[Congressional Record (Bound Edition), Volume 152 (2006), Part 5]
[Senate]
[Pages 7113-7137]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ENSIGN:
  S. 2718. A bill to require full disclosure by entities receiving 
Federal funds, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. ENSIGN. Mr. President, the American taxpayers are fed up. They 
are tired of the pork projects and the billions of dollars being spent 
on unaccountable, unnecessary, and wasteful Federal spending. Whether 
spending is a result of earmarks, or the often unsupervised process of 
Federal agencies awarding grants, spending is out of control.
  Americans work hard every day, and they struggle to meet the heavy 
tax burden that Washington imposes on them. Despite their struggle and 
sacrifice, Washington has failed to ensure that Americans' tax dollars 
are being spent wisely. The American public believes, and they are 
right, that Congress has lost sight of the fact that every dollar we 
spend here in Washington belongs to them. These are dollars that could 
have been spent by the people who earned them to care for their own 
families.
  The American taxpayers have had enough. They are frustrated and 
disgusted. And I join them in their frustration and disgust. Congress 
has not done a very good job of oversight. It is time for Congress to 
empower the American people so that government is more accountable to 
them. That is why I am introducing new legislation--the Website for 
American Taxpayers to Check and Help Deter Out-of-control Government 
Spending--or the WATCHDOG Act.
  This bill will give our constituents the tools they need to become 
citizen watchdogs. Americans will be able to see for themselves how 
their tax dollars are being spent. This bill will greatly improve 
transparency and help eliminate wasteful, fraudulent, duplicative, and 
unnecessary spending. It will give the American people the tools to 
monitor how Congress uses the earmarks process and how the bureaucrats, 
who spend billions of dollars a year in unsupervised grants, spend 
their tax dollars.
  Americans are aggravated because too often when they learn about 
wasteful spending it is too late for them to do anything about it. They 
learn about spending by reading their morning papers after the 
legislation has been signed into law or the grant money has been 
awarded. Sometimes that is how members of Congress learn about them as 
well. It's time to remove the cloak of secrecy that surrounds the 
earmarking and grantmaking processes. We need to shine a very bright 
light on how spending decisions are made.
  In this case, that bright light will be a publicly searchable online 
database that provides information on every organization receiving 
Federal funds. The Office of Management and Budget would be required to 
make all Federal grant and loan recipient data available to the public.
  The data must include information on Federal grant awards, including 
an itemized breakdown by agency and program. The database must also 
list all subgrantees of an organization that receives Federal funds. 
This bill also reforms and streamlines the grant process by requiring 
organizations that apply for Federal funding to use a single source 
application number, which they would use for requesting funding from 
any Federal agency.
  Those projects that are using Federal funds efficiently and with 
positive results will become obvious, and those programs that are 
duplicative, fail to show results, squander their funding, or act 
fraudulently will also become obvious.
  Here in Washington we have done a dismal job when it comes to cutting 
out unnecessary spending. By shining a light on this process, the 
American public will have a chance to help us eliminate billions of 
dollars in wasteful Federal funding. We owe it to the taxpayers and to 
future generations to clean up our act. This legislation gives 
taxpayers an important tool to hold Congress' feet to the fire.
                                 ______
                                 
      By Mr. NELSON of Florida:
  S. 2719. A bill to designate the facility of the United States Postal 
Service located at 1400 West Jordan Street in Pensacola, Florida, as 
the ``Earl D. Hutto Post Office Building''; to the Committee on 
Homeland Security and Governmental Affairs.
  Mr. NELSON of Florida. Mr. President, I ask unanimous consent that 
this bill ``To designate the facility of the United States Postal 
Service located at 1400 West Jordan Street in Pensacola, Florida, as 
the `Earl D. Hutto Post office Building''' be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2719

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

     SECTION 1. EARL D. HUTTO POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 1400 West Jordan Street in Pensacola, 
     Florida, shall be known and designated as the ``Earl D. Hutto 
     Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the ``Earl D. Hutto Post Office Building''.
                                 ______
                                 
      By Mr. BAUCUS:
  S. 2720. A bill to amend the Internal Revenue Code of 1986 to provide 
incentives to improve America's research competitiveness, and for other 
purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, on October 4, 1957, an object the size of 
a basketball shot into space. And history changed.
  The Soviet Union had launched Sputnik. And Americans reacted with 
fear. That fear quickly turned to determination to win the race to 
space.
  Just one month later, the Russians launched Sputnik II with one 
precious passenger: a Russian mutt named Laika. Laika became the first 
living being to orbit earth. Today, a dog in space might seem like a 
good start for a Disney film. But in 1957, American scientists worried 
that these events foreshadowed Soviet military and strategic advantage.
  By the following summer, Congress had created NASA. Sputnik's launch 
had provided the catalyst. For years before, scientific organizations 
and

[[Page 7114]]

