[Congressional Record (Bound Edition), Volume 152 (2006), Part 5]
[Senate]
[Pages 6425-6461]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   AMENDMENTS SUBMITTED AND PROPOSED

       SA 3671. Mr. COLEMAN submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, making emergency 
     supplemental appropriations for the fiscal year ending 
     September 30, 2006, and for other purposes; which was ordered 
     to lie on the table.
       SA 3672. Mr. CORNYN (for himself and Mrs. Hutchison) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra.
       SA 3673. Mr. INOUYE submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3674. Mr. NELSON, of Florida submitted an amendment 
     intended to be proposed by him to the bill H.R. 4939, supra; 
     which was ordered to lie on the table.
       SA 3675. Mr. MENENDEZ (for himself, Mr. Lautenberg, Mr. 
     Inouye, Mrs. Clinton, and Mr. Lieberman) submitted an 
     amendment intended to be proposed by him to the bill H.R. 
     4939, supra.
       SA 3676. Mr. BENNETT (for himself and Mr. Kohl) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3677. Mr. VOINOVICH (for himself and Mr. DeWine) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra; which was ordered to lie on the table.
       SA 3678. Mr. MENENDEZ (for himself, Mr. Leahy, Mr. Durbin, 
     Mr. Sarbanes, and Mr. Lautenberg) submitted an amendment 
     intended to be proposed by him to the bill H.R. 4939, supra; 
     which was ordered to lie on the table.
       SA 3679. Mr. SPECTER submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3680. Mr. FEINGOLD submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3681. Mr. VITTER submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3682. Mr. BIDEN submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3683. Mr. BIDEN submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3684. Ms. LANDRIEU submitted an amendment intended to be 
     proposed by her to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3685. Mr. LIEBERMAN submitted an amendment intended to 
     be proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3686. Mr. KENNEDY (for himself, Mr. Biden, and Mr. 
     Leahy) submitted an amendment intended to be proposed by him 
     to the bill H.R. 4939, supra; which was ordered to lie on the 
     table.
       SA 3687. Mr. KENNEDY (for himself and Mr. Leahy) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3688. Mr. KENNEDY submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra.
       SA 3689. Mr. KENNEDY submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3690. Mr. KENNEDY submitted an amendment intended to be 
     proposed by him

[[Page 6426]]

     to the bill H.R. 4939, supra; which was ordered to lie on the 
     table.
       SA 3691. Mr. KENNEDY submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3692. Mr. FRIST (for himself, Mr. Santorum, and Mr. 
     Ensign) submitted an amendment intended to be proposed by him 
     to the bill H.R. 4939, supra; which was ordered to lie on the 
     table.
       SA 3693. Mr. OBAMA (for himself and Mr. Coburn) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra.
       SA 3694. Mr. OBAMA (for himself and Mr. Coburn) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra.
       SA 3695. Mr. OBAMA (for himself and Mr. Coburn) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra.
       SA 3696. Mr. OBAMA (for himself and Mr. Coburn) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3697. Mr. OBAMA (for himself and Mr. Coburn) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra.
       SA 3698. Mr. BURNS (for himself and Mr. Rockefeller) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra; which was ordered to lie on the table.
       SA 3699. Mr. CORNYN (for himself, Ms. Landrieu, Mrs. 
     Hutchison, and Mr. Nelson, of Florida) submitted an amendment 
     intended to be proposed by him to the bill H.R. 4939, supra.
       SA 3700. Mr. DOMENICI (for himself, Mr. Grassley, and Mr. 
     Stevens) submitted an amendment intended to be proposed by 
     him to the bill H.R. 4939, supra; which was ordered to lie on 
     the table.
       SA 3701. Mr. ALLARD (for himself, Mr. Durbin, and Ms. 
     Mikulski) submitted an amendment intended to be proposed by 
     him to the bill H.R. 4939, supra.
       SA 3702. Mr. CHAMBLISS (for himself and Mr. Isakson) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra.
       SA 3703. Mr. KOHL submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3704. Mr. THUNE submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3705. Mr. OBAMA submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3706. Mr. LEVIN (for himself, Mr. Dorgan, Ms. Stabenow, 
     and Mr. Conrad) submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3707. Mr. FRIST submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3708. Mr. BYRD submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra.
       SA 3709. Mr. BYRD (for himself, Mr. Carper, and Mr. 
     Lautenberg) proposed an amendment to the bill H.R. 4939, 
     supra.
       SA 3710. Mr. LEVIN (for himself, Ms. Collins, and Mr. Reed) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra.
       SA 3711. Mr. NELSON, of Florida submitted an amendment 
     intended to be proposed by him to the bill H.R. 4939, supra; 
     which was ordered to lie on the table.
       SA 3712. Mr. ALLARD submitted an amendment intended to be 
     proposed to amendment SA 3645 proposed by Mr. Salazar (for 
     himself and Mr. Baucus) to the bill H.R. 4939, supra; which 
     was ordered to lie on the table.
       SA 3713. Mr. BURR proposed an amendment to the bill H.R. 
     4939, supra.
       SA 3714. Mrs. MURRAY (for Mr. Harkin) proposed an amendment 
     to the bill H.R. 4939, supra.
       SA 3715. Mr. CONRAD (for himself, Mrs. Clinton, and Mr. 
     Dodd) proposed an amendment to the bill H.R. 4939, supra.
       SA 3716. Mrs. MURRAY (for Mr. Kennedy (for himself, Mr. 
     Biden, and Mr. Leahy)) proposed an amendment to the bill H.R. 
     4939, supra.
       SA 3717. Mr. BIDEN submitted an amendment intended to be 
     proposed by him to the bill H.R. 4939, supra; which was 
     ordered to lie on the table.
       SA 3718. Mr. BIDEN (for himself and Mr. DeWine) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3719. Mr. BIDEN (for himself and Mr. DeWine) submitted 
     an amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3720. Mr. NELSON, of Florida submitted an amendment 
     intended to be proposed by him to the bill H.R. 4939, supra; 
     which was ordered to lie on the table.
       SA 3721. Mr. NELSON, of Florida (for himself, Mr. Menendez, 
     Mr. Lieberman, Mr. Lautenberg, Mr. Kerry, and Mr. Reid) 
     submitted an amendment intended to be proposed by him to the 
     bill H.R. 4939, supra; which was ordered to lie on the table.
       SA 3722. Mr. CORNYN (for himself and Mr. Kyl) proposed an 
     amendment to the bill H.R. 4939, supra.
       SA 3723. Mr. SCHUMER (for himself and Mr. Reid) proposed an 
     amendment to the bill H.R. 4939, supra.
       SA 3724. Mr. SCHUMER proposed an amendment to the bill H.R. 
     4939, supra.
       SA 3725. Mr. SMITH (for himself and Mr. Wyden) submitted an 
     amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3726. Mr. SMITH (for himself and Mr. Wyden) submitted an 
     amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
       SA 3727. Mr. DODD (for himself and Mr. Lott) submitted an 
     amendment intended to be proposed by him to the bill H.R. 
     4939, supra; which was ordered to lie on the table.
                                 ______
                                 

                           TEXT OF AMENDMENTS

  SA 3671. Mr. COLEMAN submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 196, between lines 17 and 18, insert the following:


              FEDERAL FUNDING FOR FIXED GUIDEWAY PROJECTS

       Sec. 2901. The Federal Transit Administration's Dear 
     Colleague letter dated April 29, 2005 (C-05-05), which 
     requires fixed guideway projects to achieve a ``medium'' 
     cost-effectiveness rating for the Federal Transit 
     Administration to recommend such projects for funding, shall 
     not apply to the Northstar Corridor Commuter Rail Project in 
     Minnesota.
                                 ______
                                 
  SA 3672. Mr. CORNYN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       At the end of chapter 7 of title II, insert the following:


                       NATIONAL EMERGENCY GRANTS

       Sec. __. In distributing unobligated funds described in 
     section 132(a)(2)(A) of the Workforce Investment Act of 1998 
     (29 U.S.C. 2862(a)(2)(A)) and appropriated for fiscal year 
     2006 for national emergency grants under section 173 of such 
     Act (29 U.S.C. 2918) (not including funds available for 
     Community-Based Job Training Grants under section 171(d) of 
     such Act (29 U.S.C. 2916(d)), the Secretary shall give 
     priority to States that--
       (1) received national emergency grants under such section 
     173 to assist--
       (A) individuals displaced by Hurricane Katrina; or
       (B) individuals displaced by Hurricane Rita;
       (2) continue to assist individuals described in 
     subparagraph (A), or individuals described in subparagraph 
     (B), of paragraph (1); and
       (3) can demonstrate an ongoing need for funds to assist 
     individuals described in subparagraph (A), or individuals 
     described in subparagraph (B), of paragraph (1).
                                 ______
                                 
  SA 3673. Mr. INOUYE submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 246, line 1, strike ``$500,000'' and all that 
     follows through line 8 and insert ``$1,400,000, to remain 
     available until expended, for assistance with assessments of 
     critical reservoirs and dams in the State of Hawaii, 
     including the monitoring of dam structures: Provided, That 
     the amount provided under this heading is designated as an 
     emergency requirement pursuant to section 402 of H. Con. Res. 
     95 (109th Congress), the concurrent resolution on the budget 
     for fiscal year 2006.''.
                                 ______
                                 
  SA 3674. Mr. NELSON of Florida submitted an amendment intended to be 
proposed by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 194, between lines 3 and 4, insert the following:


   RECONSTITUTION AND REPAIR OF SANTA ROSA ISLAND RANGE COMPLEX AND 
      REPLACEMENT OF RANGE BUILDING, EGLIN AIR FORCE BASE, FLORIDA

       Sec. 2806. (a) The amount appropriated by this chapter 
     under the heading ``Military Construction, Air Force'' is 
     hereby increased by $162,000,000.
       (b) Of the amount appropriated by this chapter under the 
     heading ``Military Construction, Air Force'', as increased by 
     subsection (a), $162,000,000 shall be made available for the 
     reconstitution and repair of the

[[Page 6427]]

     Santa Rosa Island Range Complex and the replacement of a 
     range building at Eglin Air Force Base, Florida.
       (c) The amount made available under subsection (a) is 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress), the concurrent 
     resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3675. Mr. MENENDEZ (for himself, Mr. Lautenberg, Mr. Inouye, Mrs. 
Clinton, and Mr. Lieberman) submitted an amendment intended to be 
proposed by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; as follows:

       On page 237, between lines 6 and 7, insert the following:
       For an additional amount for the training of employees of 
     the Bureau of Customs and Border Protection, $10,000,000, to 
     remain available until September 30, 2007: Provided, That the 
     amount provided under this heading is designated as an 
     emergency requirement pursuant to section 402 of H. Con. Res. 
     95 (109th Congress), the concurrent resolution on the budget 
     for fiscal year 2006.

       On page 237, between lines 10 and 11, insert the following:
       For an additional amount for the purchase of new container 
     inspection technology at ports in developing countries and 
     the training of local authorities, pursuant to section 70109 
     of title 46, United States Code, on the use of such 
     technology, $50,000,000, to remain available until September 
     30, 2007: Provided, That the amount provided under this 
     heading is designated as an emergency requirement pursuant to 
     section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.
       For an additional amount for the implementation of section 
     70105 of title 46, United States Code, $12,000,000, to remain 
     available until September 30, 2007: Provided, That the amount 
     provided under this heading is designated as an emergency 
     requirement pursuant to section 402 of H. Con. Res. 95 (109th 
     Congress), the concurrent resolution on the budget for fiscal 
     year 2006.

                 TRANSPORTATION SECURITY ADMINISTRATION


                transportation vetting and credentialing

       For an additional amount for the implementation of section 
     70105 of title 46, United States Code, $13,000,000, to remain 
     available until September 30, 2007, of which $250,000 shall 
     be made available for the Secretary of Homeland Security's 
     preparation and submission to Congress of a plan, not later 
     than September 30, 2006, with specific annual benchmarks, to 
     inspect 100 percent of the cargo containers destined for the 
     United States: Provided, That the amount provided under this 
     heading is designated as an emergency requirement pursuant to 
     section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.

       On page 237, line 25, strike ``$132,000,000'' and insert 
     ``$232,000,000'': Provided, That the amount provided under 
     this heading is designated as an emergency requirement 
     pursuant to section 402 of H. Con. Res. 95 (109th Congress), 
     the concurrent resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3676. Mr. BENNETT (for himself and Mr. Kohl) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 135, after line 26, insert the following:


                   WILDLIFE HABITAT INCENTIVE PROGRAM

       Sec. 2___. Funds made available for the wildlife habitat 
     incentive program established under section 1240N of the Food 
     Security Act of 1985 (16 U.S.C. 3839bb-1) under section 
     211(b) of the Agricultural Risk Protection Act of 2000 
     (Public Law 106-224; 7 U.S.C. 1421 note) and section 820 of 
     the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 2001 
     (Public Law 106-387; 114 Stat. 1549A-59) shall remain 
     available until expended to carry out obligations made for 
     fiscal year 2001 and are not available for new obligations.
                                 ______
                                 
  SA 3677. Mr. VOINOVICH (for himself and Mr. DeWine) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


                  RICKENBACKER AIRPORT, COLUMBUS, OHIO

       Sec. ____. The project numbered 4651 in section 1702 of the 
     Safe, Accountable, Flexible, Efficient Transportation Equity 
     Act: A Legacy for Users (119 Stat. 1434) is amended by 
     striking ``Grading, paving'' and all that follows through 
     ``Airport'' and inserting ``Grading, paving, roads, and the 
     transfer of rail-to-truck for the intermodal facility at 
     Rickenbacker Airport, Columbus, OH''.
                                 ______
                                 
  SA 3678. Mr. MENENDEZ (for himself, Mr. Leahy, Mr. Durbin, Mr. 
Sarbanes, and Mr. Lautenberg) submitted an amendment intended to be 
proposed by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 89, line 9, strike ``$69,800,000'' and insert in 
     lieu thereof ``$129,800,000''.
                                 ______
                                 
  SA 3679. Mr. SPECTER submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


 PROHIBITION ON USE OF FUNDS FOR DOMESTIC ELECTRONIC SURVEILLANCE FOR 
    FOREIGN INTELLIGENCE PURPOSES UNLESS CONGRESS IS KEPT FULLY AND 
                           CURRENTLY INFORMED

       Sec. 7032. (a) Prohibition.--No funds appropriated by this 
     or any other Act may be obligated or expended to carry out 
     the NSA program, or any other program of electronic 
     surveillance within the United States for foreign 
     intelligence purposes, unless each of the following is met:
       (1) The Select Committee on Intelligence of the Senate and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives, and each member of such committee, are 
     kept fully and currently informed of such program in 
     accordance with section 502 of the National Security Act of 
     1947 (50 U.S.C. 413a).
       (2) The Committees on the Judiciary of the Senate and the 
     House of Representatives are kept fully and currently 
     informed of such program in accordance with section 503 of 
     the National Security Act of 1947 (50 U.S.C. 413b).
       (b) Sense of Congress.--It is the sense of Congress that 
     the Executive Branch should inform the members of the 
     Committees on the Judiciary of the Senate and the House of 
     Representatives on the NSA program and any other program 
     described in subsection (a) in sufficient detail so as to 
     facilitate and ensure the discharge by such Committees of 
     their oversight responsibilities to determine the 
     constitutionality of Executive Branch actions.
       (c) NSA Program Defined.--In this section, the term ``NSA 
     program'' means the program of the National Security Agency 
     on electronic surveillance within the United States for 
     foreign intelligence purposes the existence of which has been 
     acknowledged by President George W. Bush and other Executive 
     Branch officials on and after December 17, 2005, any 
     unacknowledged part of the program, and any associated 
     National Security Agency programs or activities.
                                 ______
                                 
  SA 3680. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
       Sec.__. (A) The United States shall redeploy U.S. forces 
     from Iraq by December 31st, 2006, maintaining only a minimal 
     force sufficient for engaging directly in targeted counter-
     terrorism activities, training Iraqi security forces, and 
     protecting U.S. infrastructure and personnel.
       (B) Not later than 30 days after the enactment of this Act, 
     the President shall direct the Secretary of Defense, in 
     consultation with the Secretary of State, to provide to 
     Congress a report that includes the strategy for the 
     redeployment of U.S. forces Iraq by December 31st, 2006. The 
     strategy shall include the following:
       (1) A flexible timeline for redeployment U.S. forces from 
     Iraq by December 31st, 2006;
       (2) The number, size, and character of U.S. military units 
     needed in Iraq beyond December 31st, 2006, for purposes of 
     counter-terrorism activities, training Iraqi security forces, 
     and protecting U.S. infrastructure and personnel;
       (3) A strategy for addressing the regional implications of 
     redeploying U.S. troops on a diplomatic, political, and 
     development level;
       (4) A strategy for ensuring the safety and security of U.S. 
     forces in Iraq during and after the redeployment, and a 
     contingency plan for addressing dramatic changes in security 
     conditions that may require a limited number of U.S. forces 
     to remain in Iraq after December 31st, 2006; and
       (5) A strategy for redeploying U.S. forces to effectively 
     engage and defeat global terrorist networks that threaten the 
     United States.
                                 ______
                                 
  SA 3681. Mr. VITTER submitted an amendment intended to be proposed by

[[Page 6428]]

him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 161, strike line 17 and all that follows 
     through page 162, line 4, and insert the following:

     at the Inner Harbor Navigation Canal; and $80,000,000 shall 
     be used for incorporation of certain non-Federal levees in 
     Plaquemines Parish, and in Jefferson Parish in the vicinity 
     of Jean Lafitte, into the existing Federal levee system: 
     Provided further, That any project using funds appropriated 
     under this heading shall be initiated only after non-Federal 
     interests have entered into binding agreements with the 
     Secretary to pay 100 percent of the operation, maintenance, 
     repair, replacement, and rehabilitation costs of the project 
     and to hold and save the United States free from damages due 
     to the construction or operation and maintenance of the 
     project, except for damages due to the fault or negligence of 
     the United States or its contractors: Provided further, That 
     $621,500,000 of the amount shall be available only
                                 ______
                                 
  SA 3682. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert:

     SEC. _. SENSE OF THE SENATE ON LEGISLATION REPEALING FOSSIL 
                   FUEL ENERGY TAX BREAKS.

       (a) Findings.--The Senate finds the following:
       (1) President Bush stated the following on April 20, 2005: 
     ``With oil at more than $50 a barrel . . . energy companies 
     do not need taxpayer-funded incentives to explore for oil and 
     gas.''.
       (2) President Bush stated the following on April 25, 2006: 
     ``Record oil prices and large cash flows . . . mean that 
     Congress has to understand that these energy companies don't 
     need unnecessary tax breaks. ''.
       (3) The price of a barrel of crude oil recently exceeded 
     $75, and remains above $72.
       (4) The average price of a gallon of regular gasoline is 
     currently over $2.90, and exceeds $3 in many parts of the 
     country.
       (5) Since 2001, the median family income has not kept pace 
     with the cost of living, and the price of a gallon of regular 
     gas has increased over 100 percent.
       (6) There have been 2,600 mergers in the oil and gas 
     industry in the past decade.
       (7) The profits of the oil and gas industry reached 
     historic highs last year, including over $36 billion in 
     profits for Exxon Mobil, the most ever for a single 
     corporation.
       (8) On March 14 of this year, the Senate Committee on the 
     Judiciary conducted an antitrust oversight hearing on the 
     effect of oil and gas industry consolidation on consumer 
     prices, and at that hearing the chief executives of six major 
     oil and gas companies stated under oath that they do not need 
     additional incentives to conduct their businesses.
       (9) The aggregate budget deficit of the United States for 
     the period of fiscal years 2002 to 2011 is projected to total 
     $2.7 trillion.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Committee on Finance shall, within 90 days of the 
     date of the enactment of this Act, report legislation that 
     repeals the provisions of, and the amendments made by, 
     subtitle B of title XIII of the Energy Policy Act of 2005.
                                 ______
                                 
  SA 3683. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RESTORATION OF PHASEOUT OF PERSONAL EXEMPTIONS AND 
                   OVERALL LIMITATION ON ITEMIZED DEDUCTIONS IN 
                   ORDER TO FUND ONGOING OPERATIONS IN IRAQ AND 
                   AFGHANISTAN.

       (a) Personal Exemptions.--Paragraph (3) of section 151(d) 
     of the Internal Revenue Code of 1986 (relating to exemption 
     amount) is amended by striking subparagraphs (E) and (F).
       (b) Limitations on Itemized Deductions.--Section 68 of the 
     Internal Revenue Code of 1986 is amended by striking 
     subsections (f) and (g).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.
                                 ______
                                 
  SA 3684. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1, line 1 of the amendment, insert ``as long as 
     $5,200,000,000 is provided under this heading'' after 
     ``That''.
                                 ______
                                 
  SA 3685. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


                      strategic language security

       Sec. 7032. (a) Annual Reports.--Not later than six months 
     after the date of the enactment of this Act, and annually 
     thereafter, the head of each covered agency shall submit to 
     Congress a report setting forth the following:
       (1) The number of employees of such agency who speak, read, 
     or both speak and read a foreign language, set forth by--
       (A) language in which speaking, reading, or both speaking 
     and reading proficiency exists;
       (B) for each employee who speaks, reads, or both speaks and 
     reads such language proficiently, the level of speaking or 
     reading proficiency, as applicable, and the date such 
     proficiency was obtained; and
       (C) for each such language--
       (i) the rank and category of each employee who speaks such 
     language at any level of proficiency; and
       (ii) the rank and category of each employee who reads such 
     language at any level of proficiency.
       (2) The pedagogical capability of such agency with respect 
     to speaking or reading proficiency in various languages, 
     including--
       (A) the number of full time and part-time instructors in 
     each language;
       (B) the extent and nature of distance learning facilities;
       (C) the extent and nature of field and overseas learning 
     facilities; and
       (D) the availability and use of textbooks, dictionaries, 
     audio and video instructional materials, and online 
     instructional sites and materials.
       (3) An estimate of the needs of such agency over the next 
     three to five years for personnel with speaking, reading, or 
     both speaking and reading proficiency in various foreign 
     languages, including--
       (A) the number of personnel needed with speaking, reading, 
     or both speaking and reading proficiency in each such 
     language; and
       (B) the percentage of each rank and category of personnel 
     of such agency of which personnel referred to in subparagraph 
     (A) would consist.
       (4) An identification of the languages for which such 
     agency currently has a limited current need for personnel 
     with speaking, reading, or both speaking and reading 
     proficiency, but for which such agency could have an expanded 
     future need for such personnel, and an identification of the 
     minimum number of personnel with speaking, reading, or both 
     speaking and reading proficiency in such languages that is 
     required by such agency to maintain sufficient national 
     security readiness with respect to such languages.
       (5) A description of any plans of such agency to employee, 
     or secure by contract, personnel with speaking, reading, or 
     both speaking and reading proficiency in each language 
     identified under paragraph (4) in order to meet the future 
     need of such agency for such personnel as described in that 
     paragraph.
       (b) Covered Agency Defined.--In section, the term ``covered 
     agency'' means the following:
       (1) The Department of Defense.
       (2) The Department of State.
       (3) The Office of the Director of National Intelligence 
     with respect to--
       (A) the Office of the Director of National Intelligence; 
     and
       (B) each agency under the direction of the Office of the 
     Director of National Intelligence.
                                 ______
                                 
  SA 3686. Mr. KENNEDY (for himself, Mr. Biden, and Mr. Leahy) 
submitted an amendment intended to be proposed by him to the bill H.R. 
4939, making emergency supplemental appropriations for the fiscal year 
ending September 30, 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 126, between lines 12 and 13, insert the following:


          UNITED STATES STRATEGY TO PROMOTE DEMOCRACY IN IRAQ

       Sec. 1406. (a) Of the funds provided in this chapter for 
     the Economic Support Fund, not less than $96,000,000 should 
     be made available through the Bureau of Democracy, Human 
     Rights, and Labor of the Department of State, in coordination 
     with the United States Agency for International Development 
     where appropriate, to United States nongovernmental 
     organizations for the purpose of supporting broad-based 
     democracy assistance programs in Iraq that promote the long 
     term development of civil society, political parties, 
     election processes, and parliament in that country.

[[Page 6429]]

       (b) The President shall include in each report submitted to 
     Congress under the United States Policy in Iraq Act (section 
     1227 of Public Law 109-163; 50 U.S.C. 1541 note; 119 Stat. 
     3465) a report on the extent to which funds appropriated in 
     this Act support a short-term and long-term strategy to 
     promote and develop democracy in Iraq. The report shall 
     include the following:
       (1) A description of the objectives of the Secretary of 
     State to promote and develop democracy at the national, 
     regional, and provincial levels in Iraq, including 
     development of civil society, political parties, and 
     government institutions.
       (2) The strategy to achieve such objectives.
       (3) The schedule to achieve such objectives.
       (4) The progress made toward achieving such objectives.
       (5) The principal official within the United States 
     Government responsible for coordinating and implementing 
     democracy funding for Iraq.
                                 ______
                                 
  SA 3687. Mr. KENNEDY (for himself and Mr. Leahy) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 126, between lines 12 and 13, insert the following:


       REPORTS TO CONGRESS ON PREPAREDNESS FOR CIVIL WAR IN IRAQ

       Sec. 1406. (a) Reports Required.--Not later than 30 days 
     after the date of the enactment of this Act, and every 90 
     days thereafter, the President shall submit to Congress a 
     report setting for the determination of the President as to 
     whether there is a civil war in Iraq.
       (b) Elements.--Each report required by subsection (a) shall 
     include the following:
       (1) The criteria underlying the determination contained in 
     such report, including an assessment of--
       (A) levels of sectarian violence;
       (B) the numbers of civilians displaced;
       (C) the degree to which government security forces exercise 
     effective control over major urban areas;
       (D) the extent to which units of the security forces 
     (including army, police, and special forces) respond to 
     militia and party leaders rather than to their national 
     commands;
       (E) the extent to which militias have organized or 
     conducted hostile actions against United States military 
     forces;
       (F) the extent to which militias are providing security; 
     and
       (G) the number of civilian casualties as a result of 
     sectarian violence.
       (2) If in such report the President determines that there 
     is not a civil war in Iraq, a description (in unclassified 
     form) of--
       (A) the efforts of the United States Government to help 
     avoid civil war in Iraq;
       (B) the strategy to protect the Armed Forces of the United 
     States in the event of civil war in Iraq; and
       (C) the strategy to ensure that the Armed Forces of the 
     United States will not take sides in the event of civil war 
     in Iraq.
       (3) If in such report the President determines that there 
     is a civil war in Iraq, a description (in unclassified form) 
     of--
       (A) the mission and duration of the Armed Forces of the 
     United States in Iraq;
       (B) the strategy to protect the Armed Forces of the United 
     States while they remain in Iraq; and
       (C) the strategy to ensure that the Armed Forces of the 
     United States will not take sides in the civil war in Iraq.
                                 ______
                                 
  SA 3688. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. __. FUNDING FOR THE COVERED COUNTERMEASURES PROCESS 
                   FUND.

       For an additional amount for funding the Covered 
     Countermeasures Process Fund under section 319F-4 of the 
     Public Health Service Act (42 U.S.C. 247d-6e), $289,000,000: 
     Provided, That the amounts provided for under this section 
     shall be designated as an emergency requirement pursuant to 
     section 402 of H. Con. Res. 95 (109th Congress): Provided 
     further, That amounts provided for under this section shall 
     remain available until expended.
                                 ______
                                 
  SA 3689. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. FUNDING FOR THE COVERED COUNTERMEASURES PROCESS 
                   FUND.

       For an additional amount for funding the Covered 
     Countermeasures Process Fund under section 319F-4 of the 
     Public Health Service Act (42 U.S.C. 247d-6e), $289,000,000: 
     Provided, That no funds appropriated under this Act or any 
     other provision of law shall be used to issue a declaration 
     under section 319F-3(b) of such Act (42 U.S.C. 247d-6d(b)) 
     that specifies any countermeasure other than a vaccine for 
     pandemic influenza: Provided further, That the amounts 
     provided for under this section shall be designated as an 
     emergency requirement pursuant to section 402 of H. Con. Res. 
     95 (109th Congress): Provided further, That amounts provided 
     for under this section shall remain available until expended.
                                 ______
                                 
  SA 3690. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

         TITLE __--PUBLIC READINESS AND EMERGENCY PREPAREDNESS

     SEC. __01. SHORT TITLE,

       This title may be cited as the ``Responsible Public 
     Readiness and Emergency Preparedness Act''.

     SEC. __02. REPEAL.

       The Public Readiness and Emergency Preparedness Act 
     (division C of the Department of Defense, Emergency 
     Supplemental Appropriations to Address Hurricanes in the Gulf 
     of Mexico, and Pandemic Influenza Act, 2006 (Public Law 109-
     148)) is repealed.

     SEC. __03. NATIONAL BIODEFENSE INJURY COMPENSATION PROGRAM.

       (a) Establishment.--Section 224 of the Public Health 
     Service Act (42 U.S.C. 233) is amended by adding at the end 
     the following:
       ``(q) Biodefense Injury Compensation Program.--
       ``(1) Establishment.--There is established the Biodefense 
     Injury Compensation Program (referred to in this subsection 
     as the `Compensation Program') under which compensation may 
     be paid for death or any injury, illness, disability, or 
     condition that is likely (based on best available evidence) 
     to have been caused by the administration of a covered 
     countermeasure to an individual pursuant to a declaration 
     under subsection (p)(2).
       ``(2) Administration and interpretation.--The statutory 
     provisions governing the Compensation Program shall be 
     administered and interpreted in consideration of the program 
     goals described in paragraph (4)(B)(iii).
       ``(3) Procedures and standards.--The Secretary shall by 
     regulation establish procedures and standards applicable to 
     the Compensation Program that follow the procedures and 
     standards applicable under the National Vaccine Injury 
     Compensation Program established under section 2110, except 
     that the regulations promulgated under this paragraph shall 
     permit a person claiming injury or death related to the 
     administration of any covered countermeasure to file either--
       ``(A) a civil action for relief under subsection (p); or
       ``(B) a petition for compensation under this subsection.
       ``(4) Injury table.--
       ``(A) Inclusion.--For purposes of receiving compensation 
     under the Compensation Program with respect to a 
     countermeasure that is the subject of a declaration under 
     subsection (p)(2), the Vaccine Injury Table under section 
     2114 shall be deemed to include death and the injuries, 
     disabilities, illnesses, and conditions specified by the 
     Secretary under subparagraph (B)(ii).
       ``(B) Injuries, disabilities, illnesses, and conditions.--
       ``(i) Institute of medicine.--Not later than 30 days after 
     making a declaration described in subsection (p)(2), the 
     Secretary shall enter into a contract with the Institute of 
     Medicine, under which the Institute shall, within 180 days of 
     the date on which the contract is entered into, and 
     periodically thereafter as new information, including 
     information derived from the monitoring of those who were 
     administered the countermeasure, becomes available, provide 
     its expert recommendations on the injuries, disabilities, 
     illnesses, and conditions whose occurrence in one or more 
     individuals are likely (based on best available evidence) to 
     have been caused by the administration of a countermeasure 
     that is the subject of the declaration.
       ``(ii) Specification by secretary.--Not later than 30 days 
     after the receipt of the expert recommendations described in 
     clause (i), the Secretary shall, based on such 
     recommendations, specify those injuries, disabilities, 
     illnesses, and conditions deemed to be included in the 
     Vaccine Injury Table under section 2114 for the purposes 
     described in subparagraph (A).
       ``(iii) Program goals.--The Institute of Medicine, under 
     the contract under clause (i), shall make such 
     recommendations, the Secretary shall specify, under clause 
     (ii), such injuries, disabilities, illnesses, and conditions, 
     and claims under the Compensation Program under this 
     subsection shall be processed and decided taking into account 
     the following goals of such program:

       ``(I) To encourage persons to develop, manufacture, and 
     distribute countermeasures,

[[Page 6430]]

     and to administer covered countermeasures to individuals, by 
     limiting such persons' liability for damages related to death 
     and such injuries, disabilities, illnesses, and conditions.
       ``(II) To encourage individuals to consent to the 
     administration of a covered countermeasure by providing 
     adequate and just compensation for damages related to death 
     and such injuries, disabilities, illnesses, or conditions.
       ``(III) To provide individuals seeking compensation for 
     damages related to the administration of a countermeasure 
     with a non-adversarial administrative process for obtaining 
     adequate and just compensation.

