1) 
     for--
       (A) the construction of new housing units in a qualified 
     community;
       (B) the purchase and rehabilitation of existing structures 
     to be used as housing units in a qualified community;
       (C) the rehabilitation of housing units in a qualified 
     community;
       (D) the leasing of housing units in a qualified community;
       (E) purchasing or leasing real property on which housing 
     units will be constructed, purchased, or rehabilitated in a 
     qualified community;
       (F) the repayment of a loan to--
       (i) construct, purchase, or rehabilitate housing units;
       (ii) purchase real property on which housing units will be 
     constructed, purchased, or rehabilitated in a qualified 
     community; or
       (iii) carry out an activity described in subparagraph (G); 
     and
       (G) any other activity normally associated with the 
     construction, purchase, or rehabilitation of housing units, 
     or the purchase or lease of real property on which housing 
     units will be constructed, purchased, or rehabilitated, in a 
     qualified community, including--
       (i) connecting housing units to a utility;
       (ii) preparing construction sites;
       (iii) transporting any equipment or material necessary for 
     the construction or rehabilitation of housing units to and 
     from the site on which the housing units are or will be 
     constructed; and
       (iv) carrying out an environmental assessment and 
     remediation of a construction site or a site on which housing 
     units are located.
       (c) Ownership of Housing and Land.--
       (1) In general.--Any housing unit constructed, purchased, 
     or rehabilitated, and any real property purchased, using a 
     grant or loan provided under this section shall be considered 
     to be owned, as the Secretary determines to be appropriate, 
     by--
       (A) the affected eligible school district;
       (B) the affected municipality, as defined under the laws of 
     the State of Alaska;
       (C) the affected Village Corporation;
       (D) the Metlakatla Indian Community of the Annette Islands 
     Reserve; or
       (E) a tribally designated housing entity.
       (2) Transfer of ownership.--Ownership of a housing unit or 
     real property under paragraph (1) may be transferred between 
     the entities described in that paragraph.
       (d) Occupancy of Housing Units.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), each housing unit constructed, purchased, rehabilitated, 
     or leased using a grant or loan under this section shall be 
     occupied by--
       (A)(i) a teacher;
       (ii) an administrator; or
       (iii) other school staff; and
       (B) the household of an individual described in 
     subparagraph (A), if any.
       (2) Nonsession months.--A housing unit constructed, 
     purchased, rehabilitated, or leased using a grant or loan 
     under this section may be occupied by an individual other an 
     individual described in paragraph (1) only during a period in 
     which school is not in session.
       (3) Temporary occupants.--A vacant housing unit 
     constructed, purchased, rehabilitated, or leased using a 
     grant or loan under this section may be occupied by a 
     contractor or guest of an eligible school district for a

[[Page 25543]]

     period to be determined by the Alaska Housing Finance 
     Corporation, by regulation.
       (e) Compliance With Law.--An eligible school district that 
     receives a grant or loan under this section shall ensure that 
     each housing unit constructed, purchased, rehabilitated, or 
     leased using the grant or loan complies with applicable laws 
     (including regulations and ordinances).
       (f) Program Policies.--
       (1) In general.--The Alaska Housing Finance Corporation, in 
     consultation with any appropriate eligible school district, 
     shall establish policies governing the administration of 
     grants and loans under this section, including a method of 
     ensuring that funds are made available on an equitable basis 
     to eligible school districts.
       (2) Revisions.--Not less frequently than once every 3 
     years, the Alaska Housing Finance Corporation, in 
     consultation with any appropriate eligible school district, 
     shall take into consideration revisions to the policies 
     established under paragraph (1).

     SEC. 5. REGULATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall promulgate such regulations as are 
     necessary to carry out this Act.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary such sums as are necessary to carry out this 
     Act for each of fiscal years 2007 through 2016.
       (b) Administrative Expenses.--Each of the Secretary and the 
     Alaska Housing Finance Corporation shall use not more than 5 
     percent of funds appropriated during a fiscal year to pay 
     administrative expenses incurred in carrying out this Act.
                                 ______
                                 
      By Mr. DURBIN:
  S. 1981. A bill to amend the Internal Revenue Code of 1986 to impose 
a temporary windfall profit tax on crude oil, to rebate a portion of 
the tax collected back to American consumers, to fund programs under 
the Low-Income Home Energy Assistance Act of 1981 and tax incentives 
for the manufacture of energy efficient motor vehicles by using a 
portion of the proceeds of such tax, and to deposit the balance of the 
tax collected into the Highway Trust Fund to support the funding of 
highway projects and to aid highway users, and for other purposes; to 
the Committee on Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1981

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Windfall Profits Tax Act of 
     2005''.

     SEC. 2. WINDFALL PROFITS TAX.

       (a) In General.--Subtitle E of the Internal Revenue Code of 
     1986 (relating to alcohol, tobacco, and certain other excise 
     taxes) is amended by adding at the end thereof the following 
     new chapter:

              ``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; removal price; adjusted base price; 
              qualified investment.
``Sec. 5898. Special rules and definitions.

     ``SEC. 5896. IMPOSITION OF TAX.

       ``(a) In General.--In addition to any other tax imposed 
     under this title, there is hereby imposed on any integrated 
     oil company (as defined in section 291(b)(4)) an excise tax 
     equal to the amount equal to 50 percent of the windfall 
     profit from all barrels of taxable crude oil removed from the 
     property during each taxable year.
       ``(b) Fractional Part of Barrel.--In the case of a fraction 
     of a barrel, the tax imposed by subsection (a) shall be the 
     same fraction of the amount of such tax imposed on the whole 
     barrel.
       ``(c) Tax Paid by Producer.--The tax imposed by this 
     section shall be paid by the producer of the taxable crude 
     oil.

     ``SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; ADJUSTED BASE 
                   PRICE.