even the White House had declared the exploration of space as a 
priority. It took Sputnik to move us to action.
  Half a century later, we find ourselves waiting for the next Sputnik. 
Report after report has outlined the risk that America runs by not 
doing more in research and education. A recent report entitled 
``Waiting for Sputnik'' cautions that our workforce must include a 
greater percentage of ``knowledge workers''--including scientists and 
engineers--if we are to maintain our technological lead in defense 
capabilities. And another recent report, ``Rising Above the Gathering 
Storm,'' expresses fear that America's lead in science and technology 
can be abruptly lost and difficult or impossible to regain.
  What these reports and others are telling us is one thing: We cannot 
wait for the next Sputnik. We must recognize that our advantage is 
fleeting. We must begin today with more science, more education, and 
more commitment to research to prepare for the future.
  Asia has recognized this. Asia is plowing more funding into science 
and education. China, in particular, understands that technological 
advancement means security, independence, and economic growth. Spending 
on research and development has increased by 140 percent in China, 
Korea and Taiwan. In America, it has increased by only 34 percent.
  Asia's commitment is already paying off. More than a hundred Fortune 
500 companies have opened research centers in India and China. I have 
visited some of them. I was impressed with the level of skill of the 
workers I met there.
  China's commitment to research, at $60 billion in expenditures, is 
dramatic by any measure. Over the last few years, China has doubled the 
share of its economy that it invests in research. China intends to 
double the amount committed to basic research in the next decade. 
Currently, only America beats out China in numbers of researchers in 
the workforce.
  Over the last few months, I have offered a series of proposals to 
improve America's competitiveness. Today, I am pleased to introduce the 
Research Competitiveness Act of 2006. This bill would improve our 
research competitiveness in four major areas. All four address 
incentives in our tax code. Government also supports research through 
Federal spending. But I am not addressing those areas today.
  First, my bill improves and simplifies the credit for applied 
research in section 41 of the tax code. This credit has grown to be 
overly complex, both for taxpayers and the IRS. Beginning in 2008, my 
bill would create a simpler 20 percent credit for qualifying research 
expenses that exceed 50 percent of the average expenses for the prior 3 
years.
  And just as important: The bill makes the credit permanent. Because 
the credit has been temporary, it has simply not been as effective as 
it could be. Since its creation in 1981, it has been extended 10 times. 
Congress even allowed it to lapse during one period.
  The credit expired again just last December. And another short-term 
extension is pending in both tax reconciliation bills in conference. 
Last year, the experts at the Joint Committee on Taxation wrote: 
``Perhaps the greatest criticism of the R&E credit among taxpayers 
regards its temporary nature.'' Joint Tax went on to say, ``A credit of 
longer duration may more successfully induce additional research than 
would a temporary credit, even if the temporary credit is periodically 
renewed.''
  Currently, there are two different ways to claim a tax credit for 
qualifying research expenses. First, the ``traditional'' credit relies 
on incremental increases in expenses compared to a mid-1980s base 
period. Second, the ``alternative incremental'' credit measures the 
increase in research over the average of the prior 4 years.
  Both of these credits have base periods involving gross receipts. My 
bill replaces these with a new credit, known as the ``Alternative 
Simplified Credit,'' based on research spending without reference to 
gross receipts. The current formula hurts companies that have 
fluctuating sales. And it hurts companies that take on a new line of 
business not dependent on research.
  The Senate has passed this alternative formula as an optional credit 
several times. It is now pending in both versions of the tax 
reconciliation bill. It has not yet been enacted, though, even on a 
temporary basis.
  I support the 2-year extension of the R&E credit contained in the 
Senate version of the tax reconciliation bill. That is why this new 
simpler formula in my bill would not start until 2008. That start date 
would give companies plenty of time to adjust their accounting.
  The main complaint about the existing credits is that they are very 
complex, particularly the reference to the 20-year-old base period. 
This base period creates problems for the taxpayer in trying to 
calculate the credit. And it creates problems for the IRS in trying to 
administer and audit those claims.
  The new credit focuses only on expenses, not gross receipts. And is 
still an incremental credit, so that companies must continue to 
increase research spending over time.
  A tax credit is a cost-effective way to promote R&E. A report by the 
Congressional Research Service finds that without government support, 
investment in R&E would fall short of the socially optimal amount. Thus 
CRS endorses Government policies to boost private sector R&E.
  Also, American workers who are engaged in R&E activities benefit from 
some of the most intellectually stimulating, high-paying, high-skilled 
jobs in the economy.
  My own State of Montana has excellent examples of this economic 
activity. During the 1990s, about 400 establishments in Montana 
provided high-technology services, at an average wage of about $35,000 
per year. These jobs paid nearly 80 percent more than the average 
private sector wage, which was less than $20,000 a year during the same 
period. Many of these jobs would never have been created without the 
assistance of the R&E credit.
  My research bill would also establish a uniform reimbursement rate 
for all contract and consortia R&E. It would provide that 80 percent of 
expenses for research performed for the taxpayer by other parties count 
as qualifying research expenses under the regular credit.
  Currently, when a taxpayer pays someone else to perform research for 
the taxpayer, the taxpayer can claim one of three rates in order to 
determine how much the taxpayer can include for the research credit. 
The lower amount is meant to assure overhead expenses that normally do 
not qualify for the R&E credit are not counted. Different rates, 
however, create unnecessary complexity. Therefore, my bill creates a 
uniform rate of 80 percent.
  The second major research area that this bill addresses is the need 
to enhance and simplify the credit for basic research. This credit 
benefits universities and other entities committed to basic research. 
And it benefits the companies or individuals who donate to them. My 
bill provides that payments under the university basic research credit 
would count as contractor expenses at the rate of 100 percent.
  The current formula for calculating the university basic research 
credit--defined as research ``for the advancement of science with no 
specific commercial objective''--is even more complex that the regular 
traditional R&E credit. Because of this complexity, this credit costs 
less than one-half of 1 percent of the cost of the regular R&E credit. 
It is completely under-utilized. It needs to be simplified to encourage 
businesses to give more for basic research.
  American universities have been powerful engines of scientific 
discovery. To maintain our premier global position in basic research, 
America relies on sustained high levels of basic research funding and 
the ability to recruit the most talented students in the world. The 
gestation of scientific discovery is long. At least at first, we cannot 
know the commercial applications of a discovery. But America leads the 
world in biotechnology today because of support for basic research in 
chemistry and physics in the 1960s. Maintaining a commitment to 
scientific inquiry, therefore, must be part of our vision for sustained 
competitiveness.

[[Page 7115]]

  Translating university discoveries into commercial products also 
takes innovation, capital, and risk. The Center for Strategic and 
International Studies asked what kind of government intervention can 
maintain technological leadership. One source of technological 
innovation that provides America with comparative advantage is the 
combination of university research programs, entrepreneurs, and risk 
capital from venture capital, corporations, or governments. Research 
clusters around Silicon Valley and North Carolina's Research Triangle 
exemplify this sort of combination.
  The National Academies reached a similar conclusion in a 2002 review 
of the National Nanotechnology Initiatives. In a report, they wrote: 
``To enhance the transition from basic to applied research, the 
committee recommends that industrial partnerships be stimulated and 
nurtured to help accelerate the commercialization of national 
nanotechnology developments.''
  To further that goal, the third major area this bill addresses is 
fostering the creation of research parks. This part of the bill would 
benefit state and local governments and universities that want to 
create research centers for businesses incubating scientific 
discoveries with promise for commercial development.
  Stanford created the Nation's first high-tech research park in 1951, 
in response to the demand for industrial land near the university and 
an emerging electronics industry tied closely to the School of 
Engineering. The Stanford Research Park traces its origins to a 
business started with $538 in a Palo Alto garage by two men named Bill 
Hewlett and Dave Packard. The Park is now home to 140 companies in 
electronics, software, biotechnology, and other high tech fields.
  Similarly, the North Carolina Research Triangle was founded in 1959 
by university, government, and business leaders with money from private 
contributions. It now has 112 research and development organizations, 
37,600 employees, and capital investment of more than $2.7 billion. 
More recently, Virginia has fostered a research park now housing 53 
private-sector companies, nonprofits, VCU research institutes, and 
state laboratories. The Virginia park employs more than 1,300 people.
  The creation of these parks would seem to be an obvious choice. But 
it takes a significant commitment from a range of sources to bring them 
into being. To foster the creation and expansion of these successful 
parks, my bill will encourage their creation through the use of tax-
exempt bond financing. Allowing tax-exempt bond authority would bring 
down the cost to establish such parks.
  Foreign countries are emulating this successful formula. They are 
establishing high-tech clusters through government and university 
partnerships with private industry.
  Back in 2000, a partnership was formed to foster TechRanch to assist 
Montana State University and other Montana-based research institutions 
in their efforts to commercialize research. But TechRanch is 
desperately in need of some new high-tech facilities. It could surely 
benefit from a provision such as this. I encourage my Colleagues to 
visit research parks in their States to see how my bill could be 
helpful in fostering more successful ventures.
  A related item is a small fix to help universities that use tax-
exempt bonds to build research facilities primarily for federal 
research in the basic or fundamental research area. Some of these 
facilities housing federal research--mostly NIH and NSF funded 
projects--are in danger of losing their tax-exempt bond status. Counsel 
have notified some state officials that they may be running afoul of a 
prohibition on ``private use'' in the tax code, because one private 
party has a superior claim to others in the use of inventions that 
result from research.
  The complication comes from a 1980 law. In 1980, Congress enacted the 
Patent and Trademark Law Amendments Act, also known as the Bayh-Dole 
Act. The Bayh-Dole Act requires the Federal Government to retain a non-
exclusive, royalty-free right on any discovery. In order to foster more 
basic research through Federal-State-university partnerships, we need 
to clarify that this provision of the Bayh-Dole act does not cause 
these bonds to lose their tax-exempt status. And my bill directs the 
Treasury Department to do so. I understand that the Treasury Department 
is aware of this significant concern. Whether or not Congress enacts my 
legislation, I hope that the Treasury Department will clarify the 
situation later this year.
  The fourth major area that my bill addresses is innovation at the 
small business level. Recently, representatives of a number of small 
nanotechnology companies came to visit me. They told me that their 
greatest problem was surviving what they called the ``valley of 
death.'' That's what they called the first few years of business, when 
an entrepreneur has a promising technology but little money to test or 
develop it. Many businesses simply do not survive the ``valley of 
death.'' I believe that Congress should find a way to assist these 
businesses with promising technology.
  Nanotechnology, for instance, shows much promise. According to one 
recent report, over the next decade, nanotechnology will affect most 
manufactured goods. As stated in Senate testimony by one National 
Science Foundation official earlier this year, ``Nanotechnology is 
truly our next great frontier in science and engineering.'' It took me 
a while to understand just what nanotechnology is. But it is basically 
the control of things at very, very small dimensions. By understanding 
and controlling at that dimension, people can find new and unique 
applications. These applications range from common consumer products--
such as making our sunblocks--better to improving disease-fighting 
medicines--to designing more fuel-efficient cars.
  So, to help these small businesses convert their promising science 
into successful businesses, my bill would establish tax credits for 
investments in qualifying small technology innovation companies. These 
struggling start-up ventures often cannot utilize existing incentives 
in the tax code--like the R&E tax credit--because they have no tax 
liability and may have little income for the first few years. They need 
access to cheap capital to get through those first few research-
intensive years.
  The credit in my bill would be similar to the existing and successful 
New Markets Tax Credit. The New Markets Credit has provided billions of 
dollars of investment to low-income communities across the country. In 
my bill, entities with some expertise and knowledge of research would 
receive an allocation from Treasury to analyze and select qualifying 
research investments. These investment entities would then target small 
business with promising technologies that focus the majority of their 
expenditures on activity qualifying as research expenses under the R&E 
credit.
  In sum, my bill would boost both applied and basic research. It would 
boost research by businesses big and small. And it would foster 
research by for-profit and non-profits alike.
  There is no clear answer to how to address the concerns raised in the 
``Waiting for Sputnik'' report. But the answer is clear that we must 
try--and soon.
  A noted environmentalist once said: ``Every major advance in the 
technological competence of man has forced revolutionary changes in the 
economic and political structure of society.'' From telephones to 
rockets to computers, I believe that this is true.
  Let us work to see that the next big technological advance is 
discovered here in America. Only through continued commitment to 
research can we ensure that it is.
                                 ______
                                 