       ``(iv) Use of best available evidence.--The Institute of 
     Medicine, under the contract under clause (i), shall make 
     such recommendations, the Secretary shall specify, under 
     clause (ii), such injuries, disabilities, illnesses, and 
     conditions, and claims under the Compensation Program under 
     this subsection shall be processed and decided using the best 
     available evidence, including information from adverse event 
     reporting or other monitoring of those individuals who were 
     administered the countermeasure, whether evidence from 
     clinical trials or other scientific studies in humans is 
     available.
       ``(v) Application of section 2115.--With respect to section 
     2115(a)(2) as applied for purposes of this subsection, an 
     award for the estate of the deceased shall be--

       ``(I) if the deceased was under the age of 18, an amount 
     equal to the amount that may be paid to a survivor or 
     survivors as death benefits under the Public Safety Officers' 
     Benefits Program under subpart 1 of part L of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3796 et seq.); or
       ``(II) if the deceased was 18 years of age or older, the 
     greater of--

       ``(aa) the amount described in subclause (I); or
       ``(bb) the projected loss of employment income, except that 
     the amount under this item may not exceed an amount equal to 
     400 percent of the amount that applies under item (aa).
       ``(vi) Application of section 2116.--Section 2116(b) shall 
     apply to injuries, disabilities, illnesses, and conditions 
     initially specified or revised by the Secretary under clause 
     (ii), except that the exceptions contained in paragraphs (1) 
     and (2) of such section shall not apply.
       ``(C) Rule of construction.--Section 13632 (a)(3) of Public 
     Law 103-66 (107 Stat. 646) (making revisions by Secretary to 
     the Vaccine Injury Table effective on the effective date of a 
     corresponding tax) shall not be construed to apply to any 
     revision to the Vaccine Injury Table made under regulations 
     under this paragraph.
       ``(5) Application.--The Compensation Program applies to any 
     death or injury, illness, disability, or condition that is 
     likely (based on best available evidence) to have been caused 
     by the administration of a covered countermeasure to an 
     individual pursuant to a declaration under subsection (p)(2).
       ``(6) Special masters.--
       ``(A) Hiring.--In accordance with section 2112, the judges 
     of the United States Claims Court shall appoint a sufficient 
     number of special masters to address claims for compensation 
     under this subsection.
       ``(B) Budget authority.--There are appropriated to carry 
     out this subsection such sums as may be necessary for fiscal 
     year 2006 and each fiscal year thereafter. This subparagraph 
     constitutes budget authority in advance of appropriations and 
     represents the obligation of the Federal Government.
       ``(7) Covered countermeasure.--For purposes of this 
     subsection, the term `covered countermeasure' has the meaning 
     given to such term in subsection (p)(7)(A).
       ``(8) Funding.--Compensation made under the Compensation 
     Program shall be made from the same source of funds as 
     payments made under subsection (p).''.
       (b) Effective Date.--This section shall take effect as of 
     November 25, 2002 (the date of enactment of the Homeland 
     Security Act of 2002 (Pub. L. 107-296; 116 Stat. 2135)).

     SEC. __04. INDEMNIFICATION FOR MANUFACTURERS AND HEALTH CARE 
                   PROFESSIONALS WHO ADMINISTER MEDICAL PRODUCTS 
                   NEEDED FOR BIODEFENSE.

       Section 224(p) of the Public Health Service Act (42 U.S.C. 
     233(p)) is amended--
       (1) in the subsection heading by striking ``Smallpox'';
       (2) in paragraph (1), by striking ``against smallpox'';
       (3) in paragraph (2)--
       (A) in the paragraph heading, by striking ``against 
     smallpox''; and
       (B) in subparagraph (B), by striking clause (ii);
       (4) by striking paragraph (3) and inserting the following:
       ``(3) Exclusivity; offset.--
       ``(A) Exclusivity.--With respect to an individual to which 
     this subsection applies, such individual may bring a claim 
     for relief under--
       ``(i) this subsection;
       ``(ii) subsection (q); or
       ``(iii) part C.
       ``(B) Election of alternatives.--An individual may only 
     pursue one remedy under subparagraph (A) at any one time 
     based on the same incident or series of incidents. An 
     individual who elects to pursue the remedy under subsection 
     (q) or part C may decline any compensation awarded with 
     respect to such remedy and subsequently pursue the remedy 
     provided for under this subsection. An individual who elects 
     to pursue the remedy provided for under this subsection may 
     not subsequently pursue the remedy provided for under 
     subsection (q) or part C.
       ``(C) Statute of limitations.--For purposes of determining 
     how much time has lapsed when applying statute of limitations 
     requirements relating to remedies under subparagraph (A), any 
     limitation of time for commencing an action, or filing an 
     application, petition, or claim for such remedies, shall be 
     deemed to have been suspended for the periods during which an 
     individual pursues a remedy under such subparagraph.
       ``(D) Offset.--The value of all compensation and benefits 
     provided under subsection (q) or part C of this title for an 
     incident or series of incidents shall be offset against the 
     amount of an award, compromise, or settlement of money 
     damages in a claim or suit under this subsection based on the 
     same incident or series of incidents.'';
       (5) in paragraph (6)--
       (A) in subparagraph (A), by inserting ``or under subsection 
     (q) or part C'' after ``under this subsection''; and
       (B) by redesignating subparagraph (B) as subparagraph (C);
       (C) by inserting after subparagraph (A), the following:
       ``(B) Grossly negligent, reckless, or illegal conduct and 
     willful misconduct.--For purposes of subparagraph (A), 
     grossly negligent, reckless, or illegal conduct or willful 
     misconduct shall include the administration by a qualified 
     person of a covered countermeasure to an individual who was 
     not within a category of individuals covered by a declaration 
     under subsection (p)(2) with respect to such countermeasure 
     where the qualified person fails to have had reasonable 
     grounds to believe such individual was within such a 
     category.''; and
       (D) by adding at the end the following:
       ``(D) Liability of the united states.--The United States 
     shall be liable under this subsection with respect to a claim 
     arising out of the manufacture, distribution, or 
     administration of a covered countermeasure regardless of 
     whether--
       ``(i) the cause of action seeking compensation is alleged 
     as negligence, strict liability, breach of warranty, failure 
     to warn, or other action; or
       ``(ii) the covered countermeasure is designated as a 
     qualified anti-terrorism technology under the SAFETY Act (6 
     U.S.C. 441 et seq.).''
       ``(E) Governing law.--Notwithstanding the provisions of 
     section 1346(b)(1) and chapter 171 of title 28, United States 
     Code, as they relate to governing law, the liability of the 
     United States as provided in this subsection shall be in 
     accordance with the law of the place of injury.
       ``(F) Military personnel and united states citizens 
     overseas.--
       ``(i) Military personnel.--The liability of the United 
     States as provided in this subsection shall extend to claims 
     brought by United States military personnel.
       ``(ii) Claims arising in a foreign country.--
     Notwithstanding the provisions of section 2680(k) of title 
     28, United States Code, the liability of the United States as 
     provided for in the subsection shall extend to claims based 
     on injuries arising in a foreign country where the injured 
     party is a member of the United States military, is the 
     spouse or child of a member of the United States military, or 
     is a United States citizen.
       ``(iii) Governing law.--With regard to all claims brought 
     under clause (ii), and notwithstanding the provisions of 
     section 1346(b)(1) and chapter 171 of title 28, United States 
     Code, and of subparagraph (C), as they relate to governing 
     law, the liability of the United States as provided in this 
     subsection shall be in accordance with the law of the 
     claimant's domicile in the United States or most recent 
     domicile with the United States.''; and
       (6) in paragraph (7)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Covered countermeasure.--The term `covered 
     countermeasure', means--
       ``(i) a substance that is--

       ``(I)(aa) used to prevent or treat smallpox (including the 
     vaccinia or another vaccine); or
       ``(bb) vaccinia immune globulin used to control or treat 
     the adverse effects of vaccinia inoculation; and
       ``(II) specified in a declaration under paragraph (2); or

       ``(ii) a drug (as such term is defined in section 201(g)(1) 
     of the Federal Food, Drug, and Cosmetic Act), biological 
     product (as such term is defined in section 351(i) of this 
     Act), or device (as such term is defined in section 201(h) of 
     the Federal Food, Drug, and Cosmetic Act) that--

       ``(I) the Secretary determines to be a priority (consistent 
     with sections 302(2) and 304(a) of the Homeland Security Act 
     of 2002) to treat, identify, or prevent harm from any 
     biological, chemical, radiological, or nuclear agent 
     identified as a material threat under

[[Page 6431]]

     section 319F-2(c)(2)(A)(ii), or to treat, identify, or 
     prevent harm from a condition that may result in adverse 
     health consequences or death and may be caused by 
     administering a drug, biological product, or device against 
     such an agent;
       ``(II) is--

       ``(aa) authorized for emergency use under section 564 of 
     the Federal Food, Drug, and Cosmetic Act, so long as the 
     manufacturer of such drug, biological product, or device 
     has--
         ``(AA) made all reasonable efforts to obtain applicable 
     approval, clearance, or licensure; and
         ``(BB) cooperated fully with the requirements of the 
     Secretary under such section 564; or
       ``(bb) approved or licensed solely pursuant to the 
     regulations under subpart I of part 314 or under subpart H of 
     part 601 of title 21, Code of Federal Regulations (as in 
     effect on the date of enactment of the National Biodefense 
     Act of 2005); and

       ``(III) is specified in a declaration under paragraph 
     (2).''; and

       (B) in subparagraph (B)--
       (i) by striking clause (ii), and inserting the following:
       ``(ii) a health care entity, a State, or a political 
     subdivision of a State under whose auspices such 
     countermeasure was administered;'' and
       (vi) in clause (viii), by inserting before the period ``if 
     such individual performs a function for which a person 
     described in clause (i), (ii), or (iv) is a covered person''.
                                 ______
                                 
  SA 3691. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

         TITLE __--PUBLIC READINESS AND EMERGENCY PREPAREDNESS

     SEC. __01. SHORT TITLE,

       This title may be cited as the ``Responsible Public 
     Readiness and Emergency Preparedness Act''.

     SEC. __02. REPEAL.

       The Public Readiness and Emergency Preparedness Act 
     (division C of the Department of Defense, Emergency 
     Supplemental Appropriations to Address Hurricanes in the Gulf 
     of Mexico, and Pandemic Influenza Act, 2006 (Public Law 109-
     148)) is repealed.

     SEC. __03. NATIONAL BIODEFENSE INJURY COMPENSATION PROGRAM.

       (a) Establishment.--Section 224 of the Public Health 
     Service Act (42 U.S.C. 233) is amended by adding at the end 
     the following:
       ``(q) Biodefense Injury Compensation Program.--
       ``(1) Establishment.--There is established the Biodefense 
     Injury Compensation Program (referred to in this subsection 
     as the `Compensation Program') under which compensation may 
     be paid for death or any injury, illness, disability, or 
     condition that is likely (based on best available evidence) 
     to have been caused by the administration of a covered 
     countermeasure to an individual pursuant to a declaration 
     under subsection (p)(2).
       ``(2) Administration and interpretation.--The statutory 
     provisions governing the Compensation Program shall be 
     administered and interpreted in consideration of the program 
     goals described in paragraph (4)(B)(iii).
       ``(3) Procedures and standards.--The Secretary shall by 
     regulation establish procedures and standards applicable to 
     the Compensation Program that follow the procedures and 
     standards applicable under the National Vaccine Injury 
     Compensation Program established under section 2110, except 
     that the regulations promulgated under this paragraph shall 
     permit a person claiming injury or death related to the 
     administration of any covered countermeasure to file either--
       ``(A) a civil action for relief under subsection (p); or
       ``(B) a petition for compensation under this subsection.
       ``(4) Injury table.--
       ``(A) Inclusion.--For purposes of receiving compensation 
     under the Compensation Program with respect to a 
     countermeasure that is the subject of a declaration under 
     subsection (p)(2), the Vaccine Injury Table under section 
     2114 shall be deemed to include death and the injuries, 
     disabilities, illnesses, and conditions specified by the 
     Secretary under subparagraph (B)(ii).
       ``(B) Injuries, disabilities, illnesses, and conditions.--
       ``(i) Institute of medicine.--Not later than 30 days after 
     making a declaration described in subsection (p)(2), the 
     Secretary shall enter into a contract with the Institute of 
     Medicine, under which the Institute shall, within 180 days of 
     the date on which the contract is entered into, and 
     periodically thereafter as new information, including 
     information derived from the monitoring of those who were 
     administered the countermeasure, becomes available, provide 
     its expert recommendations on the injuries, disabilities, 
     illnesses, and conditions whose occurrence in one or more 
     individuals are likely (based on best available evidence) to 
     have been caused by the administration of a countermeasure 
     that is the subject of the declaration.
       ``(ii) Specification by secretary.--Not later than 30 days 
     after the receipt of the expert recommendations described in 
     clause (i), the Secretary shall, based on such 
     recommendations, specify those injuries, disabilities, 
     illnesses, and conditions deemed to be included in the 
     Vaccine Injury Table under section 2114 for the purposes 
     described in subparagraph (A).
       ``(iii) Program goals.--The Institute of Medicine, under 
     the contract under clause (i), shall make such 
     recommendations, the Secretary shall specify, under clause 
     (ii), such injuries, disabilities, illnesses, and conditions, 
     and claims under the Compensation Program under this 
     subsection shall be processed and decided taking into account 
     the following goals of such program:

       ``(I) To encourage persons to develop, manufacture, and 
     distribute countermeasures, and to administer covered 
     countermeasures to individuals, by limiting such persons' 
     liability for damages related to death and such injuries, 
     disabilities, illnesses, and conditions.
       ``(II) To encourage individuals to consent to the 
     administration of a covered countermeasure by providing 
     adequate and just compensation for damages related to death 
     and such injuries, disabilities, illnesses, or conditions.
       ``(III) To provide individuals seeking compensation for 
     damages related to the administration of a countermeasure 
     with a non-adversarial administrative process for obtaining 
     adequate and just compensation.

       ``(iv) Use of best available evidence.--The Institute of 
     Medicine, under the contract under clause (i), shall make 
     such recommendations, the Secretary shall specify, under 
     clause (ii), such injuries, disabilities, illnesses, and 
     conditions, and claims under the Compensation Program under 
     this subsection shall be processed and decided using the best 
     available evidence, including information from adverse event 
     reporting or other monitoring of those individuals who were 
     administered the countermeasure, whether evidence from 
     clinical trials or other scientific studies in humans is 
     available.
       ``(v) Application of section 2115.--With respect to section 
     2115(a)(2) as applied for purposes of this subsection, an 
     award for the estate of the deceased shall be--

       ``(I) if the deceased was under the age of 18, an amount 
     equal to the amount that may be paid to a survivor or 
     survivors as death benefits under the Public Safety Officers' 
     Benefits Program under subpart 1 of part L of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3796 et seq.); or
       ``(II) if the deceased was 18 years of age or older, the 
     greater of--

       ``(aa) the amount described in subclause (I); or
       ``(bb) the projected loss of employment income, except that 
     the amount under this item may not exceed an amount equal to 
     400 percent of the amount that applies under item (aa).
       ``(vi) Application of section 2116.--Section 2116(b) shall 
     apply to injuries, disabilities, illnesses, and conditions 
     initially specified or revised by the Secretary under clause 
     (ii), except that the exceptions contained in paragraphs (1) 
     and (2) of such section shall not apply.
       ``(C) Rule of construction.--Section 13632 (a)(3) of Public 
     Law 103-66 (107 Stat. 646) (making revisions by Secretary to 
     the Vaccine Injury Table effective on the effective date of a 
     corresponding tax) shall not be construed to apply to any 
     revision to the Vaccine Injury Table made under regulations 
     under this paragraph.
       ``(5) Application.--The Compensation Program applies to any 
     death or injury, illness, disability, or condition that is 
     likely (based on best available evidence) to have been caused 
     by the administration of a covered countermeasure to an 
     individual pursuant to a declaration under subsection (p)(2).
       ``(6) Special masters.--
       ``(A) Hiring.--In accordance with section 2112, the judges 
     of the United States Claims Court shall appoint a sufficient 
     number of special masters to address claims for compensation 
     under this subsection.
       ``(B) Budget authority.--There are appropriated to carry 
     out this subsection such sums as may be necessary for fiscal 
     year 2006 and each fiscal year thereafter. This subparagraph 
     constitutes budget authority in advance of appropriations and 
     represents the obligation of the Federal Government.
       ``(7) Covered countermeasure.--For purposes of this 
     subsection, the term `covered countermeasure' has the meaning 
     given to such term in subsection (p)(7)(A).
       ``(8) Funding.--Compensation made under the Compensation 
     Program shall be made from the same source of funds as 
     payments made under subsection (p).''.
       (b) Effective Date.--This section shall take effect as of 
     November 25, 2002 (the date of enactment of the Homeland 
     Security Act of 2002 (Pub. L. 107-296; 116 Stat. 2135)).

[[Page 6432]]



     SEC. __04. INDEMNIFICATION FOR MANUFACTURERS AND HEALTH CARE 
                   PROFESSIONALS WHO ADMINISTER MEDICAL PRODUCTS 
                   NEEDED FOR BIODEFENSE.

       Section 224(p) of the Public Health Service Act (42 U.S.C. 
     233(p)) is amended--
       (1) in the subsection heading by striking ``Smallpox'';
       (2) in paragraph (1), by striking ``against smallpox'';
       (3) in paragraph (2)--
       (A) in the paragraph heading, by striking ``against 
     smallpox''; and
       (B) in subparagraph (B), by striking clause (ii);
       (4) by striking paragraph (3) and inserting the following:
       ``(3) Exclusivity; offset.--
       ``(A) Exclusivity.--With respect to an individual to which 
     this subsection applies, such individual may bring a claim 
     for relief under--
       ``(i) this subsection;
       ``(ii) subsection (q); or
       ``(iii) part C.
       ``(B) Election of alternatives.--An individual may only 
     pursue one remedy under subparagraph (A) at any one time 
     based on the same incident or series of incidents. An 
     individual who elects to pursue the remedy under subsection 
     (q) or part C may decline any compensation awarded with 
     respect to such remedy and subsequently pursue the remedy 
     provided for under this subsection. An individual who elects 
     to pursue the remedy provided for under this subsection may 
     not subsequently pursue the remedy provided for under 
     subsection (q) or part C.
       ``(C) Statute of limitations.--For purposes of determining 
     how much time has lapsed when applying statute of limitations 
     requirements relating to remedies under subparagraph (A), any 
     limitation of time for commencing an action, or filing an 
     application, petition, or claim for such remedies, shall be 
     deemed to have been suspended for the periods during which an 
     individual pursues a remedy under such subparagraph.
       ``(D) Offset.--The value of all compensation and benefits 
     provided under subsection (q) or part C of this title for an 
     incident or series of incidents shall be offset against the 
     amount of an award, compromise, or settlement of money 
     damages in a claim or suit under this subsection based on the 
     same incident or series of incidents.'';
       (5) in paragraph (6)--
       (A) in subparagraph (A), by inserting ``or under subsection 
     (q) or part C'' after ``under this subsection''; and
       (B) by redesignating subparagraph (B) as subparagraph (C);
       (C) by inserting after subparagraph (A), the following:
       ``(B) Grossly negligent, reckless, or illegal conduct and 
     willful misconduct.--For purposes of subparagraph (A), 
     grossly negligent, reckless, or illegal conduct or willful 
     misconduct shall include the administration by a qualified 
     person of a covered countermeasure to an individual who was 
     not within a category of individuals covered by a declaration 
     under subsection (p)(2) with respect to such countermeasure 
     where the qualified person fails to have had reasonable 
     grounds to believe such individual was within such a 
     category.''; and
       (D) by adding at the end the following:
       ``(D) Liability of the united states.--The United States 
     shall be liable under this subsection with respect to a claim 
     arising out of the manufacture, distribution, or 
     administration of a covered countermeasure regardless of 
     whether--
       ``(i) the cause of action seeking compensation is alleged 
     as negligence, strict liability, breach of warranty, failure 
     to warn, or other action; or
       ``(ii) the covered countermeasure is designated as a 
     qualified anti-terrorism technology under the SAFETY Act (6 
     U.S.C. 441 et seq.).''
       ``(E) Governing law.--Notwithstanding the provisions of 
     section 1346(b)(1) and chapter 171 of title 28, United States 
     Code, as they relate to governing law, the liability of the 
     United States as provided in this subsection shall be in 
     accordance with the law of the place of injury.
       ``(F) Military personnel and united states citizens 
     overseas.--
       ``(i) Military personnel.--The liability of the United 
     States as provided in this subsection shall extend to claims 
     brought by United States military personnel.
       ``(ii) Claims arising in a foreign country.--
     Notwithstanding the provisions of section 2680(k) of title 
     28, United States Code, the liability of the United States as 
     provided for in the subsection shall extend to claims based 
     on injuries arising in a foreign country where the injured 
     party is a member of the United States military, is the 
     spouse or child of a member of the United States military, or 
     is a United States citizen.
       ``(iii) Governing law.--With regard to all claims brought 
     under clause (ii), and notwithstanding the provisions of 
     section 1346(b)(1) and chapter 171 of title 28, United States 
     Code, and of subparagraph (C), as they relate to governing 
     law, the liability of the United States as provided in this 
     subsection shall be in accordance with the law of the 
     claimant's domicile in the United States or most recent 
     domicile with the United States.''; and
       (6) in paragraph (7)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Covered countermeasure.--The term `covered 
     countermeasure', means--
       ``(i) a substance that is--

       ``(I)(aa) used to prevent or treat smallpox (including the 
     vaccinia or another vaccine); or
       ``(bb) vaccinia immune globulin used to control or treat 
     the adverse effects of vaccinia inoculation; and
       ``(II) specified in a declaration under paragraph (2); or

       ``(ii) a drug (as such term is defined in section 201(g)(1) 
     of the Federal Food, Drug, and Cosmetic Act), biological 
     product (as such term is defined in section 351(i) of this 
     Act), or device (as such term is defined in section 201(h) of 
     the Federal Food, Drug, and Cosmetic Act) that--

       ``(I) the Secretary determines to be a priority (consistent 
     with sections 302(2) and 304(a) of the Homeland Security Act 
     of 2002) to treat, identify, or prevent harm from any 
     biological, chemical, radiological, or nuclear agent 
     identified as a material threat under section 319F-
     2(c)(2)(A)(ii), or to treat, identify, or prevent harm from a 
     condition that may result in adverse health consequences or 
     death and may be caused by administering a drug, biological 
     product, or device against such an agent;
       ``(II) is--

       ``(aa) authorized for emergency use under section 564 of 
     the Federal Food, Drug, and Cosmetic Act, so long as the 
     manufacturer of such drug, biological product, or device 
     has--
         ``(AA) made all reasonable efforts to obtain applicable 
     approval, clearance, or licensure; and
         ``(BB) cooperated fully with the requirements of the 
     Secretary under such section 564; or
       ``(bb) approved or licensed solely pursuant to the 
     regulations under subpart I of part 314 or under subpart H of 
     part 601 of title 21, Code of Federal Regulations (as in 
     effect on the date of enactment of the National Biodefense 
     Act of 2005); and

       ``(III) is specified in a declaration under paragraph 
     (2).''; and

       (B) in subparagraph (B)--
       (i) by striking clause (ii), and inserting the following:
       ``(ii) a health care entity, a State, or a political 
     subdivision of a State under whose auspices such 
     countermeasure was administered;'' and
       (vi) in clause (viii), by inserting before the period ``if 
     such individual performs a function for which a person 
     described in clause (i), (ii), or (iv) is a covered person''.

     SEC. __05. PREPAREDNESS AND RESPONSE.

       (a) In General.--The Secretary of Labor and the Secretary 
     of Health and Human Services shall develop and issue 
     workplace standards, recommendations and plans to protect 
     health care workers and first responders, including police, 
     firefighters, and emergency medical personnel from workplace 
     exposure to pandemic influenza. Such standards, 
     recommendations and plans shall set forth appropriate 
     measures to protect workers both in preparation for a 
     potential pandemic influenza occurrence and in response to an 
     actual occurrence of pandemic influenza.
       (b) Workplace Safety and Health Standards.--
       (1) In general.--Within 6 months after the date of the 
     enactment of this Act, pursuant to section 6(c) of the 
     Occupational Safety and Health Act, the Secretary of Labor, 
     in consultation with the Director of the National Institute 
     for Occupational Safety and Health, shall develop and issue 
     an emergency temporary standard for the protection of health 
     care workers and first responders against occupational 
     exposure to pandemic influenza, including avian influenza 
     caused by the H5N1 virus. Within 6 months after the issuance 
     of an emergency standard, the Secretary of Labor shall issue 
     a final permanent standard for occupational exposure to 
     pandemic influenza under section 6(b) of the Occupational 
     Safety and Health Act. The emergency temporary standard and 
     final permanent standard shall provide, at a minimum, for the 
     following:
       (A) The development and implementation of an exposure 
     control plan to protect workers from airborne and contact 
     hazards in conformance with the Guideline for Protecting 
     Workers Against Avian Flu issued by the Occupational Safety 
     and Health Administration March 2004, the Centers for Disease 
     Control and Prevention Interim Recommendations for Infection 
     Control in Health-Care Facilities Caring for Patients with 
     Known or Suspected Avian Influenza issued May 21, 2004, and 
     the World Health Organization (WHO) Global Influenza 
     Preparedness Plan issued April 2005.
       (B) Personal protective equipment, in conformance with the 
     requirements of 29 CFR 1910.134 and 29 CFR 1910.132.
       (C) Training and information in conformance with the OSHA 
     Bloodborne Pathogens standard under 29 CFR 1910.1030(g).
       (D) Appropriate medical surveillance for workers exposed to 
     the pandemic influenza virus, including the H5N1 virus.

[[Page 6433]]

       (E) Immunization against the pandemic influenza virus, if 
     such a vaccine has been approved by the Food and Drug 
     Administration and is available.
       (2) Effective date.--The emergency standard issued under 
     paragraph (1) shall take effect not later than 90 days after 
     the promulgation of such standard, except that the effective 
     date for any requirements for engineering controls shall go 
     into effect not later than 90 days after the promulgation of 
     the final permanent standard. The provisions of the emergency 
     temporary standard shall remain in effect until the final 
     permanent standard is in effect.
       (c) Pandemic Influenza Preparedness Plan Revisions.--
       (1) Minimal requirements.--Within 30 days after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services shall revise the provisions of the pandemic 
     influenza plan of the Department of Health and Human Services 
     to conform with the minimal worker protection requirements 
     set forth in subsection (b).
       (2) Final standard.--Within 30 days of the promulgation of 
     a final standard under subsection (b), the Secretary of 
     Health and Human Services shall modify the pandemic influenza 
     plan of the Department of Health and Human Services to 
     conform with the provisions of the occupational safety and 
     health standard issued by the Secretary of Labor.

     SEC. __06. RELATION TO STATES AND POLITICAL SUBDIVISIONS 
                   RECEIVING FUNDS UNDER SECTION 319 OF PHSA.

       An award of a grant, cooperative agreement, or contract may 
     not be made to any State or political subdivision of a State 
     under any program receiving funds under section 319 of the 
     Public Health Service Act (42 U.S.C. 247d) unless the State 
     or political subdivision agrees to comply with the standards 
     issued under section __05 for protecting health care workers 
     and first responders from pandemic influenza.

     SEC. __07. PROTECTION OF POULTRY WORKERS.