       ``(a) General Rule.--For purposes of this chapter, the term 
     `windfall profit' means the excess of the removal price of 
     the barrel of taxable crude oil over the adjusted base price 
     of such barrel.
       ``(b) Removal Price.--For purposes of this chapter--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `removal price' means the amount for 
     which the barrel of taxable crude oil is sold.
       ``(2) Sales between related persons.--In the case of a sale 
     between related persons, the removal price shall not be less 
     than the constructive sales price for purposes of determining 
     gross income from the property under section 613.
       ``(3) Oil removed from property before sale.--If crude oil 
     is removed from the property before it is sold, the removal 
     price shall be the constructive sales price for purposes of 
     determining gross income from the property under section 613.
       ``(4) Refining begun on property.--If the manufacture or 
     conversion of crude oil into refined products begins before 
     such oil is removed from the property--
       ``(A) such oil shall be treated as removed on the day such 
     manufacture or conversion begins, and
       ``(B) the removal price shall be the constructive sales 
     price for purposes of determining gross income from the 
     property under section 613.
       ``(5) Property.--The term `property' has the meaning given 
     such term by section 614.
       ``(c) Adjusted Base Price Defined.--
       ``(1) In general.--For purposes of this chapter, the term 
     `adjusted base price' means $40 for each barrel of taxable 
     crude oil plus an amount equal to--
       ``(A) such base price, multiplied by
       ``(B) the inflation adjustment for the calendar year in 
     which the taxable crude oil is removed from the property.

     The amount determined under the preceding sentence shall be 
     rounded to the nearest cent.
       ``(2) Inflation adjustment.--
       ``(A) In general.--For purposes of paragraph (1), the 
     inflation adjustment for any calendar year after 2006 is the 
     percentage by which--
       ``(i) the implicit price deflator for the gross national 
     product for the preceding calendar year, exceeds
       ``(ii) such deflator for the calendar year ending December 
     31, 2005.
       ``(B) First revision of price deflator used.--For purposes 
     of subparagraph (A), the first revision of the price deflator 
     shall be used.

     ``SEC. 5898. SPECIAL RULES AND DEFINITIONS .

       ``(a) Withholding and Deposit of Tax.--The Secretary shall 
     provide such rules as are necessary for the withholding and 
     deposit of the tax imposed under section 5896 on any taxable 
     crude oil.
       ``(b) Records and Information.--Each taxpayer liable for 
     tax under section 5896 shall keep such records, make such 
     returns, and furnish such information (to the Secretary and 
     to other persons having an interest in the taxable crude oil) 
     with respect to such oil as the Secretary may by regulations 
     prescribe.
       ``(c) Return of Windfall Profit Tax.--The Secretary shall 
     provide for the filing and the time of such filing of the 
     return of the tax imposed under section 5896.
       ``(d) Definitions.--For purposes of this chapter--
       ``(1) Producer.--The term `producer' means the holder of 
     the economic interest with respect to the crude oil.
       ``(2) Crude oil.--
       ``(A) In general.--The term `crude oil' includes crude oil 
     condensates and natural gasoline.
       ``(B) Exclusion of newly discovered oil.--Such term shall 
     not include any oil produced from a well drilled after the 
     date of the enactment of the Windfall Profits Tax Act of 
     2005, except with respect to any oil produced from a well 
     drilled after such date on any proven oil or gas property 
     (within the meaning of section 613A(c)(9)(A)).
       ``(3) Barrel.--The term `barrel' means 42 United States 
     gallons.
       ``(e) Adjustment of Removal Price.--In determining the 
     removal price of oil from a property in the case of any 
     transaction, the Secretary may adjust the removal price to 
     reflect clearly the fair market value of oil removed.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this chapter.
       ``(g) Termination.--This section shall not apply to taxable 
     crude oil removed after the date which is 10 years after the 
     date of the enactment of this section.''.
       (b) Clerical Amendment.--The table of chapters for subtitle 
     E of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new item:

             ``Chapter 56. Windfall Profit on Crude Oil.''.

       (c) Deductibility of Windfall Profit Tax.--The first 
     sentence of section 164(a) of the Internal Revenue Code of 
     1986 (relating to deduction for taxes) is amended by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) The windfall profit tax imposed by section 5896.''.
       (d) American Consumer Rebate.--
       (1) In general.--Subchapter B of chapter 65 of the Internal 
     Revenue Code of 1986 (relating to rules of special 
     application in the case of abatements, credits, and refunds) 
     is amended by adding at the end the following new section:

     ``SEC. 6430. AMERICAN CONSUMER REBATE.

       ``(a) General Rule.--Except as otherwise provided in this 
     section, each individual shall be treated as having made a 
     payment against the tax imposed by chapter 1 in an amount 
     equal to--
       ``(1) in the case of any taxable year beginning in 2006, 
     $150, and
       ``(2) in the case of any taxable year beginning after 2006, 
     the applicable amount.
       ``(b) Applicable Amount.--For purposes of this section, the 
     applicable amount for any

[[Page 25544]]

     taxpayer for any taxable year shall be determined by the 
     Secretary not later than December 31 (beginning in 2007) 
     taking into account the number of such taxpayers and 75 
     percent of the amount of revenues in the Treasury resulting 
     from the tax imposed by section 5896 for such taxable year.
       ``(c) Credits and Refunds.--Under regulations prescribed by 
     the Secretary, any amount treated as a payment under 
     subsection (a) for the taxable year shall be credited against 
     the tax liability of the taxpayer under section 1 for such 
     taxable year or, in the absence of such tax liability of the 
     taxpayer for such taxable year, refunded to the taxpayer.
       ``(d) Certain Persons Not Eligible.--This section shall not 
     apply to--
       ``(1) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for a taxable 
     year beginning in the calendar year in which such 
     individual's taxable year begins,
       ``(2) any estate or trust, or
       ``(3) any nonresident alien individual.''.
       (2) Conforming amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting before the period 
     ``, or enacted by the Windfall Profits Tax Act of 2005''.
       (3) Clerical amendment.--The table of sections for 
     subchapter B of chapter 65 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Sec. 6430. American consumer rebate.''.