      By Mrs. CLINTON (for herself and Mr. Schumer):
  S. 2722. A bill to designate the facility of the United States Postal 
Service located at 170 East Main Street in Patchogue, New York, as the 
``Lieutenant Michael P. Murphy Post Office Building''; to the Committee 
on Homeland Security and Governmental Affairs.

[[Page 7116]]


  Mrs. CLINTON. Mr. President, today I rise to discuss legislation that 
designates the United States Post Office Building in Patchogue, New 
York as the ``Lieutenant Michael P. Murphy Post Office Building.''
  Almost a year ago, Navy LT Michael P. Murphy was reported missing in 
the mountains of Afghanistan while on a covert reconnaissance mission 
in search of Taliban and al-Qaida insurgents. Reports indicate 
Lieutenant Murphy and the three other members of his Navy SEAL team 
came under heavy attack by Taliban insurgents soon after they were 
inserted by helicopter into their position. The military creed of 
``never leaving a fallen comrade behind'' was never more appropriate as 
this American hero's body was recovered on the Fourth of July, our 
Nation's Independence Day. Michael Murphy was only 29 years of age at 
the time of his passing, but as his father recalls, ``He squeezed more 
life into 29 years than I will ever see.''
  Lieutenant Murphy attended Patchogue-Medford High School on Long 
Island, where he was a National Honor Society student and a varsity 
football athlete. After graduating high school he attended Penn State 
University where he majored in political science and excelled 
academically. At the time of his graduation, he decided to fulfill a 
lifelong dream of becoming a Navy SEAL. While realizing this would be a 
formidable challenge, Michael was determined to serve our country. 
Michael was engaged to be married, and he planned to attend law school 
after his military service.
  I ask that the Senate come together and honor this brave American 
hero for his service to our Nation.
                                 ______
                                 
      By Mrs. CLINTON (for herself, Mr. Kennedy, Mr. Jeffords, Mr. 
        Leahy, Mr. Harkin, and Mr. Obama):
  S. 2725. A bill to amend the Fair Labor Standards Act of 1938 to 
provide for an increase in the Federal Minimum wage and to ensure that 
increases in the Federal minimum wage keep pace with any pay 
adjustments for Members of Congress; to the Committee on Health, 
Education, Labor, and Pensions.
  Mrs. CLINTON. Mr. President, I rise today to introduce the ``Standing 
with Minimum Wage Earners Act''. This legislation will raise the 
minimum wage over the next two years and link future increases in the 
minimum wage to Congressional raises.
  Today, working parents earning the minimum wage are struggling to 
make ends meet and to build better lives for their children. The 
Federal minimum wage is currently $5.15 an hour, an amount that has not 
been increased since 1997. Sadly, during that time, Congress has given 
itself eight annual pay raises. We can no longer stand by and regularly 
give ourselves a pay increase while denying a minimum wage increase to 
help the more than 7 million men and women working hard across this 
nation. At a time when working families are struggling to put food on 
the table, it's critically important that we here in Washington do 
something. If Members of Congress need an annual cost of living 
adjustment, then certainly the lowest-paid members of our society do 
too.
  There are currently 13 million American children living in poverty 
across this country, and this number is increasing every day. Families 
work hard and yet cannot make enough money to support themselves. More 
families are falling into poverty every day, and these families are 
working 40 hours a week. This is unacceptable.
  Minimum wage workers have not had a raise in nearly a decade. The 
reality is a full-time job that pays minimum wage just does not provide 
enough money to support a family today. A single mother with two 
children who works 40 hours a week, 52 weeks a year earns only $10,700 
a year. This amount--$10,700 a year--is almost $6,000 below the Federal 
poverty line for a family of three. We have a responsibility to help 
families earn a living wage.
  My legislation will benefit all minimum wage earners, and it would 
especially benefit women who represent a disproportionate number of 
low-wage workers. 61 percent of minimum wage earners are women, even 
though women only comprise 48 percent of the total workforce. And 
almost one-third of these working women are raising children.
  The women in my State of New York would feel the effects of a minimum 
wage increase most dramatically. New York is one of the top five States 
with the greatest number of low-wage women workers.
  In addition to helping America's hardest working families, raising 
the minimum wage will also narrow the dramatic income gap between the 
haves and the have-nots across the country. The average income of the 
richest fifth of New York State families is 8.1 times the average 
income of the poorest fifth. Nationwide, families in the top fifth made 
7.3 times more than those in the bottom fifth. This discrepancy needs 
to be fixed and my bill would be a step in the right direction towards 
fairness for America's hard-working families.
  My legislation would increase the minimum wage first to $5.85 an 
hour, then to $6.55 an hour, and ultimately to $7.25 an hour within the 
next two years. In addition, my legislation then ensures that every 
time Congress gives itself a raise in the future that Americans get a 
raise too. This is the right and fair thing to do for hardworking 
Americans.
  I would like to recognize my cosponsors Senators Kennedy, Jeffords, 
Leahy, Harkin and Obama and thank them for joining me in this effort.
  The ``Standing with Minimum Wage Earners Act'' has letters of support 
from Service Employees International Union (SEIU), the American 
Federation of Labor--Congress of Industrial Organization (AFL-CIO) and 
the Coalition for Human Needs.
  I ask my colleagues to recognize the moral aspect of this issue. It 
is simply wrong to pay people a wage that they can barely live on. And 
it is shameful to continue to give ourselves raises as millions of 
American families struggle to survive. We should raise the Federal 
minimum wage so that working parents can lift their children out of 
poverty. It is past time to make this investment in our children and 
families.
                                 ______
                                 