       (a) In General.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services, in coordination with the Secretary of Agriculture, 
     the Secretary of Interior, and the Secretary of Labor, shall 
     convene a meeting of experts, representatives of the poultry 
     industry, representatives of poultry workers and other 
     appropriate parties to evaluate the risks to poultry workers 
     posed by exposure to the H5N1 virus, the likelihood of 
     transmission of the virus from birds to poultry workers and 
     the necessary measures to protect poultry workers from 
     exposure.
       (b) Revision of Preparedness Plan.--Not later than 30 days 
     after the meeting under subsection (a), the Secretary shall 
     revise the HHS Pandemic Influenza Plan to include the 
     findings and recommendations of the participants in the 
     meeting.
       (c) Implementation of Recommendations.--The Secretary of 
     Health and Human Services, the Secretary of Agriculture, the 
     Secretary of Interior, and the Secretary of Labor shall take 
     the recommended steps to implement the recommendations of the 
     participants in the meeting under subsection (a).
                                 ______
                                 
  SA 3692. Mr. FRIST (for himself, Mr. Santorum, and Mr. Ensign) 
submitted an amendment intended to be proposed by him to the bill H.R. 
4939, making emergency supplemental appropriations for the fiscal year 
ending September 30, 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       Sec. __. None of the funds appropriated or otherwise made 
     available by this Act or any other Act may be obligated or 
     expended in connection with United States participation in, 
     or support for, the activities of the United Nations Human 
     Rights Council.
       Sec. __. (a) Of the amounts appropriated or otherwise made 
     available for the Secretary of State for each of fiscal years 
     2006 and 2007 to pay the United States share of assessed 
     contributions for the regular budget of the United Nations, 
     $4,300,000 shall be withheld from such payment, and shall be 
     available instead for the purposes described in subsection 
     (b).
       (b) The purposes referred to in subsection (a) are the 
     establishment and operation of a state-of-the-art advanced 
     training skills facility to rehabilitate injured veterans at 
     Brooke Army Medical Center in San Antonio, Texas.
       (c) Amounts withheld under subsection (a) shall remain 
     available until expended for the purposes described in 
     subsection (b).
                                 ______
                                 
  SA 3693. Mr. OBAMA (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:


         LIMITS ON ADMINISTRATIVE COSTS UNDER FEDERAL CONTRACTS

       Sec. 7032. None of the funds appropriated by this Act may 
     be used by an executive agency to enter into any Federal 
     contract (including any subcontract or follow-on contract) 
     for which the administrative overhead and contract management 
     expenses exceed the reasonable industry standard as published 
     by the Director of the Office of Management and Budget 
     unless, not later than 3 days before entering into the 
     contract, the head of the executive agency provides to the 
     chair and ranking member of the relevant oversight committees 
     of the Senate and the House of Representatives a copy of the 
     contract, any other documentation requested by Congress, and 
     a justification for excessive overhead expense.
                                 ______
                                 
  SA 3694. Mr. OBAMA (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:


            ACCOUNTABILITY IN HURRICANE RECOVERY CONTRACTING

       Sec. 7032. None of the funds appropriated by this Act that 
     are made available for relief and recovery efforts related to 
     Hurricane Katrina and the other hurricanes of the 2005 season 
     may be used by an executive agency to enter into any Federal 
     contract (including any follow-on contract) exceeding 
     $1,000,000 through the use of procedures other than 
     competitive procedures as required by the Federal Acquisition 
     Regulation and, as applicable, section 303(a) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     253(a)) or section 2304(a) of title 10, United States Code, 
     unless the Director of the Office of Management and Budget 
     specifically approves the use of such procedures for such 
     contract, and not later than 7 days after entering into the 
     contract, the executive agency provides to the chair and 
     ranking member of the relevant oversight committees of the 
     Senate and the House of Representatives a copy of the 
     contract, the justification for the procedures used, the date 
     when the contract will end, and the steps being taken to 
     ensure that any future contracts for the product or service 
     or with the same vendor will follow the appropriate 
     competitive procedures.
                                 ______
                                 
  SA 3695. Mr. OBAMA (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:


        FINANCIAL TRANSPARENCY IN HURRICANE RECOVERY CONTRACTING

       Sec. 7032. None of the funds appropriated by this Act that 
     are made available for relief and recovery efforts related to 
     Hurricane Katrina and other hurricanes of the 2005 season may 
     be used by an executive agency to enter into any Federal 
     contract (including any follow-on contract) exceeding 
     $250,000 unless the Director of the Office of Management and 
     Budget publishes on an accessible Federal Internet website an 
     electronically searchable monthly report that includes an 
     electronic mail address and phone number that can be used to 
     report waste, fraud, or abuse, the number and outcome of 
     fraud investigations related to such recovery efforts 
     conducted by executive agencies, and for each entity that has 
     received more than $250,000 in amounts appropriated or 
     otherwise made available by this Act, the name of the entity 
     and a unique identifier, the total amount of Federal funds 
     that the entity has received since August 25, 2005, the 
     geographic location and official tax domicile of the entity 
     and the primary location of performance of contracts paid for 
     with such amounts, and an itemized breakdown of each contract 
     exceeding $100,000 that specifies the funding agency, program 
     source, contract type, number of bids received, and a 
     description of the purpose of the contract.
                                 ______
                                 
  SA 3696. Mr. OBAMA (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


            ACCOUNTABILITY IN HURRICANE RECOVERY CONTRACTING

       Sec. 7032. (a) None of the funds appropriated by this Act 
     that are made available for relief and recovery efforts 
     related to Hurricane Katrina and the other hurricanes of the 
     2005 season may be used by an executive agency to enter into 
     any Federal contract (including any follow-on contract) 
     exceeding $1,000,000 through the use of procedures other than 
     competitive procedures as required by the Federal Acquisition 
     Regulation and, as applicable, section 303(a) of the Federal 
     Property and Administrative Services Act of

[[Page 6434]]

     1949 (41 U.S.C. 253(a)) or section 2304(a) of title 10, 
     United States Code, unless the Director of the Office of 
     Management and Budget specifically approves the use of such 
     procedures for such contract, and not later than 7 days after 
     entering into the contract, the executive agency provides to 
     the chair and ranking member of the relevant oversight 
     committees of the Senate and the House of Representatives a 
     copy of the contract, the justification for the procedures 
     used, the date when the contract will end, and the steps 
     being taken to ensure that any future contracts for the 
     product or service or with the same vendor will follow the 
     appropriate competitive procedures.
       (b) None of the funds appropriated by this Act may be used 
     by an executive agency to enter into any Federal contract 
     (including any subcontract or follow-on contract) for which 
     the administrative overhead and contract management expenses 
     exceed the reasonable industry standard as published by the 
     Director of the Office of Management and Budget unless, not 
     later than 3 days before entering into the contract, the head 
     of the executive agency provides to the chair and ranking 
     member of the relevant oversight committees of the Senate and 
     the House of Representatives a copy of the contract, any 
     other documentation requested by Congress, and a 
     justification for excessive overhead expense.
       (c) None of the funds appropriated by this Act that are 
     made available for relief and recovery efforts related to 
     Hurricane Katrina and other hurricanes of the 2005 season may 
     be used by an executive agency to enter into any Federal 
     contract (including any follow-on contract) exceeding 
     $250,000 unless the Director of the Office of Management and 
     Budget publishes on an accessible Federal Internet website an 
     electronically searchable monthly report that includes an 
     electronic mail address and phone number that can be used to 
     report waste, fraud, or abuse, the number and outcome of 
     fraud investigations related to such recovery efforts 
     conducted by executive agencies, and for each entity that has 
     received more than $250,000 in amounts appropriated or 
     otherwise made available by this Act, the name of the entity 
     and a unique identifier, the total amount of Federal funds 
     that the entity has received since August 25, 2005, the 
     geographic location and official tax domicile of the entity 
     and the primary location of performance of contracts paid for 
     with such amounts, and an itemized breakdown of each contract 
     exceeding $100,000 that specifies the funding agency, program 
     source, contract type, number of bids received, and a 
     description of the purpose of the contract.
                                 ______
                                 
  SA 3697. Mr. OBAMA (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:

            TITLE VII--EMERGENCY RECOVERY SPENDING OVERSIGHT

     SEC. 8001. SHORT TITLE.

       This title may be cited as the ``Oversight of Vital 
     Emergency Recovery Spending Enhancement and Enforcement Act 
     of 2006''.

     SEC. 8002. DEFINITIONS.

       (a) Chief Financial Officer.--The term ``Chief Financial 
     Officer'' means the Hurricane Katrina Recovery Chief 
     Financial Officer.
       (b) Office.--The term ``Office'' means the Office of the 
     Hurricane Katrina Recovery Chief Financial Officer.

     SEC. 8003. ESTABLISHMENT AND FUNCTIONS.

       (a) Establishment.--There is established within the 
     Executive Office of the President, the Office of the 
     Hurricane Katrina Recovery Chief Financial Officer.
       (b) Chief Financial Officer.--
       (1) Appointment.--The Hurricane Katrina Recovery Chief 
     Financial Officer shall be the head of the Office. The Chief 
     Financial Officer shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) Qualifications.--The Chief Financial Officer shall--
       (A) have the qualifications required under section 
     901(a)(3) of title 31, United States Code; and
       (B) have knowledge of Federal contracting and policymaking 
     functions.
       (c) Authorities and Functions.--
       (1) In general.--The Chief Financial Officer shall--
       (A) be responsible for the efficient and effective use of 
     Federal funds in all activities relating to the recovery from 
     Hurricane Katrina;
       (B) strive to ensure that--
       (i) priority in the distribution of Federal relief funds is 
     given to individuals and organizations most in need of 
     financial assistance; and
       (ii) priority in the distribution of Federal reconstruction 
     funds is given to business entities that are based in 
     Louisiana, Mississippi, Alabama, or Florida or business 
     entities that hire workers who resided in those States on 
     August 24, 2005;
       (C) perform risk assessments of all programs and operations 
     related to recovery from Hurricane Katrina and implement 
     internal controls and program oversight based on risk of 
     waste, fraud, or abuse;
       (D) oversee all financial management activities relating to 
     the programs and operations of the Hurricane Katrina recovery 
     effort;
       (E) develop and maintain an integrated accounting and 
     financial management system, including financial reporting 
     and internal controls, which--
       (i) complies with applicable accounting principles, 
     standards, and requirements, and internal control standards;
       (ii) complies with such policies and requirements as may be 
     prescribed by the Director of the Office of Management and 
     Budget;
       (iii) complies with any other requirements applicable to 
     such systems; and
       (iv) provides for--

       (I) complete, reliable, consistent, and timely information 
     which is prepared on a uniform basis and which is responsive 
     to the financial information needs of the Office;
       (II) the development and reporting of cost information;
       (III) the integration of accounting and budgeting 
     information; and
       (IV) the systematic measurement of performance;

       (F) monitor the financial execution of the budget of 
     Federal agencies relating to recovery from Hurricane Katrina 
     in relation to actual expenditures;
       (G) have access to all records, reports, audits, reviews, 
     documents, papers, recommendations, or other material which 
     are the property of Federal agencies or which are available 
     to the agencies, and which relate to programs and operations 
     with respect to which the Chief Financial Officer has 
     responsibilities;
       (H) request such information or assistance as may be 
     necessary for carrying out the duties and responsibilities 
     provided by this section from any Federal, State, or local 
     governmental entity, including any Chief Financial Officer 
     under section 902 of title 31, United States Code, and, upon 
     receiving such request, insofar as is practicable and not in 
     contravention of any existing law, any such Federal 
     Governmental entity or Chief Financial Officer under section 
     902 shall cooperate and furnish such requested information or 
     assistance;
       (I) to the extent and in such amounts as may be provided in 
     advance by appropriations Acts, be authorized to--
       (i) enter into contracts and other arrangements with public 
     agencies and with private persons for the preparation of 
     financial statements, studies, analyses, and other services; 
     and
       (ii) make such payments as may be necessary to carry out 
     the provisions of this section;
       (J) for purposes of the Improper Payments Information Act 
     of 2002 (31 U.S.C. 3321 note), perform, in consultation with 
     the Office of Management and Budget, the functions of the 
     head of an agency for any activity relating to the recovery 
     from Hurricane Katrina that is not currently the 
     responsibility of the head of an agency under that Act; and
       (K) transmit a report, on a quarterly basis, regarding any 
     program or activity identified by the Chief Financial Officer 
     as susceptible to significant improper payments under section 
     2(a) of the Improper Payments Information Act of 2002 (31 
     U.S.C. 3321 note) to the appropriate inspector general.
       (2) Access.--Except as provided in paragraph (1)(H), this 
     subsection does not provide to the Chief Financial Officer 
     any access greater than permitted under any other law to 
     records, reports, audits, reviews, documents, papers, 
     recommendations, or other material of any Office of Inspector 
     General established under the Inspector General Act of 1978 
     (5 U.S.C. App.).
       (3) Coordination of agencies.--In the performance of the 
     authorities and functions under paragraph (1) by the Chief 
     Financial Officer the President (or the President's designee) 
     shall act as the head of the Office and the Chief Financial 
     Officer shall have management and oversight of all agencies 
     performing activities relating to the recovery from Hurricane 
     Katrina.
       (4) Regular reports.--
       (A) In general.--Every month the Chief Financial Officer 
     shall submit a financial report on the activities for which 
     the Chief Financial Officer has management and oversight 
     responsibilities to--
       (i) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (ii) the Committee on Homeland Security of the House of 
     Representatives;
       (iii) the Committees on Appropriations of the Senate and 
     House of Representatives; and
       (iv) the Committee on Government Reform of the House of 
     Representatives.
       (B) Contents.--Each report under this paragraph shall 
     include--
       (i) the extent to which Federal relief funds have been 
     given to individuals and organizations most in need of 
     financial assistance;
       (ii) the extent to which Federal reconstruction funds have 
     been made available to business entities that are based in 
     Louisiana, Mississippi, Alabama, or Florida or business 
     entities that hire workers who resided in those States on 
     August 24, 2005;

[[Page 6435]]

       (iii) the extent to which Federal agencies have made use of 
     sole source, no-bid or cost-plus contracts; and
       (iv) an assessment of the financial execution of the budget 
     of Federal agencies relating to recovery from Hurricane 
     Katrina in relation to actual expenditures.
       (C) First report.--The first report under this paragraph 
     shall be submitted for the first full month for which a Chief 
     Financial Officer has been appointed.
       (d) Responsibilities of Chief Financial Officers.--Nothing 
     in this Act shall be construed to relieve the 
     responsibilities of any Chief Financial Officer under section 
     902 of title 31, United States Code.
       (e) Availability of Records.--Upon request to the Chief 
     Financial Officer, the Office shall make the records of the 
     Office available to the Inspector General of any Federal 
     agency performing recovery activities relating to Hurricane 
     Katrina, or to any Special Inspector General designated to 
     investigate such activities, for the purpose of performing 
     the duties of that Inspector General under the Inspector 
     General Act of 1978 (5 U.S.C. App.).

     SEC. 8004. REPORTS OF THE GOVERNMENT ACCOUNTABILITY OFFICE.

       The Government Accountability Office shall provide 
     quarterly reports to the committees described under section 
     8003(c)(4)(A) relating to all activities and expenditures 
     overseen by the Office, including--
       (1) the accuracy of reports submitted by the Chief 
     Financial Officer to Congress;
       (2) the extent to which agencies performing activities 
     relating to the recovery from Hurricane Katrina have made use 
     of sole source, no-bid or cost-plus contracts;
       (3) whether Federal funds expended by State and local 
     government agencies were spent for their intended use;
       (4) the extent to which Federal relief funds have been 
     distributed to individuals and organizations most affected by 
     Hurricane Katrina and Federal reconstruction funds have been 
     made available to business entities that are based in 
     Louisiana, Mississippi, Alabama, or Florida or business 
     entities that hire workers who resided in those States on 
     August 24, 2005; and
       (5) the extent to which internal controls to prevent waste, 
     fraud, or abuse exist in the use of Federal funds relating to 
     the recovery from Hurricane Katrina.

     SEC. 8005. ADMINISTRATIVE AND SUPPORT SERVICES.

       (a) In General.--The President shall provide administrative 
     and support services (including office space) for the Office 
     and the Chief Financial Officer.
       (b) Personnel.--The President shall provide for personnel 
     for the Office through the detail of Federal employees. Any 
     Federal employee may be detailed to the Office without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

     SEC. 8006. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 8007. TERMINATION OF OFFICE.

       (a) In General.--The Office and position of Chief Financial 
     Officer shall terminate 1 year after the date of the 
     enactment of this Act.
       (b) Extension.--The President may extend the date of 
     termination annually under subsection (a) to any date 
     occurring before 5 years after the date of the enactment of 
     this Act.
       (c) Notification.--The President shall notify the 
     committees described under section 8003(c)(4)(A) 60 days 
     before any extension of the date of termination under this 
     section.
                                 ______
                                 
  SA 3698. Mr. BURNS (for himself and Mr. Rockefeller) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. ------. EXTENSION OF REQUIREMENT FOR AIR CARRIERS TO 
                   HONOR TICKETS FOR SUSPENDED AIR PASSENGER 
                   SERVICE.

       Section 145(c) of the Aviation and Transportation Security 
     Act (49 U.S.C. 40101 note) is amended by striking ``November 
     19, 2005.'' and inserting ``November 30, 2007.''.
                                 ______
                                 
  SA 3699. Mr. CORNYN (for himself, Ms. Landrieu, Mrs. Hutchison, and 
Mr. Nelson of Florida) submitted an amendment intended to be proposed 
by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; as follows:

       On page 200, line 21, insert ``Provided further, That as 
     long as $5,200,000,000 is provided under this heading no 
     State shall be allocated less than 3.5 percent of the amount 
     provided under this heading:'' after ``impacted areas:''.
                                 ______
                                 
  SA 3700. Mr. DOMENICI (for himself, Mr. Grassley, and Mr. Stevens) 
submitted an amendment intended to be proposed by him to the bill H.R. 
4939, making emergency supplemental appropriations for the fiscal year 
ending September 30, 2006, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:

                 TITLE VIII--GAS TAX RELIEF AND REBATE

                  Subtitle A--Fuel Tax Holiday Rebate

     SEC. 8101. FUEL TAX HOLIDAY REBATE.

       (a) 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. FUEL TAX HOLIDAY 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 for the taxable 
     year beginning in 2006 in an amount equal to $100.
       ``(b) Remittance of Payment.--The Secretary shall remit to 
     each taxpayer the payment described in subsection (a) not 
     later than August 30, 2006.
       ``(c) Certain Persons Not Eligible.--This section shall not 
     apply to--
       ``(1) any taxpayer who did not have any adjusted gross 
     income for the preceding taxable year or whose adjusted gross 
     income for such preceding taxable year exceeded the threshold 
     amount (as determined under section 151(d)(3)(C) for such 
     preceding taxable year),
       ``(2) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for the taxable 
     year beginning in 2006,
       ``(3) any estate or trust, or
       ``(4) any nonresident alien individual.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting before the period 
     ``, or from section 6430 of such Code''.
       (c) 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. Fuel tax holiday rebate.''.

       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                       Subtitle B--Price Gouging

     SEC. 8201. SHORT TITLE.

       This subtitle may be cited as the ``Gasoline Consumer Anti-
     Price-Gouging Protection Act''.

     SEC. 8202. PROTECTION OF CONSUMERS AGAINST PRICE GOUGING.

       It is unlawful for any person to increase the price at 
     which that person sells, or offers to sell, gasoline or 
     petroleum distillates to the public (for purposes other than 
     resale) in, or for use in, an area covered by an emergency 
     proclamation by an unconscionable amount while the 
     proclamation is in effect.

     SEC. 8203. JUSTIFIABLE PRICE INCREASES.

       (a) In General.--The prohibition in section 8202 does not 
     apply to the extent that the increase in the retail price of 
     the gasoline or petroleum distillate is attributable to--
       (1) an increase in the wholesale cost of gasoline and 
     petroleum distillates for the region in which the area to 
     which a proclamation under section 8202 applies is located;
       (2) an increase in the replacement costs for gasoline or 
     petroleum distillate sold;
       (3) an increase in operational costs; or
       (4) regional, national, or international market conditions.
       (b) Other Mitigating Factors.--In determining whether a 
     violation of section 8202 has occurred, there also shall be 
     taken into account, among other factors, the price that would 
     reasonably equate supply and demand in a competitive and 
     freely functioning market and whether the price at which the 
     gasoline or petroleum distillate was sold reasonably reflects 
     additional costs, not within the control of the seller, that 
     were paid or incurred by the seller.

     SEC. 8204. FEDERAL AND STATE PROCLAMATIONS.

       (a) In General.--For purposes of this subtitle--
       (1) the President may issue an emergency proclamation for 
     any area within the United States in which an abnormal market 
     disruption has occurred or is reasonably expected to occur; 
     and
       (2) the chief executive officer of any State may issue an 
     emergency proclamation for any such area within that State.
       (b) Scope and Duration.--
       (1) In general.--An emergency proclamation issued under 
     subsection (a) shall specify with particularity--
       (A) the geographic area to which it applies;
       (B) the period for which the proclamation applies; and
       (C) the event, circumstance, or condition that is the 
     reason such a proclamation is determined to be necessary.
       (2) Limitations.--An emergency proclamation issued under 
     subsection (a)--
       (A) may not apply for a period of more than 30 consecutive 
     days (renewable for a consecutive period of not more than 30 
     days); and
       (B) may apply to a period of not more than 7 days preceding 
     the occurrence of an event,

[[Page 6436]]

     circumstance, or condition that is the reason such a 
     proclamation is determined to be necessary.

     SEC. 8205. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

       (a) Violation Is Unfair or Deceptive Act or Practice.--This 
     subtitle shall be enforced by the Federal Trade Commission as 
     if the violation of section 8202 were an unfair or deceptive 
     act or practice proscribed under a rule issued under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (b) Actions by the Commission.--The Commission shall 
     prevent any person from violating this subtitle in the same 
     manner, by the same means, and with the same jurisdiction, 
     powers, and duties as though all applicable terms and 
     provisions of the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.) were incorporated into and made a part of this 
     subtitle. Any entity that violates any provision of this 
     subtitle is subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     subtitle.
       (c) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Trade Commission shall 
     prescribe such regulations as may be necessary or appropriate 
     to implement this subtitle.

     SEC. 8206. ENFORCEMENT BY STATES.

       (a) In General.--A State, as parens patriae, may bring a 
     civil action on behalf of its residents in an appropriate 
     district court of the United States to enforce the provisions 
     of this subtitle, whenever the chief legal officer of the 
     State has reason to believe that the interests of the 
     residents of the State have been or are being threatened or 
     adversely affected by a violation of this subtitle or a 
     regulation under this subtitle.
       (b) Notice.--The State shall serve written notice to the 
     Federal Trade Commission of any civil action under subsection 
     (a) prior to initiating such civil action. The notice shall 
     include a copy of the complaint to be filed to initiate such 
     civil action, except that if it is not feasible for the State 
     to provide such prior notice, the State shall provide such 
     notice immediately upon instituting such civil action.
       (c) Authority To Intervene.--Upon receiving the notice 
     required by subsection (b), the Commission may intervene in 
     such civil action and upon intervening--
       (1) be heard on all matters arising in such civil action; 
     and
       (2) file petitions for appeal of a decision in such civil 
     action.
       (d) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this section shall 
     prevent the chief legal officer of a State from exercising 
     the powers conferred on that officer by the laws of such 
     State to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence.
       (e) Venue; Service of Process.--In a civil action brought 
     under subsection (a)--
       (1) the venue shall be a judicial district in which the 
     violation occurred;
       (2) process may be served without regard to the territorial 
     limits of the district or of the State in which the civil 
     action is instituted; and
       (3) a person who participated in an alleged violation that 
     is being litigated in the civil action may be joined in the 
     civil action without regard to the residence of the person.
       (f) Limitation on State Action While Federal Action Is 
     Pending.--If the Commission has instituted a civil action or 
     an administrative action for violation of this subtitle, the 
     chief legal officer of the State in which the violation 
     occurred may not bring an action under this section during 
     the pendency of that action against any defendant named in 
     the complaint of the Commission or the other agency for any 
     violation of this subtitle alleged in the complaint.
       (g) Enforcement of State Law.--Nothing contained in this 
     section shall prohibit an authorized State official from 
     proceeding in State court to enforce a civil or criminal 
     statute of such State.

     SEC. 8207. PENALTIES.

       (a) Civil Penalty.--
       (1) In general.--In addition to any penalty applicable 
     under the Federal Trade Commission Act any person who 
     violates this subtitle is punishable by a civil penalty of--
       (A) not more than $500,000, in the case of an independent 
     small business marketer of gasoline (within the meaning of 
     section 324(c) of the Clean Air Act (42 U.S.C. 7625(c)); and
       (B) not more than $5,000,000 in the case of any other 
     person.
       (2) Method of assessment.--The penalty provided by 
     paragraph (1) shall be assessed in the same manner as civil 
     penalties imposed under section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45).
       (3) Multiple offenses; mitigating factors.--In assessing 
     the penalty provided by subsection (a)--
       (A) each day of a continuing violation shall be considered 
     a separate violation; and
       (B) the Commission shall take into consideration the 
     seriousness of the violation and the efforts of the person 
     committing the violation to remedy the harm caused by the 
     violation in a timely manner.
       (b) Criminal Penalty.--
       (1) In general.--In addition to any penalty applicable 
     under the Federal Trade Commission Act, the violation of this 
     subtitle is punishable by a fine of not more than $1,000,000, 
     imprisonment for not more than 2 years, or both.
       (2) Enforcement.--The criminal penalty provided by 
     paragraph (1) may be imposed only pursuant to a criminal 
     action brought by the Attorney General or other officer of 
     the Department of Justice, or any attorney specially 
     appointed by the Attorney General of the United States, in 
     accordance with section 515 of title 28, United States Code.

     SEC. 8208. DEFINITIONS.

       In this subtitle:
       (1) Abnormal market disruption.--The term ``abnormal market 
     disruption'' means there is a reasonable likelihood that, in 
     the absence of a proclamation under section 8204(a), there 
     will be an increase in the average retail price of gasoline 
     or petroleum distillates in the area to which the 
     proclamation applies as a result of a change in the market, 
     whether actual or imminently threatened, resulting from 
     weather, a natural disaster, strike, civil disorder, war, 
     military action, a national or local emergency, or other 
     similar cause, that adversely affects the availability or 
     delivery gasoline or petroleum distillates.
       (2) State.--The term ``State'' means the several States of 
     the United States and the District of Columbia.
       (3) Unconscionable amount.--The term ``unconscionable 
     amount'' means, with respect to any person to whom section 
     8202 applies, a significant increase in the price at which 
     gasoline or petroleum distillates are sold or offered for 
     sale by that person that increases the price, for the same 
     grade of gasoline or petroleum distillate, to an amount 
     that--
       (A) substantially exceeds the average price at which 
     gasoline or petroleum distillates were sold or offered for 
     sale by that person during the 30-day period immediately 
     preceding the sale or offer; and
       (B) cannot be justified by taking into account the factors 
     described in section --03(b).

     SEC. 8209. EFFECTIVE DATE.

       This subtitle shall take effect on the date on which a 
     final rule issued by the Federal Trade Commission under 
     section 8205(c) is published in the Federal Register.

                       Subtitle C--Tax Provisions

     SEC. 8301. REPEAL OF THE LIMITATION ON NUMBER OF NEW 
                   QUALIFIED HYBRID AND ADVANCED LEAN -BURN 
                   TECHNOLOGY VEHICLES ELIGIBLE FOR CREDIT.

       (a) In General.--Subsection (f) of section 30B of the 
     Internal Revenue Code of 1986 is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1341(a) of the Energy Policy Act of 2005.

     SEC. 8302. EXCEPTION FROM DEPRECIATION LIMITATION FOR CERTAIN 
                   ALTERNATIVE AND ELECTRIC PASSENGER AUTOMOBILES.

       (a) In General.--Paragraph (1) of section 280F(a) of the 
     Internal Revenue Code of 1986 (relating to limitation) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Special rule for certain alternative motor vehicles 
     and qualified electric vehicles.--Subparagraph (A) shall not 
     apply to any motor vehicle for which a credit is allowable 
     under section 30 or 30B.''.
       (b) Conforming Amendment.--Subparagraph (C) of section 
     280F(a)(1) of the Internal Revenue Code of 1986 is amended by 
     striking clause (ii) and by redesignating clause (iii) as 
     clause (ii).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 8303. EXTENSION OF ELECTION TO EXPENSE CERTAIN 
                   REFINERIES.

       (a) In General.--Section 179C(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified refinery property) is 
     amended--
       (1) by striking ``and before January 1, 2012'' in 
     subparagraph (B) and inserting ``and, in the case of any 
     qualified refinery described in subsection (d)(1), before 
     January 1, 2012'', and
       (2) by inserting ``if described in subsection (d)(1)'' 
     after ``of which'' in subparagraph (F)(i).
       (b) Conforming Amendment.--Subsection (d) of section 179C 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(d) Qualified Refinery.--For purposes of this section, 
     the term `qualified refinery' means any refinery located in 
     the United States which is designed to serve the primary 
     purpose of processing liquid fuel from--
       ``(1) crude oil, or
       ``(2) qualified fuels (as defined in section 45K(c)).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendment made by 
     section 1323(a) of the Energy Policy Act of 2005.

[[Page 6437]]



     SEC. 8304. 5-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL 
                   COMPANIES.

       (a) In General.--Section 167(h) of the Internal Revenue 
     Code of 1986 (relating to amortization of geological and 
     geophysical expenditures) is amended by adding at the end the 
     following new paragraph:
       ``(5) Special rule for major integrated oil companies.--
       ``(A) In general.--In the case of an integrated oil company 
     described in subparagraph (B), paragraphs (1) and (4) shall 
     be applied by substituting `5-year' for `24 month'.
       ``(B) Integrated oil company described.--An integrated oil 
     company is described in this subparagraph if such company is 
     an integrated oil company (as defined in section 291(b)(4)) 
     which--
       ``(i) has an average daily worldwide production of crude 
     oil of at least 500,000 barrels for the taxable year,
       ``(ii) had gross receipts in excess of $1,000,000,000 for 
     its last taxable year ending during calendar year 2005, and
       ``(iii) has an ownership interest (within the meaning of 
     section 613A(d)(3)) in crude oil refiner of 15 percent or 
     more.

     For purposes of the preceding sentence, all persons treated 
     as a single employer under subsections (a) and (b) of section 
     shall be treated as 1 person and, in case of a short taxable 
     year, the rule under section 448(c)(3)(B) shall apply''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1329 of the Energy Policy Act of 2005.

     SEC. 8305. REPEAL OF LIFO METHOD OF INVENTORY ACCOUNTING.

       (a) In General.--Sections 472, 473, and 474 of the Internal 
     Revenue Code of 1986 are repealed.
       (b) Conforming Amendments.--
       (1) Section 56(g)(4)(D)(iii) of such Code is repealed.
       (2) Section 312(n)(4) of such Code is repealed.
       (3) Section 1363(d) of such Code is repealed.
       (c) Effective Date.--The repeals made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.
       (d) Change in Method of Accounting.--In the case of any 
     taxpayer required by the repeals made by subsection (a) to 
     change its method accounting for its first taxable year 
     beginning after the date of the enactment of this Act--
       (1) such change shall be treated as initiated by the 
     taxpayer,
       (2) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (3) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     ratably over the 20-taxable year period beginning with the 
     first taxable year beginning after such date of enactment.

                       Subtitle D--CAFE Standards

     SEC. 8401. CLARIFICATION OF AUTHORITY OF SECRETARY OF 
                   TRANSPORTATION TO AMEND FUEL ECONOMY STANDARDS 
                   FOR PASSENGER VEHICLES.

       Section 32902(c) of title 49, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``(1) Subject to 
     paragraph (2) of this subsection, the'' and inserting 
     ``The''; and
       (2) by striking paragraph (2).

                     Subtitle E--Alternative Fuels

     SEC. 8501. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

       Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C. 
     16251(f)) is amended by striking ``$250,000,000'' and 
     inserting ``$150,000,000 for fiscal year 2007, $200,000,000 
     for fiscal year 2008, and $250,000,000 for each of fiscal 
     years 2009 through 2011''.

     SEC. 8502. ADVANCED ENERGY INITIATIVE FOR VEHICLES.