       (4) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (e) Low Income Home Energy Assistance Trust Fund.--
       (1) In general.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to trust fund code) is amended 
     by adding at the end the following new section:

     ``SEC. 9511. LOW-INCOME HOME ENERGY ASSISTANCE TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Low-Income Home Energy Assistance Trust Fund', consisting of 
     any amount appropriated or credited to the Trust Fund as 
     provided in this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--There are hereby 
     appropriated to the Low-Income Home Energy Assistance Trust 
     Fund for each fiscal year beginning after September 30, 2005, 
     amounts equivalent to 7.5 percent of the taxes received in 
     the Treasury under section 5896 (relating to windfall profit 
     tax on crude oil) for such fiscal year.
       ``(c) Expenditures From Trust Fund.--Amounts in the Low 
     Income Home Energy Assistance Trust Fund shall be available, 
     without further appropriation, for each fiscal year to carry 
     out the program under the Low-Income Home Energy Assistance 
     Act of 1981 for which funds are authorized under section 
     2602(b) of such Act for such fiscal year, but only if not 
     less than $1,800,000,000 has been appropriated for such 
     program for such fiscal year (determined without regard to 
     any amount appropriated to the Low Income Home Energy 
     Assistance Trust Fund).''.
       (2) Clerical amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 9511. Low-Income Home Energy Assistance Trust Fund.''.

       (f) Energy Efficient Motor Vehicles Manufacturing Credit.--
       (1) In general.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     foreign tax credit, etc.) is amended by adding at the end the 
     following new section:

     ``SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       ``(a) Credit Allowed.--In the case of an eligible taxpayer, 
     subject to a credit allocation under subsection (e) to such 
     eligible taxpayer, there shall be allowed as a credit against 
     the tax imposed by this chapter for the taxable year to an 
     amount equal to the sum of--
       ``(1) the initial investment credit determined under 
     subsection (b) for the taxable year,
       ``(2) the fuel economy achievement credit determined under 
     subsection (c) for such taxable year, and
       ``(3) the eligible components R&D credit determined under 
     subsection (d) for such taxable year.
       ``(b) Initial Investment Credit.--For purposes of this 
     section, the initial investment credit is equal to 20 percent 
     of the qualified investment of an eligible taxpayer with 
     respect to energy efficient motor vehicles during the taxable 
     year beginning in 2006.
       ``(c) Fuel Economy Achievement Credit.--For purposes of 
     this section--
       ``(1) In general.--In the case of an eligible taxpayer who 
     meets the requirements of paragraph (2) for a model year 
     ending in a taxable year specified in the table contained in 
     paragraph (3), the fuel economy achievement credit for such 
     taxable year is equal to 30 percent of the sum of--
       ``(A) at the election of the eligible taxpayer, such 
     qualified investment for any preceding taxable year beginning 
     after 2005 if such taxable year has not previously been taken 
     into account under this subsection by such taxpayer, plus
       ``(B) at the election of the eligible taxpayer, the 
     qualified investment with respect to energy efficient motor 
     vehicles of the eligible taxpayer for the taxable year 
     beginning in 2015.
       ``(2) Demonstrated combined fleet economy improvements.--
     The requirements of this paragraph are met for any model year 
     ending in a taxable year if the eligible taxpayer can 
     demonstrate to the satisfaction of the Secretary that the 
     percentage by which the taxpayer's overall combined fuel 
     economy standard for the taxpayer's vehicle fleet for such 
     model year exceeds such standard for such taxpayer's 2005 
     model year as reported to the National Highway Traffic Safety 
     Administration under section 32907 of title 49, United States 
     Code, is not less than the percentage determined for such 
     model year under paragraph (3).
       ``(3) Percentage increase.--The percentage determined under 
     this paragraph for any taxable year is equal to--
``Model year ending in taxable year                 Percentage increase
  2008................................................................5
  2009...............................................................10
  2010...............................................................15
  2011...............................................................20
  2012.............................................................27.5
  2013...............................................................35
  2014.............................................................42.5
  2015...............................................................50
       ``(d) Eligible Components R&D Credit.--For purposes of this 
     section, the eligible R&D credit for any taxable year is 
     equal to 30 percent of the research and development costs 
     paid or incurred by an eligible taxpayer for such taxable 
     year with respect to eligible components used or to be used 
     in the manufacture of energy efficient motor vehicles.
       ``(e) Limitation.--
       ``(1) Initial investment credit and fuel economy 
     achievement credit.--Subject to paragraph (2), the aggregate 
     amount of initial investment credits and fuel economy 
     achievement credits allowed under subsection (a) for any 
     taxable year beginning in a calendar year after 2005 shall be 
     allocated by the Secretary among all eligible taxpayers--
       ``(A) based on each eligible taxpayer's percentage of the 
     total qualified investment of all such taxpayers, and
       ``(B) such that such aggregate amount does not exceed--
       ``(i) $1,000,000,000, plus
       ``(ii) any amount of credit unallocated during any 
     preceding calendar year.
       ``(2) Eligible components r&d credit.--Of the dollar amount 
     available for allocation under paragraph (1) for any taxable 
     year, 10 percent of such amount shall be allocated in the 
     same manner by the Secretary among all eligible taxpayers 
     with respect to the eligible components R&D credit.
       ``(f) Qualified Investment.--For purposes of this section--
       ``(1) In general.--The qualified investment for any taxable 
     year is equal to the incremental costs incurred during such 
     taxable year--
       ``(A) to re-equip or expand any manufacturing facility of 
     the eligible taxpayer to produce energy efficient motor 
     vehicles or to produce eligible components, and
       ``(B) for engineering integration of such vehicles and 
     components as described in subsection (h).
       ``(2) Attribution rules.--In the event a facility of the 
     eligible taxpayer produces both energy efficient motor 
     vehicles and conventional motor vehicles, or eligible and 
     non-eligible components, only the qualified investment 
     attributable to production of energy efficient motor vehicles 
     and the research and development costs attributable to 
     eligible components shall be taken into account.
       ``(g) Energy Efficient Motor Vehicles and Eligible 
     Components.--For purposes of this section--
       ``(1) Energy efficient motor vehicle.--The term `energy 
     efficient motor vehicle' means--
       ``(A) any new advanced lean burn technology motor vehicle 
     (as defined in section 30B(c)(3) determined without regard to 
     subparagraph (A)(iv)(II) thereof or the weight limitation 
     under subparagraph (A)(iv)(I) thereof),
       ``(B) any new qualified hybrid motor vehicle (as defined in 
     section 30B(d)(3)(A) determined without regard to 
     subparagraph (A)(ii)(II) thereof, the weight limitation under 
     subparagraph (A)(ii)(I) thereof, and subparagraph (A)(iv) 
     thereof), or
       ``(C) any other new technology motor vehicle identified by 
     the Secretary as offering a substantial increase in fuel 
     economy.
       ``(2) Eligible components.--The term `eligible component' 
     means any component inherent to any energy efficient motor 
     vehicle, including--
       ``(A) with respect to any gasoline-electric new qualified 
     hybrid motor vehicle--
       ``(i) electric motor or generator,
       ``(ii) power split device,
       ``(iii) power control unit,
       ``(iv) power controls,
       ``(v) integrated starter generator, or
       ``(vi) battery,
       ``(B) with respect to any new advanced lean burn technology 
     motor vehicle--
       ``(i) diesel engine,
       ``(ii) turbocharger,
       ``(iii) fuel injection system, or