      By Mr. BOND (for himself and Mr. Akaka):
  S. 2735. A bill to amend the National Dam Safety Program Act to 
reauthorize the national dam safety program, and for other purposes; to 
the Committee on Environment and Public Works.
  Mr. BOND. Mr. President, my distinguished colleague Senator Akaka and 
I are introducing legislation today to reauthorize the National Dam 
Safety and Security Program. The goal of this program, administered by 
FEMA, has been to advance dam safety in the United States and prevent 
loss of life and property damage from dam failures at both the Federal 
and State programmatic levels.
  Over the last several months we have seen in both my home State of 
Missouri and my colleague's State of Hawaii, how critically important 
proper regulation, inspection and safety training is for maintaining 
our Nation's dams. The National Dam Safety Program Act provides much 
needed assistance to State dam safety programs, which are responsible 
for regulating 95 percent of the 80,000 dams in the U.S.
  The States receive training assistance for their dam safety engineers 
and State grant assistance based on the number of dams in the State. 
The National Dam Safety Program, currently administered by FEMA within 
DHS, expires in September 30, 2006 and needs to be reauthorized.
  I am proud to introduce this legislation along with my colleague 
Senator Akaka in order to strengthen the protection of our citizens and 
critical infrastructure from dam failures through the Dam Safety and 
Security Program.
  Mr. AKAKA. Mr. President, I rise today, along with my colleague, 
Senator Christopher Bond, to introduce the Dam Safety Act of 2006. This 
legislation is designed to help prevent such tragic failures as the 
collapse of the privately owned Ka Loko Dam in Kauai last March in 
which seven people died.

[[Page 7117]]

The legislation complements legislation that I introduced with Senator 
Inouye, S. 2444, the Dam Rehabilitation and Repair Act of 2006, which 
assists in securing and repairing publicly owned dams. Both of these 
bills are critical to preventing the type of devastating collapse which 
occurred on Kauai.
  This legislation is vitally important not only to my State but to 
every State. There are approximately 79,000 dams registered in the 
National Inventory of Dams. However, there are many more dams that are 
small and unregulated. This bill provides funding for State dam safety 
programs to enhance their oversight and support abilities.
  The Dam Safety Act of 2006 reauthorizes the National Dam Safety 
Program, NDSP, which was first established as part of the Water 
Resources Development Act of 1996 Public Law 104-303. In 2002, the NDSP 
was reauthorized for another 4 years by the enactment of the Dam Safety 
and Security Act of 2002 Public Law 107-310. It expires at the end of 
this fiscal year, so its reauthorization is imperative.
  The National Dam Safety Program delivers vital Federal resources to 
State governments to improve their dam safety programs by providing 
funds for training, technical assistance, research, and support. 
Federal incentive grants are awarded to States to enhance their dam 
safety programs. In addition, funds have been used to hire staff for 
inspections, pay for specialized training, and develop specialized 
mapping in the event that a dam failure necessitates evacuation.
  Of the approximately $12 million authorized for each fiscal year, $8 
million is divided among the States to improve safety programs and $2 
million is allocated for research to identify more effective techniques 
to assess, construct, and monitor dams. In addition, $700,000 is 
available for training assistance for State engineers, and $1 million 
is used for the National Inventory of Dams.
  The costs of failing to maintain dams properly are extremely high. 
There have been at least 29 dam failures in the United States during 
the past 2 years causing more than $200 million in property damages. 
The failure of the Silver Lake Dam in Michigan in 2003 caused more than 
$100 million in property damage. A December 2005 dam collapse in 
Missouri injured three children and destroyed several homes. People 
caught in the path of a dam collapse are often helpless to escape.
  Such was the tragic situation in Hawaii when, in March, the Ka Loko 
Dam, a 116-year earthen dam, on the island of Kauai suddenly collapsed 
during heavy rains, killing seven people. When a dam collapses, 
destruction is often swift and uncontrollable. In the case on Kauai, 
local, State, and Federal officials quickly responded to the tragedy, 
assisting citizens while engineers from both the State Department of 
Land and Natural Resources and the U.S. Army Corps of Engineers 
inspected the over 50 dams on Kauai. Neighbors worked together to help 
neighbors, and our Governor quickly requested more funds, which the 
legislature approved, for cleanup and additional inspections.
  While most of the responsibility is at the State and local level, 
there is a role for the Federal Government in supplementing State 
resources and developing national guidelines for dam safety. The funds 
Hawaii receives under the program help the State's staff to acquire and 
maintain equipment and software to assess dam safety. It is a small 
amount but vitally important to my State and to every State.
  I urge my colleagues to join Senator Bond and me in supporting the 
reauthorization of the National Dam Safety Program.
  I ask unanimous consent to insert in the Record at this point a 
letter from the Dam Safety Coalition endorsing this legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                         Dam Safety Coalition,

                                      Washington, DC, May 4, 2006.
     Hon. Kit Bond,
     Russell Senate Office Building,
     Washington, DC.
     Hon. Daniel Akaka,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Bond and Senator Akaka: We would like to 
     commend you for your commitment to dam safety and to the 
     reauthorization of the National Dam Safety Program.
       Dams are a vital part of our nation's aging infrastructure 
     and provide enormous benefits to the majority of Americans--
     benefits that include drinking water, flood protection, 
     renewable hydroelectric power, navigation, irrigation and 
     recreation. Yet, these critical daily benefits provided by 
     the nation's dams are inextricably linked to the potential 
     consequences of a dam failure if the dam is not maintained, 
     or is unable to impound water, pass large flood events or 
     withstand earthquake events in a safe manner.
       The Dam Safety Coalition is proud to highlight the 
     achievements of the National Dam Safety Program, administered 
     by the Federal Emergency Management Agency (FEMA). 
     Specifically, the program has fostered significant 
     improvements in state dam safety programs, provided critical 
     training to state engineers and established unprecedented 
     cooperation between federal dam safety agencies and state dam 
     safety programs. It requires FEMA to provide assistance to 
     states in establishing, maintaining and improving dam safety 
     programs.
       Dams in the United States are aging, downstream development 
     below dams is increasing dramatically and many older dams do 
     not meet current dam safety standards. Dam failures are 
     largely preventable disasters.
       In 2005, the American Society of Civil Engineers published 
     the Report Card for America's Infrastructure giving the 
     condition of our nation's dams a grade of D, equal to the 
     overall infrastructure grade. States have identified 3,500 
     unsafe or deficient dams, many being susceptible to large 
     flood events or earthquakes. It is a reasonable expectation 
     of every American to be protected by our government; 
     including protection from preventable disasters such as dam 
     failures.
       To contact the Dam Safety Coalition please call Brian 
     Pallasch if we can be of assistance.
       We look forward to working with you to enact the National 
     Dam Safety Act in the 109th Congress.
           Sincerely,
     Brian T. Pallasch,
       Co-Chair, Dam Safety Coalition.
     Lori C. Spragens,
       Executive Director, ASDSO.
                                 ______
                                 
      By Mr. CRAIG (for himself and Mr. Akaka):
  S. 2736. A bill to require the Secretary of Veterans Affairs to 
establish centers to provide enhanced services to veterans with 
amputations and prosthetic devices, and for other purposes; to the 
Committee on Veterans' Affairs.
  Mr. CRAIG. Mr. President, today I seek floor recognition to introduce 
legislation to create a series of Amputation and Prosthetic 
Rehabilitation Centers in the Department of Veterans Affairs.
  As many of you are aware, VA already operates numerous specialty care 
centers for the treatment of veterans with spinal cord injury, 
traumatic brain injury, and visual impairment. However, at this moment, 
VA does not operate any similar centers of care for the treatment of 
veterans with amputations.
  I do not mean to suggest that VA does not provide excellent care and 
services to those veterans who have unfortunately lost a limb or part 
of limb. But, there's always room for improvement in the care VA 
delivers and, just as importantly, there is room for improvement in the 
prosthetic services and devices that help those men and women with 
their physical restoration.
  Many of us have spoken personally with service members who are 
recuperating from injuries at Walter Reed Army Medical Center or 
Bethesda Naval Hospital. Today's extraordinary battlefield medicine is 
bringing back to our shores service members from Iraq and Afghanistan 
who would never have lived through their injuries in previous wars. 
Thanks to the best health care facilities the military has to offer and 
the wonders of modern medicine, these brave Americans will eventually 
leave the hospital. Then, most will start the difficult process of 
reintegrating into civilian life. For those whose injuries resulted in 
an amputation, that process is just a little more difficult.
  My hope with this bill is that these centers will be the lynchpin of 
a fully integrated Prosthetic Service Network; similar to those I 
mentioned at the outset of my remarks for the care of spinal cord 
injury, traumatic brain injury, and blindness. They would be