       (a) Purposes.--The purposes of this section are--
       (1) to enable and promote, in partnership with industry, 
     comprehensive development, demonstration, and 
     commercialization of a wide range of electric drive 
     components, systems, and vehicles using diverse electric 
     drive transportation technologies;
       (2) to make critical public investments to help private 
     industry, institutions of higher education, National 
     Laboratories, and research institutions to expand innovation, 
     industrial growth, and jobs in the United States;
       (3) to expand the availability of the existing electric 
     infrastructure for fueling light duty transportation and 
     other on-road and nonroad vehicles that are using petroleum 
     and are mobile sources of emissions--
       (A) including the more than 3,000,000 reported units (such 
     as electric forklifts, golf carts, and similar nonroad 
     vehicles) in use on the date of enactment of this Act; and
       (B) with the goal of enhancing the energy security of the 
     United States, reduce dependence on imported oil, and reduce 
     emissions through the expansion of grid-supported mobility;
       (4) to accelerate the widespread commercialization of all 
     types of electric drive vehicle technology into all sizes and 
     applications of vehicles, including commercialization of 
     plug-in hybrid electric vehicles and plug-in hybrid fuel cell 
     vehicles; and
       (5) to improve the energy efficiency of and reduce the 
     petroleum use in transportation.
       (b) Definitions.--In this section:
       (1) Battery.--The term ``battery'' means an energy storage 
     device used in an on-road or nonroad vehicle powered in whole 
     or in part using an off-board or on-board source of 
     electricity.
       (2) Electric drive transportation technology.--The term 
     ``electric drive transportation technology'' means--
       (A) a vehicle that--
       (i) uses an electric motor for all or part of the motive 
     power of the vehicle; and
       (ii) may use off-board electricity, including battery 
     electric vehicles, fuel cell vehicles, engine dominant hybrid 
     electric vehicles, plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and electric rail; or
       (B) equipment relating to transportation or mobile sources 
     of air pollution that uses an electric motor to replace an 
     internal combustion engine for all or part of the work of the 
     equipment, including corded electric equipment linked to 
     transportation or mobile sources of air pollution.
       (3) Engine dominant hybrid electric vehicle.--The term 
     ``engine dominant hybrid electric vehicle'' means an on-road 
     or nonroad vehicle that--
       (A) is propelled by an internal combustion engine or heat 
     engine using--
       (i) any combustible fuel; and
       (ii) an on-board, rechargeable storage device; and
       (B) has no means of using an off-board source of 
     electricity.
       (4) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
     means an on-road or nonroad vehicle that uses a fuel cell (as 
     defined in section 803 of the Energy Policy Act of 2005 (42 
     U.S.C. 16152)).
       (5) Initiative.--The term ``Initiative'' means the Advanced 
     Battery Initiative established by the Secretary under 
     subsection (f)(1).
       (6) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
     meaning given the term in section 216 of the Clean Air Act 
     (42 U.S.C. 7550).
       (7) Plug-in hybrid electric vehicle.--The term ``plug-in 
     hybrid electric vehicle'' means an on-road or nonroad vehicle 
     that is propelled by an internal combustion engine or heat 
     engine using--
       (A) any combustible fuel;
       (B) an on-board, rechargeable storage device; and
       (C) a means of using an off-board source of electricity.
       (8) Plug-in hybrid fuel cell vehicle.--The term ``plug-in 
     hybrid fuel cell vehicle'' means a fuel cell vehicle with a 
     battery powered by an off-board source of electricity.
       (9) Industry alliance.--The term ``Industry Alliance'' 
     means the entity selected by the Secretary under subsection 
     (f)(2).
       (10) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 
     15801).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (c) Goals.--The goals of the electric drive transportation 
     technology program established under subsection (e) shall be 
     to develop, in partnership with industry and institutions of 
     higher education, projects that focus on--
       (1) innovative electric drive technology developed in the 
     United States;
       (2) growth of employment in the United States in electric 
     drive design and manufacturing;
       (3) validation of the plug-in hybrid potential through 
     fleet demonstrations; and
       (4) acceleration of fuel cell commercialization through 
     comprehensive development and commercialization of the 
     electric drive technology systems that are the foundational 
     technology of the fuel cell vehicle system.
       (d) Assessment.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall offer to enter 
     into an arrangement with the National Academy of Sciences--
       (1) to conduct an assessment (in cooperation with industry, 
     standards development organizations, and other entities, as 
     appropriate), of state-of-the-art battery technologies with 
     potential application for electric drive transportation;
       (2) to identify knowledge gaps in the scientific and 
     technological bases of battery manufacture and use;
       (3) to identify fundamental research areas that would 
     likely have a significant impact on the development of 
     superior battery technologies for electric drive vehicle 
     applications; and
       (4) to recommend steps to the Secretary to accelerate the 
     development of battery technologies for electric drive 
     transportation.
       (e) Program.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application for electric drive transportation technology, 
     including--
       (1) high-capacity, high-efficiency batteries;
       (2) high-efficiency on-board and off-board charging 
     components;

[[Page 6438]]

       (3) high-powered drive train systems for passenger and 
     commercial vehicles and for nonroad equipment;
       (4) control system development and power train development 
     and integration for plug-in hybrid electric vehicles, plug-in 
     hybrid fuel cell vehicles, and engine dominant hybrid 
     electric vehicles, including--
       (A) development of efficient cooling systems;
       (B) analysis and development of control systems that 
     minimize the emissions profile when clean diesel engines are 
     part of a plug-in hybrid drive system; and
       (C) development of different control systems that optimize 
     for different goals, including--
       (i) battery life;
       (ii) reduction of petroleum consumption; and
       (iii) green house gas reduction;
       (5) nanomaterial technology applied to both battery and 
     fuel cell systems;
       (6) large-scale demonstrations, testing, and evaluation of 
     plug-in hybrid electric vehicles in different applications 
     with different batteries and control systems, including--
       (A) military applications;
       (B) mass market passenger and light-duty truck 
     applications;
       (C) private fleet applications; and
       (D) medium- and heavy-duty applications;
       (7) a nationwide education strategy for electric drive 
     transportation technologies providing secondary and high 
     school teaching materials and support for education offered 
     by institutions of higher education that is focused on 
     electric drive system and component engineering;
       (8) development, in consultation with the Administrator of 
     the Environmental Protection Agency, of procedures for 
     testing and certification of criteria pollutants, fuel 
     economy, and petroleum use for light-, 
     medium-, and heavy-duty vehicle applications, including 
     consideration of--
       (A) the vehicle and fuel as a system, not just an engine; 
     and
       (B) nightly off-board charging; and
       (9) advancement of battery and corded electric 
     transportation technologies in mobile source applications 
     by--
       (A) improvement in battery, drive train, and control system 
     technologies; and
       (B) working with industry and the Administrator of the 
     Environmental Protection Agency--
       (i) to understand and inventory markets; and
       (ii) to identify and implement methods of removing barriers 
     for existing and emerging applications.
       (f) Advanced Battery Initiative.--
       (1) In general.--The Secretary shall establish and carry 
     out an Advanced Battery Initiative in accordance with this 
     subsection to support research, development, demonstration, 
     and commercial application of battery technologies.
       (2) Industry alliance.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall 
     competitively select an Industry Alliance to represent 
     participants who are private, for-profit firms, the primary 
     business of which is the manufacturing of batteries.
       (3) Research.--
       (A) Grants.--The Secretary shall carry out research 
     activities of the Initiative through competitively-awarded 
     grants to--
       (i) researchers, including Industry Alliance participants;
       (ii) small businesses;
       (iii) National Laboratories; and
       (iv) institutions of higher education.
       (B) Industry alliance.--The Secretary shall annually 
     solicit from the Industry Alliance--
       (i) comments to identify advanced battery technology needs 
     relevant to electric drive technology;
       (ii) an assessment of the progress of research activities 
     of the Initiative; and
       (iii) assistance in annually updating advanced battery 
     technology roadmaps.
       (4) Availability to the public.--The information and 
     roadmaps developed under this subsection shall be available 
     to the public.
       (5) Preference.--In making awards under this subsection, 
     the Secretary shall give preference to participants in the 
     Industry Alliance.
       (g) Cost Sharing.--In carrying out this section, the 
     Secretary shall require cost sharing in accordance with 
     section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
     16352).
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $300,000,000 for 
     each of fiscal years 2007 through 2012.

                Subtitle F--Strategic Petroleum Reserve

     SEC. 8601. STRATEGIC PETROLEUM RESERVE.

       (a) Findings.--The Senate finds that--
       (1) the Strategic Petroleum Reserve, as established by the 
     Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.), 
     provides the United States with an emergency crude oil supply 
     reserve that ensures that a disruption in commercial oil 
     supplies will not threaten the United States economy;
       (2) the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.) 
     strengthened the Strategic Petroleum Reserve by authorizing a 
     capacity of 1,000,000,000 barrels of crude oil;
       (3) as of the date of enactment of this Act, the inventory 
     in the Strategic Petroleum Reserve is sufficiently large 
     enough to guard against supply disruptions during the time 
     period for the temporary cessation of deposits described in 
     subsection (b)(1); and
       (4) the cessation of deposits to the Strategic Petroleum 
     Reserve will add approximately 2,000,000 barrels of crude oil 
     supply into the market.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) consistent with the authority granted under the Energy 
     Policy and Conservation Act (42 U.S.C. 6201 et seq.), the 
     Secretary of Energy should cease deposits to the Strategic 
     Petroleum Reserve for a period of not less than 6 months;
       (2) the Secretary of Energy should continue to work toward 
     establishing the infrastructure necessary to achieve the 
     1,000,0000,0000 barrels of crude oil capacity authorized 
     under the Energy Policy Act of 2005 (42 U.S.C. 15801 et 
     seq.); and
       (3) after the temporary cessation of deposits to the 
     Strategic Petroleum Reserve, the Secretary of Energy should 
     continue to increase the inventory of crude oil in the 
     Strategic Petroleum Reserve to work toward meeting the 
     authorized capacity level to enhance the energy security of 
     the United States.

            Subtitle G--Arctic Coastal Plain Domestic Energy

     SEC. 8701. SHORT TITLE.

       This subtitle may be cited as the ``Arctic Coastal Plain 
     Domestic Energy Security Act of 2006''.

     SEC. 8702. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as such in the map entitled ``Arctic National 
     Wildlife Refuge'', dated August 1980, as referenced in 
     section 1002(b) of the Alaska National Interest Lands 
     Conservation Act of 1980 (16 U.S.C. 3142(b)(1)), comprising 
     approximately 1,549,000 acres, and as described in appendix I 
     to part 37 of title 50, Code of Federal Regulations.
       (2) Secretary.--The term ``Secretary'', except as otherwise 
     provided, means the Secretary of the Interior or the 
     Secretary's designee.

     SEC. 8703. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                   PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement in accordance with this Act 
     a competitive oil and gas leasing program under the Mineral 
     Leasing Act (30 U.S.C. 181 et seq.) that will result in an 
     environmentally sound program for the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) to administer the provisions of this subtitle through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, and including, in 
     furtherance of this goal, by requiring the application of the 
     best commercially available technology for oil and gas 
     exploration, development, and production to all exploration, 
     development, and production operations under this subtitle in 
     a manner that ensures the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966, the oil and gas 
     leasing program and activities authorized by this section in 
     the Coastal Plain are deemed to be compatible with the 
     purposes for which the Arctic National Wildlife Refuge was 
     established, and that no further findings or decisions are 
     required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain prepared pursuant to section 1002 of the 
     Alaska National Interest Lands Conservation Act of 1980 (16 
     U.S.C. 3142) and section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 that apply with respect to 
     actions authorized to be taken by the Secretary to develop 
     and promulgate the regulations for the establishment of a 
     leasing program authorized by this subtitle before the 
     conduct of the first lease sale.
       (3) Compliance with nepa for other actions.--Before 
     conducting the first lease sale under this subtitle, the 
     Secretary shall prepare an environmental impact statement 
     under the National Environmental Policy Act of 1969 with 
     respect to the actions authorized by this subtitle that are 
     not referred to in paragraph (2). Notwithstanding any other 
     law, the Secretary is not required to identify nonleasing 
     alternative courses of

[[Page 6439]]

     action or to analyze the environmental effects of such 
     courses of action. The Secretary shall only identify a 
     preferred action for such leasing and a single leasing 
     alternative, and analyze the environmental effects and 
     potential mitigation measures for those two alternatives. The 
     identification of the preferred action and related analysis 
     for the first lease sale under this subtitle shall be 
     completed within 18 months after the date of the enactment of 
     this Act. The Secretary shall only consider public comments 
     that specifically address the Secretary's preferred action 
     and that are filed within 20 days after publication of an 
     environmental analysis. Notwithstanding any other law, 
     compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this 
     subtitle.
       (d) Relationship to State and Local Authority.--Nothing in 
     this subtitle shall be considered to expand or limit State 
     and local regulatory authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik, and the North Slope 
     Borough, may designate up to a total of 45,000 acres of the 
     Coastal Plain as a Special Area if the Secretary determines 
     that the Special Area is of such unique character and 
     interest so as to require special management and regulatory 
     protection. The Secretary shall designate as such a Special 
     Area the Sadlerochit Spring area, comprising approximately 
     4,000 acres as depicted on such map as shall be identified by 
     the Secretary.
       (2) Management.--Each such Special Area shall be managed so 
     as to protect and preserve the area's unique and diverse 
     character including its fish, wildlife, and subsistence 
     resource values.
       (3) Exclusion from leasing or surface occupancy.--The 
     Secretary may exclude any Special Area from leasing. If the 
     Secretary leases a Special Area, or any part thereof, for 
     purposes of oil and gas exploration, development, production, 
     and related activities, there shall be no surface occupancy 
     of the lands comprising the Special Area.
       (4) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the area.
       (f) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the Coastal Plain to oil and 
     gas leasing and to exploration, development, and production 
     is that set forth in this subtitle.
       (g) Regulations.--
       (1) In general.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this subtitle, 
     including rules and regulations relating to protection of the 
     fish and wildlife, their habitat, subsistence resources, and 
     environment of the Coastal Plain, by no later than 15 months 
     after the date of the enactment of this Act.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, if appropriate, revise the rules and 
     regulations issued under subsection (a) to reflect any 
     significant biological, environmental, or engineering data 
     that come to the Secretary's attention.

     SEC. 8704. LEASE SALES.

       (a) In General.--Lands may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after such nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--In the first lease sale 
     under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) conduct the first lease sale under this subtitle within 
     22 months after the date of the enactment of this Act; and
       (2) conduct additional sales so long as sufficient interest 
     in development exists to warrant, in the Secretary's 
     judgment, the conduct of such sales.

     SEC. 8705. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted 
     pursuant to section 8704 any lands to be leased on the 
     Coastal Plain upon payment by the lessee of such bonus as may 
     be accepted by the Secretary.
       (b) Subsequent Transfers.--No lease issued under this 
     subtitle may be sold, exchanged, assigned, sublet, or 
     otherwise transferred except with the approval of the 
     Secretary. Prior to any such approval the Secretary shall 
     consult with, and give due consideration to the views of, the 
     Attorney General.

     SEC. 8706. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this subtitle shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold from the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of lands within the Coastal Plain and any other 
     Federal lands that are adversely affected in connection with 
     exploration, development, production, or transportation 
     activities conducted under the lease and within the Coastal 
     Plain by the lessee or by any of the subcontractors or agents 
     of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this subtitle shall be, as 
     nearly as practicable, a condition capable of supporting the 
     uses which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, and the environment as 
     required pursuant to section 8703(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this subtitle and the regulations issued under this 
     subtitle.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this subtitle and in 
     recognizing the Government's proprietary interest in labor 
     stability and in the ability of construction labor and 
     management to meet the particular needs and conditions of 
     projects to be developed under the leases issued pursuant to 
     this subtitle and the special concerns of the parties to such 
     leases, shall require that the lessee and its agents and 
     contractors negotiate to obtain a project labor agreement for 
     the employment of laborers and mechanics on production, 
     maintenance, and construction under the lease.

     SEC. 8707. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard to Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 8703, administer 
     the provisions of this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, and the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 2,000 acres on the 
     Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall also require, with respect to any proposed drilling and 
     related activities, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, their habitat, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations to Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and promulgate regulations, lease

[[Page 6440]]

     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this subtitle are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require compliance with all applicable provisions of 
     Federal and State environmental law and shall also require 
     the following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration.
       (3) That exploration activities, except for surface 
     geological studies, be limited to the period between 
     approximately November 1 and May 1 each year and that 
     exploration activities shall be supported by ice roads, 
     winter trails with adequate snow cover, ice pads, ice 
     airstrips, and air transport methods, except that such 
     exploration activities may occur at other times, if the 
     Secretary finds that such exploration will have no 
     significant adverse effect on the fish and wildlife, their 
     habitat, and the environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that--
       (A) minimize, to the maximum extent possible, adverse 
     effects upon the passage of migratory species such as 
     caribou; and
       (B) minimize adverse effects upon the flow of surface water 
     by requiring the use of culverts, bridges, and other 
     structural devices.
       (5) Prohibitions on public access and use on all pipeline 
     access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this subtitle, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.
       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river system; the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats; and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law.
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions deemed necessary by the 
     Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider the following:
       (1) The stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement.
       (2) The environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations.
       (3) The land use stipulations for exploratory drilling on 
     the KIC-ASRC private lands that are set forth in Appendix 2 
     of the August 9, 1983, agreement between Arctic Slope 
     Regional Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:
       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, their 
     habitat, and the environment.
       (D) Utilizing existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.
       (g) Access to Public Lands.--The Secretary shall--
       (1) manage public lands in the Coastal Plain subject to 
     section subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public lands in the Coastal Plain for traditional 
     uses.

     SEC. 8708. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaint.--
       (1) Deadline.--Subject to paragraph (2), any complaint 
     seeking judicial review of any provision of this subtitle or 
     any action of the Secretary under this subtitle shall be 
     filed in any appropriate district court of the United 
     States--
       (A) except as provided in subparagraph (B), within the 90-
     day period beginning on the date of the action being 
     challenged; or
       (B) in the case of a complaint based solely on grounds 
     arising after such period, within 90 days after the 
     complainant knew or reasonably should have known of the 
     grounds for the complaint.
       (2) Venue.--Any complaint seeking judicial review of an 
     action of the Secretary under this subtitle may be filed only 
     in the United States Court of Appeals for the District of 
     Columbia.
       (3) Limitation on scope of certain review.--Judicial review 
     of a Secretarial decision to conduct a lease sale under this 
     subtitle, including the environmental analysis thereof, shall 
     be limited to whether the Secretary has complied with the 
     terms of this subtitle and shall be based upon the 
     administrative record of that decision. The Secretary's 
     identification of a preferred course of action to enable 
     leasing to proceed and the Secretary's analysis of 
     environmental effects under this subtitle shall be presumed 
     to be correct unless shown otherwise by clear and convincing 
     evidence to the contrary.
       (b) Limitation on Other Review.--Actions of the Secretary 
     with respect to which review could have been obtained under 
     this section shall not be subject to judicial review in any 
     civil or criminal proceeding for enforcement.

     SEC. 8709. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, of the amount of adjusted bonus, rental, and royalty 
     revenues from oil and gas leasing and operations authorized 
     under this subtitle--
       (1) 50 percent shall be paid to the State of Alaska; and
       (2) except as provided in section 712(d), the balance shall 
     be deposited into the Treasury as miscellaneous receipts.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.
       (c) Use of Bonus Payments for Low-Income Home Energy 
     Assistance.--Amounts that are received by the United States 
     as bonuses for leases under this subtitle and deposited into 
     the Treasury under subsection (a)(2) may be appropriated to 
     the Secretary of the Health and Human Services, in addition 
     to amounts otherwise available, to provide assistance under 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8621 et seq.).

     SEC. 8710. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) Exemption.--Title XI of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall 
     not apply to the issuance by the Secretary under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185) of rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas.
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement referred to in subsection (a) 
     such terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the Coastal Plain, including requirements that facilities be 
     sited or designed so as to avoid unnecessary duplication of 
     roads and pipelines.

[[Page 6441]]

       (c) Regulations.--The Secretary shall include in 
     regulations under section 8703(g) provisions granting rights-
     of-way and easements described in subsection (a) of this 
     section.

     SEC. 8711. CONVEYANCE.

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

     SEC. 8712. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Financial Assistance Authorized.--
       (1) In general.--The Secretary may use amounts available 
     from the Coastal Plain Local Government Impact Aid Assistance 
     Fund established by subsection (d) to provide timely 
     financial assistance to entities that are eligible under 
     paragraph (2) and that are directly impacted by the 
     exploration for or production of oil and gas on the Coastal 
     Plain under this subtitle.
       (2) Eligible entities.--The North Slope Borough, Kaktovik, 
     and other boroughs, municipal subdivisions, villages, and any 
     other community organized under Alaska State law shall be 
     eligible for financial assistance under this section.
       (b) Use of Assistance.--Financial assistance under this 
     section may be used only for--
       (1) planning for mitigation of the potential effects of oil 
     and gas exploration and development on environmental, social, 
     cultural, recreational and subsistence values;
       (2) implementing mitigation plans and maintaining 
     mitigation projects;
       (3) developing, carrying out, and maintaining projects and 
     programs that provide new or expanded public facilities and 
     services to address needs and problems associated with such 
     effects, including firefighting, police, water, waste 
     treatment, medivac, and medical services; and
       (4) establishment of a coordination office, by the North 
     Slope Borough, in the City of Kaktovik, which shall--
       (A) coordinate with and advise developers on local 
     conditions, impact, and history of the areas utilized for 
     development; and
       (B) provide to the Committee on Resources of the Senate and 
     the Committee on Energy and Resources of the Senate an annual 
     report on the status of coordination between developers and 
     the communities affected by development.
       (c) Application.--
       (1) In general.--Any community that is eligible for 
     assistance under this section may submit an application for 
     such assistance to the Secretary, in such form and under such 
     procedures as the Secretary may prescribe by regulation.
       (2) North slope borough communities.--A community located 
     in the North Slope Borough may apply for assistance under 
     this section either directly to the Secretary or through the 
     North Slope Borough.
       (3) Application assistance.--The Secretary shall work 
     closely with and assist the North Slope Borough and other 
     communities eligible for assistance under this section in 
     developing and submitting applications for assistance under 
     this section.
       (d) Establishment of Fund.--
       (1) In general.--There is established in the Treasury the 
     Coastal Plain Local Government Impact Aid Assistance Fund.
       (2) Use.--Amounts in the fund may be used only for 
     providing financial assistance under this section.
       (3) Deposits.--Subject to paragraph (4), there shall be 
     deposited into the fund amounts received by the United States 
     as revenues derived from rents, bonuses, and royalties under 
     on leases and lease sales authorized under this subtitle.
       (4) Limitation on deposits.--The total amount in the fund 
     may not exceed $11,000,000.
       (5) Investment of balances.--The Secretary of the Treasury 
     shall invest amounts in the fund in interest bearing 
     government securities.
       (e) Authorization of Appropriations.--To provide financial 
     assistance under this section there is authorized to be 
     appropriated to the Secretary from the Coastal Plain Local 
     Government Impact Aid Assistance Fund $5,000,000 for each 
     fiscal year.
                                 ______
                                 
  SA 3701. Mr. ALLARD (for himself, Mr. Durbin, and Ms. Mikulski) 
submitted an amendment intended to be proposed by him to the bill H.R. 
4939, making emergency supplemental appropriations for the fiscal year 
ending September 30, 2006, and for other purposes; as follows:

       At the appropriate place, insert the following:

                        TITLE __--OTHER MATTERS

                           LEGISLATIVE BRANCH

                        ARCHITECT OF THE CAPITOL

                          Capitol Power Plant

       For an additional amount for ``Capitol Power Plant'', 
     $27,600,000, to remain available until September 30, 2011: 
     Provided, That the amount provided under this heading is 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress), the concurrent 
     resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3702. Mr. CHAMBLISS (for himself and Mr. Isakson) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:


  COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF DEFENSE ON 
                            MORTUARY AFFAIRS

       Sec. 7032. (a) Report.--As soon as practicable after the 
     completion of the comprehensive review of the procedures of 
     the Department of Defense on mortuary affairs, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the review.
       (b) Additional Elements.--In conducting the comprehensive 
     review described in subsection (a), the Secretary shall also 
     address, in addition to any other matters covered by the 
     review, the following:
       (1) The utilization of additional or increased 
     refrigeration (including icing) in combat theaters in order 
     to enhance preservation of remains.
       (2) The relocation of refrigeration assets further forward 
     in the field.
       (3) Specific time standards for the movement of remains 
     from combat units.
       (4) The forward location of autopsy and embalming 
     operations.
       (5) Any other matters that the Secretary considers 
     appropriate in order to speed the return of remains to the 
     United States in a non-decomposed state.
       (c) Additional Element of Policy on Casualty Assistance to 
     Survivors of Military Decedents.--Section 562(b) of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3267; 10 U.S.C. 1475 note) is 
     amended by adding at the end the following new paragraph:
       ``(12) The process by which the Department of Defense, upon 
     request, briefs survivors of military decedents on the cause 
     of, and any investigation into, the death of such military 
     decedents and on the disposition and transportation of the 
     remains of such decedents, which process shall--
       ``(A) provide for the provision of such briefings by fully 
     qualified Department personnel;
       ``(B) ensure briefings take place as soon as possible after 
     death and updates are provided in a timely manner when new 
     information becomes available;
       ``(C) ensure that--
       ``(i) such briefings and updates relate the most complete 
     and accurate information available at the time of such 
     briefings or updates, as the case may be; and
       ``(ii) incomplete or unverified information is identified 
     as such during the course of such briefings or updates; and
       ``(D) include procedures by which such survivors shall, 
     upon request, receive updates or supplemental information on 
     such briefings or updates from qualified Department 
     personnel.''.
                                 ______
                                 
  SA 3703. Mr. KOHL submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                               TITLE ____

                       GENERIC DRUG APPLICATIONS

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration


                         SALARIES AND EXPENSES

       For an additional amount for the Food and Drug 
     Administration, Office of Generic Drugs and related 
     activities, $20,000,000, to remain available until expended: 
     Provided, That the amount provided under this heading shall 
     be applied to the Office of Generic Drugs and related 
     activities to reduce the number of generic drug applications 
     awaiting action by the Food and Drug Administration: Provided 
     further, That the amount provided under this heading is 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress), the concurrent 
     resolution on the budget for fiscal year 2006.

[[Page 6442]]


                                 ______
                                 
  SA 3704. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


           MEDICAL FACILITIES, DEPARTMENT OF VETERANS AFFAIRS

       Sec. 7032. (a) Availability of Amount.--There is 
     appropriated for the Department of Veterans Affairs for the 
     Veterans Health Administration for Medical Facilities, 
     $20,000,000, with the entire amount designated as an 
     emergency requirement pursuant to section 402 of H. Con. Res 
     95 (109th Congress), the concurrent resolution on the budget 
     for fiscal year 2006.
       (b) Offset.--The amount appropriated by chapter 7 of title 
     II of this Act under the heading ``National and Community 
     Service Programs, Operating Expenses'' is hereby reduced by 
     $20,000,000.
                                 ______
                                 
  SA 3705. Mr. OBAMA submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


   REVIEW OF RECONSTRUCTION DESIGN, LAKE MICHIGAN SHORELINE, ILLINOIS

       Sec. 7__. The District Engineers of the Buffalo and Seattle 
     Districts of the Corps of Engineers shall use $150,000 of 
     amounts made available for investigations of the Corps of 
     Engineers pursuant to title I of Public Law 109-103 (119 
     Stat. 2247), to conduct an immediate review of a 
     reconstruction design with the review based on the standards 
     under section 68 of title 36, Code of Federal Regulations (or 
     a successor regulation), for the portion between 54th and 
     57th Street of Reach 4 of the storm damage reduction project 
     authorized by section 101(a)(12) of the Water Resources 
     Development Act of 1996 (110 Stat. 3664; 113 Stat. 302).
                                 ______
                                 
  SA 3706. Mr. LEVIN (for himself, Mr. Dorgan, Ms. Stabenow, and Mr. 
Conrad) submitted an amendment intended to be proposed by him to the 
bill H.R. 4939, making emergency supplemental appropriations for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 126, between lines 14 and 15, insert the following:

                     Customs and Border Protection

       For an additional amount for ``Air and Marine Interdiction, 
     Operations, Maintenance, and Procurement'', $12,000,000, for 
     the Northern Border airwings in Michigan and North Dakota: 
     Provided, That the amount provided under this heading is 
     designated as an emergency requirement under section 402 of 
     H. Con. Res. 95 (109th Congress), the concurrent resolution 
     on the budget for fiscal year 2006.

                                 ______
                                 
  SA 3707. Mr. FRIST submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
       Sec. __. None of the funds appropriated or otherwise made 
     available by this Act or any other Act may be obligated or 
     expended in connection with United States participation in, 
     or support for, the activities of the United Nations Human 
     Rights Council.
       Sec. __. (a) Of the amounts appropriated or otherwise made 
     available for the Secretary of State for each of fiscal years 
     2006 and 2007 to pay the United States share of assessed 
     contributions for the regular budget of the United Nations, 
     $4,300,000 shall be withheld from such payment, and shall be 
     transferred to the Department of the Army and available 
     instead for the purposes described in subsection (b).
       (b) The purposes referred to in subsection (a) are the 
     establishment and operation of a state-of-the-art advanced 
     training skills facility to rehabilitate injured service 
     persons at Brooke Army Medical Center in San Antonio, Texas.
       (c) Amounts withheld under subsection (a) shall remain 
     available until expended for the purposes described in 
     subsection (b).
                                 ______
                                 
  SA 3708. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
as follows:

       At the appropriate place, insert the following:

                               TITLE ----

                   DISASTER MANAGEMENT AND MITIGATION


                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

       For an additional amount for necessary expenses for 
     ``Emergency Management Performance Grants'', as authorized by 
     the National Flood Insurance Act of 1968 and the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4001 et seq.), the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards 
     Reductions Act of 1977 (42 U.S.C. 7701 et seq.), and 
     Reorganization Plan No. 3 of 1978 (5 U.S.C. App.), 
     $130,000,000, to remain available until expended: Provided, 
     That the total costs in administering such grants shall not 
     exceed 3 percent of the amounts provided in this heading: 
     Provided further, That the amount provided under this heading 
     is designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress), the current 
     resolution on the budget for fiscal year 2006.


                      FLOOD MAP MODERNIZATION FUND

       For an additional amount for ``Flood Map Modernization 
     Fund'' for necessary expenses pursuant to section 1360 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
     seq.), $50,000,000, and such additional sums as may be 
     provided by State and local governments or other political 
     subdivisions for cost-shared mapping activities under section 
     1360(f)(2) of such Act, to remain available until expended: 
     Provided, That the total costs in administering such funds 
     shall not exceed 3 percent of the amounts provided in this 
     heading: Provided further, That the amount provided under 
     this heading is designated as an emergency requirement 
     pursuant to section 402 of H. Con. Res. 95 (109th Congress), 
     the current resolution on the budget for fiscal year 2006.