[[Page 25545]]

       ``(iv) after-treatment system, such as a particle filter or 
     NOx absorber, and
       ``(C) with respect to any energy efficient motor vehicle, 
     any other component approved by the Secretary.
       ``(h) Engineering Integration Costs.--For purposes of 
     subsection (f)(1)(B), costs for engineering integration are 
     costs incurred prior to the market introduction of energy 
     efficient vehicles for engineering tasks related to--
       ``(1) incorporating eligible components into the design of 
     energy efficient motor vehicles, and
       ``(2) designing new tooling and equipment for production 
     facilities which produce eligible components or energy 
     efficient motor vehicles.
       ``(i) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means, with respect to any taxable 
     year, any taxpayer if more than 25 percent of the taxpayer's 
     gross receipts for the taxable year is derived from the 
     manufacture of motor vehicles or any component parts of such 
     vehicles.
       ``(j) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of--
       ``(A) the regular tax liability (as defined in section 
     26(b)) for such taxable year, plus
       ``(B) the tax imposed by section 55 for such taxable year, 
     over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27, 30, 30B, and 30C for the taxable year.
       ``(k) Reduction in Basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(l) No Double Benefit.--
       ``(1) Coordination with other deductions and credits.--The 
     amount of any deduction or other credit allowable under this 
     chapter for any cost taken into account in determining the 
     amount of the credit under subsection (a) shall be reduced by 
     the amount of such credit attributable to such cost.
       ``(2) Research and development costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any amount described in subsection (d) taken into account in 
     determining the amount of the credit under subsection (a) for 
     any taxable year shall not be taken into account for purposes 
     of determining the credit under section 41 for such taxable 
     year.
       ``(B) Costs taken into account in determining base period 
     research expenses.--Any amounts described in subsection (d) 
     taken into account in determining the amount of the credit 
     under subsection (a) for any taxable year which are qualified 
     research expenses (within the meaning of section 41(b)) shall 
     be taken into account in determining base period research 
     expenses for purposes of applying section 41 to subsequent 
     taxable years.
       ``(m) Business Carryovers Allowed.--If the credit allowable 
     under subsection (a) for a taxable year exceeds the 
     limitation under subsection (j) for such taxable year, such 
     excess (to the extent of the credit allowable with respect to 
     property subject to the allowance for depreciation) shall be 
     allowed as a credit carryback and carryforward under rules 
     similar to the rules of section 39.
       ``(n) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Definitions.--Any term which is used in this section 
     and in chapter 329 of title 49, United States Code, shall 
     have the meaning given such term by such chapter.
       ``(2) Special rules.--Rules similar to the rules of 
     paragraphs (4) and (5) of section 179A(e) and paragraphs (1) 
     and (2) of section 41(f) shall apply.
       ``(o) Election Not to Take Credit.--No credit shall be 
     allowed under subsection (a) for any property if the taxpayer 
     elects not to have this section apply to such property.
       ``(p) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(q) Termination.--This section shall not apply to any 
     qualified investment made after December 31, 2015.''.
       (2) Conforming amendments.--
       (A) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (36), by striking the period 
     at the end of paragraph (37) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(38) to the extent provided in section 30D(k).''.
       (B) Section 6501(m) of such Code is amended by inserting 
     ``30D(o),'' after ``30C(e)(5),''.
       (C) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30C the 
     following new item:

``Sec. 30D. Energy efficient motor vehicles manufacturing credit.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts incurred in taxable years beginning 
     after December 31, 2005.
       (g) Transfer to Highway Trust Fund to Fund Highway Projects 
     and Aid Highway Users.--
       (1) In general.--Section 9503(b)(1) of the Internal Revenue 
     Code of 1986 (relating to certain taxes) is amended--
       (A) by inserting ``(before January 1, 2016, in the case of 
     taxes under section 5896)'' after ``2011''
       (B) by striking ``and'' at the end of subparagraph (D),
       (C) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'',
       (D) by inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) section 5896 (relating to windfall profit tax).'', 
     and
       (E) by adding at the end the following new sentence: ``For 
     purposes of this paragraph, the aggregate amount which is 
     appropriated to the Highway Trust Fund as determined by 
     reference to taxes received under section 5896 shall be 
     reduced by the aggregate amount of the American consumer 
     rebate determined under section 6430, the amount appropriated 
     for each fiscal year to the Low-Income Home Energy Assistance 
     Trust Fund under section 9511(b), and an amount of 
     $1,000,000,000 for each of fiscal years 2006 through 2015.''
       (2) Portion to mass transit account.--Section 9503(e)(2) of 
     such Code (relating to transfers to Mass Transit Account) is 
     amended by inserting ``and 18.5 percent of the amounts 
     appropriated to the Highway Trust Fund under subsection (b) 
     which are attributable to the tax under section 5896'' after 
     ``1983''.
       (3) Special rule regarding highway projects funded by 
     windfall profit tax revenues.--Notwithstanding section 120 of 
     title 23, United States Code, the Federal share of the cost 
     of any project or activity carried out using funds deposited 
     in the Highway Trust Fund under section 9503(b)(1)(F) of the 
     Internal Revenue Code of 1986 shall be 100 percent to the 
     extent such funds are available under such section.
       (h) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to crude oil 
     removed after the date of the enactment of this Act, in 
     taxable years ending after such date.
                                 ______
                                 
      By Ms. SNOWE:
  S. 1982. A bill to amend the Internal Revenue Code of 1986 to provide 
a tax credit against residential heating costs; to the Committee on 
Finance.
  Ms. SNOWE. Mr. President, today I rise to introduce legislation that 
would provide a tax credit for home energy costs to low- and middle-
income taxpayers. This legislation will help those who are struggling 
to simply heat their homes as winter approaches and while fuel prices 
remain so high.
  Home heating oil in Maine is $2.52 per gallon, up 59 cents from a 
year ago. Kerosene prices average $2.95 a gallon, 75 cents higher than 
this time last year. Some projections have a gallon of heating oil 
reaching $3.00! And I am told that rolling blackouts on cold days this 
winter may be a possibility because of a high demand for electricity.
  According to the National Energy Assistance Directors Association, 
heating costs for the average family using heating oil are projected to 
hit $1,666 for the upcoming winter. This represents an increase of $403 
over last winter's prices and $714 over the winter heating season of 
2003-2004. Should colder weather prevail, these costs will surely 
increase, especially for States like Maine.
  So understandably, my constituents are asking how they will be able 
to afford to pay home heating oil bills that are 30 percent more 
expensive than last year. This is a crisis that has arrived.
  Heating one's home is a necessity of life--so much so that 73 percent 
of households in a recent survey reported they would cut back on, and 
even go without, other necessities such as food, prescription drugs, 
and mortgage and rent payments. Churches, food pantries, local service 
organizations--they are all deeply concerned, and the leaves have 
barely fallen from the trees.
  In order to help low- and middle-income families heat their homes 
this winter, I am proposing a tax credit for home energy costs up to 
$500. The credit would be available to married couples earning less 
than $100,000 and single taxpayers making less than $50,000.
  My legislation also directs the Treasury Department to assist 
individuals to adjust their withholding amounts for 2006, which will 
immediately increase take home pay. Without adjusting their 
withholding, taxpayers would not benefit from the credit until they 
file their taxes sometime in 2007, possibly long after energy prices 
have returned to a normal level. As a result, this is a

[[Page 25546]]

crucial provision to ensure that these individuals and families get a 
helping hand exactly when they need it most. Finally, any unused credit 
amount could be carried back to the prior two taxable years or carried 
forward to future taxable years.
  It is critical that those who would benefit from the home energy 
credit are not at the same time required to shoulder the burden of the 
cost of the credit through an increase in the national debt. This 
credit should be paid for, and it makes sense to me that costs of the 
credit should be financed by those who profit the most by high energy 
prices, namely large oil companies. I am concerned that while many 
individuals are forced to make the choice of heating one's home or 
meeting the other basic necessities of life, large oil companies are 
showing record profits. Therefore, the Home Energy Cost Tax Assistance 
Act includes an offset provision to disallow the tax benefit that large 
oil companies with revenues in excess of $1 billion in 2005 receive by 
use of the Last-In, First-Out (LIFO) tax accounting method. Instead, 
these companies would be required to use the First-In, First-Out (FIFO) 
method of accounting for 2005. Put another way, the proposal would 
scale back a tax provision that allows oil companies to take an 
enormous tax deduction when prices are sky high and allows them to 
boost after-tax profits even further. As big oil companies show record 
profits on the backs of ordinary Americans, they have less of a need 
for such a tax break, and I believe it is fair to scale back this tax 
break in order to lend a helping hand to low- and middle-income 
workers.
  It is critical that Congress act to help low and middle income 
Americans absorb the increased home energy costs associated with the 
drastic increase in price of fuel. Temperatures are falling, prices are 
rising and we must move swiftly.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1982

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Home Energy Assistance Act 
     of 2005''.

     SEC. 2. TAX CREDIT AGAINST RESIDENTIAL HEATING COSTS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25D the following new section:

     ``SEC. 25E. CREDIT AGAINST RESIDENTIAL HEATING COSTS.