[[Page 7118]]

fully responsible for the system-wide coordination of all of the 
Physical and Occupational Therapy and Prosthetics care provided to this 
new generation of severely wounded veterans. In addition, they will 
provide a new level of service to those who have long lived with 
amputations caused during previous wars or conflicts.
  Further, it is my hope and expectation that these centers will house 
and drive much of the prosthetic and amputee related research and 
development projects conducted by VA. I believe that by gathering under 
one roof specialists, who have dedicated their medical practice to 
caring for and rehabilitating those who have lost limbs, we will drive 
the marketplace of ideas and develop the best treatment in the country. 
There is no limit to what modern technology, American ingenuity, and a 
great cause can accomplish.
  Just the other day, my Committee held a hearing on VA's research 
program. At that meeting, I had the opportunity to speak with a VA 
clinician who, along with many of his colleagues, has created a proto-
type prosthetic for someone who had lost part of a hand, but still had 
wrist control. In just a few moments time, I was able to wire the 
equipment to my own arm and with a little practice pick up a glass of 
water, hold it in the prosthetic hand, and then return it to the table 
and remove the hand from it without spilling a drop. It was nothing 
short of amazing. It was also a small glimpse of where we can go.
  Of course, discoveries and inventions, like that hand, do not just 
remain in the VA vacuum. Once created, tested and approved, the R&D 
will leave the VA world and almost immediately benefit the civilian 
population of amputees. By combining the resources of our government 
and the needs of our veterans, we can improve the American medical 
system for all of our citizens.
  With the right technology, the best health care services, and a 
little personal drive, many of our amputees will return to active 
lives. They will play tennis, basketball, go kayaking, and even climb 
mountains. And while I am not suggesting that these centers will cause 
all of that to happen, I believe they will create the environment in 
which those things can happen.
  I hope all of my colleagues will join me in supporting this bill now. 
And I hope to report it out of my committee and bring it to the floor 
for a vote later this summer.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2736

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

     SECTION 1. AMPUTATION AND PROSTHETIC REHABILITATION CENTERS 
                   FOR VETERANS.

       (a) Establishment.--
       (1) In general.--The Secretary of Veterans Affairs shall 
     establish not less than five centers to provide 
     rehabilitation services to veterans with amputations or 
     prosthetic devices.
       (2) Purpose.--The purpose of each center established 
     pursuant to paragraph (1) are--
       (A) to provide regional clinical facilities of the 
     Department of Veterans Affairs with special expertise in 
     prosthetics, rehabilitation with the use of prosthetics, 
     treatment, and coordination of care for veterans who have an 
     amputation of any functional part of the body; and
       (B) to provide information and supportive services to all 
     facilities of the Department of Veterans Affairs concerning 
     the care and treatment of veterans with a prosthetic device.
       (3) Designation.--Each center established pursuant to 
     paragraph (1) shall be known as an ``Amputation and 
     Prosthetic Rehabilitation Center'' (in this section referred 
     to as a ``Center'').
       (b) Geographic Distribution.--In identifying appropriate 
     facilities for the location of the Centers established 
     pursuant to subsection (a), the Secretary shall ensure, to 
     the maximum extent practicable, that such Centers are 
     geographically located so as to be accessible to as many 
     veterans as possible in the United States.
       (c) Staff and Resources.--Each Center shall include the 
     following:
       (1) A modern, well-equipped, and appropriately certified 
     laboratory facility capable of providing state-of-the-art and 
     complex prosthetic devices to all veterans with an 
     amputation, including veterans with an amputation incurred in 
     Operation Iraqi Freedom or Operation Enduring Freedom.
       (2) Certified and experienced prosthetists, including 
     prosthetists with certifications in new fabrication 
     techniques.
       (3) An accredited Physical Medicine and Rehabilitation 
     (PM&R) service with staff who are well-trained in current 
     prosthetic services and emerging trends for treatment of 
     amputations.
       (4) A modern gait laboratory, permanently located within 
     such Center.
       (d) No Duplication of Services of Polytrauma Centers.--
       (1) In general.--The Secretary shall, to the extent 
     practicable, ensure that the services provided by the Centers 
     established pursuant to subsection (a) do not duplicate the 
     services provided by the polytrauma centers of the Department 
     of Veterans Affairs designated as Tier I or Tier II 
     Polytrauma centers.
       (2) Construction.--Paragraph (1) shall not be construed to 
     prohibit the location of a Center so as to facilitate the 
     ready support of a polytrauma center, referred to in that 
     paragraph.

  Mr. AKAKA. Mr. President, today I rise with my good friend and 
colleague, Senator Craig from Idaho, to introduce legislation to 
establish at least five Amputation and Prosthetic Rehabilitation 
Centers within the Department of Veterans Affairs (VA). Through 
progressive and specialized expertise in the area of prosthetics and 
rehabilitation, the visible reminders of the sacrifices made by our 
wounded warriors will become less evident and hopefully less of a 
factor in their everyday lives.
  Specialty care for amputees has become an even more pressing concern 
because of the types of injuries our brave soldiers have sustained in 
Operation Iraqi Freedom and Operation Enduring Freedom. Many would 
agree that this is not the same kind of war that other generations of 
veterans have fought. The use of body armor and improvements in 
battlefield medicine have saved more lives, but in many cases have left 
our soldiers with traumatic injuries. Servicemembers in the current 
conflicts have suffered from twice as many amputations as those who 
fought in past wars. Unfortunately, the incidence of multiple 
amputations from bomb blasts is higher in this war.
  The VA health care system has only begun to see the men and women 
from Operation Enduring Freedom and Operation Iraqi Freedom who are in 
need of long-term rehabilitation. Indeed, these veterans are young and 
plan on being active for a long time. VA is well poised to take on this 
challenge. An ongoing study at the Providence VA hospital is looking at 
``biohybrid'' limbs which are implanted into tissue and later become an 
integral part of the patient.
  We cannot, however, forget about the war our current veterans 
continue to fight everyday against time and their health. Veterans 
struggling with diseases such as diabetes are often faced with 
amputation. The establishment of the Amputation and Prosthetic 
Rehabilitation Centers will provide advanced care to those who have 
endured the loss of a limb, which will help them regain full function 
and a better quality of life.
  The centers will provide VA regional clinical facilities with cutting 
edge expertise in prosthetics, rehabilitation with the use of 
prosthetics, treatment, and coordination of care for a veteran with an 
amputation. By placing these centers in locations with the highest 
concentrations of veterans, those in need will truly benefit from these 
specialized services.
  VA has always been a leader in progressive treatment and care. These 
centers will maintain VA as a leader by providing the tools and staff 
necessary to do so. The legislation requires that the centers must have 
a well-equipped and appropriately certified laboratory facility 
necessary to provide the most state-of-the-art and complex prosthetic 
devices.
  With experienced prosthetists trained and certified in the area of 
new techniques, an accredited Physical Medicine and Rehabilitation 
service with trained staff in the most current prosthetic services, and 
a permanent modern gait laboratory located within each center, veterans 
are sure to receive the most advanced treatment and care.
  A critical part of this legislation is that these centers will serve 
as resources for smaller VA hospitals which