                  NATIONAL PREDISASTER MITIGATION FUND

       For an additional amount for ``National Predisaster 
     Mitigation Fund'' for the pre-disaster mitigation grant 
     program pursuant to title II of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5131 
     et seq.), $100,000,000, to remain available until expended: 
     Provided, That grants made for pre-disaster mitigation shall 
     be awarded on a competitive basis subject to the criteria in 
     section 203(g) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5133(g)), and 
     notwithstanding section 203(f) of such Act, shall be made 
     without reference to State allocations, quotas, or other 
     formula-based allocation of funds: Provided further, That the 
     total costs in administering such funds shall not exceed 3 
     percent of the amounts provided in this heading: Provided 
     further, That the amount provided under this heading is 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress), the current 
     resolution on the budget for fiscal year 2006.
       Sec. --001. Notwithstanding any other provision of this 
     Act, the amount provided for ``Diplomatic and Consular 
     Programs'' shall be $1,172,600,000.
                                 ______
                                 
  SA 3709. Mr. BYRD (for himself, Mr. Carper, and Mr. Lautenberg) 
proposed an amendment to the bill H.R. 4939, making emergency 
supplemental appropriations for the fiscal year ending September 30, 
2006, and for other purposes; as follows:

       On page 117, between lines 9 and 10, insert the following:


 SENSE OF SENATE ON REQUESTS FOR FUNDS FOR MILITARY OPERATIONS IN IRAQ 
        AND AFGHANISTAN FOR FISCAL YEARS AFTER FISCAL YEAR 2007

       Sec. 1312. (a) Findings.--The Senate makes the following 
     findings:
       (1) Title IX of the Department of Defense Appropriations 
     Act, 2006 (division A of Public Law 109-148) appropriated 
     $50,000,000,000 for the cost of ongoing military operations 
     overseas in fiscal year 2006, although those funds were not 
     requested by the President.
       (2) The President on February 16, 2006, submitted to 
     Congress a request for supplemental appropriations in the 
     amount of $67,600,000,000 for ongoing military operations in 
     fiscal year 2006, none of which supplemental appropriations 
     was included in the concurrent resolution on the budget for 
     fiscal year 2006, as agreed to in the Senate on April 28, 
     2005.
       (3) The President on February 6, 2006, included a 
     $50,000,000,000 allowance for ongoing military operations in 
     fiscal year 2007, but did not formally request the funds or 
     provide any detail on how the allowance may be used.
       (4) The concurrent resolution on the budget for fiscal year 
     2007, as agreed to in the Senate on March 16, 2007, 
     anticipates as much as $86,300,000,000 in emergency spending 
     in fiscal year 2007, indicating that the Senate expects to 
     take up another supplemental appropriations bill to fund 
     ongoing military operations during fiscal year 2007.
       (b) Sense of Senate.--It is the sense of the Senate that--
       (1) any request for funds for a fiscal year after fiscal 
     year 2007 for ongoing military operations in Afghanistan and 
     Iraq should be included in the annual budget of the President 
     for such fiscal year as submitted to

[[Page 6443]]

     Congress under section 1105(a) of title 31, United States 
     Code;
       (2) any request for funds for such a fiscal year for 
     ongoing military operations should provide an estimate of all 
     funds required in that fiscal year for such operations;
       (3) any request for funds for ongoing military operations 
     should include a detailed justification of the anticipated 
     use of such funds for such operations; and
       (4) any funds provided for ongoing military operations 
     overseas should be provided in appropriations Acts for such 
     fiscal year through appropriations to specific accounts set 
     forth in such appropriations Acts.
                                 ______
                                 
  SA 3710. Mr. LEVIN (for himself, Ms. Collins, and Mr. Reed) submitted 
an amendment intended to be proposed by him to the bill H.R. 4939, 
making emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 126, between lines 12 and 13, insert the following:


          REPORTS ON POLICY AND POLITICAL DEVELOPMENTS IN IRAQ

       Sec. 1406. (a) Reports Required.--The President shall, not 
     later than 30 days after the date of the enactment of this 
     Act and every 30 days thereafter until a national unity 
     government has been formed in Iraq and the Iraq Constitution 
     has been amended in a manner that makes it a unifying 
     document, submit to Congress a report on United States policy 
     and political developments in Iraq.
       (b) Elements.--Each report under subsection (a) shall 
     include the following information:
       (1) Whether the Administration has told the Iraqi 
     political, religious, and tribal leaders that agreement by 
     the Iraqis on a government of national unity, and subsequent 
     agreement to amendments to the Iraq Constitution to make it 
     more inclusive, within the deadlines that the Iraqis set for 
     themselves in their Constitution, is a condition for the 
     continued presence of United States military forces in Iraq.
       (2) The progress that has been made in the formation of a 
     national unity government and the obstacles, if any, that 
     remain.
       (3) The progress that has been made in the amendment of the 
     Iraq Constitution to make it more of a unifying document and 
     the obstacles, if any, that remain.
       (4) An assessment of the effect that the formation of, or 
     failure to form, a unity government, and the amendment of, or 
     failure to amend, the Iraq Constitution, will have on the 
     ``significant transition to full Iraqi sovereignty, with 
     Iraqi security forces taking the lead for the security of a 
     free and sovereign Iraq, thereby creating the conditions for 
     the phased redeployment of United States forces from Iraq'' 
     as expressed in the United States Policy in Iraq Act (section 
     1227 of the National Defense Authorization Act for Fiscal 
     Year 2006 (Public Law 109-163; 119 Stat. 3465; 50 U.S.C. 1541 
     note)).
       (5) The specific conditions on the ground, including the 
     capability and leadership of Iraqi security forces, that 
     would lead to the phased redeployment of United States ground 
     combat forces from Iraq.
                                 ______
                                 
  SA 3711. Mr. NELSON of Florida submitted an amendment intended to be 
proposed by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


     SATELLITE ALERT FACILITY, CAPE CANAVERAL AIR STATION, FLORIDA

       Sec. 7032. The amount appropriated by the Military Quality 
     of Life and Veterans Affairs Appropriations Act, 2006 (Public 
     Law 109-114) for the Air Force for military construction that 
     remains available for the Satellite Processing Operations 
     Support Facility at Cape Canaveral Air Station, Florida, 
     shall be made available instead solely for the Satellite 
     Alert Facility at Cape Canaveral Air Station, Florida.
                                 ______
                                 
  SA 3712. Mr. ALLARD submitted an amendment intended to be proposed to 
amendment SA 3645 proposed by Mr. Salazar (for himself and Mr. Baucus) 
to the bill H.R. 4939, making emergency supplemental appropriations for 
the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike all after line 2 and insert the following:


                         REPORT ON FIRE SEASON

       Sec. ____. Not later than June 1, 2006, the Secretary of 
     the Interior shall submit to Congress a report that--
       (1) assesses the projected severity of the pending fire 
     season;  
       (2) taking into consideration drought, hazardous fuel 
     buildup, and insect infestation, identifies the areas in 
     which the threat of the pending fire season is the most 
     serious;
       (3) describes any actions recommended by the Secretary of 
     the Interior to mitigate the threat of the pending fire 
     season; and
       (4) specifies the amount of funds that would be necessary 
     to carry out the actions recommended by the Secretary under 
     paragraph (3).
                                 ______
                                 
  SA 3713. Mr. BURR proposed an amendment to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 238, line 23, strike ``Control and Prevention, 
     and'' and insert ``Control and Prevention, $5,000,000 shall 
     be for the Smithsonian Institution to carry out global and 
     domestic disease surveillance, and''.
                                 ______
                                 
  SA 3714. Mrs. MURRAY (for Mr. Harkin) proposed an amendment to the 
bill H.R. 4939, making emergency supplemental appropriations for the 
fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       On page 126, between lines 12 and 13, insert the following:


   UNITED STATES INSTITUTE OF PEACE PROGRAMS IN IRAQ AND AFGHANISTAN

       Sec. 1406. (a) The amount appropriated by this chapter for 
     other bilateral assistance under the heading ``Economic 
     Support Fund'' is hereby increased by $8,500,000.
       (b) Of the amount appropriated by this chapter for other 
     bilateral assistance under the heading ``Economic Support 
     Fund'', as increased by subsection (a), $8,500,000 shall be 
     made available to the United States Institute of Peace for 
     programs in Iraq and Afghanistan.
       (c) Of the funds made available by chapter 2 of title II of 
     division A of the Emergency Supplemental Appropriations Act 
     for Defense, the Global War on Terror, and Tsunami Relief, 
     2005'' (Public Law 109-13) for military assistance under the 
     heading ``Peacekeeping Operations'' and available for the 
     Coalition Solidarity Initiative, $8,500,000 is rescinded.
                                 ______
                                 
  SA 3715. Mr. CONRAD (for himself, Mrs. Clinton, and Mr. Dodd) 
proposed an amendment to the bill H.R. 4939, making emergency 
supplemental appropriations for the fiscal year ending September 30, 
2006, and for other purposes; as follows:

       On page 253, between lines 19 and 20, insert the following:

                     TITLE VIII--REVENUE PROVISIONS

     SEC. 8000. AMENDMENT OF CODE; TABLE OF CONTENTS.

       (a) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

                     TITLE VIII--REVENUE PROVISIONS

Sec. 8000. Amendment of Code; table of contents.

            Subtitle A--Provisions Relating to Tax Shelters

Sec. 8101. Clarification of economic substance doctrine.
Sec. 8102. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.
Sec. 8103. Denial of deduction for interest on underpayments 
              attributable to noneconomic substance transactions.
Sec. 8104. Modifications of effective dates of leasing provisions of 
              the American Jobs Creation Act of 2004.
Sec. 8105. Revaluation of LIFO inventories of large integrated oil 
              companies.
Sec. 8106. Modification of effective date of exception from suspension 
              rules for certain listed and reportable transactions.
Sec. 8107. Doubling of certain penalties, fines, and interest on 
              underpayments related to certain offshore financial 
              arrangements.
Sec. 8108. Penalty for aiding and abetting the understatement of tax 
              liability.

   Subtitle B--Provisions to Close Corporate and Individual Loopholes

Sec. 8111. Tax treatment of inverted entities.
Sec. 8112. Grant of Treasury regulatory authority to address foreign 
              tax credit transactions involving inappropriate 
              separation of foreign taxes from related foreign income.
Sec. 8113. Treatment of contingent payment convertible debt 
              instruments.
Sec. 8114. Application of earnings stripping rules to partners which 
              are corporations.
Sec. 8115. Denial of deduction for certain fines, penalties, and other 
              amounts.

[[Page 6444]]

Sec. 8116. Disallowance of deduction for punitive damages.
Sec. 8117. Limitation of employer deduction for certain entertainment 
              expenses.
Sec. 8118. Imposition of mark-to-market tax on individuals who 
              expatriate.
Sec. 8119. Tax treatment of controlled foreign corporations established 
              in tax havens.
Sec. 8120. Modification of exclusion for citizens living abroad.
Sec. 8121. Limitation on annual amounts which may be deferred under 
              nonqualified deferred compensation arrangements.
Sec. 8122. Increase in age of minor children whose unearned income is 
              taxed as if parent's income.
Sec. 8123. Taxation of income of controlled foreign corporations 
              attributable to imported property.

                   Subtitle C--Oil and Gas Provisions

Sec. 8131. Extension of superfund taxes.
Sec. 8132. Modifications of foreign tax credit rules applicable to dual 
              capacity taxpayers.
Sec. 8133. Rules relating to foreign oil and gas income.
Sec. 8134. Modification of credit for producing fuel from a 
              nonconventional source.
Sec. 8135. Elimination of amortization of geological and geophysical 
              expenditures for major integrated oil companies.

               Subtitle D--Tax Administration Provisions

Sec. 8141. Imposition of withholding on certain payments made by 
              government entities.
Sec. 8142. Increase in certain criminal penalties.
Sec. 8143. Repeal of suspension of interest and certain penalties where 
              Secretary fails to contact taxpayer.
Sec. 8144. Increase in penalty for bad checks and money orders.
Sec. 8145. Frivolous tax submissions.
Sec. 8146. Partial payments required with submission of offers-in-
              compromise.
Sec. 8147. Waiver of user fee for installment agreements using 
              automated withdrawals.
Sec. 8148. Termination of installment agreements.

                   Subtitle E--Additional Provisions

Sec. 8151. Loan and redemption requirements on pooled financing 
              requirements.
Sec. 8152. Repeal of the scheduled phaseout of the limitations on 
              personal exemptions and itemized deductions.

            Subtitle A--Provisions Relating to Tax Shelters

     SEC. 8101. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine; Etc.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(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 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.

     In applying subclause (II), a purpose of achieving a 
     financial accounting benefit shall not be taken into account 
     in determining whether a transaction has a substantial nontax 
     purpose if the origin of such financial accounting benefit is 
     a reduction of income tax.
       ``(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 is 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 paragraph 
     (1)(B)(ii) to the lessor of tangible property subject to a 
     lease--
       ``(i) the expected net tax benefits with respect to the 
     leased property shall not include the benefits of--

       ``(I) depreciation,
       ``(II) any tax credit, or
       ``(III) any other deduction as provided in guidance by the 
     Secretary, and

       ``(ii) 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, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 8102. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       (a) In General.--Subchapter A of chapter 68 is amended by 
     inserting after section 6662A the following new section:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 40 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `40 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement' means any amount which would be 
     an understatement under section 6662A(b)(1) if section 6662A 
     were applied by taking into account items attributable to 
     noneconomic substance transactions rather than items to which 
     section 6662A would apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction 
     if--
       ``(A) there is a lack of economic substance (within the 
     meaning of section 7701(o)(1)) for the transaction giving 
     rise to the claimed benefit or the transaction was not 
     respected under section 7701(o)(2), or

[[Page 6445]]

       ``(B) the transaction fails to meet the requirements of any 
     similar rule of law.
       ``(d) Rules Applicable to Compromise of Penalty.--
       ``(1) In general.--If the 1st letter of proposed deficiency 
     which allows the taxpayer an opportunity for administrative 
     review in the Internal Revenue Service Office of Appeals has 
     been sent with respect to a penalty to which this section 
     applies, only the Commissioner of Internal Revenue may 
     compromise all or any portion of such penalty.
       ``(2) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply for purposes of paragraph 
     (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--
       ``(1) For coordination of penalty with understatements 
     under section 6662 and other special rules, see section 
     6662A(e)
       ``(2) For reporting of penalty imposed under this section 
     to the Securities and Exchange Commission, see section 
     6707A(e)''.
       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) is amended 
     by inserting ``and without regard to items with respect to 
     which a penalty is imposed by section 6662B'' before the 
     period at the end.
       (2) Subsection (e) of section 6662A is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A), by inserting ``and a noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'',
       (C) in paragraph (2)(B), by inserting ``6662B or'' before 
     ``6663'',
       (D) in paragraph (2)(C)(i), by inserting ``or section 
     6662B'' before the period at the end,
       (E) in paragraph (2)(C)(ii), by inserting ``and section 
     6662B'' after ``This section'',
       (F) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (G) by adding at the end the following new paragraph:
       ``(4) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Subsection (e) of section 6707A is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(C)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or under 
     section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 is amended by inserting after 
     the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 8103. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) (relating to interest on 
     unpaid taxes attributable to nondisclosed reportable 
     transactions) is amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--
       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).'', and
       (2) by inserting ``and Noneconomic Substance Transactions'' 
     in the heading thereof after ``Transactions''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.

     SEC. 8104. MODIFICATIONS OF EFFECTIVE DATES OF LEASING 
                   PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF 
                   2004.

       (a) In General.--Section 849(b) of the American Jobs 
     Creation Act of 2004 is amended by striking paragraphs (1) 
     and (2), by redesignating paragraphs (3) and (4) as 
     paragraphs (1) and (2), respectively, and by adding at the 
     end the following new paragraph:
       ``(3) Leases to foreign entities.--In the case of tax-
     exempt use property leased to a tax-exempt entity which is a 
     foreign person or entity, the amendments made by this part 
     shall apply to taxable years beginning after December 31, 
     2004, with respect to leases entered into on or before March 
     12, 2004.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     American Jobs Creation Act of 2004.

     SEC. 8105. REVALUATION OF LIFO INVENTORIES OF LARGE 
                   INTEGRATED OIL COMPANIES.

       (a) General Rule.--Notwithstanding any other provision of 
     law, if a taxpayer is an applicable integrated oil company 
     for its last taxable year ending in calendar year 2005, the 
     taxpayer shall--
       (1) increase, effective as of the close of such taxable 
     year, the value of each historic LIFO layer of inventories of 
     crude oil, natural gas, or any other petroleum product 
     (within the meaning of section 4611) by the layer adjustment 
     amount, and
       (2) decrease its cost of goods sold for such taxable year 
     by the aggregate amount of the increases under paragraph (1).

     If the aggregate amount of the increases under paragraph (1) 
     exceed the taxpayer's cost of goods sold for such taxable 
     year, the taxpayer's gross income for such taxable year shall 
     be increased by the amount of such excess.
       (b) Layer Adjustment Amount.--For purposes of this 
     section--
       (1) In general.--The term ``layer adjustment amount'' 
     means, with respect to any historic LIFO layer, the product 
     of--
       (A) $18.75, and
       (B) the number of barrels of crude oil (or in the case of 
     natural gas or other petroleum products, the number of 
     barrel-of-oil equivalents) represented by the layer.
       (2) Barrel-of-oil equivalent.--The term ``barrel-of-oil 
     equivalent'' has the meaning given such term by section 
     29(d)(5) (as in effect before its redesignation by the Energy 
     Tax Incentives Act of 2005).
       (c) Application of Requirement.--
       (1) No change in method of accounting.--Any adjustment 
     required by this section shall not be treated as a change in 
     method of accounting.
       (2) Underpayments of estimated tax.--No addition to the tax 
     shall be made under section 6655 of the Internal Revenue Code 
     of 1986 (relating to failure by corporation to pay estimated 
     tax) with respect to any underpayment of an installment 
     required to be paid with respect to the taxable year 
     described in subsection (a) to the extent such underpayment 
     was created or increased by this section.
       (d) 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 
     last taxable year ending during calendar year 2005, and
       (2) uses 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 and, in the case of a short taxable year, the rule 
     under section 448(c)(3)(B) shall apply.

     SEC. 8106. MODIFICATION OF EFFECTIVE DATE OF EXCEPTION FROM 
                   SUSPENSION RULES FOR CERTAIN LISTED AND 
                   REPORTABLE TRANSACTIONS.

       (a) In General.--Paragraph (2) of section 903(d) of the 
     American Jobs Creation Act of 2004 is amended to read as 
     follows:
       ``(2) Exception for reportable or listed transactions.--
       ``(A) In general.--The amendments made by subsection (c) 
     shall apply with respect to interest accruing after October 
     3, 2004.
       ``(B) Special rule for certain listed and reportable 
     transactions.--
       ``(i) In general.--Except as provided in clause (ii), the 
     amendments made by subsection (c) shall also apply with 
     respect to interest accruing on or before October 3, 2004.
       ``(ii) Participants in settlement initiatives.--Clause (i) 
     shall not apply to any transaction if, as of January 23, 
     2006--

       ``(I) the taxpayer is participating in a settlement 
     initiative described in Internal Revenue Service Announcement 
     2005-80 with respect to such transaction, or
       ``(II) the taxpayer has entered into a settlement agreement 
     pursuant to such an initiative.

       ``(iii) Termination of exception.--Clause (ii)(I) shall not 
     apply to any taxpayer if, after January 23, 2006, the 
     taxpayer withdraws from, or terminates, participation in the 
     initiative or the Secretary of the Treasury or the 
     Secretary's delegate determines that a settlement agreement 
     will not be reached pursuant to the initiative within a 
     reasonable period of time.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which it relates.

[[Page 6446]]



     SEC. 8107. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST 
                   ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE 
                   FINANCIAL ARRANGEMENTS.

       (a) Determination of Penalty.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of an applicable taxpayer--
       (A) the determination as to whether any interest or 
     applicable penalty is to be imposed with respect to any 
     arrangement described in paragraph (2), or to any 
     underpayment of Federal income tax attributable to items 
     arising in connection with any such arrangement, shall be 
     made without regard to the rules of subsections (b), (c), and 
     (d) of section 6664 of the Internal Revenue Code of 1986, and
       (B) if any such interest or applicable penalty is imposed, 
     the amount of such interest or penalty shall be equal to 
     twice that determined without regard to this section.
       (2) Applicable taxpayer.--For purposes of this subsection--
       (A) In general.--The term ``applicable taxpayer'' means a 
     taxpayer which--
       (i) has underreported its United States income tax 
     liability with respect to any item which directly or 
     indirectly involves--

       (I) any financial arrangement which in any manner relies on 
     the use of offshore payment mechanisms (including credit, 
     debit, or charge cards) issued by banks or other entities in 
     foreign jurisdictions, or
       (II) any offshore financial arrangement (including any 
     arrangement with foreign banks, financial institutions, 
     corporations, partnerships, trusts, or other entities), and

       (ii) has neither signed a closing agreement pursuant to the 
     Voluntary Offshore Compliance Initiative established by the 
     Department of the Treasury under Revenue Procedure 2003-11 
     nor voluntarily disclosed its participation in such 
     arrangement by notifying the Internal Revenue Service of such 
     arrangement prior to the issue being raised by the Internal 
     Revenue Service during an examination.
       (B) Authority to waive.--The Secretary of the Treasury or 
     the Secretary's delegate may waive the application of 
     paragraph (1) to any taxpayer if the Secretary or the 
     Secretary's delegate determines that the use of such offshore 
     payment mechanisms is incidental to the transaction and, in 
     addition, in the case of a trade or business, such use is 
     conducted in the ordinary course of the type of trade or 
     business of the taxpayer.
       (C) Issues raised.--For purposes of subparagraph (A)(ii), 
     an item shall be treated as an issue raised during an 
     examination if the individual examining the return--
       (i) communicates to the taxpayer knowledge about the 
     specific item, or
       (ii) has made a request to the taxpayer for information and 
     the taxpayer could not make a complete response to that 
     request without giving the examiner knowledge of the specific 
     item.
       (b) Definitions and Rules.--For purposes of this section--
       (1) Applicable penalty.--The term ``applicable penalty'' 
     means any penalty, addition to tax, or fine imposed under 
     chapter 68 of the Internal Revenue Code of 1986.
       (2) Fees and expenses.--The Secretary of the Treasury may 
     retain and use an amount not in excess of 25 percent of all 
     additional interest, penalties, additions to tax, and fines 
     collected under this section to be used for enforcement and 
     collection activities of the Internal Revenue Service. The 
     Secretary shall keep adequate records regarding amounts so 
     retained and used. The amount credited as paid by any 
     taxpayer shall be determined without regard to this 
     paragraph.
       (c) Report by Secretary.--The Secretary shall each year 
     conduct a study and report to Congress on the implementation 
     of this section during the preceding year, including 
     statistics on the number of taxpayers affected by such 
     implementation and the amount of interest and applicable 
     penalties asserted, waived, and assessed during such 
     preceding year.
       (d) Effective Date.--The provisions of this section shall 
     apply to interest, penalties, additions to tax, and fines 
     with respect to any taxable year if, as of the date of the 
     enactment of this Act, the assessment of any tax, penalty, or 
     interest with respect to such taxable year is not prevented 
     by the operation of any law or rule of law.

     SEC. 8108. PENALTY FOR AIDING AND ABETTING THE UNDERSTATEMENT 
                   OF TAX LIABILITY.

       (a) In General.--Section 6701(a) (relating to imposition of 
     penalty) is amended--
       (1) by inserting ``the tax liability or'' after ``respect 
     to,'' in paragraph (1),
       (2) by inserting ``aid, assistance, procurement, or advice 
     with respect to such'' before ``portion'' both places it 
     appears in paragraphs (2) and (3), and
       (3) by inserting ``instance of aid, assistance, 
     procurement, or advice or each such'' before ``document'' in 
     the matter following paragraph (3).
       (b) Amount of Penalty.--Subsection (b) of section 6701 
     (relating to penalties for aiding and abetting understatement 
     of tax liability) is amended to read as follows:
       ``(b) Amount of Penalty; Calculation of Penalty; Liability 
     for Penalty.--
       ``(1) Amount of penalty.--The amount of the penalty imposed 
     by subsection (a) shall not exceed 100 percent of the gross 
     income derived (or to be derived) from such aid, assistance, 
     procurement, or advice provided by the person or persons 
     subject to such penalty.
       ``(2) Calculation of penalty.--The penalty amount 
     determined under paragraph (1) shall be calculated with 
     respect to each instance of aid, assistance, procurement, or 
     advice described in subsection (a), each instance in which 
     income was derived by the person or persons subject to such 
     penalty, and each person who made such an understatement of 
     the liability for tax.
       ``(3) Liability for penalty.--If more than 1 person is 
     liable under subsection (a) with respect to providing such 
     aid, assistance, procurement, or advice, all such persons 
     shall be jointly and severally liable for the penalty under 
     such subsection.''.
       (c) Penalty Not Deductible.--Section 6701 is amended by 
     adding at the end the following new subsection:
       ``(g) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.

   Subtitle B--Provisions to Close Corporate and Individual Loopholes

     SEC. 8111. TAX TREATMENT OF INVERTED ENTITIES.

       (a) In General.--Section 7874 is amended--
       (1) by striking ``March 4, 2003'' in subsection 
     (a)(2)(B)(i) and in the matter following subsection 
     (a)(2)(B)(iii) and inserting ``March 20, 2002'',
       (2) by striking ``at least 60 percent'' in subsection 
     (a)(2)(B)(ii) and inserting ``more than 50 percent'',
       (3) by striking ``80 percent'' in subsection (b) and 
     inserting ``at least 80 percent'',
       (4) by striking ``60 percent'' in subsection (b) and 
     inserting ``more than 50 percent'',
       (5) by adding at the end of subsection (a)(2) the following 
     new sentence: ``Except as provided in regulations, an 
     acquisition of properties of a domestic corporation shall not 
     be treated as described in subparagraph (B) if none of the 
     corporation's stock was readily tradeable on an established 
     securities market at any time during the 4-year period ending 
     on the date of the acquisition.'', and
       (6) by redesignating subsection (g) as subsection (h) and 
     by inserting after subsection (f) the following new 
     subsection:
       ``(g) Special Rules Applicable to Expatriated Entities.--
       ``(1) Increases in accuracy-related penalties.--In the case 
     of any underpayment of tax of an expatriated entity--
       ``(A) section 6662(a) shall be applied with respect to such 
     underpayment by substituting `30 percent' for `20 percent', 
     and
       ``(B) if such underpayment is attributable to one or more 
     gross valuation understatements, the increase in the rate of 
     penalty under section 6662(h) shall be to 50 percent rather 
     than 40 percent.
       ``(2) Modifications of limitation on interest deduction.--
     In the case of an expatriated entity, section 163(j) shall be 
     applied--
       ``(A) without regard to paragraph (2)(A)(ii) thereof, and
       ``(B) by substituting `25 percent' for `50 percent' each 
     place it appears in paragraph (2)(B) thereof.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after March 20, 2002.

     SEC. 8112. GRANT OF TREASURY REGULATORY AUTHORITY TO ADDRESS 
                   FOREIGN TAX CREDIT TRANSACTIONS INVOLVING 
                   INAPPROPRIATE SEPARATION OF FOREIGN TAXES FROM 
                   RELATED FOREIGN INCOME.

       (a) In General.--Section 901 (relating to taxes of foreign 
     countries and of possessions of United States) is amended by 
     redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Regulations.--The Secretary may prescribe regulations 
     disallowing a credit under subsection (a) for all or a 
     portion of any foreign tax, or allocating a foreign tax among 
     2 or more persons, in cases where the foreign tax is imposed 
     on any person in respect of income of another person or in 
     other cases involving the inappropriate separation of the 
     foreign tax from the related foreign income.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 8113. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT 
                   INSTRUMENTS.

       (a) In General.--Section 1275(d) (relating to regulation 
     authority) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Treatment of contingent payment convertible debt.--
       ``(A) In general.--In the case of a debt instrument which--
       ``(i) is convertible into stock of the issuing corporation, 
     into stock or debt of a related

[[Page 6447]]

     party (within the meaning of section 267(b) or 707(b)(1)), or 
     into cash or other property in an amount equal to the 
     approximate value of such stock or debt, and
       ``(ii) provides for contingent payments,

     any regulations which require original issue discount to be 
     determined by reference to the comparable yield of a 
     noncontingent fixed-rate debt instrument shall be applied as 
     if the regulations require that such comparable yield be 
     determined by reference to a noncontingent fixed-rate debt 
     instrument which is convertible into stock.
       ``(B) Special rule.--For purposes of subparagraph (A), the 
     comparable yield shall be determined without taking into 
     account the yield resulting from the conversion of a debt 
     instrument into stock.''.
       (b) Cross Reference.--Section 163(e)(6) (relating to cross 
     references) is amended by adding at the end the following:
       ``For the treatment of contingent payment convertible debt, 
     see section 1275(d)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to debt instruments issued on or after the date 
     of the enactment of this Act.

     SEC. 8114. APPLICATION OF EARNINGS STRIPPING RULES TO 
                   PARTNERS WHICH ARE CORPORATIONS.

       (a) In General.--Section 163(j) (relating to limitation on 
     deduction for interest on certain indebtedness) is amended by 
     redesignating paragraph (8) as paragraph (9) and by inserting 
     after paragraph (7) the following new paragraph:
       ``(8) Treatment of corporate partners.--Except to the 
     extent provided by regulations, in applying this subsection 
     to a corporation which owns (directly or indirectly) an 
     interest in a partnership--
       ``(A) such corporation's distributive share of interest 
     income paid or accrued to such partnership shall be treated 
     as interest income paid or accrued to such corporation,
       ``(B) such corporation's distributive share of interest 
     paid or accrued by such partnership shall be treated as 
     interest paid or accrued by such corporation, and
       ``(C) such corporation's share of the liabilities of such 
     partnership shall be treated as liabilities of such 
     corporation.''.
       (b) Additional Regulatory Authority.--Section 163(j)(9) 
     (relating to regulations), as redesignated by subsection (a), 
     is amended by striking ``and'' at the end of subparagraph 
     (B), by striking the period at the end of subparagraph (C) 
     and inserting ``, and'', and by adding at the end the 
     following new subparagraph:
       ``(D) regulations providing for the reallocation of shares 
     of partnership indebtedness, or distributive shares of the 
     partnership's interest income or interest expense, as may be 
     appropriate to carry out the purposes of this subsection.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning on or after the date 
     of the enactment of this Act.

     SEC. 8115. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, 
                   AND OTHER AMOUNTS.

       (a) In General.--Subsection (f) of section 162 (relating to 
     trade or business expenses) is amended to read as follows:
       ``(f) Fines, Penalties, and Other Amounts.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     deduction otherwise allowable shall be allowed under this 
     chapter for any amount paid or incurred (whether by suit, 
     agreement, or otherwise) to, or at the direction of, a 
     government or entity described in paragraph (4) in relation 
     to the violation of any law or the investigation or inquiry 
     by such government or entity into the potential violation of 
     any law.
       ``(2) Exception for amounts constituting restitution or 
     paid to come into compliance with law.--Paragraph (1) shall 
     not apply to any amount which--
       ``(A) the taxpayer establishes--
       ``(i) constitutes restitution (including remediation of 
     property) for damage or harm caused by or which may be caused 
     by the violation of any law or the potential violation of any 
     law, or
       ``(ii) is paid to come into compliance with any law which 
     was violated or involved in the investigation or inquiry, and
       ``(B) is identified as restitution or as an amount paid to 
     come into compliance with the law, as the case may be, in the 
     court order or settlement agreement.

     Identification pursuant to subparagraph (B) alone shall not 
     satisfy the requirement under subparagraph (A). This 
     paragraph shall not apply to any amount paid or incurred as 
     reimbursement to the government or entity for the costs of 
     any investigation or litigation.
       ``(3) Exception for amounts paid or incurred as the result 
     of certain court orders.--Paragraph (1) shall not apply to 
     any amount paid or incurred by order of a court in a suit in 
     which no government or entity described in paragraph (4) is a 
     party.
       ``(4) Certain nongovernmental regulatory entities.--An 
     entity is described in this paragraph if it is--
       ``(A) a nongovernmental entity which exercises self-
     regulatory powers (including imposing sanctions) in 
     connection with a qualified board or exchange (as defined in 
     section 1256(g)(7)), or
       ``(B) to the extent provided in regulations, a 
     nongovernmental entity which exercises self-regulatory powers 
     (including imposing sanctions) as part of performing an 
     essential governmental function.
       ``(5) Exception for taxes due.--Paragraph (1) shall not 
     apply to any amount paid or incurred as taxes due.''.
       (b) Reporting of Deductible Amounts.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6050T the 
     following new section:

     ``SEC. 6050U. INFORMATION WITH RESPECT TO CERTAIN FINES, 
                   PENALTIES, AND OTHER AMOUNTS.