       ``(a) General Rule.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to the amount 
     paid or incurred during such taxable year for residential 
     heating costs.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The amount of the credit allowed 
     to under subsection (a) to any taxpayer shall not exceed $500 
     for any taxable year.
       ``(2) Limitation based on adjusted gross income.--
       ``(A) In general.--The amount of the credit which would 
     (but for this paragraph) be taken into account under 
     subsection (a) for the taxable year shall be reduced (but not 
     below zero) by the amount determined under subparagraph (B).
       ``(B) Amount of reduction.--The amount determined under 
     this subparagraph is the amount which bears the same ratio to 
     the amount which would be so taken into account as--
       ``(i) the excess of--

       ``(I) the taxpayers adjusted gross income for such taxable 
     year, over
       ``(II) the threshold amount, bears to

       ``(ii) the phaseout amount.
       ``(C) Threshold amount.--For purposes of this paragraph, 
     the term `threshold amount' means--
       ``(i) $80,000 in the case of a joint return,
       ``(ii) $65,000 in the case of a head of a household, and
       ``(iii) $40,000 in any other case.
       ``(D) Phaseout amount.--For purposes of this paragraph, the 
     term `phaseout amount' means--
       ``(i) $20,000 in the case of a joint return or a head of a 
     household, and
       ``(ii) $10,000 in any other case.
       ``(3) Maximum credit per household.--
       ``(A) In general.--In the case of any household, the credit 
     under subsection (a) shall be allowed only to the individual 
     residing in such household who furnishes the largest portion 
     (whether or not more than one-half) of the cost of 
     maintaining such household.
       ``(B) Determination of amount.--In the case of an 
     individual described in subparagraph (A), such individual 
     shall, for purposes of determining the amount of the credit 
     allowed under subsection (a), be treated as having paid or 
     incurred during such taxable year for increased residential 
     heating costs an amount equal to the sum of the amounts paid 
     or incurred for such heating costs by all individuals 
     residing in such household (including any amount allocable to 
     any such individual under subsection (d) or (e)).
       ``(c) Carryback of Credit.--
       ``(1) In general.--If the credit allowable under subsection 
     (a) for a taxable year exceeds the limitation under 
     subsection (b)(1) for such taxable year, such excess shall be 
     allowed--
       ``(A) as a credit carryback to each of the 2 taxable years 
     preceding such taxable year, and
       ``(B) as a credit carryforward to each of the 20 taxable 
     years following such taxable year.
       ``(2) Amount carried to each year.--Rules similar to the 
     rules of section 39(b)(2) shall apply for purposes of this 
     section.
       ``(3) Limitation.--The amount of unused credit which may be 
     taken into account under paragraph (1) for any taxable year 
     shall not exceed the limitation under subsection (b)(1).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Residential heating costs.--The term `residential 
     heating costs' means costs incurred in connection with an 
     energy source used to heat a principal residence of the 
     taxpayer located in the United States.
       ``(2) Principal residence.--The term `principal residence' 
     has the same meaning as in section 121, except that--
       ``(A) no ownership requirement shall be imposed, and
       ``(B) the principal residence must be used by the taxpayer 
     as the taxpayer's residence during the taxable year.
       ``(3) No credit for married individuals filing separate 
     returns.--If the taxpayer is a married individual (within the 
     meaning of section 7703), this section shall apply only if 
     the taxpayer and the taxpayer's spouse file a joint return 
     for the taxable year.
       ``(4) Treatment of expenses paid by dependent.--If a 
     deduction under section 151 with respect to an individual is 
     allowed to another taxpayer for a taxable year beginning in 
     the calendar year in which such individual's taxable year 
     begins--
       ``(A) no credit shall be allowed under subsection (a) to 
     such individual for such individual's taxable year, and
       ``(B) residential heating costs paid by such individual 
     during such individual's taxable year shall be treated for 
     purposes of this section as paid by such other taxpayer.
       ``(e) Homeowners Associations.--The application of this 
     section to homeowners associations (as defined in section 
     528(c)(1)) or members of such associations, and tenant-
     stockholders in cooperative housing corporations (as defined 
     in section 216), shall be allowed by allocation, 
     apportionment, or otherwise, to the individuals paying, 
     directly or indirectly, for the increased residential heating 
     cost so incurred.
       ``(f) Applicability of Section.--This section shall apply 
     to taxable years beginning after December 31, 2005, and 
     before January 1, 2007.''.
       (b) Reduction in Withholding.--The Secretary of the 
     Treasury--
       (1) shall educate taxpayers on adjusting withholding of 
     taxes to reflect any anticipated tax credit under section 25E 
     of the Internal Revenue Code of 1986, and
       (2) may adjust the wage withholding tables prescribed under 
     section 3402(a)(1) of such Code to take into account the 
     credit allowed under section 25E of such Code.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by striking the item relating 
     to section 35 and by adding at the end the following new 
     items:

``Sec. 25E. Credit against residential heating costs.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 3. DISALLOWANCE OF USE OF LIFO METHOD OF ACCOUNTING BY 
                   LARGE INTEGRATED OIL COMPANIES FOR LAST TAXABLE 
                   YEAR ENDING BEFORE OCTOBER 1, 2005.

       (a) General Rule.--Notwithstanding any other provision of 
     law, an applicable integrated oil company shall, in 
     determining the amount of Federal income tax imposed on such 
     company for its most recent taxable year ending on or before 
     September 30, 2005, use the first-in, first-out (FIFO) method 
     of accounting rather than the last-in, last-out (LIFO) method 
     of accounting with respect to its crude oil inventories.
       (b) Application of Requirement.--The requirement to use the 
     first-in, first-out (FIFO) method of accounting under 
     subsection (a)--
       (1) shall not be treated as a change in method of 
     accounting, and

[[Page 25547]]

       (2) shall be disregarded in determining the method of 
     accounting required to be used in any succeeding taxable 
     year.
       (c) Applicable Integrated Oil Company.--For purposes of 
     this section, the term ``applicable integrated oil company'' 
     means an integrated oil company (as defined in section 
     291(b)(4) of the Internal Revenue Code of 1986) which--
       (1) had gross receipts in excess of $1,000,000,000 for its 
     most recent taxable year ending on or before September 30, 
     2005, and
       (2) would, without regard to this section, use the last-in, 
     first-out (LIFO) method of accounting with respect to its 
     crude oil inventories for such taxable year.