[[Page 7119]]

may not have all of the expertise but will certainly have the patients.
  As Ranking Member of the Committee on Veterans' Affairs, I urge my 
colleagues to join Chairman Craig and myself in support of providing 
treatment to those in need so they can stand on their own.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Bayh, Mr. Coleman, Mr. 
        Lieberman, Mr. Chafee, Ms. Cantwell, Ms. Collins, Mr. Salazar, 
        Mr. Kerry, Mrs. Clinton, and Mr. Nelson of Florida):
  S. 2747. A bill to enhance energy efficiency and conserve oil and 
natural gas, and for other purposes; to the Committee on Energy and 
Natural Resources.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Bayh, Mr. Coleman, Mr. 
        Lieberman, Mr. Lugar, Ms. Cantwell, Ms. Collins, Mr. Salazar, 
        Mr. Kerry, Mrs. Clinton, and Mr. Nelson of Florida):
  S. 2748. A bill to amend the Internal Revenue Code of 1986 to provide 
tax incentives to promote energy production and conservation, and for 
other purposes; to the Committee on Finance.
  Mr. BINGAMAN. Mr. President. I rise today to introduce two energy 
bills: the Enhanced Energy Security Act of 2006; and the Enhanced 
Energy Security Tax Incentives Act of 2006.
  All of us know that we face a challenging energy situation in this 
country in both the short term and the long term. The world market 
price of crude oil is above $72 per barrel. We have seen gasoline 
prices above $3 per gallon in many parts of the country. In my home 
State of New Mexico, these prices are a real hardship to the many New 
Mexicans who are forced to drive long-distances to work, without the 
prospect of car pooling or public transportation. The steep rise in the 
price of gas at the pump is putting a nearly unbearable squeeze on 
family budgets in New Mexico and all across America.
  So, we have a major national problem and not much time left in this 
Congress to make progress on it. The question is, what can we do in the 
remaining weeks of this Congress that would be bipartisan, that could 
be signed into law by the President, and that would hold out the 
prospect of eventually helping to moderate the price of gasoline at the 
pump?
  I have thought for some time that the most effective way of 
approaching the real issues driving the high prices that consumers find 
unacceptable is through a four-part strategy focusing on 1. increasing 
consumer protection, 2. increasing supply, 3. increasing efficiency of 
oil and gas use, and 4. providing incentives for forward-looking energy 
choices in the market.
  A fair number of bills have already been introduced that deal with 
the first two parts of that strategy. What has been lacking is a 
bipartisan path forward to consensus on increasing energy efficiency 
and on stimulating forward-looking investments in energy efficiency and 
renewable energy technologies.
  Today's bills are intended to fill that gap. Each of these two bills 
is designed to go to a single committee with jurisdiction over most, if 
not all, of its contents.
  The first bill, the Enhanced Energy Security Act of 2006, is 
comprised of provisions that generally fall in the jurisdiction of the 
Committee on Energy and Natural Resources.
  The second bill, the Enhanced Energy Security Tax Incentives Act of 
2006, is comprised solely of provisions in the jurisdiction of the 
Senate Finance Committee.
  Some of the provisions in these two bills have been drawn from other 
bills, including S. 2025, the Vehicles and Fuels Choices for American 
Security Act, which was introduced last year by Senators Bayh, Coleman, 
Lieberman and Brownback along with others. I appreciate their 
leadership and their support for this effort. What is newsworthy here 
today is that we are putting a large body of good policy ideas in a 
form that will facilitate committee action here in the Senate.
  Relying on the Energy and the Finance committees to do the necessary 
homework to come up with bipartisan solutions to our energy challenges 
is the best way for us to make progress in this Congress. Both 
committees have leaders, in Senators Domenici and Senator Grassley, who 
demonstrated their commitment to bipartisan engagement on energy issues 
during the enactment of last year's Energy Policy Act of 2005. I am 
looking forward to working with both Committee Chairs to move forward 
with the ideas in these bills on a bipartisan basis.
  The basic idea behind the first bill, which is coming to the Energy 
Committee, is that if we want, in the long term, to moderate the prices 
that consumers are seeing in today's markets from oil and natural gas, 
we need to focus more strongly on increasing energy efficiency, and 
particularly increased efficiency of our use of oil and natural gas.
  That's an area where we were unable to do much in the last Energy 
bill. But, there is a lot that needs to be done.
  Among the most important provisions we are taking from S. 2025 and 
putting in the new bill, is an emphasis on an expanded plan for 
economy-wide oil savings. The President is to come up with a plan that 
will cut our oil use, from projected levels, by 2.5 million barrels of 
oil per day by 2016, 7 million barrels of oil per day by 2026, and 10 
million barrels of oil per day by 2031.
  The new bill, also like S. 2025, includes a number of initiatives 
designed to reduce our nearly total reliance on petroleum products in 
the transportation sector. These include: programs that will speed the 
development of new vehicle technologies such as ``plug-in hybrids'' and 
the use of advanced light weight materials in vehicles; expanding the 
authority of the Secretary of Energy to provide loan guarantees and 
competitive grants to auto manufacturers and parts manufacturers for 
converting existing facilities or building new facilities for 
manufacturing fuel-efficient vehicles and vehicle components; 
increasing the availability of alternative fuels, such as E85, across 
the country by providing funding for alternative fuel fueling stations; 
and providing incentives for the production of cellulosic ethanol--
including loan guarantees and a reverse auction for production 
payments.
  The new bill will also include a number of provisions aimed at 
relieving demand and price pressure on natural gas. These include: 
strengthening the Federal purchase requirement for renewable energy; 
the 10 percent renewable portfolio standard that has passed the full 
Senate 3 times in the past 4 years; encouraging States to strengthen 
their programs on demand-side management; and better educating 
consumers about energy efficiency measures that they can take.
  The basic idea behind the second bill, the Enhanced Energy Security 
Tax Incentives Act of 2006, is to create fiscal incentives that help 
forward-looking energy technologies to enter the market. As is often 
the case with technological advancements, many of the energy technology 
alternatives that are poised to enter the marketplace will not be able 
to successfully compete without some transitional help.
  The first set of provisions in the bill extends, through 2010, the 
various alternative fuel, efficiency and renewable energy tax 
provisions we passed last year. These existing tax incentives will work 
best if investors, manufacturers and consumers know that the government 
is committed and that they can plan for these tax incentives being 
there for a few years. The tax provisions we are extending include 
provisions to encourage the purchase of energy efficient housing and 
office materials, as well as the generation of electricity from 
alternative sources such as biomass, fuel cells, the wind and the sun. 
It will be nearly impossible for Congress to create a comprehensive 
national energy policy if important energy tax incentives such as these 
are in a perpetual state of uncertainty over the long term. If we 
extend these tax incentives through 2010 now, we will see a great 
increase in their usefulness in an industry that needs a few years 
lead-time to plan and build major energy projects.
  The second set of provisions in the new tax bill will create new 
incentives