       ``(a) Requirement of Reporting.--
       ``(1) In general.--The appropriate official of any 
     government or entity which is described in section 162(f)(4) 
     which is involved in a suit or agreement described in 
     paragraph (2) shall make a return in such form as determined 
     by the Secretary setting forth--
       ``(A) the amount required to be paid as a result of the 
     suit or agreement to which paragraph (1) of section 162(f) 
     applies,
       ``(B) any amount required to be paid as a result of the 
     suit or agreement which constitutes restitution or 
     remediation of property, and
       ``(C) any amount required to be paid as a result of the 
     suit or agreement for the purpose of coming into compliance 
     with any law which was violated or involved in the 
     investigation or inquiry.
       ``(2) Suit or agreement described.--
       ``(A) In general.--A suit or agreement is described in this 
     paragraph if--
       ``(i) it is--

       ``(I) a suit with respect to a violation of any law over 
     which the government or entity has authority and with respect 
     to which there has been a court order, or
       ``(II) an agreement which is entered into with respect to a 
     violation of any law over which the government or entity has 
     authority, or with respect to an investigation or inquiry by 
     the government or entity into the potential violation of any 
     law over which such government or entity has authority, and

       ``(ii) the aggregate amount involved in all court orders 
     and agreements with respect to the violation, investigation, 
     or inquiry is $600 or more.
       ``(B) Adjustment of reporting threshold.--The Secretary may 
     adjust the $600 amount in subparagraph (A)(ii) as necessary 
     in order to ensure the efficient administration of the 
     internal revenue laws.
       ``(3) Time of filing.--The return required under this 
     subsection shall be filed not later than--
       ``(A) 30 days after the date on which a court order is 
     issued with respect to the suit or the date the agreement is 
     entered into, as the case may be, or
       ``(B) the date specified Secretary.
       ``(b) Statements to Be Furnished to Individuals Involved in 
     the Settlement.--Every person required to make a return under 
     subsection (a) shall furnish to each person who is a party to 
     the suit or agreement a written statement showing--
       ``(1) the name of the government or entity, and
       ``(2) the information supplied to the Secretary under 
     subsection (a)(1).

     The written statement required under the preceding sentence 
     shall be furnished to the person at the same time the 
     government or entity provides the Secretary with the 
     information required under subsection (a).
       ``(c) Appropriate Official Defined.--For purposes of this 
     section, the term `appropriate official' means the officer or 
     employee having control of the suit, investigation, or 
     inquiry or the person appropriately designated for purposes 
     of this section.''.
       (2) Conforming amendment.--The table of sections for 
     subpart B of part III of subchapter A of chapter 61 is 
     amended by inserting after the item relating to section 6050T 
     the following new item:

``Sec. 6050U. Information with respect to certain fines, penalties, and 
              other amounts.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred on or after the date 
     of the enactment of this Act, except that such amendments 
     shall not apply to amounts paid or incurred under any binding 
     order or agreement entered into before such date. Such 
     exception shall not apply to an order or agreement requiring 
     court approval unless the approval was obtained before such 
     date.

     SEC. 8116. DISALLOWANCE OF DEDUCTION FOR PUNITIVE DAMAGES.

       (a) Disallowance of Deduction.--
       (1) In general.--Section 162(g) (relating to treble damage 
     payments under the antitrust laws) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (B) by striking ``If'' and inserting:
       ``(1) Treble damages.--If'', and
       (C) by adding at the end the following new paragraph:
       ``(2) Punitive damages.--No deduction shall be allowed 
     under this chapter for any amount paid or incurred for 
     punitive damages in connection with any judgment in, or 
     settlement of, any action. This paragraph shall not apply to 
     punitive damages described in section 104(c).''.

[[Page 6448]]

       (2) Conforming amendment.--The heading for section 162(g) 
     is amended by inserting ``or Punitive Damages'' after 
     ``Laws''.
       (b) Inclusion in Income of Punitive Damages Paid by Insurer 
     or Otherwise.--
       (1) In general.--Part II of subchapter B of chapter 1 
     (relating to items specifically included in gross income) is 
     amended by adding at the end the following new section:

     ``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR 
                   OTHERWISE.

       ``Gross income shall include any amount paid to or on 
     behalf of a taxpayer as insurance or otherwise by reason of 
     the taxpayer's liability (or agreement) to pay punitive 
     damages.''.
       (2) Reporting requirements.--Section 6041 (relating to 
     information at source) is amended by adding at the end the 
     following new subsection:
       ``(f) Section to Apply to Punitive Damages Compensation.--
     This section shall apply to payments by a person to or on 
     behalf of another person as insurance or otherwise by reason 
     of the other person's liability (or agreement) to pay 
     punitive damages.''.
       (3) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 1 is amended by adding at the 
     end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to damages paid or incurred on or after the date 
     of the enactment of this Act.

     SEC. 8117. LIMITATION OF EMPLOYER DEDUCTION FOR CERTAIN 
                   ENTERTAINMENT EXPENSES.

       (a) In General.--Paragraph (2) of section 274(e) (relating 
     to expenses treated as compensation) is amended to read as 
     follows:
       ``(2) Expenses treated as compensation.--Expenses for 
     goods, services, and facilities, to the extent that the 
     expenses do not exceed the amount of the expenses which are 
     treated by the taxpayer, with respect to the recipient of the 
     entertainment, amusement, or recreation, as compensation to 
     an employee on the taxpayer's return of tax under this 
     chapter and as wages to such employee for purposes of chapter 
     24 (relating to withholding of income tax at source on 
     wages).''.
       (b) Persons Not Employees.--Paragraph (9) of section 274(e) 
     is amended by striking ``to the extent that the expenses are 
     includible in the gross income'' and inserting ``to the 
     extent that the expenses do not exceed the amount of the 
     expenses which are includible in the gross income''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenses incurred after the date of the 
     enactment of this Act.

     SEC. 8118. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS 
                   WHO EXPATRIATE.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsections 
     (d) and (f), all property of a covered expatriate to whom 
     this section applies shall be treated as sold on the day 
     before the expatriation date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.

     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence.
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which, but for this 
     paragraph, would be includible in the gross income of any 
     individual by reason of this section shall be reduced (but 
     not below zero) by $600,000. For purposes of this paragraph, 
     allocable expatriation gain taken into account under 
     subsection (f)(2) shall be treated in the same manner as an 
     amount required to be includible in gross income.
       ``(B) Cost-of-living adjustment.--
       ``(i) In general.--In the case of an expatriation date 
     occurring in any calendar year after 2005, the $600,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2004' for `calendar year 1992' in 
     subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If a covered expatriate elects the 
     application of this paragraph--
       ``(i) this section (other than this paragraph and 
     subsection (i)) shall not apply to the expatriate, but
       ``(ii) in the case of property to which this section would 
     apply but for such election, the expatriate shall be subject 
     to tax under this title in the same manner as if the 
     individual were a United States citizen.
       ``(B) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(C) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election to Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the payment of the 
     additional tax attributable to such property shall be 
     postponed until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of postponement.--No tax may be postponed 
     under this subsection later than the due date for the return 
     of tax imposed by this chapter for the taxable year which 
     includes the date of death of the expatriate (or, if earlier, 
     the time that the security provided with respect to the 
     property fails to meet the requirements of paragraph (4), 
     unless the taxpayer corrects such failure within the time 
     specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided to the Secretary with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be made under paragraph 
     (1) with respect to an interest in a trust with respect to 
     which gain is required to be recognized under subsection 
     (f)(1).
       ``(7) Interest.--For purposes of section 6601--
       ``(A) the last date for the payment of tax shall be 
     determined without regard to the election under this 
     subsection, and
       ``(B) section 6621(a)(2) shall be applied by substituting 
     `5 percentage points' for `3 percentage points' in 
     subparagraph (B) thereof.
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `covered expatriate' means an expatriate.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has not been a resident of the United States (as 
     defined in section 7701(b)(1)(A)(ii)) during the 5 taxable 
     years ending with the taxable year during which the 
     expatriation date occurs, or
       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Exempt Property; Special Rules for Pension Plans.--

[[Page 6449]]

       ``(1) Exempt property.--This section shall not apply to the 
     following:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the day before the 
     expatriation date, meet the requirements of section 
     897(c)(2).
       ``(B) Specified property.--Any property or interest in 
     property not described in subparagraph (A) which the 
     Secretary specifies in regulations.
       ``(2) Special rules for certain retirement plans.--
       ``(A) In general.--If a covered expatriate holds on the day 
     before the expatriation date any interest in a retirement 
     plan to which this paragraph applies--
       ``(i) such interest shall not be treated as sold for 
     purposes of subsection (a)(1), but
       ``(ii) an amount equal to the present value of the 
     expatriate's nonforfeitable accrued benefit shall be treated 
     as having been received by such individual on such date as a 
     distribution under the plan.
       ``(B) Treatment of subsequent distributions.--In the case 
     of any distribution on or after the expatriation date to or 
     on behalf of the covered expatriate from a plan from which 
     the expatriate was treated as receiving a distribution under 
     subparagraph (A), the amount otherwise includible in gross 
     income by reason of the subsequent distribution shall be 
     reduced by the excess of the amount includible in gross 
     income under subparagraph (A) over any portion of such amount 
     to which this subparagraph previously applied.
       ``(C) Treatment of subsequent distributions by plan.--For 
     purposes of this title, a retirement plan to which this 
     paragraph applies, and any person acting on the plan's 
     behalf, shall treat any subsequent distribution described in 
     subparagraph (B) in the same manner as such distribution 
     would be treated without regard to this paragraph.
       ``(D) Applicable plans.--This paragraph shall apply to--
       ``(i) any qualified retirement plan (as defined in section 
     4974(c)),
       ``(ii) an eligible deferred compensation plan (as defined 
     in section 457(b)) of an eligible employer described in 
     section 457(e)(1)(A), and
       ``(iii) to the extent provided in regulations, any foreign 
     pension plan or similar retirement arrangements or programs.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes 
     citizenship, and
       ``(B) any long-term resident of the United States who--
       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces such individual's 
     United States nationality before a diplomatic or consular 
     officer of the United States pursuant to paragraph (5) of 
     section 349(a) of the Immigration and Nationality Act (8 
     U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.

     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust on the day before the expatriation date--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets on the day before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.

     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii). In determining the amount of such 
     distribution, proper adjustments shall be made for 
     liabilities of the trust allocable to an individual's share 
     in the trust.
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year which includes the day before the 
     expatriation date, multiplied by the amount of the 
     distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods, 
     except that section 6621(a)(2) shall be applied by 
     substituting `5 percentage points' for `3 percentage points' 
     in subparagraph (B) thereof.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the day 
     before the expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.

     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.

[[Page 6450]]

       ``(G) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust which is described in section 7701(a)(30)(E).
       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the day before the expatriation 
     date, is vested in the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(v) Coordination with retirement plan rules.--This 
     subsection shall not apply to an interest in a trust which is 
     part of a retirement plan to which subsection (d)(2) applies.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument and any letter of wishes or 
     similar document, historical patterns of trust distributions, 
     and the existence of and functions performed by a trust 
     protector or any similar adviser.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, Etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate on the day before the 
     expatriation date, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.
       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.
       ``(i) Special Liens for Deferred Tax Amounts.--
       ``(1) Imposition of lien.--
       ``(A) In general.--If a covered expatriate makes an 
     election under subsection (a)(4) or (b) which results in the 
     deferral of any tax imposed by reason of subsection (a), the 
     deferred amount (including any interest, additional amount, 
     addition to tax, assessable penalty, and costs attributable 
     to the deferred amount) shall be a lien in favor of the 
     United States on all property of the expatriate located in 
     the United States (without regard to whether this section 
     applies to the property).
       ``(B) Deferred amount.--For purposes of this subsection, 
     the deferred amount is the amount of the increase in the 
     covered expatriate's income tax which, but for the election 
     under subsection (a)(4) or (b), would have occurred by reason 
     of this section for the taxable year including the 
     expatriation date.
       ``(2) Period of lien.--The lien imposed by this subsection 
     shall arise on the expatriation date and continue until--
       ``(A) the liability for tax by reason of this section is 
     satisfied or has become unenforceable by reason of lapse of 
     time, or
       ``(B) it is established to the satisfaction of the 
     Secretary that no further tax liability may arise by reason 
     of this section.
       ``(3) Certain rules apply.--The rules set forth in 
     paragraphs (1), (3), and (4) of section 6324A(d) shall apply 
     with respect to the lien imposed by this subsection as if it 
     were a lien imposed by section 6324A.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Inclusion in Income of Gifts and Bequests Received by 
     United States Citizens and Residents From Expatriates.--
     Section 102 (relating to gifts, etc. not included in gross 
     income) is amended by adding at the end the following new 
     subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
       ``(1) In general.--Subsection (a) shall not exclude from 
     gross income the value of any property acquired by gift, 
     bequest, devise, or inheritance from a covered expatriate 
     after the expatriation date. For purposes of this subsection, 
     any term used in this subsection which is also used in 
     section 877A shall have the same meaning as when used in 
     section 877A.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Paragraph (1) shall not apply to any property 
     if either--
       ``(A) the gift, bequest, devise, or inheritance is--
       ``(i) shown on a timely filed return of tax imposed by 
     chapter 12 as a taxable gift by the covered expatriate, or
       ``(ii) included in the gross estate of the covered 
     expatriate for purposes of chapter 11 and shown on a timely 
     filed return of tax imposed by chapter 11 of the estate of 
     the covered expatriate, or
       ``(B) no such return was timely filed but no such return 
     would have been required to be filed even if the covered 
     expatriate were a citizen or long-term resident of the United 
     States.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(49) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(e)(3).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (d) Ineligibility for Visa or Admission to United States.--
       (1) In general.--Section 212(a)(10)(E) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to 
     read as follows:
       ``(E) Former citizens not in compliance with expatriation 
     revenue provisions.--Any alien who is a former citizen of the 
     United States who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3) of the Internal 
     Revenue Code of 1986) and who is not in compliance with 
     section 877A of such Code (relating to expatriation).''.
       (2) Availability of information.--
       (A) In general.--Section 6103(l) (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(21) Disclosure to deny visa or admission to certain 
     expatriates.--Upon written request of the Attorney General or 
     the Attorney General's delegate, the Secretary shall disclose 
     whether an individual is in compliance with section 877A (and 
     if not in compliance, any items of noncompliance) to officers 
     and employees of the Federal agency responsible for 
     administering section 212(a)(10)(E) of the Immigration and 
     Nationality Act solely for the purpose of, and to the extent 
     necessary in, administering such section 212(a)(10)(E).''.
       (B) Safeguards.--Section 6103(p)(4) (relating to 
     safeguards) is amended by striking ``or (20)'' each place it 
     appears and inserting ``(20), or (21)''.
       (3) Effective dates.--The amendments made by this 
     subsection shall apply to individuals who relinquish United 
     States citizenship on or after the date of the enactment of 
     this Act.
       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(h) Application.--This section shall not apply to an 
     expatriate (as defined in section 877A(e)) whose expatriation 
     date (as so defined) occurs on or after the date of the 
     enactment of this subsection.''.
       (2) Section 2107 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     expatriate subject to section 877A.''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Application.--This paragraph shall not apply to any 
     expatriate subject to section 877A.''.
       (4) Section 6039G(a) is amended by inserting ``or 877A'' 
     after ``section 877(b)''.
       (5) The second sentence of section 6039G(d) is amended by 
     inserting ``or who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3))'' after ``section 
     877(a))''.

[[Page 6451]]

       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after the date 
     of the enactment of this Act.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to gifts and bequests received on or after the date of the 
     enactment of this Act, from an individual or the estate of an 
     individual whose expatriation date (as so defined) occurs 
     after such date.
       (3) Due date for tentative tax.--The due date under section 
     877A(h)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall in no event occur before the 90th day 
     after the date of the enactment of this Act.

     SEC. 8119. TAX TREATMENT OF CONTROLLED FOREIGN CORPORATIONS 
                   ESTABLISHED IN TAX HAVENS.

       (a) In General.--Subchapter C of chapter 80 (relating to 
     provisions affecting more than one subtitle) is amended by 
     adding at the end the following new section:

     ``SEC. 7875. CONTROLLED FOREIGN CORPORATIONS IN TAX HAVENS 
                   TREATED AS DOMESTIC CORPORATIONS.

       ``(a) General Rule.--If a controlled foreign corporation is 
     a tax-haven CFC, then, notwithstanding section 7701(a)(4), 
     such corporation shall be treated for purposes of this title 
     as a domestic corporation.
       ``(b) Tax-Haven CFC.--For purposes of this section--
       ``(1) In general.--The term `tax-haven CFC' means, with 
     respect to any taxable year, a foreign corporation which--
       ``(A) was created or organized under the laws of a tax-
     haven country, and
       ``(B) is a controlled foreign corporation (determined 
     without regard to this section) for an uninterrupted period 
     of 30 days or more during the taxable year.
       ``(2) Exception.--The term `tax-haven CFC' does not include 
     a foreign corporation for any taxable year if substantially 
     all of its income for the taxable year is derived from the 
     active conduct of trades or businesses within the country 
     under the laws of which the corporation was created or 
     organized.
       ``(c) Tax-Haven Country.--For purposes of this section--
       ``(1) In general.--The term `tax-haven country' means any 
     of the following:

     ``Andorra
     Anguilla
     Antigua and Barbuda
     Aruba
     Commonwealth of the Bahamas
     Bahrain
     Barbados
     Belize
     Bermuda
     British Virgin Islands
     Cayman Islands
     Cook Islands
     Cyprus
     Commonwealth of the Dominica
     Gibraltar
     Grenada
     Guernsey
     Isle of Man
     Jersey
     Liberia
     Principality of Liechtenstein
     Republic of the Maldives
     Malta
     Republic of the Marshall Islands
     Mauritius
     Principality of Monaco
     Montserrat
     Republic of Nauru
     Netherlands
     Antilles
     Niue
     Panama
     Samoa
     San Marino
     Federation of Saint Christopher and Nevis
     Saint Lucia
     Saint Vincent and the Grenadines
     Republic of the Seychelles
     Tonga
     Turks and Caicos
     Republic of Vanuatu

       ``(2) Secretarial authority.--The Secretary may remove or 
     add a foreign jurisdiction from the list of tax-haven 
     countries under paragraph (1) if the Secretary determines 
     such removal or addition is consistent with the purposes of 
     this section.''.
       (b) Conforming Amendment.--The table of sections for 
     subchapter C of chapter 80 is amended by adding at the end 
     the following new item:

``Sec. 7875. Controlled foreign corporations in tax havens treated as 
              domestic corporations.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 8120. MODIFICATION OF EXCLUSION FOR CITIZENS LIVING 
                   ABROAD.

       (a) Inflation Adjustment of Foreign Earned Income 
     Limitation.--Clause (ii) of section 911(b)(2)(D) (relating to 
     inflation adjustment) is amended--
       (1) by striking ``2007'' and inserting ``2005'', and
       (2) by striking ``2006'' in subclause (II) and inserting 
     ``2004''.
       (b) Modification of Housing Cost Amount.--
       (1) Minimum amount.--Clause (i) of section 911(c)(1)(B) is 
     amended to read as follows:
       ``(i) 16 percent of the amount (computed on a daily basis) 
     in effect under subsection (b)(2)(D) for the calendar year in 
     which such taxable year begins, multiplied by''.
       (2) Maximum amount of exclusion.--
       (A) In general.--Subparagraph (A) of section 911(c)(1) is 
     amended by inserting ``to the extent such expenses do not 
     exceed the amount determined under paragraph (2)'' after 
     ``the taxable year''.
       (B) Limitation.--Subsection (c) of section 911 is amended 
     by redesignating paragraphs (2) and (3) as paragraphs (3) and 
     (4), respectively, and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Limitation.--The amount determined under this 
     paragraph is an amount equal to the product of--
       ``(A) 30 percent of the amount (computed on a daily basis) 
     in effect under subsection (b)(2)(D) for the calendar year in 
     which the taxable year of the individual begins, multiplied 
     by
       ``(B) the number of days of such taxable year within the 
     applicable period described in subparagraph (A) or (B) of 
     subsection (d)(1).''.
       (C) Conforming amendments.--
       (i) Section 911(d)(4) is amended by striking ``and 
     (c)(1)(B)(ii)'' and inserting ``, (c)(1)(B)(ii), and 
     (c)(2)(B)''
       (ii) Section 911(d)(7) is amended by striking ``subsection 
     (c)(3)'' and inserting ``subsection (c)(4)''.
       (c) Rates of Tax Applicable to Nonexcluded Income.--Section 
     911 (relating to exclusion of certain income of citizens and 
     residents of the United States living abroad) is amended by 
     redesignating subsection (f) as subsection (g) and by 
     inserting after subsection (e) the following new subsection:
       ``(f) Determination of Tax Liability on Nonexcluded 
     Amounts.--If any amount is excluded from the gross income of 
     a taxpayer under subsection (a) for any taxable year, then, 
     notwithstanding section 1 or 55--
       ``(1) the tax imposed by section 1 on the taxpayer for such 
     taxable year shall be equal to the excess (if any) of--
       ``(A) the tax which would be imposed by section 1 for the 
     taxable year if the taxpayer's taxable income were equal to 
     the sum of--
       ``(i) the taxpayer's taxable income for the taxable year 
     (determined without regard to this subsection), plus
       ``(ii) the amount excluded under subsection (a) for the 
     taxable year, over
       ``(B) the tax which would be imposed by section 1 for the 
     taxable year if the taxpayer's taxable income were equal to 
     the amount excluded under subsection (a) for the taxable 
     year, and
       ``(2) the tax imposed by section 55 for such taxable year 
     shall be equal to the excess (if any) of--
       ``(A) the amount which would be the tentative minimum tax 
     under section 55 for the taxable year if the taxpayer's 
     alternative minimum taxable income were equal to the sum of--
       ``(i) the taxpayer's alternative minimum taxable income for 
     the taxable year (determined without regard to this 
     subsection), plus
       ``(ii) the amount excluded under subsection (a) for the 
     taxable year, over
       ``(B) the sum of--
       ``(i) the amount which would be the tentative minimum tax 
     under section 55 for the taxable year if the taxpayer's 
     alternative minimum taxable income were equal to the amount 
     excluded under subsection (a) for the taxable year, plus
       ``(ii) the amount which would be the regular tax for the 
     taxable year if the tax imposed by section 1 were the tax 
     computed under paragraph (1).

     For purposes of this subsection, the amount excluded under 
     subsection (a) shall be reduced by the aggregate amount of 
     any deductions or exclusions disallowed under subsection 
     (d)(6) with respect to such excluded amount.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 8121. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED 
                   UNDER NONQUALIFIED DEFERRED COMPENSATION 
                   ARRANGEMENTS.

       (a) In General.--Section 409A (relating to inclusion of 
     gross income under nonqualified deferred compensation plans) 
     is amended by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively, and by inserting 
     after subsection (b) the following new subsection:
       ``(c) Annual Limitation on Aggregate Deferred Amounts.--
       ``(1) Limitation.--If the aggregate amount of compensation 
     which--
       ``(A) is deferred for any taxable year with respect to a 
     participant under 1 or more nonqualified deferred 
     compensation plans maintained by the same employer, and
       ``(B) is not otherwise includible in gross income of the 
     participant for the taxable year,

     exceeds the applicable dollar amount for the taxable year, 
     then such excess shall be included in the participant's gross 
     income for the taxable year.
       ``(2) Inclusion of earnings.--If--
       ``(A) an amount is includible under paragraph (1) in the 
     gross income of a participant for any taxable year, and
       ``(B) any portion of any assets set aside in a trust or 
     other arrangement under a nonqualified deferred compensation 
     plan are properly allocable to such amount,

     then any increase in value in, or earnings with respect to, 
     such portion for the taxable year or any succeeding taxable 
     year shall be included in gross income of the participant for 
     such taxable year or succeeding taxable year.

[[Page 6452]]

       ``(3) Applicable dollar amount.--For purposes of this 
     subsection--
       ``(A) In general.--The term `applicable dollar amount' 
     means, with respect to any participant, the lesser of--
       ``(i) the average annual compensation which--

       ``(I) was payable during the base period to the participant 
     by the employer described in paragraph (1)(A), and
       ``(II) was includible in the participant's gross income for 
     taxable years in the base period, or

       ``(ii) $1,000,000.
       ``(B) Base period.--The term `base period' means, with 
     respect to any computation year, the 5-taxable year period 
     ending with the taxable year preceding the taxable year in 
     which the election described in subsection (a)(4)(B) is made 
     by the participant to have compensation for services 
     performed in the computation year deferred under a 
     nonqualified deferred compensation plan, except that if the 
     election is made after the beginning of the computation year, 
     such period shall be the 5-taxable year period ending with 
     the taxable year preceding the computation year. For purposes 
     of this subparagraph, the term `computation year' means any 
     taxable year of the participant for which the limitation 
     under paragraph (1) is being determined.''.
       (b) Conforming Amendments.--Sections 6041(g)(1) and 
     6051(a)(13) are each amended by striking ``409A(d)'' and 
     inserting ``409A(e)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005, except that taxable years beginning on or before such 
     date shall be taken into account in determining the average 
     annual compensation of a participant during any base period 
     for purposes of section 409A(c)(2) of the Internal Revenue 
     Code of 1986 (as added by such amendments).

     SEC. 8122. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED 
                   INCOME IS TAXED AS IF PARENT'S INCOME.

       (a) In General.--Section 1(g)(2)(A) (relating to child to 
     whom subsection applies) is amended by striking ``age 14'' 
     and inserting ``age 18''.
       (b) Treatment of Distributions From Qualified Disability 
     Trusts.--Section 1(g)(4) (relating to net unearned income) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Treatment of distributions from qualified disability 
     trusts.--For purposes of this subsection, in the case of any 
     child who is a beneficiary of a qualified disability trust 
     (as defined in section 642(b)(2)(C)(ii)), any amount included 
     in the income of such child under sections 652 and 662 during 
     a taxable year shall be considered earned income of such 
     child for such taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 8123. TAXATION OF INCOME OF CONTROLLED FOREIGN 
                   CORPORATIONS ATTRIBUTABLE TO IMPORTED PROPERTY.

       (a) General Rule.--Subsection (a) of section 954 (defining 
     foreign base company income) is amended by striking ``and'' 
     at the end of paragraph (4), by striking the period at the 
     end of paragraph (5) and inserting ``, and'', and by adding 
     at the end the following new paragraph:
       ``(6) imported property income for the taxable year 
     (determined under subsection (j) and reduced as provided in 
     subsection (b)(5)).''.
       (b) Definition of Imported Property Income.--Section 954 is 
     amended by adding at the end the following new subsection:
       ``(j) Imported Property Income.--
       ``(1) In general.--For purposes of subsection (a)(6), the 
     term `imported property income' means income (whether in the 
     form of profits, commissions, fees, or otherwise) derived in 
     connection with--
       ``(A) manufacturing, producing, growing, or extracting 
     imported property;
       ``(B) the sale, exchange, or other disposition of imported 
     property; or
       ``(C) the lease, rental, or licensing of imported property.
     Such term shall not include any foreign oil and gas 
     extraction income (within the meaning of section 907(c)) or 
     any foreign oil related income (within the meaning of section 
     907(c)).
       ``(2) Imported property.--For purposes of this subsection--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `imported property' means property which 
     is imported into the United States by the controlled foreign 
     corporation or a related person.
       ``(B) Imported property includes certain property imported 
     by unrelated persons.--The term `imported property' includes 
     any property imported into the United States by an unrelated 
     person if, when such property was sold to the unrelated 
     person by the controlled foreign corporation (or a related 
     person), it was reasonable to expect that--
       ``(i) such property would be imported into the United 
     States; or
       ``(ii) such property would be used as a component in other 
     property which would be imported into the United States.
       ``(C) Exception for property subsequently exported.--The 
     term `imported property' does not include any property which 
     is imported into the United States and which--
       ``(i) before substantial use in the United States, is sold, 
     leased, or rented by the controlled foreign corporation or a 
     related person for direct use, consumption, or disposition 
     outside the United States; or
       ``(ii) is used by the controlled foreign corporation or a 
     related person as a component in other property which is so 
     sold, leased, or rented.
       ``(3) Definitions and special rules.--
       ``(A) Import.--For purposes of this subsection, the term 
     `import' means entering, or withdrawal from warehouse, for 
     consumption or use. Such term includes any grant of the right 
     to use intangible property (as defined in section 
     936(h)(3)(B)) in the United States.
       ``(B) United states.--For purposes of this subsection, the 
     term `United States' includes the Commonwealth of Puerto 
     Rico, the Virgin Islands of the United States, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands.
       ``(C) Unrelated person.--For purposes of this subsection, 
     the term `unrelated person' means any person who is not a 
     related person with respect to the controlled foreign 
     corporation.
       ``(D) Coordination with foreign base company sales 
     income.--For purposes of this section, the term `foreign base 
     company sales income' shall not include any imported property 
     income.''.
       (c) Separate Application of Limitations on Foreign Tax 
     Credit for Imported Property Income.--
       (1) Before 2007.--
       (A) In general.--Paragraph (1) of section 904(d) (relating 
     to separate application of section with respect to certain 
     categories of income), as in effect for taxable years 
     beginning before January 1, 2007, is amended by striking 
     ``and'' at the end of subparagraph (H), by redesignating 
     subparagraph (I) as subparagraph (J), and by inserting after 
     subparagraph (H) the following new subparagraph:
       ``(I) imported property income, and''.
       (B) Imported property income defined.--Paragraph (2) of 
     section 904(d), as so in effect, is amended by redesignating 
     subparagraphs (H) and (I) as subparagraphs (I) and (J), 
     respectively, and by inserting after subparagraph (G) the 
     following new subparagraph:
       ``(H) Imported property income.--The term `imported 
     property income' means any income received or accrued by any 
     person which is of a kind which would be imported property 
     income (as defined in section 954(j)).''.
       (C) Look-thru rules to apply.--Subparagraph (F) of section 
     904(d)(3) of such Code, as so in effect, is amended by 
     striking ``or (D)'' and inserting ``(D), or (I)''.
       (2) After 2006.--
       (A) In general.--Paragraph (1) of section 904(d) (relating 
     to separate application of section with respect to certain 
     categories of income), as in effect for taxable years 
     beginning after December 31, 2006, is amended by striking 
     ``and'' at the end of subparagraph (A), by redesignating 
     subparagraph (B) as subparagraph (C), and by inserting after 
     subparagraph (A) the following new subparagraph:
       ``(B) imported property income, and''.
       (B) Imported property income defined.--Paragraph (2) of 
     section 904(d), as so in effect, is amended by redesignating 
     subparagraphs (J) and (K) as subparagraphs (K) and (L), 
     respectively, and by inserting after subparagraph (I) the 
     following new subparagraph:
       ``(J) Imported property income.--The term `imported 
     property income' means any income received or accrued by any 
     person which is of a kind which would be imported property 
     income (as defined in section 954(j)).''.
       (C) Conforming amendment.--Clause (ii) of section 
     904(d)(2)(A), as so in effect, is amended by inserting ``or 
     imported property income'' after ``passive category income''.
       (d) Technical Amendments.--
       (1) Clause (iii) of section 952(c)(1)(B) (relating to 
     certain prior year deficits may be taken into account) is 
     amended--
       (A) by redesignating subclauses (II), (III), (IV), and (V) 
     as subclauses (III), (IV), (V), and (VI), and
       (B) by inserting after subclause (I) the following new 
     subclause:

       ``(II) imported property income,''.