     For purposes of paragraph (1), all persons treated as a 
     single employer under subsections (a) and (b) of section 52 
     of the Internal Revenue Code of 1986 shall be treated as 1 
     person.
                                 ______
                                 
      By Mr. SANTORUM (for himself, Mr. Nelson of Nebraska, Mr. Inhofe, 
        Mr. DeMint, Mr. DeWine, Mr. Hagel, Mr. Coburn, Mr. Gregg, Mr. 
        Brownback, Mr. Ensign, Mr. Martinez, Mr. Kyl, Mr. Vitter, and 
        Mr. Burr):
  S. 1983. A bill to prohibit certain abortion-related discrimination 
in governmental activities; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. SANTORUM. Mr. President, I rise today to introduce the Abortion 
Non-Discrimination Act of 2005. I am pleased to be joined in this 
effort by Senators Ben Nelson, Inhofe, DeMint, DeWine, Hagel, Coburn, 
Gregg, Brownback, Ensign, Martinez, Kyl, Vitter, and Burr.
  Abortion has been, and continues to be, one of the most divisive 
social issues in our Nation. I realize that there are people of good 
will on both sides of this issue, people who working for the best 
interests of women, children and families. Despite the great 
disagreements, there are points of this debate where the vast majority 
of Americans agree, for example the Partial-Birth Abortion Ban Act, the 
Unborn Victims of Violence Act, and the Born-Alive Infants Protection 
Act. The bill I introduce today is one of these areas of common ground. 
However one may feel about abortion, surely we can agree on the 
principle that no one should be forced to participate in an abortion in 
violation of one's conscience.
  We should all agree that no person or entity should be forced, 
against their will or conscience, to provide, refer for, or pay for an 
abortion. No entity should be forced to choose between being involved 
in an abortion or losing its funding, its certification, or its ability 
to exist as a hospital. Healthcare entities including physicians, other 
health professionals, hospitals, provider-sponsored organizations, 
health maintenance organizations, and health insurance plans should not 
be coerced into providing abortion services, and they certainly should 
not be discriminated against because of their objections to providing 
or paying for abortions.
  Current law, as has been interpreted by some courts, only provides 
protection for individual physicians, postgraduate physician training 
programs, and participants in health professions training. This narrow 
interpretation excludes from protection those who deserve it. The 
Abortion Non-Discrimination Act of 2005 directly addresses these 
concerns by clarifying and strengthening existing law. This legislation 
makes clear that other health professionals, hospitals, health 
insurance plans, and any other kind of health care facility, 
organization, or plan cannot be forced to perform, provide coverage of, 
or pay for an abortion when it conflicts with their conscience. These 
individuals and organizations deserve the freedom to follow their 
conscience in protecting innocent life. They should not be forced to 
suffer financial consequences for their choice not to participate in an 
abortion.
  I am thankful for the Hyde-Weldon conscience protection language that 
was included in the Consolidated Appropriations Act of 2005, but I 
believe it is appropriate to codify such conscience protection in 
Federal law. I am hopeful the Senate will act to pass the Abortion Non-
Discrimination Act during this Congress.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1983

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Abortion Non-Discrimination 
     Act of 2005''.

     SEC. 2. ABORTION NON-DISCRIMINATION.

       Section 245 of the Public Health Service Act (42 U.S.C. 
     238n) is amended--
       (1) in the section heading by striking ``AND LICENSING OF 
     PHYSICIANS'' and inserting ``, LICENSING, AND PRACTICE OF 
     PHYSICIANS AND OTHER HEALTH CARE ENTITIES'';
       (2) in subsection (a)(1), by striking ``to perform such 
     abortions'' and inserting ``to perform, provide coverage of, 
     or pay for induced abortions''; and
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``includes'' and 
     inserting ``means''; and
       (B) in paragraph (2)--
       (i) by inserting ``or other health professional,'' after 
     ``an individual physician'';
       (ii) by striking ``and a participant'' and inserting ``a 
     participant''; and
       (iii) by inserting before the period the following: ``, a 
     hospital, a provider sponsored organization, a health 
     maintenance organization, a health insurance plan, or any 
     other kind of health care facility, organization or plan''.
                                 ______
                                 
      By Mr. ALLARD:
  S. 1986. A bill to provide for the coordination and use of the 
National Domestic Preparedness Consortium by the Department of Homeland 
Security, and for other purposes; to the Committee on Homeland Security 
and Governmental Affairs.
  Mr. ALLARD. Mr. President, the events of the past few months remind 
us of the vital role of first responders in responding to natural 
disasters and terrorists attacks. First responders are just that: the 
first to respond. When they arrive on the scene, they often face fluid 
and volatile situations whereupon they are required to make split-
second decisions, each of which has the potential to affect thousands 
of lives. For this reason, it is important that our first responders 
receive the training and experience needed to make critical life saving 
decisions under emergency circumstances. I believe that an essential 
element of preparing our first responders is to provide them with 
hands-on experience in simulated, real-world training environments.
  The importance of real world training was called to my attention by a 
visit to the Technology Training Center (TTC) in Pueblo, CO. There, I 
witnessed first hand the tools at our disposal to equip our first 
responders with the training they need, specifically in the context of 
rail and mass transit. Already aware of the training facilities at the 
disposal of our first responders through the Department of Homeland 
Security's National Domestic Preparedness Consortium (NDPC), TTC's 
potential to fill a gap in the rail and mass transit environment became 
apparent.
  Congress recognized the need to train first responders in the 1998 
Appropriations Act, Public Law 105-119, and accompanying report. There, 
Congress stated that, while the Federal Government plays an important 
role in preventing and responding to these types of threats, state and 
local public safety personnel are typically first to respond to the 
scene when such incidents occur. As a result, Congress authorized the 
Attorney General to assist state and local public safety personnel in 
acquiring the specialized training and equipment necessary to safely 
respond to and manage terrorist incidents involving weapons of mass 
destruction.
  On April 30, 1998, the Attorney General delegated authority to the 
Justice Department's Office of Justice Programs (OJP) to develop and 
administer training and equipment assistance programs for state and 
local emergency response agencies to better prepare them against this 
threat. To execute this mission, the Office of Justice Programs 
established the Office for Domestic Preparedness (ODP) to develop and 
administer a national Domestic Preparedness Program.
  Upon passage of the Homeland Security Act of 2002, Pub. L. 107-296, 
the