       (2) Paragraph (5) of section 954(b) (relating to deductions 
     to be taken into account) is amended by striking ``and the 
     foreign base company oil related income'' and inserting ``the 
     foreign base company oil related income, and the imported 
     property income''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     of foreign corporations beginning after the date of the 
     enactment of this Act, and to taxable years of United States 
     shareholders within which or with which such taxable years of 
     such foreign corporations end.
       (2) Subsection (c).--The amendments made by subsection 
     (c)(1) shall apply to taxable years beginning after the date 
     of the enactment of this Act and before January 1, 2007,

[[Page 6453]]

     and the amendments made by subsection (c)(2) shall apply to 
     taxable years beginning after December 31, 2006.

                   Subtitle C--Oil and Gas Provisions

     SEC. 8131. EXTENSION OF SUPERFUND TAXES.

       (a) Excise 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 December 31, 2005, and 
     before January 1, 2015.''
       (b) Corporate Environmental Income Tax.--Section 59A(e) is 
     amended to read as follows:
       ``(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 December 31, 2005, and before January 1, 
     2015.''
       (c) Effective Dates.--
       (1) Excise taxes.--The amendments made by subsection (a) 
     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 December 31, 2005.

     SEC. 8132. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 (relating to credit for taxes 
     of foreign countries and of possessions of the United States) 
     is amended by redesignating subsection (m) as subsection (n) 
     and by inserting after subsection (l) the following new 
     subsection:
       ``(m) Special Rules Relating To Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer to a foreign country or possession of the United 
     States for any period shall not be considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 8133. RULES RELATING TO FOREIGN OIL AND GAS INCOME.

       (a) Separate Basket for Foreign Tax Credit.--
       (1) Separate basket.--
       (A) Years before 2007.--Paragraph (1) of section 904(d) 
     (relating to separate application of section with respect to 
     certain categories of income), as in effect for years 
     beginning before 2007and as amended by this Act, is amended 
     by striking ``and'' at the end of subparagraph (I), by 
     redesignating subparagraph (J) as subparagraph (K), and by 
     inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) foreign oil and gas income, and''.
       (B) 2007 and after.--Paragraph (1) of section 904(d), as in 
     effect for years beginning after 2006 and as amended by this 
     Act, is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by adding at 
     the end the following:
       ``(D) foreign oil and gas income.''
       (2) Definition.--
       (A) Years before 2007.--Paragraph (2) of section 904(d), as 
     in effect for years beginning before 2007 and as amended by 
     this Act, is amended by redesignating subparagraphs (I) and 
     (J) as subparagraphs (J) and (K), respectively, and by 
     inserting after subparagraph (H) the following new 
     subparagraph:
       ``(I) Foreign oil and gas income.--The term `foreign oil 
     and gas income' has the meaning given such term by section 
     954(g).''
       (B) 2007 and after.--Section 904(d)(2), as in effect for 
     years after 2006 and as amended by this Act, is amended by 
     redesignating subparagraphs (K) and (L) as subparagraphs (L) 
     and (M) and by inserting after subparagraph (J) the 
     following:
       ``(K) Foreign oil and gas income.--For purposes of this 
     section--
       ``(i) In general.--The term `foreign oil and gas income' 
     has the meaning given such term by section 954(g).
       ``(ii) Coordination.--Passive category income and general 
     category income shall not include foreign oil and gas income 
     (as so defined).''
       (3) Conforming amendments.--
       (A) Section 904(d)(3)(F)(i) is amended by striking ``or 
     (E)'' and inserting ``(E), or (J)''.
       (B) Section 907(a) is hereby repealed.
       (C) Section 907(c)(4) is hereby repealed.
       (D) Section 907(f) is hereby repealed.
       (4) Effective dates.--
       (A) In general.--The amendments made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.
       (B) Years after 2006.--The amendments made by paragraphs 
     (1)(B) and (2)(B) shall apply to taxable years beginning 
     after December 31, 2006.
       (C) Transitional rules.--
       (i) Separate basket treatment.--Any taxes paid or accrued 
     in a taxable year beginning on or before the date of the 
     enactment of this Act, with respect to income which was 
     described in subparagraph (I) of section 904(d)(1) of such 
     Code (as in effect on the day before the date of the 
     enactment of this Act), shall be treated as taxes paid or 
     accrued with respect to foreign oil and gas income to the 
     extent the taxpayer establishes to the satisfaction of the 
     Secretary of the Treasury that such taxes were paid or 
     accrued with respect to foreign oil and gas income.
       (ii) Carryovers.--Any unused oil and gas extraction taxes 
     which under section 907(f) of such Code (as so in effect) 
     would have been allowable as a carryover to the taxpayer's 
     first taxable year beginning after the date of the enactment 
     of this Act (without regard to the limitation of paragraph 
     (2) of such section 907(f) for first taxable year) shall be 
     allowed as carryovers under section 904(c) of such Code in 
     the same manner as if such taxes were unused taxes under such 
     section 904(c) with respect to foreign oil and gas extraction 
     income.
       (iii) Losses.--The amendment made by paragraph (3)(C) shall 
     not apply to foreign oil and gas extraction losses arising in 
     taxable years beginning on or before the date of the 
     enactment of this Act.
       (b) Elimination of Deferral for Foreign Oil and Gas 
     Extraction Income.--
       (1) General rule.--Paragraph (1) of section 954(g) 
     (defining foreign base company oil related income) is amended 
     to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign oil and gas income' means any 
     income of a kind which would be taken into account in 
     determining the amount of--
       ``(A) foreign oil and gas extraction income (as defined in 
     section 907(c)), or
       ``(B) foreign oil related income (as defined in section 
     907(c)).''
       (2) Conforming amendments.--
       (A) Subsections (a)(5), (b)(5), and (b)(6) of section 954, 
     and section 952(c)(1)(B)(ii)(I), are each amended by striking 
     ``base company oil related income'' each place it appears 
     (including in the heading of subsection (b)(8)) and inserting 
     ``oil and gas income''.
       (B) Subsection (b)(4) of section 954 is amended by striking 
     ``base company oil-related income'' and inserting ``oil and 
     gas income''.
       (C) The subsection heading for subsection (g) of section 
     954 is amended by striking ``Foreign Base Company Oil Related 
     Income'' and inserting ``Foreign Oil and Gas Income''.
       (D) Subparagraph (A) of section 954(g)(2) is amended by 
     striking ``foreign base company oil related income'' and 
     inserting ``foreign oil and gas income''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years of foreign corporations 
     beginning after the date of the enactment of this Act, and to 
     taxable years of United States shareholders ending with or 
     within such taxable years of foreign corporations.

     SEC. 8134. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A 
                   NONCONVENTIONAL SOURCE.

       (a) Taxable Years Ending Before 2006.--
       (1) Modification of phaseout.--
       (A) In general.--Section 29(b)(1)(A) is amended by 
     inserting ``the calendar year preceding'' before ``the 
     calendar year''.
       (B) Conforming amendments.--Section 29(b)((2) is amended--
       (i) by striking ``The'' and inserting ``With respect to any 
     calendar year, the'', and

[[Page 6454]]

       (ii) by striking ``for the calendar year in which the sale 
     occurs'' and inserting ``for such calendar year''.
       (2) No inflation adjustment for the credit amount in 
     2005.--Section 29(b)(2), as amended by paragraph (1), is 
     amended by adding at the end the following new sentence: 
     ``This paragraph shall not apply with respect to the $3 
     amount in subsection (a) for calendar year 2005 and the 
     amount in effect under subsection (a) for sales in such 
     calendar year shall be the amount which was in effect for 
     sales in calendar year 2004.''.
       (b) Taxable Years Ending After 2005.--
       (1) Modification of phaseout.--
       (A) In general.--Section 45K(b)(1)(A) is amended by 
     inserting ``the calendar year preceding'' before ``the 
     calendar year''.
       (B) Conforming amendments.--Section 45K(b)((2) is amended--
       (i) by striking ``The'' and inserting ``With respect to any 
     calendar year, the'', and
       (ii) by striking ``for the calendar year in which the sale 
     occurs'' and inserting ``for such calendar year''.
       (2) No inflation adjustment for the credit amount in 2005, 
     2006, and 2007.--Section 45K(b)(2), as amended by paragraph 
     (1), is amended by adding at the end the following new 
     sentence: ``This paragraph shall not apply with respect to 
     the $3 amount in subsection (a) for calendar years 2005, 
     2006, and 2007 and the amount in effect under subsection (a) 
     for sales in each such calendar year shall be the amount 
     which was in effect for sales in calendar year 2004.''.
       (3) Treatment of coke and coke gas.--
       (A) Nonapplication of phaseout.--Section 45K(g)(2) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Nonapplication of phaseout.--Subsection (b)(1) shall 
     not apply.''.
       (B) Application of inflation adjustment.--Section 
     45K(g)(2)(B) is amended by inserting ``and the last sentence 
     of subsection (b)(2) shall not apply.''.
       (C) Clarification of qualifying facility.--Section 
     45K(g)(1) is amended by inserting ``(other than from 
     petroleum based products)'' after ``coke or coke gas''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold after December 31, 2004.

     SEC. 8135. ELIMINATION OF AMORTIZATION OF GEOLOGICAL AND 
                   GEOPHYSICAL EXPENDITURES FOR MAJOR INTEGRATED 
                   OIL COMPANIES.

       (a) In General.--Section 167(h) is amended by adding at the 
     end the following new paragraph:
       ``(5) Nonapplication to major integrated oil companies.--
     This subsection shall not apply with respect to any expenses 
     paid or incurred for any taxable year by any integrated oil 
     company (as defined in section 291(b)(4)) which has an 
     average daily worldwide production of crude oil of at least 
     500,000 barrels for such taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1329(a) of the Energy Policy Act of 2005.

               Subtitle D--Tax Administration Provisions

     SEC. 8141. IMPOSITION OF WITHHOLDING ON CERTAIN PAYMENTS MADE 
                   BY GOVERNMENT ENTITIES.

       (a) In General.--Section 3402 is amended by adding at the 
     end the following new subsection:
       ``(t) Extension of Withholding to Certain Payments Made by 
     Government Entities.--
       ``(1) General rule.--The Government of the United States, 
     every State, every political subdivision thereof, and every 
     instrumentality of the foregoing (including multi-State 
     agencies) making any payment for goods and services which is 
     subject to withholding shall deduct and withhold form such 
     payment a tax in an amount equal to 3 percent of such 
     payment.
       ``(2) Exceptions.--Paragraph (1) shall not apply to any 
     payment--
       ``(A) except as provided in subparagraph (B), which is 
     subject to withholding under any other provision of this 
     chapter or chapter 3,
       ``(B) which is subject to withholding under section 3406 
     and from which amounts are being withheld under such section,
       ``(C) of interest,
       ``(D) for real property,
       ``(E) to any tax-exempt entity, foreign government, or 
     other entity subject to the requirements of paragraph (1),
       ``(F) made pursuant to a classified or confidential 
     contract (as defined in section 6050M(e)(3)), and
       ``(G) made by a political subdivision of a State (or any 
     instrumentality thereof) which makes less than $100,000,000 
     of such payments annually.
       ``(3) Coordination with other sections.--For purposes of 
     sections 3403 and 3404 and for purposes of so much of 
     subtitle F (except section 7205) as relates to this chapter, 
     payments to any person of any payment for goods and services 
     which is subject to withholding shall be treated as if such 
     payments were wages paid by an employer to an employee.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2005.

     SEC. 8142. INCREASE IN CERTAIN CRIMINAL PENALTIES.

       (a) In General.--Section 7206 (relating to fraud and false 
     statements) is amended--
       (1) by striking ``Any person who--'' and inserting ``(a) In 
     General.--Any person who--'', and
       (2) by adding at the end the following new subsection:
       ``(b) Increase in Monetary Limitation for Underpayment or 
     Overpayment of Tax Due to Fraud.--If any portion of any 
     underpayment (as defined in section 6664(a)) or overpayment 
     (as defined in section 6401(a)) of tax required to be shown 
     on a return is attributable to fraudulent action described in 
     subsection (a), the applicable dollar amount under subsection 
     (a) shall in no event be less than an amount equal to such 
     portion. A rule similar to the rule under section 6663(b) 
     shall apply for purposes of determining the portion so 
     attributable.''.
       (b) Increase in Penalties.--
       (1) Attempt to evade or defeat tax.--Section 7201 is 
     amended--
       (A) by striking ``$100,000'' and inserting ``$500,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``5 years'' and inserting ``10 years''.
       (2) Willful failure to file return, supply information, or 
     pay tax.--Section 7203 is amended--
       (A) in the first sentence--
       (i) by striking ``Any person'' and inserting the following:
       ``(a) In General.--Any person'', and
       (ii) by striking ``$25,000'' and inserting ``$50,000'',
       (B) in the third sentence, by striking ``section'' and 
     inserting ``subsection'', and
       (C) by adding at the end the following new subsection:
       ``(b) Aggravated Failure to File.--
       ``(1) In general.--In the case of any failure described in 
     paragraph (2), the first sentence of subsection (a) shall be 
     applied by substituting--
       ``(A) `felony' for `misdemeanor',
       ``(B) `$500,000 ($1,000,000' for `$25,000 ($100,000', and
       ``(C) `10 years' for `1 year'.
       ``(2) Failure described.--A failure described in this 
     paragraph is a failure to make a return described in 
     subsection (a) for a period of 3 or more consecutive taxable 
     years.''.
       (3) Fraud and false statements.--Section 7206(a) (as 
     redesignated by subsection (a)) is amended--
       (A) by striking ``$100,000'' and inserting ``$500,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``3 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions, and failures to act, occurring after 
     the date of the enactment of this Act.

     SEC. 8143. REPEAL OF SUSPENSION OF INTEREST AND CERTAIN 
                   PENALTIES WHERE SECRETARY FAILS TO CONTACT 
                   TAXPAYER.

       (a) In General.--Section 6404 (relating to abatements) is 
     amended by striking subsection (g) and by redesignating 
     subsections (h) and (i) as subsections (g) and (h), 
     respectively.
       (b) Effective Date.--The amendments made by this section 
     shall apply to returns of tax filed after December 31, 2005.

     SEC. 8144. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY 
                   ORDERS.

       (a) In General.--Section 6657 (relating to bad checks) is 
     amended--
       (1) by striking ``$750'' and inserting ``$1,250'', and
       (2) by striking ``$15'' and inserting ``$25''.
       (b) Effective Date.--The amendments made by this section 
     apply to checks or money orders received after the date of 
     the enactment of this Act.

     SEC. 8145. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--

[[Page 6455]]

       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 6159 (relating to agreements for payment of 
     tax liability in installments),
       ``(II) section 7122 (relating to compromises), or
       ``(III) section 7811 (relating to taxpayer assistance 
     orders).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission within 30 days after such notice, the penalty 
     imposed under paragraph (1) shall not apply with respect to 
     such submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(e) Frivolous Submissions, Etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. 8146. PARTIAL PAYMENTS REQUIRED WITH SUBMISSION OF 
                   OFFERS-IN-COMPROMISE.

       (a) In General.--Section 7122 (relating to compromises), as 
     amended by this Act, is amended by redesignating subsections 
     (c), (d), and (e) as subsections (d), (e), and (f), 
     respectively, and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Rules for Submission of Offers-in-Compromise.--
       ``(1) Partial payment required with submission.--
       ``(A) Lump-sum offers.--
       ``(i) In general.--The submission of any lump-sum offer-in-
     compromise shall be accompanied by the payment of 20 percent 
     of amount of such offer.
       ``(ii) Lump-sum offer-in-compromise.--For purposes of this 
     section, the term `lump-sum offer-in-compromise' means any 
     offer of payments made in 5 or fewer installments.
       ``(B) Periodic payment offers.--The submission of any 
     periodic payment offer-in-compromise shall be accompanied by 
     the payment of the amount of the first proposed installment 
     and each proposed installment due during the period such 
     offer is being evaluated for acceptance and has not been 
     rejected by the Secretary. Any failure to make a payment 
     required under the preceding sentence shall be deemed a 
     withdrawal of the offer-in-compromise.
       ``(2) Rules of application.--
       ``(A) Use of payment.--The application of any payment made 
     under this subsection to the assessed tax or other amounts 
     imposed under this title with respect to such tax may be 
     specified by the taxpayer.
       ``(B) No user fee imposed.--Any user fee which would 
     otherwise be imposed under this section shall not be imposed 
     on any offer-in-compromise accompanied by a payment required 
     under this subsection.
       ``(C) Waiver authority.--The Secretary may issue 
     regulations waiving any payment required under paragraph (1) 
     in a manner consistent with the practices established in 
     accordance with the requirements under subsection (d)(3).''.
       (b) Additional Rules Relating to Treatment of Offers.--
       (1) Unprocessable offer if payment requirements are not 
     met.--Paragraph (3) of section 7122(d) (relating to standards 
     for evaluation of offers), as redesignated by subsection (a), 
     is amended by striking ``; and'' at the end of subparagraph 
     (A) and inserting a comma, by striking the period at the end 
     of subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) any offer-in-compromise which does not meet the 
     requirements of subsection (c) shall be returned to the 
     taxpayer as unprocessable.''.
       (2) Deemed acceptance of offer not rejected within certain 
     period.--Section 7122, as amended by subsection (a), is 
     amended by adding at the end the following new subsection:
       ``(g) Deemed Acceptance of Offer Not Rejected Within 
     Certain Period.--Any offer-in-compromise submitted under this 
     section shall be deemed to be accepted by the Secretary if 
     such offer is not rejected by the Secretary before the date 
     which is 24 months after the date of the submission of such 
     offer (12 months for offers-in-compromise submitted after the 
     date which is 5 years after the date of the enactment of this 
     subsection). For purposes of the preceding sentence, any 
     period during which any tax liability which is the subject of 
     such offer-in-compromise is in dispute in any judicial 
     proceeding shall not be taken in to account in determining 
     the expiration of the 24-month period (or 12-month period, if 
     applicable).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offers-in-compromise submitted on and after 
     the date which is 60 days after the date of the enactment of 
     this Act.

     SEC. 8147. WAIVER OF USER FEE FOR INSTALLMENT AGREEMENTS 
                   USING AUTOMATED WITHDRAWALS.

       (a) In General.--Section 6159 (relating to agreements for 
     payment of tax liability in installments) is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following:
       ``(e) Waiver of User Fees for Installment Agreements Using 
     Automated Withdrawals.--In the case of a taxpayer who enters 
     into an installment agreement in which automated installment 
     payments are agreed to, the Secretary shall waive the fee (if 
     any) for entering into the installment agreement.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into on or after the date 
     which is 180 days after the date of the enactment of this 
     Act.

     SEC. 8148. TERMINATION OF INSTALLMENT AGREEMENTS.

       (a) In General.--Section 6159(b)(4) (relating to failure to 
     pay an installment or any other tax liability when due or to 
     provide requested financial information) is amended by 
     striking ``or'' at the end of subparagraph (B), by 
     redesignating subparagraph (C) as subparagraph (E), and by 
     inserting after subparagraph (B) the following:
       ``(C) to make a Federal tax deposit under section 6302 at 
     the time such deposit is required to be made,
       ``(D) to file a return of tax imposed under this title by 
     its due date (including extensions), or''.
       (b) Conforming Amendment.--The heading for section 
     6159(b)(4) is amended by striking ``Failure to pay an 
     installment or any other tax liability when due or to provide 
     requested financial information'' and inserting ``Failure to 
     make payments or deposits or file returns when due or to 
     provide requested financial information''.

[[Page 6456]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to failures occurring on or after the date of the 
     enactment of this Act.

                   Subtitle E--Additional Provisions

     SEC. 8151. LOAN AND REDEMPTION REQUIREMENTS ON POOLED 
                   FINANCING REQUIREMENTS.

       (a) Strengthened Reasonable Expectation Requirement.--
     Subparagraph (A) of section 149(f)(2) (relating to reasonable 
     expectation requirement) is amended to read as follows:
       ``(A) In general.--The requirements of this paragraph are 
     met with respect to an issue if the issuer reasonably expects 
     that--
       ``(i) as of the close of the 1-year period beginning on the 
     date of issuance of the issue, at least 50 percent of the net 
     proceeds of the issue (as of the close of such period) will 
     have been used directly or indirectly to make or finance 
     loans to ultimate borrowers, and
       ``(ii) as of the close of the 3-year period beginning on 
     such date of issuance, at least 95 percent of the net 
     proceeds of the issue (as of the close of such period) will 
     have been so used.''.
       (b) Written Loan Commitment and Redemption Requirements.--
     Section 149(f) (relating to treatment of certain pooled 
     financing bonds) is amended by redesignating paragraphs (4) 
     and (5) as paragraphs (6) and (7), respectively, and by 
     inserting after paragraph (3) the following new paragraphs:
       ``(4) Written loan commitment requirement.--
       ``(A) In general.--The requirement of this paragraph is met 
     with respect to an issue if the issuer receives prior to 
     issuance written loan commitments identifying the ultimate 
     potential borrowers of at least 50 percent of the net 
     proceeds of such issue.
       ``(B) Exception.--Subparagraph (A) shall not apply with 
     respect to any issuer which is a State (or an integral part 
     of a State) issuing pooled financing bonds to make or finance 
     loans to subordinate governmental units of such State or to 
     State-created entities providing financing for water-
     infrastructure projects through the federally-sponsored State 
     revolving fund program.
       ``(5) Redemption requirement.--The requirement of this 
     paragraph is met if to the extent that less than the 
     percentage of the proceeds of an issue required to be used 
     under clause (i) or (ii) of paragraph (2)(A) is used by the 
     close of the period identified in such clause, the issuer 
     uses an amount of proceeds equal to the excess of--
       ``(A) the amount required to be used under such clause, 
     over
       ``(B) the amount actually used by the close of such period,

     to redeem outstanding bonds within 90 days after the end of 
     such period.''.
       (c) Elimination of Disregard of Pooled Bonds in Determining 
     Eligibility for Small Issuer Exception to Arbitrage Rebate.--
     Section 148(f)(4)(D)(ii) (relating to aggregation of issuers) 
     is amended by striking subclause (II) and by redesignating 
     subclauses (III) and (IV) as subclauses (II) and (III), 
     respectively.
       (d) Conforming Amendments.--
       (1) Section 149(f)(1) is amended by striking ``paragraphs 
     (2) and (3)'' and inserting ``paragraphs (2), (3), (4), and 
     (5)''.
       (2) Section 149(f)(7)(B), as redesignated by subsection 
     (b), is amended by striking ``paragraph (4)(A)'' and 
     inserting ``paragraph (6)(A)''.
       (3) Section 54(l)(2) is amended by striking ``section 
     149(f)(4)(A)'' and inserting ``section 149(f)(6)(A)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 8152. REPEAL OF THE SCHEDULED PHASEOUT OF THE 
                   LIMITATIONS ON PERSONAL EXEMPTIONS AND ITEMIZED 
                   DEDUCTIONS.

       (a) In General.--The Internal Revenue Code of 1986 is 
     amended--
       (1) by striking subparagraphs (E) and (F) of section 
     151(d)(3), and
       (2) by striking subsections (f) and (g) of section 68.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.
       (c) Application of EGTRRA Sunset.--The amendments made by 
     this section shall be subject to title IX of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 to the same 
     extent and in the same manner as the provision of such Act to 
     which such amendment relates.
                                 ______
                                 
  SA 3716. Mrs. MURRAY (for Mr. Kennedy (for himself, Mr. Biden, and 
Mr. Leahy)) proposed an amendment to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 126, between lines 12 and 13, insert the following:


          UNITED STATES STRATEGY TO PROMOTE DEMOCRACY IN IRAQ

       Sec. 1406. (a) Of the funds provided in this chapter for 
     the Economic Support Fund, not less than $96,000,000 should 
     be made available through the Bureau of Democracy, Human 
     Rights, and Labor of the Department of State, in coordination 
     with the United States Agency for International Development 
     where appropriate, to United States nongovernmental 
     organizations for the purpose of supporting broad-based 
     democracy assistance programs in Iraq that promote the long 
     term development of civil society, political parties, 
     election processes, and parliament in that country.
                                 ______
                                 
  SA 3717. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill H.R. 4939, making emergency supplemental appropriations 
for the fiscal year ending September 30, 2006, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 253, between lines 19 and 20, insert the following:


        PROHIBITION ON USE OF FUNDS FOR CERTAIN PURPOSES IN IRAQ

       Sec. 7032. None of the funds made available by title I of 
     this Act may be made available to establish permanent 
     military bases in Iraq or to exercise control over the oil 
     infrastructure or oil resources of Iraq.
                                 ______
                                 
  SA 3718. Mr. BIDEN (for himself and Mr. DeWine) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 117, between lines 9 and 10, insert the following:


 ASSISTANCE FOR NATO ACTIVITIES IN SUPPORT OF AFRICAN UNION AND UNITED 
          NATIONS OPERATIONS TO STOP GENOCIDE IN DARFUR, SUDAN

       Sec. 1312. (a) Amounts appropriated by this chapter for the 
     Department of Defense for operation and maintenance may be 
     used to provide assistance, including supplies, services, 
     transportation, including airlifts, and logistical support, 
     to the North Atlantic Treaty Organization (NATO), and allies 
     working in support of NATO, for activities undertaken to 
     support African Union and United Nations peacekeeping 
     operations to stop genocide in Darfur, Sudan.
       (b) The Secretary of Defense shall provide quarterly 
     reports on support provided under subsection (a) to the 
     Committee on Appropriations, the Committee on Armed Services, 
     and the Committee on Foreign Relations of the Senate and the 
     Committee on Appropriations, the Committee on Armed Services, 
     and the Committee on International Relations of the House of 
     Representatives.
                                 ______
                                 
  SA 3719. Mr. BIDEN (for himself and Mr. DeWine) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 88, line 7, insert after ``Provided,'' the 
     following: ``That of the funds available under this heading, 
     not less than $250,000 shall be made available for the 
     establishment and support of an office of a special envoy for 
     Sudan with a mandate of pursuing, in conjunction with the 
     African Union, a sustainable peace settlement to end the 
     conflict in Darfur, Sudan, assisting the parties to the 
     Comprehensive Peace Agreement for Sudan with implementation 
     of the Agreement, pursuing efforts at conflict resolution in 
     eastern Sudan, northern Uganda, and Chad, facilitating, in 
     cooperation with the people of Darfur and the African Union, 
     a dialogue within Darfur to promote conflict resolution and 
     reconciliation at the grass roots level, and developing a 
     common policy approach among international partners to 
     address such issues: Provided further,''.
                                 ______
                                 
  SA 3720. Mr. NELSON of Florida submitted an amendment intended to be 
proposed by him to the bill H.R. 4939, making emergency supplemental 
appropriations for the fiscal year ending September 30, 2006, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENERGY SECURITY AND INDEPENDENCE.

       (a) Department of Defense Matters.--
       (1) Additional amount for procurement, defense-wide.--The 
     amount appropriated by chapter 3 of title I of this Act under 
     the heading ``Procurement, Defense-Wide'' is hereby increased 
     by $25,000,000.
       (2) Procurement of hybrid vehicles.--Of the amount 
     appropriated by chapter 3 of title I of this Act under the 
     heading ``Procurement, Defense-Wide'', as increased by 
     paragraph (1), $25,000,000 shall be available for the 
     procurement of--
       (A) alternative fuel vehicles;
       (B) hybrid vehicles;
       (C) flex-fuel vehicles; and
       (D) alternative fuel supply and related vehicle fleet 
     infrastructure.

[[Page 6457]]

       (b) Department of Energy Matters.--
       (1) Procurement of alternative fuel, hybrid, and flex-fuel 
     vehicles.--
       (A) Additional amount.--For an additional amount for 
     ``Departmental Administration'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $25,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Departmental 
     Administration'', as increased by subparagraph (A), 
     $25,000,000 shall be available for procurement of alternative 
     fuel, hybrid, and flex-fuel vehicles and for related 
     alternative fuel supply and related fleet infrastructure.
       (2) Advanced vehicle research and deployment programs.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $150,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $150,000,000 shall be available for advanced vehicle research 
     and deployment programs, including research and deployment 
     related to acceleration of hybrid vehicle technologies, fuel 
     cell school and transit buses, biodiesel engines, procurement 
     of fuel cells, and vehicle efficiency.
       (3) Clean cities program.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $350,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $350,000,000 shall be available for the Clean Cities Program 
     established under sections 405, 409, and 505 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13231, 13235, 13256), including 
     development of common and voluntary standards that will 
     accelerate--
       (i) the market penetration of flex-fuel, alternative fuel, 
     hybrid and plug-in hybrid vehicles, and related fueling 
     infrastructure; and
       (ii) installation of E-85, biodiesel, and other alternative 
     fuel stations and infrastructure.
       (4) Biomass research and development.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $100,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $100,000,000 shall be available for implementation of the 
     Biomass Research and Development Act of 2000 (Public Law 106-
     224; 7 U.S.C. 7624 note).
       (c) Department of Agriculture Matters.--
       (1) Production incentives for cellulosic biofuels.--
       (A) Additional amount for farm service agency--bioenergy 
     program.--The amount appropriated by chapter 1 of title II 
     under the heading ``Farm Service Agency--Bioenergy Program'' 
     is hereby increased by $250,000,000.
       (B) Implementation of the biomass research and development 
     initiative.--Of the amount appropriated by chapter 1 of title 
     II under the heading ``Farm Service Agency--Bioenergy 
     Program'', as increased by subparagraph (A), $250,000,000 
     shall be available for production incentives for cellulosic 
     biofuels.
       (d) Environmental Protection Agency.--
       (1) Additional amount.--For an additional amount for 
     ``Science and Technology'' of title III of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 499), 
     $25,000,000, to remain available until expended.
       (2) Use.--Of the amount appropriated for ``Science and 
     Technology'', as increased by paragraph (1), $25,000,000 
     shall be available for sugar cane ethanol research and 
     development.
       (e) Emergency Designation.--The amounts provided under this 
     section are designated as an emergency requirement pursuant 
     to section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3721. Mr. NELSON of Florida (for himself, Mr. Menendez, Mr. 
Lieberman, Mr. Lautenberg, Mr. Kerry, and Mr. Reid) submitted an 
amendment intended to be proposed by him to the bill H.R. 4939, making 
emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENERGY SECURITY AND INDEPENDENCE.

       (a) Department of Defense Matters.--
       (1) Procurement of hybrid vehicles.--
       (A) Additional amount for procurement, defense-wide.--The 
     amount appropriated by chapter 3 of title I of this Act under 
     the heading ``Procurement, Defense-Wide'' is hereby increased 
     by $25,000,000.
       (B) Procurement of hybrid vehicles.--Of the amount 
     appropriated by chapter 3 of title I of this Act under the 
     heading ``Procurement, Defense-Wide'', as increased by 
     subparagraph (A), $25,000,000 shall be available for the 
     procurement of--
       (i) alternative fuel vehicles;
       (ii) hybrid vehicles;
       (iii) flex-fuel vehicles; and
       (iv) alternative fuel supply and related vehicle fleet 
     infrastructure.
       (2) Alternative energy generation and vehicle 
     technologies.--
       (A) Additional amount for research, development, test, and 
     evaluation, army.--The amount appropriated by chapter 3 of 
     title I of this Act under the heading ``Research, 
     Development, Test, and Evaluation, Army'' is hereby increased 
     by $200,000,000.
       (B) Alternative energy generation and vehicle 
     technologies.--Of the amount appropriated by chapter 3 of 
     title I of this Act under the heading ``Research, 
     Development, Test, and Evaluation, Army'' , as increased by 
     subparagraph (A), $200,000,000 shall be available for 
     activities to achieve the following:
       (i) The development and deployment of energy efficient, 
     renewable, and clean alternative energy generation sources 
     and vehicle technologies suitable for the missions and 
     activities of the Department of Defense.
       (ii) The establishment of workforce training and education 
     programs relating to the development and deployment of such 
     sources and technologies.
       (iii) The development of enhanced domestic production of 
     such sources and technologies, including activities in 
     concert with the private sector.
       (3) Non-petroleum aviation and bunker fuels and systems.--
       (A) Additional amount for research, development, test, and 
     evaluation, air force.--The amount appropriated by chapter 3 
     of title I of this Act under the heading ``Research, 
     Development, Test, and Evaluation, Air Force'' is hereby 
     increased by $50,000,000.
       (B) Non-petroleum aviation and bunker fuels and systems.--
     Of the amount appropriated by chapter 3 of title I of this 
     Act under the heading ``Research, Development, Test, and 
     Evaluation, Air Force'', as increased by subparagraph (A), 
     $50,000,000 shall be available for the development of non-
     petroleum aviation fuels and bunker fuels and systems that 
     utilize renewable energy supplies and sources or reduce net 
     greenhouse gas emissions.
       (4) Improvement of fuel and energy supply systems.--
       (A) Additional amount for research, development, test, and 
     evaluation, defense-wide.--The amount appropriated by chapter 
     3 of title I of this Act under the heading ``Research, 
     Development, Test, and Evaluation, Defense-Wide'' is hereby 
     increased by $10,000,000.
       (B) Improvement of fuel and energy supply systems.--Of the 
     amount appropriated by chapter 3 of title I of this Act under 
     the heading ``Research, Development, Test, and Evaluation, 
     Defense-Wide'', as increased by subparagraph (A), $10,000,000 
     shall be available for activities to improve the petroleum, 
     fossil fuel, and energy supply systems of the Department of 
     Defense to achieve one or more of the following:
       (i) Increased security of such systems.
       (ii) Reduction in greenhouse gas emissions attributable to 
     such systems.
       (iii) Reduction in the costs of energy for the Department 
     of Defense.
       (5) Energy efficiency.--
       (A) Additional amount for operation and maintenance, 
     defense-wide.--The amount appropriated by chapter 3 of title 
     I of this Act under the heading ``Operation and Maintenance, 
     Defense-Wide'' is hereby increased by $215,000,000.
       (B) Energy efficiency.--Of the amount appropriated by 
     chapter 3 of title I of this Act under the heading 
     ``Operation and Maintenance, Defense-Wide'', as increased by 
     paragraph (A), $215,000,000 shall be available for activities 
     relating to energy efficiency, of which--
       (i) $200,000,000 shall be available for the procurement and 
     installation of renewable and low-emission, clean energy 
     distributed electricity generation systems at military 
     installations and other facilities of the Department of 
     Defense; and
       (ii) $15,000,000 shall be available for energy efficiency 
     and renewable energy projects at the Pentagon Reservation, 
     and at other military installations and facilities of the 
     Department of Defense.
       (b) Department of Energy Matters.--
       (1) Procurement of alternative fuel, hybrid, and flex-fuel 
     vehicles.--
       (A) Additional amount.--For an additional amount for 
     ``Departmental Administration'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $25,000,000, to remain available until expended.

[[Page 6458]]

       (B) Use.--Of the amount appropriated for ``Departmental 
     Administration'', as increased by subparagraph (A), 
     $25,000,000 shall be available for procurement of alternative 
     fuel, hybrid, and flex-fuel vehicles and for related 
     alternative fuel supply and related fleet infrastructure.
       (2) Advanced vehicle research and deployment programs.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $150,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $150,000,000 shall be available for advanced vehicle research 
     and deployment programs, including research and deployment 
     related to acceleration of hybrid vehicle technologies, fuel 
     cell school and transit buses, biodiesel engines, procurement 
     of fuel cells, and vehicle efficiency.
       (3) Clean cities program.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $350,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $350,000,000 shall be available for the Clean Cities Program 
     established under sections 405, 409, and 505 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13231, 13235, 13256), including 
     development of common and voluntary standards that will 
     accelerate--
       (i) the market penetration of flex-fuel, alternative fuel, 
     hybrid and plug-in hybrid vehicles, and related fueling 
     infrastructure; and
       (ii) installation of E-85, biodiesel, and other alternative 
     fuel stations and infrastructure.
       (4) Clean coal power initiative.--
       (A) Additional amount.--For an additional amount for 
     ``Clean Coal Technology'' under the heading ``DEPARTMENT OF 
     ENERGY'' of title III of the Energy and Water Development 
     Appropriations Act, 2006 (Public Law 109-103), $175,000,000, 
     to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Clean Coal 
     Technology'', as increased by subparagraph (A), $175,000,000 
     shall be available for the Clean Coal Power Initiative of the 
     Department of Energy for large-scale--
       (i) geologic carbon dioxide sequestration demonstrations;
       (ii) sequestration-ready gasification demonstrations;
       (iii) liquid fuels, substitute natural gas, and hydrogen 
     projects related to sequestration-ready plants; and
       (iv) carbon dioxide combustion control demonstrations.
       (5) Biomass research and development.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $100,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $100,000,000 shall be available for implementation of the 
     Biomass Research and Development Act of 2000 (Public Law 106-
     224; 7 U.S.C. 7624 note).
       (6) Cellulosic biomass ethanol and municipal solid waste 
     loan guarantees.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $25,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $25,000,000 shall be available to make loan guarantees to 
     promote cellulosic biomass ethanol and improved treatment of 
     municipal solid waste.
       (7) Electricity grid reliability improvements.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $50,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $50,000,000 shall be available for electricity grid 
     reliability improvements.
       (8) Grants to state energy offices through the office of 
     electricity delivery and energy reliability.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $250,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $250,000,000 shall be available for grants to State energy 
     offices through the Office of Electricity Delivery and Energy 
     Reliability, in coordination with the Directorate for 
     Preparedness of the Department of Homeland Security, for 
     nonpetroleum-dependent or very low-emission distributed 
     energy projects at critical facilities to harden 
     infrastructure, strengthen first responders capabilities, and 
     enhance emergency preparedness, including $30,000,000 for 
     State energy programs.
       (9) Energy efficiency programs.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $300,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $300,000,000 shall be available for energy efficiency 
     programs, including research and development, energy 
     conservation standards, State building code development 
     incentives, appliance rebates, the public information 
     initiative on energy efficiency, utility efficiency pilot 
     projects, Energy Star, industrial programs, State energy 
     programs, and low-income community pilot projects.
       (10) Ultra-efficient aircraft engine technology research 
     and development.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $50,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $50,000,000 shall be available for research and development 
     on ultra-efficient aircraft engine technology.
       (11) Renewable energy resource research and development.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $150,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $150,000,000 shall be available for research and development 
     on renewable energy resources, including wind, biomass, 
     solar, hydroelectric, and geothermal resources and renewable 
     energy resource assessments, including development of 
     potential integrated renewable energy projects.
       (12) Weatherization assistance grants.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $225,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $250,000,000 shall be available for grants under the 
     Weatherization Assistance Program for Low-Income Persons 
     established under part A of title IV of the Energy 
     Conservation and Production Act (42 U.S.C. 6861 et seq.).
       (13) Renewable energy rebates for residential and small 
     business applications.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $125,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $125,000,000 shall be available for renewable energy rebates 
     for residential and small business applications.
       (14) Renewable energy production incentives.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $50,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $50,000,000 shall be available for renewable energy 
     production incentives.
       (15) Rural and remote communities electrification grants.--
       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $50,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $50,000,000 shall be available to make rural and remote 
     communities electrification grants.
       (16) Federal energy management programs.--

[[Page 6459]]

       (A) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $25,000,000, to remain available until expended.
       (B) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by subparagraph (A), 
     $25,000,000 shall be available for Federal energy management 
     measures carried out under part 3 of title V of the National 
     Energy Conservation Policy Act (42 U.S.C. 8251 et seq.).
       (c) Department of Agriculture Matters.--
       (1) Biomass research and development initiative.--
       (A) Additional amount for agricultural research service.--
     The amount appropriated by chapter 1 of title II under the 
     heading ``Agricultural Research Service'' is hereby increased 
     by $100,000,000.
       (B) Implementation of the biomass research and development 
     initiative.--Of the amount appropriated by chapter 1 of title 
     II under the heading ``Agricultural Research Service'', as 
     increased by subparagraph (A), $100,000,000 shall be 
     available for implementation of the biomass research and 
     development initiative.
       (2) Production incentives for cellulosic biofuels.--
       (A) Additional amount for farm service agency--bioenergy 
     program.--The amount appropriated by chapter 1 of title II 
     under the heading ``Farm Service Agency--Bioenergy Program'' 
     is hereby increased by $250,000,000.
       (B) Implementation of the biomass research and development 
     initiative.--Of the amount appropriated by chapter 1 of title 
     II under the heading ``Farm Service Agency--Bioenergy 
     Program'', as increased by subparagraph (A), $250,000,000 
     shall be available for production incentives for cellulosic 
     biofuels.
       (d) Environmental Protection Agency.--
       (1) Additional amount.--For an additional amount for 
     ``Science and Technology'' of title III of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 499), 
     $25,000,000, to remain available until expended.
       (2) Use.--Of the amount appropriated for ``Science and 
     Technology'', as increased by paragraph (1), $25,000,000 
     shall be available for sugar cane ethanol research and 
     development.
       (e) General Services Administration.--
       (1) Additional amount.--For an additional amount for 
     ``Operating Expenses'' under the heading ``GENERAL SERVICES 
     ADMINISTRATION'' under title VI of the Transportation, 
     Treasury, Housing and Urban Development, the Judiciary, the 
     District of Columbia, and Independent Agencies Appropriations 
     Act, 2006 (Public Law 109-115; 119 Stat. 2482), $25,000,000, 
     to remain available until expended.
       (2) Use.--Of the amount appropriated for ``Operating 
     Expenses'' under paragraph (1), $25,000,000 shall be 
     available for the procurement of alternative fuel, hybrid, 
     and flex-fuel vehicles, and for related alternative fuel 
     supply and related fleet infrastructure.
       (f) Emergency Designation.--The amounts provided under this 
     section are designated as an emergency requirement pursuant 
     to section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3722. Mr. CORNYN (for himself and Mr. Kyl) proposed an amendment 
to the bill H.R. 4939, making emergency supplemental appropriations for 
the fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       On page 253, between lines 19 and 20, insert the following:

               TITLE VIII--IMMIGRATION INJUNCTION REFORM

     SEC. 8001. SHORT TITLE.

       This title may be cited as the ``Fairness in Immigration 
     Litigation Act of 2006''.

     SEC. 8002. APPROPRIATE REMEDIES FOR IMMIGRATION LEGISLATION.

       (a) Requirements for an Order Granting Prospective Relief 
     Against the Government.--
       (1) In general.--If a court determines that prospective 
     relief should be ordered against the Government in any civil 
     action pertaining to the administration or enforcement of the 
     immigration laws of the United States, the court shall--
       (A) limit the relief to the minimum necessary to correct 
     the violation of law;
       (B) adopt the least intrusive means to correct the 
     violation of law;
       (C) minimize, to the greatest extent practicable, the 
     adverse impact on national security, border security, 
     immigration administration and enforcement, and public 
     safety, and
       (D) provide for the expiration of the relief on a specific 
     date, which is not later than the earliest date necessary for 
     the Government to remedy the violation.
       (2) Written explanation.--The requirements described in 
     paragraph (1) shall be discussed and explained in writing in 
     the order granting prospective relief and must be 
     sufficiently detailed to allow review by another court.
       (3) Expiration of preliminary injunctive relief.--
     Preliminary injunctive relief shall automatically expire on 
     the date that is 90 days after the date on which such relief 
     is entered, unless the court--
       (A) makes the findings required under paragraph (1) for the 
     entry of permanent prospective relief; and
       (B) makes the order final before expiration of such 90-day 
     period.
       (4) Requirements for order denying motion.--This subsection 
     shall apply to any order denying the Government's motion to 
     vacate, modify, dissolve or otherwise terminate an order 
     granting prospective relief in any civil action pertaining to 
     the administration or enforcement of the immigration laws of 
     the United States.
       (b) Procedure for Motion Affecting Order Granting 
     Prospective Relief Against the Government.--
       (1) In general.--A court shall promptly rule on the 
     Government's motion to vacate, modify, dissolve or otherwise 
     terminate an order granting prospective relief in any civil 
     action pertaining to the administration or enforcement of the 
     immigration laws of the United States.
       (2) Automatic stays.--
       (A) In general.--The Government's motion to vacate, modify, 
     dissolve, or otherwise terminate an order granting 
     prospective relief made in any civil action pertaining to the 
     administration or enforcement of the immigration laws of the 
     United States shall automatically, and without further order 
     of the court, stay the order granting prospective relief on 
     the date that is 15 days after the date on which such motion 
     is filed unless the court previously has granted or denied 
     the Government's motion.
       (B) Duration of automatic stay.--An automatic stay under 
     subparagraph (A) shall continue until the court enters an 
     order granting or denying the Government's motion.
       (C) Postponement.--The court, for good cause, may postpone 
     an automatic stay under subparagraph (A) for not longer than 
     15 days.
       (D) Orders blocking automatic stays.--Any order staying, 
     suspending, delaying, or otherwise barring the effective date 
     of the automatic stay described in subparagraph (A), other 
     than an order to postpone the effective date of the automatic 
     stay for not longer than 15 days under subparagraph (C), 
     shall be--
       (i) treated as an order refusing to vacate, modify, 
     dissolve or otherwise terminate an injunction; and
       (ii) immediately appealable under section 1292(a)(1) of 
     title 28, United States Code.
       (c) Settlements.--
       (1) Consent decrees.--In any civil action pertaining to the 
     administration or enforcement of the immigration laws of the 
     United States, the court may not enter, approve, or continue 
     a consent decree that does not comply with subsection (a).
       (2) Private settlement agreements.--Nothing in this section 
     shall preclude parties from entering into a private 
     settlement agreement that does not comply with subsection (a) 
     if the terms of that agreement are not subject to court 
     enforcement other than reinstatement of the civil proceedings 
     that the agreement settled.
       (d) Expedited Proceedings.--It shall be the duty of every 
     court to advance on the docket and to expedite the 
     disposition of any civil action or motion considered under 
     this section.
       (e) Definitions.--In this section:
       (1) Consent decree.--The term ``consent decree''--
       (A) means any relief entered by the court that is based in 
     whole or in part on the consent or acquiescence of the 
     parties; and
       (B) does not include private settlements.
       (2) Good cause.--The term ``good cause'' does not include 
     discovery or congestion of the court's calendar.
       (3) Government.--The term ``Government'' means the United 
     States, any Federal department or agency, or any Federal 
     agent or official acting within the scope of official duties.
       (4) Permanent relief.--The term ``permanent relief'' means 
     relief issued in connection with a final decision of a court.
       (5) Private settlement agreement.--The term ``private 
     settlement agreement'' means an agreement entered into among 
     the parties that is not subject to judicial enforcement other 
     than the reinstatement of the civil action that the agreement 
     settled.
       (6) Prospective relief.--The term ``prospective relief'' 
     means temporary, preliminary, or permanent relief other than 
     compensatory monetary damages.

     SEC. 8003. EFFECTIVE DATE.

       (a) In General.--This title shall apply with respect to all 
     orders granting prospective relief in any civil action 
     pertaining to the administration or enforcement of the 
     immigration laws of the United States, whether such relief 
     was ordered before, on, or after the date of the enactment of 
     this Act.
       (b) Pending Motions.--Every motion to vacate, modify, 
     dissolve or otherwise terminate an order granting prospective 
     relief in any such action, which motion is pending on the 
     date of the enactment of this Act, shall be treated as if it 
     had been filed on such date of enactment.

[[Page 6460]]

       (c) Automatic Stay for Pending Motions.--
       (1) In general.--An automatic stay with respect to the 
     prospective relief that is the subject of a motion described 
     in subsection (b) shall take effect without further order of 
     the court on the date which is 10 days after the date of the 
     enactment of this Act if the motion--
       (A) was pending for 45 days as of the date of the enactment 
     of this Act; and
       (B) is still pending on the date which is 10 days after 
     such date of enactment.
       (2) Duration of automatic stay.--An automatic stay that 
     takes effect under paragraph (1) shall continue until the 
     court enters an order granting or denying the Government's 
     motion under section 8002(b). There shall be no further 
     postponement of the automatic stay with respect to any such 
     pending motion under section 8002(b)(2). Any order, staying, 
     suspending, delaying or otherwise barring the effective date 
     of this automatic stay with respect to pending motions 
     described in subsection (b) shall be an order blocking an 
     automatic stay subject to immediate appeal under section 
     8002(b)(2)(D).
                                 ______
                                 
  SA 3723. Mr. SCHUMER (for himself and Mr. Reid) proposed an amendment 
to the bill H.R. 4939, making emergency supplemental appropriations for 
the fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. MEASURES TO ADDRESS PRICE GOUGING AND MARKET 
                   MANIPULATION.

       (a) Federal Trade Commission.--
       (1) Additional amount.--For an additional amount for 
     ``Federal Trade Commission Salaries and Expenses'' under the 
     heading ``RELATED AGENCIES'' of title V of the Science, 
     State, Justice, Commerce, and Related Agencies Appropriations 
     Act, 2006 (Public Law 109-108), $10,000,000.
       (2) Use.--Of the amount appropriated for ``Federal Trade 
     Commission Salaries and Expenses'', as increased by paragraph 
     (1), $10,000,000 shall be available to investigate and 
     enforce price gouging complaints and other market 
     manipulation activities by companies engaged in the wholesale 
     and retail sales of gasoline and petroleum distillates.
       (b) Commodity Futures Trading Commission.--
       (1) Additional amount.--For an additional amount for 
     ``Commodity Futures Trading Commission'' under the heading 
     ``RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION'' of 
     title VI of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 2006 
     (Public Law 109-97), $10,000,000.
       (2) Use.--Of the amount appropriated for ``Commodity 
     Futures Trading Commission'', as increased by paragraph (1), 
     $10,000,000 shall be available for activities--
       (A) to enhance investigation of energy derivatives markets;
       (B) to ensure that speculation in those markets is 
     appropriate and reasonable; and
       (C) for data systems and reporting programs that can 
     uncover real-time market manipulation activities.
       (c) Securities and Exchange Commission.--
       (1) Additional amount.--For an additional amount for 
     ``Securities and Exchange Commission Salaries and Expenses '' 
     under the heading ``RELATED AGENCIES'' of title V of the 
     Science, State, Justice, Commerce, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-108), $5,000,000.
       (2) Use.--Of the amount appropriated for ``Securities and 
     Exchange Commission Salaries and Expenses'', as increased by 
     paragraph (1), $5,000,000 shall be available for review and 
     analysis of major integrated oil and gas company reports and 
     filings for compliance with disclosure, corporate governance, 
     and related requirements.
       (d) Energy Information Administration.--
       (1) Additional amount.--For an additional amount for 
     ``Energy Information Administration'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $10,000,000.
       (2) Use.--Of the amount appropriated for ``Energy 
     Information Administration'', as increased by paragraph (1), 
     $10,000,000 shall be available for activities to ensure real-
     time and accurate gasoline and energy price and supply data 
     collection.
       (e) Energy Supply and Conservation.--
       (1) Additional amount.--For an additional amount for 
     ``Energy Supply and Conservation'' under the heading 
     ``DEPARTMENT OF ENERGY'' of title III of the Energy and Water 
     Development Appropriations Act, 2006 (Public Law 109-103), 
     $315,000,000.
       (2) Use.--Of the amount appropriated for ``Energy Supply 
     and Conservation'', as increased by paragraph (1), 
     $315,000,000 shall be available to provide grants to State 
     energy offices for--
       (A) the development and deployment of real-time information 
     systems for energy price and supply data collection and 
     publication;
       (B) programs and systems to help discover energy price 
     gouging and market manipulation;
       (C) critical energy infrastructure protection;
       (D) clean distributed energy projects that promote energy 
     security; and
       (E) programs to encourage the adoption and implementation 
     of energy conservation and efficiency technologies and 
     standards.
       (f) Government Accountability Office.--
       (1) Additional amount.--For an additional amount for 
     ``Salaries and Expenses'' under the heading ``GOVERNMENT 
     ACCOUNTABILITY OFFICE'' of title I of the Legislative Branch 
     Appropriations Act, 2006 (Public Law 109-55), $50,000.
       (2) Use.--Of the amount appropriated for ``Salaries and 
     Expenses'', as increased by paragraph (1), $50,000 shall be 
     available to the Government Accountability for the 
     preparation of a report, to be submitted to the appropriate 
     committees of Congress not later than 90 days after the date 
     of enactment of this Act, that includes--
       (A) a review of the mergers between Exxon and Mobil, 
     Chevron and Texaco, and Conoco and Phillips, and other 
     mergers of significant or comparable scale in the oil 
     industry that have occurred since 1990, including an 
     assessment of the impact of the mergers on--
       (i) market concentration;
       (ii) the ability of the companies to exercise market power;
       (iii) wholesale prices of petroleum products; and
       (iv) the retail prices of petroleum products;
       (B) an assessment of the impact that vitiating the mergers 
     reviewed under subparagraph (A) would have on each of the 
     matters described in clauses (i) through (iv) of subparagraph 
     (A);
       (C) an assessment of the impact of prohibiting any 1 
     company from simultaneously owning assets in each of the oil 
     industry sectors of exploration, refining and distribution, 
     and retail on each of the matters described in clauses (i) 
     through (iv) of subparagraph (A); and
       (D) an assessment of--
       (i) the effectiveness of divestitures ordered by the 
     Federal Trade Commission in preventing market concentration 
     as a result of oil industry mergers approved since 1995; and
       (ii) the effectiveness of the Federal Trade Commission in 
     identifying and preventing--

       (I) market manipulation;
       (II) commodity withholding;
       (III) collusion; and
       (IV) other forms of market power abuse in the oil industry.

       (g) Emergency Designation.--The amounts provided under this 
     section are designated as an emergency requirement pursuant 
     to section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3724. Mr. SCHUMER proposed an amendment to the bill H.R. 4939, 
making emergency supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. __. MARITIME CONTAINER SECURITY.

       (a) Maritime Container Inspections.--
       (1) In general.--Beginning on the date on which regulations 
     are issued under subsection (d), a maritime cargo container 
     may not be shipped to the United States from any port 
     participating in the Container Security Initiative (CSI) 
     unless--
       (A) the container has passed through a radiation detection 
     device;
       (B) the container has been scanned using gamma-ray, x-ray, 
     or another internal imaging system;
       (C) the container has been tagged and catalogued using an 
     on-container label, radio frequency identification, or global 
     positioning system tracking device; and
       (D) the images created by the scans required under 
     subparagraph (B) have been reviewed and approved by the 
     Office of Container Evaluation and Enforcement established 
     under subsection (b).
       (2) Model.--
       (A) In general.--Except as provided under subparagraph (B), 
     the Secretary of Homeland Security shall model the inspection 
     system described in paragraph (1) after the Integrated 
     Container Inspection System established at the Port of Hong 
     Kong.
       (B) New technology.--The Secretary is not required to use 
     the same companies or specific technologies installed at the 
     Port of Hong Kong if a more advanced technology is available.
       (b) Container Evaluation and Enforcement Unit.--
       (1) Establishment.--There is established, within Bureau of 
     Customs and Border Protection of the Department of Homeland 
     Security, the Office of Container Evaluation and Enforcement, 
     which shall receive and process images of maritime cargo 
     containers received from CSI ports.
       (2) Authorization of appropriations.--There are 
     appropriated, out of any money in the Treasury not otherwise 
     appropriated, for the fiscal year ending September 30, 2006, 
     $5,000,000, to remain available until expended, to hire and 
     train customs inspectors to carry out the responsibilities 
     described in paragraph (1). The amount provided under

[[Page 6461]]

     this heading is designated as an emergency requirement 
     pursuant to section 402 of H. Con. Res. 95 (109th Congress), 
     the concurrent resolution on the budget for fiscal year 2006.
       (c) Port Security Summit.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary of Homeland 
     Security shall convene a port security summit with 
     representatives from the major international shipping 
     companies to address--
       (1) gaps in port security; and
       (2) the means to implement the provisions of this section.
       (d) Rulemaking.--
       (1) Draft regulations.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Homeland 
     Security shall submit, to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on 
     Homeland Security of the House of Representatives, draft 
     regulations to carry out subsection (a) and a detailed plan 
     to implement such regulations.
       (2) Final regulations.--Not later than 3 years after the 
     date of the enactment of this Act, the Secretary of Homeland 
     Security shall issue final regulations to carry out 
     subsection (a).
                                 ______
                                 
  SA 3725. Mr. SMITH (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by him to the bill H.R. 4939, making emergency 
supplemental appropriations for the fiscal year ending September 30, 
2006, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 141, between lines 5 and 6, insert the following:


                     EMERGENCY DISASTER ASSISTANCE

       (a) The Secretary of Commerce shall make a direct payment 
     to the Pacific States Marine Fisheries Commission for 
     distribution to mitigate the economic losses caused by 
     Federal fisheries restrictions put in place to meet the needs 
     of Klamath River Fall Chinook Salmon. The money provided to 
     the Pacific States Marine Fisheries Commission shall be 
     distributed to--
       (1) persons or entities, including federally recognized 
     Indian tribes, which have experienced significant economic 
     hardship as a result of Federal fisheries closures or fishing 
     restrictions;
       (2) small businesses including fishermen, fish processors, 
     and related businesses serving the fishing industry 
     including, but not limited to, cold storage facilities, ice 
     houses, docks, and other related shore-side fishery support 
     facilities and infrastructure; and
       (3) State and local governments adversely affected by 
     reductions in fish landing fees and other fishing-related 
     revenue.
       (b) Payments authorized by this section may be used only in 
     areas declared by the Governor of a State to be in a state of 
     emergency due to Klamath River basin conditions and 
     limitations on ocean commercial and sport salmon fishing.
       (c) Such payments may be made for the purposes described in 
     section 312(a)(2) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1861a(a)(2)).
       (d) Not more than 4 percent of such payments provided to 
     the Pacific States Marine Fisheries Commission for disaster 
     relief distributions may be used for administrative expenses, 
     and none of such payments may be used for lobbying activities 
     or representational expenses. Any funds not distributed by 
     the end of fiscal year 2008 shall be returned to the 
     Treasury.
       (e) The Secretary of Commerce shall require the Pacific 
     States Marine Fisheries Commission to, not later than 6 
     months after receiving a payment authorized by this section, 
     and every 6 months thereafter, submit to the Secretary of 
     Commerce and the Committee on Appropriations of the House of 
     Representatives and the Senate a report listing the persons 
     and entities to whom the payment was distributed and the 
     rationale for such distributions.
                                 ______
                                 
  SA 3726. Mr. SMITH (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by him to the bill H.R. 4939, making emergency 
supplemental appropriations for the fiscal year ending September 30, 
2006, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 141, between lines 5 and 6, insert the following:


                     EMERGENCY DISASTER ASSISTANCE

       (a) The Secretary of Commerce shall make a direct payment 
     to the Pacific States Marine Fisheries Commission for 
     distribution to mitigate the economic losses caused by 
     Federal fisheries restrictions put in place to meet the needs 
     of Klamath River Fall Chinook Salmon. The money provided to 
     the Pacific States Marine Fisheries Commission shall be 
     distributed to--
       (1) persons or entities, including federally recognized 
     Indian tribes, which have experienced significant economic 
     hardship as a result of Federal fisheries closures or fishing 
     restrictions;
       (2) small businesses including fishermen, fish processors, 
     and related businesses serving the fishing industry 
     including, but not limited to, cold storage facilities, ice 
     houses, docks, and other related shoreside fishery support 
     facilities and infrastructure; and
       (3) State and local governments adversely affected by 
     reductions in fish landing fees and other fishing-related 
     revenue.
       (b) Payments authorized by this section may be used only in 
     areas declared by the Governor of a State to be in a state of 
     emergency due to Klamath River basin conditions and 
     limitations on ocean commercial and sport salmon fishing.
       (c) Such payments may be made for the purposes described in 
     section 312(a)(2) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1861a(a)(2)).
       (d) Not more than 4 percent of such payments provided to 
     the Pacific States Marine Fisheries Commission for disaster 
     relief distributions may be used for administrative expenses, 
     and none of such payments may be used for lobbying activities 
     or representational expenses. Any funds not distributed by 
     the end of fiscal year 2008 shall be returned to the 
     Treasury.
       (e) The Secretary of Commerce shall require the Pacific 
     States Marine Fisheries Commission to, not later than 6 
     months after receiving a payment authorized by this section, 
     and every 6 months thereafter, submit to the Secretary of 
     Commerce and the Committee on Appropriations of the House of 
     Representatives and the Senate a report listing the persons 
     and entities to whom the payment was distributed and the 
     rationale for such distributions.
       (f) For the purposes of the Internal Revenue Code of 1986--
       (1) gross income shall not include any amount received as a 
     payment or distribution under subsection (a); and
       (2) rules similar to the rules of subsections (g)(3) and 
     (h) of section 139 of such Code shall apply with respect to 
     any amount excluded under subparagraph (1).
       (g) There is appropriated to the Secretary of Commerce 
     $81,000,000 to make payments under this section for fisheries 
     disaster assistance. The amount provided under this 
     subsection is designated as an emergency requirement pursuant 
     to section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.
                                 ______
                                 
  SA 3727. Mr. DODD (for himself and Mr. Lott) submitted an amendment 
intended to be proposed by him to the bill H.R. 4939, making emergency 
supplemental appropriations for the fiscal year ending September 30, 
2006, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 203, strike line 8 and insert the following:

                          INDEPENDENT AGENCIES

                     Election Assistance Commission


                          Election Assistance

       For purposes of making discretionary payments to States 
     affected by Hurricane Katrina and other hurricanes during the 
     2005 season to restore and replace supplies, materials, 
     records, equipment, and technology used in the administration 
     of Federal elections and to ensure the full participation of 
     individuals displaced by such hurricanes, $30,000,000: 
     Provided, That any such funds shall be used in a manner that 
     is consistent with title III of the Help America Vote Act of 
     2002: Provided further, That the amount provided under this 
     heading is designated as an emergency requirement pursuant to 
     section 402 of H. Con. Res. 95 (109th Congress), the 
     concurrent resolution on the budget for fiscal year 2006.

                          ____________________