[[Page 25548]]

ODP was transferred to the Department of Homeland Security from OJP. In 
2003, a number of grant programs and functions from other DHS 
components were consolidated with ODP, including the NDPC, under a new 
DHS agency, the Office of State and Local Government Coordination and 
Preparedness (SLGCP).
  Today, SLGCP is the Federal Government's lead agency responsible for 
preparing the nation against terrorism by assisting states, local and 
tribal jurisdictions, and regional authorities as they prevent, deter, 
and respond to terrorist acts. SLGCP's ODP provides tailored training 
to enhance the capacity of States and local jurisdictions to prevent, 
deter, and respond safely and effectively to emergency situations.
  ODP draws upon a coalition of ``training partners'' in the 
development and delivery of state-of-the-art training programs. This 
coalition is composed of government facilities, academic institutions, 
and private organizations, all of which are committed to providing a 
variety of specialized training for emergency responders across the 
country.
  ODP's major training partner is the NDPC, through which ODP 
identifies, develops, tests, and delivers training to state and local 
emergency responders. The NDPC includes: ODP's Center for Domestic 
Preparedness (CDP): CDP provides advanced, hands-on training to members 
of the emergency response community in the areas of command, advanced 
hazmat, and tactical operations. CDP is the only WMD training facility 
that provides hands-on training to civilian emergency responders in a 
toxic chemical agent environment. New Mexico Institute of Mining and 
Technology (NMIMT): NMIMT, a world leader in explosives research, 
serves as the lead NDPC partner for explosives, firearms, and 
incendiary devices training. New Mexico Tech also delivers a program on 
suicide bombing prevention. Louisiana State University (LSU): LSU 
provides training and expertise in the areas of law enforcement, 
bioterrorism, agricultural terrorism, weapons of mass destruction, and 
mass casualty incidents. Texas A&M University System, Texas Engineering 
Extension Service (TEEX): TEEX develops and conducts national WMD 
preparedness training for all emergency response disciplines, as well 
as courses in incident management/unified command, threat and risk 
assessments, operations for public works, and WMD operations for 
emergency medical services. TEEX also conducts a structural collapse 
technician course to build state capabilities for urban search and 
rescue operations. Department of Energy's Nevada Test Site (NTS): NTS 
conducts radiological and nuclear training at NTS and via mobile 
training teams. It also develops and delivers radiological/nuclear 
mobile training at the awareness and operations levels and conducts 
train-the-trainer courses for first responders across the country.
  Although it consists of an impressive array of training facilities, 
the National Domestic Preparedness Consortium is not statutorily 
authorized and does not include a facility that is uniquely focused on 
emergency preparedness within the railroad and mass transit 
environment. Therefore, in addition to specifically authorizing the 
NDPC, this bill incorporates the Transportation Technology Center into 
the Department of Homeland Security's National Domestic Preparedness 
Consortium, filling a critical gap in its current training agenda.
  TTC is a federally-owned, 52 square mile multi-modal testing and 
training facility in Pueblo, Colorado, operated by the Association of 
American Railroads (AAR). In 1985, TTC established an on site Emergency 
Response Training Center (ERTC) to train railroad officials to safely 
handle accidents involving tank cars carrying hazardous materials. The 
training proved to be so successful that attendance was opened up to 
other emergency responders. TTC now serves not only the transportation 
service industry, but also the public sector emergency response 
community, the chemical industry, government agencies, and emergency 
response contractors from all over the world.
  Each year, an average of 1,700 first responders--from Portland, ME to 
Portland, OR--travel to Pueblo, CO, to participate in TTC's training 
program. Former participants include over 600 fire departments and 
entities from 45 states; 16 state police agencies from Arkansas, 
Colorado, Idaho, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, 
Michigan, Missouri, New Jersey, Nebraska, New Mexico, Oregon, Texas, 
and Washington; and numerous government agencies, including the U.S. 
Air Force, Army, Coast Guard, Customs Service, Federal Bureau of 
Investigations, Environmental Protection Agency, Drug Enforcement 
Agency, National Oceanic and Atmospheric Administration, and the 
National Transportation Safety Board. In its 20 year history, the 
facility has trained more than 20,000 students worldwide.
  The ERTC is regarded as the ``graduate school'' of hazmat training 
because of its focus on hands-on, true to life, training exercises on 
actual rail vehicles, including tank cars and passenger rail cars. The 
ERTC is uniquely positioned to teach emergency response for railway-
related emergencies with 69 railway freight cars, 15 railroad passenger 
cars, 25 highway cargo tanks, van trailers, and intermodal containers, 
and computer work stations equipped with the latest emergency response 
software. The Passenger Railcar Security and Integrity Training 
Facility is currently being developed to test various inspection, 
response, and remediation techniques' effectiveness for mitigation to 
incidents involving passenger railcars. This facility focuses on 
chemical, biological, radiological, nuclear, or explosive incidents and 
other activities associated with potential terrorist events.
  The distinctive environment of TTC allows testing and training 
activities to be carried out at a remote Colorado location without 
disruption to the flow of passenger and rail traffic in and around 
urban areas. Its inclusion in the NDPC presents a unique opportunity to 
enhance technology and training that will improve our Nation's ability 
to prevent, minimize, and respond to potential terrorist attacks 
similar to those recently seen in London and Madrid.
  It is for these reasons, among others, that I rise today to introduce 
a bill statutorily authorizing the National Domestic Preparedness 
Consortium, as expanded to include the Transportation Technology Center 
in Pueblo, CO, and providing for its coordination and use by the 
Department of Homeland Security in training the Nation's first 
responders.

                          ____________________