[[Page 7120]]

to encourage our country to move towards more fuel efficient vehicles, 
such as hybrids. It accomplishes this in several ways.
  First, as the President has suggested, we lift the current cap on the 
number of vehicles per manufacturer that are eligible for a consumer 
tax credit. This proposal was also part of the package unveiled last 
week by Senators Domenici and Frist. Under the bill I will be 
introducing, this modified version of the tax credit will be also 
extended until 2010.
  Next, we create a 35 percent tax credit for manufacturers on the 
expenses involved in retrofitting or setting up manufacturing 
facilities to make these fuel efficient vehicles.
  To encourage businesses with fleets of vehicles, we create a 15 
percent tax credit for the purchase of more than 10 fuel efficient 
vehicles in a year.
  In order to encourage alternative fueling stations, we expand the 
current 30 percent tax credit to 50 percent and allow it to be 
operative until the end of 2010.
  Finally, we create a 25 percent tax credit for the purchase of 
qualified idling reduction equipment so that vehicles currently on the 
road are not running their engines any more than necessary.
  While this is a rather large expansion of the currently available tax 
incentives for fuel efficient vehicles, it is what is going to be 
necessary to get our vehicle policy headed in the right direction.
  The legislation also contains new provisions to encourage the 
purchase of fuel efficient technologies for residences and businesses. 
It creates a 10 percent tax credit for the purchase of energy efficient 
combined heat and power units as well as provides for three year 
depreciation on the purchase price for ``smart meters.'' These 
provisions have broad support in the Senate but were regrettably 
dropped in last year's conference on the Energy Bill. I think is 
important that we look at these provisions anew.
  A question that usually arises when you talk about expanding tax 
incentives is whether they are going to be paid for. Many of us here in 
the Senate are worried about the deficit, so the tax bill that I am 
describing contains several revenue offsets, such as the provisions 
contained in last year's reconciliation tax bill that get rid of tax 
benefits in the oil and gas industry that are unnecessary and a waste 
of taxpayer dollars. This legislation would also close the SUV tax 
loophole that provides a windfall for the purchasers of inefficient 
cars at a time when the nation needs to be discouraging this activity.
  I look forward to working with the Chairman and Ranking Member of the 
Finance Committee on both these new tax incentives but also on ways of 
paying for them, so that we are acting in a way that is fiscally 
responsible.
  I ask unanimous consent that the text of both bills be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2747

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Enhanced 
     Energy Security Act of 2006''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

          TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.

         TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

Sec. 201. Federal fleet conservation requirements.
Sec. 202. Assistance for State programs to retire fuel-inefficient 
              motor vehicles.
Sec. 203. Assistance to States to reduce school bus idling.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Loan guarantees for fuel-efficient automobile manufacturer 
              and suppliers.
Sec. 207. Funding for alternative infrastructure for the distribution 
              of transportation fuels.
Sec. 208. Deployment of new technologies to reduce oil use in 
              transportation.
Sec. 209. Production incentives for cellulosic biofuels.

    TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

Sec. 301. Renewable portfolio standard.
Sec. 302. Federal requirement to purchase electricity generated by 
              renewable energy.

              TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

Sec. 401. Energy savings performance contracts.
Sec. 402. Deployment of new technologies for high-efficiency consumer 
              products.
Sec. 403. National media campaign to decrease oil and natural gas 
              consumption.
Sec. 404. Energy efficiency resource programs.

                TITLE V--ASSISTANCE TO ENERGY CONSUMERS

Sec. 501. Energy emergency disaster relief loans to small business and 
              agricultural producers.
Sec. 502. Efficient and safe equipment replacement program for 
              weatherization purposes.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Energy.

          TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

     SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

       Not later than 270 days after the date of enactment of this 
     Act, the Director of the Office of Management and Budget 
     (referred to in this title as the ``Director'') shall publish 
     in the Federal Register an action plan consisting of--
       (1) a list of requirements proposed or to be proposed 
     pursuant to section 102 that are authorized to be issued 
     under law in effect on the date of enactment of this Act, and 
     this Act, that will be sufficient, when taken together, to 
     save from the baseline determined under section 105--
       (A) 2,500,000 barrels of oil per day on average during 
     calendar year 2016;
       (B) 7,000,000 barrels of oil per day on average during 
     calendar year 2026; and
       (C) 10,000,000 barrels per day on average during calendar 
     year 2031; and
       (2) a Federal Government-wide analysis of--
       (A) the expected oil savings from the baseline to be 
     accomplished by each requirement; and
       (B) whether all such requirements, taken together, will 
     achieve the oil savings specified in this section.

     SEC. 102. STANDARDS AND REQUIREMENTS.

       (a) In General.--On or before the date of publication of 
     the action plan under section 101, the Secretary of Energy, 
     the Secretary of Transportation, the Secretary of Defense, 
     the Secretary of Agriculture, the Administrator of the 
     Environmental Protection Agency, and the head of any other 
     agency the President determines appropriate shall each 
     propose, or issue a notice of intent to propose, regulations 
     establishing each standard or other requirement listed in the 
     action plan that is under the jurisdiction of the respective 
     agency using authorities described in subsection (b).
       (b) Authorities.--The head of each agency described in 
     subsection (a) shall use to carry out this section--
       (1) any authority in existence on the date of enactment of 
     this Act (including regulations); and
       (2) any new authority provided under this Act (including an 
     amendment made by this Act).
       (c) Final Regulations.--Not later than 18 months after the 
     date of enactment of this Act, the head of each agency 
     described in subsection (a) shall promulgate final versions 
     of the regulations required under this section.
       (d) Agency Analyses.--Each proposed and final regulation 
     promulgated under this section shall--
       (1) be designed to achieve at least the oil savings 
     resulting from the regulation under the action plan published 
     under section 101; and
       (2) be accompanied by an analysis by the applicable agency 
     describing the manner in which the regulation will promote 
     the achievement of the oil savings from the baseline 
     determined under section 105.

     SEC. 103. INITIAL EVALUATION.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Director shall publish in the 
     Federal Register a Federal Government-wide analysis of the 
     oil savings achieved from the baseline established under 
     section 105.
       (b) Inadequate Oil Savings.--If the oil savings are less 
     than the targets established under section 101, 
     simultaneously with the analysis required under subsection 
     (a)--

[[Page 7121]]

       (1) the Director shall publish a revised action plan that 
     is adequate to achieve the targets; and
       (2) the Secretary of Energy, the Secretary of 
     Transportation, and the Administrator shall propose new or 
     revised regulations under subsections (a), (b), and (c), 
     respectively, of section 102.
       (c) Final Regulations.--Not later than 180 days after the 
     date on which regulations are proposed under subsection 
     (b)(2), the Secretary of Energy, the Secretary of 
     Transportation, and the Administrator shall promulgate final 
     versions of those regulations.

     SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

       (a) Review.--Not later than January 1, 2011, and every 3 
     years thereafter, the Director shall submit to Congress, and 
     publish, a report that--
       (1) evaluates the progress achieved in implementing the oil 
     savings targets established under section 101;
       (2) analyzes the expected oil savings under the standards 
     and requirements established under this Act and the 
     amendments made by this Act; and
       (3)(A) analyzes the potential to achieve oil savings that 
     are in addition to the savings required by section 101; and
       (B) if the President determines that it is in the national 
     interest, establishes a higher oil savings target for 
     calendar year 2017 or any subsequent calendar year.
       (b) Inadequate Oil Savings.--If the oil savings are less 
     than the targets established under section 101, 
     simultaneously with the report required under subsection 
     (a)--
       (1) the Director shall publish a revised action plan that 
     is adequate to achieve the targets; and
       (2) the Secretary of Energy, the Secretary of 
     Transportation, and the Administrator shall propose new or 
     revised regulations under subsections (a), (b), and (c), 
     respectively, of section 102.
       (c) Final Regulations.--Not later than 180 days after the 
     date on which regulations are proposed under subsection 
     (b)(2), the Secretary of Energy, the Secretary of 
     Transportation, and the Administrator shall promulgate final 
     versions of those regulations.

     SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

       In performing the analyses and promulgating proposed or 
     final regulations to establish standards and other 
     requirements necessary to achieve the oil savings required by 
     this title, the Secretary of Energy, the Secretary of 
     Transportation, the Secretary of Defense, the Secretary of 
     Agriculture, the Administrator of the Environmental 
     Protection Agency, and the head of any other agency the 
     President determines to be appropriate shall--
       (1) determine oil savings as the projected reduction in oil 
     consumption from the baseline established by the reference 
     case contained in the report of the Energy Information 
     Administration entitled ``Annual Energy Outlook 2005'';
       (2) determine the oil savings projections required on an 
     annual basis for each of calendar years 2009 through 2026; 
     and
       (3) account for any overlap among the standards and other 
     requirements to ensure that the projected oil savings from 
     all the promulgated standards and requirements, taken 
     together, are as accurate as practicable.

         TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

     SEC. 201. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       (a) In General.--Part J of title IV of the Energy Policy 
     and Conservation Act (42 U.S.C. 6374 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

       ``(a) Mandatory Reduction in Petroleum Consumption.--
       ``(1) In general.--The Secretary shall issue regulations 
     for Federal fleets subject to section 400AA requiring that 
     not later than October 1, 2009, each Federal agency achieve 
     at least a 20 percent reduction in petroleum consumption, as 
     calculated from the baseline established by the Secretary for 
     fiscal year 1999.
       ``(2) Plan.--
       ``(A) Requirement.--The regulations shall require each 
     Federal agency to develop a plan to meet the required 
     petroleum reduction level.
       ``(B) Measures.--The plan may allow an agency to meet the 
     required petroleum reduction level through--
       ``(i) the use of alternative fuels;
       ``(ii) the acquisition of vehicles with higher fuel 
     economy, including hybrid vehicles;
       ``(iii) the substitution of cars for light trucks;
       ``(iv) an increase in vehicle load factors;
       ``(v) a decrease in vehicle miles traveled;
       ``(vi) a decrease in fleet size; and
       ``(vii) other measures.
       ``(C) Replacement tires.--The regulations shall include a 
     requirement that each Federal agency purchase energy-
     efficient replacement tires for the respective fleet vehicles 
     of the agency.
       ``(b) Federal Employee Incentive Programs for Reducing 
     Petroleum Consumption.--
       ``(1) In general.--Each Federal agency shall actively 
     promote incentive programs that encourage Federal employees 
     and contractors to reduce petroleum through the use of 
     practices such as--
       ``(A) telecommuting;
       ``(B) public transit;
       ``(C) carpooling; and
       ``(D) bicycling.
       ``(2) Monitoring and support for incentive programs.--The 
     Administrator of the General Services Administration, the 
     Director of the Office of Personnel Management, and the 
     Secretary of the Department of Energy shall monitor and 
     provide appropriate support to agency programs described in 
     paragraph (1).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) 
     is amended by adding at the end of the items relating to part 
     J of title III the following:

``Sec. 400FF. Federal fleet conservation requirements.''.

     SEC. 202. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-
                   INEFFICIENT MOTOR VEHICLES.

       (a) Definitions.--In this section:
       (1) Fuel-efficient automobile.--The term ``fuel-efficient 
     automobile'' means a passenger automobile or a light-duty 
     truck that has a fuel economy rating that is 40 percent 
     greater than the average fuel economy standard prescribed 
     pursuant to section 32902 of title 49, United States Code, or 
     other law, applicable to the passenger automobile or light-
     duty truck.
       (2) Fuel-inefficient automobiles.--The term ``fuel-
     inefficient automobile'' means a passenger automobile or a 
     light-duty truck manufactured in a model year more than 15 
     years before the fiscal year in which appropriations are made 
     under subsection (f) that, at the time of manufacture, had a 
     fuel economy rating that was equal to or less than [20? ] 
     miles per gallon.
       (3) Light-duty truck.--
       (A) In general.--The term ``light-duty truck'' means an 
     automobile that is not a passenger automobile.
       (B) Inclusions.--The term ``light-duty truck'' includes a 
     pickup truck, a van, or a four-wheel-drive general utility 
     vehicle, as those terms are defined in section 600.002-85 of 
     title 40, Code of Federal Regulations.
       (4) State.--The term ``State'' means any of the several 
     States and the District of Columbia.
       (b) Establishment.--The Secretary shall establish a 
     program, to be known as the ``National Motor Vehicle 
     Efficiency Improvement Program,'' under which the Secretary 
     shall provide grants to States to operate voluntary programs 
     to offer owners of fuel inefficient automobiles financial 
     incentives to replace the automobiles with fuel efficient 
     automobiles.
       (c) Eligibility Criteria.--The Secretary shall approve a 
     State plan and provide the funds made available under 
     subsection (f), if the State plan--
       (1) except as provided in paragraph (8), requires that all 
     passenger automobiles and light-duty trucks turned in be 
     scrapped, after allowing a period of time for the recovery of 
     spare parts;
       (2) requires that all passenger automobiles and light-duty 
     trucks turned in be registered in the State in order to be 
     eligible;
       (3) requires that all passenger automobiles and light-duty 
     trucks turned in be operational at the time that the 
     passenger automobiles and light-duty trucks are turned in;
       (4) restricts automobile owners (except not-for-profit 
     organizations) from turning in more than 1 passenger 
     automobile and 1 light-duty truck during a 1-year period;
       (5) provides an appropriate payment to the person recycling 
     the scrapped passenger automobile or light-duty truck for 
     each turned-in passenger automobile or light-duty truck;
       (6) subject to subsection (d)(2), provides a minimum 
     payment to the automobile owner for each passenger automobile 
     and light-duty truck turned in; and
       (7) provides appropriate exceptions to the scrappage 
     requirement for vehicles that qualify as antique cars under 
     State law.
       (d) State Plan.--
       (1) In general.--To be eligible to receive funds under the 
     program, the Governor of a State shall submit to the 
     Secretary a plan to carry out a program under this section in 
     that State.
       (2) Additional state credit.--In addition to the payment 
     under subsection (c)(6), the State plan may provide a credit 
     that may be redeemed by the owner of the replaced fuel-
     inefficient automobile at the time of purchase of the new 
     fuel-efficient automobile.
       (e) Allocation Formula.--The amounts appropriated pursuant 
     to subsection (f) shall be allocated among the States on the 
     basis of the number of registered motor vehicles in each 
     State at the time that the Secretary needs to compute shares 
     under this subsection.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this section, to remain available 
     until expended.

     SEC. 203. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.

       (a) Statement of Policy.--Congress encourages each local 
     educational agency (as defined in section 9101(26) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801(26))) that receives Federal funds

[[Page 7122]]

      under the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) to develop a policy to reduce the 
     incidence of school bus idling at schools while picking up 
     and unloading students.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy, working in 
     coordination with the Secretary of Education, $5,000,000 for 
     each of fiscal years 2007 through 2012 for use in educating 
     States and local education agencies about--
       (1) benefits of reducing school bus idling; and
       (2) ways in which school bus idling may be reduced.

     SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

       (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) vehicles that use an electric motor for all or part of 
     their motive power and that may or may not 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 use 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;
       (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 3 of the Spark M. Matsunaga Hydrogen 
     Research, Development, and Demonstration Act of 1990).
       (5) 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).
       (6) 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.
       (7) 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.
       (c) 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;
       (3) high power 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 university 
     education 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-, med-
     ium-, 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 to--
       (i) understand and inventory markets; and
       (ii) identify and implement methods of removing barriers 
     for existing and emerging applications.
       (d) Goals.--The goals of the electric drive transportation 
     technology program established under subsection (c) 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.
       (e) 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.

     SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall establish a 
     research and development program to determine ways in which--
       (1) the weight of vehicles may be reduced to improve fuel 
     efficiency without compromising passenger safety; and
       (2) the cost of lightweight materials (such as steel alloys 
     and carbon fibers) required for the construction of lighter-
     weight vehicles may be reduced.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $60,000,000 for 
     each of fiscal years 2007 through 2012.

     SEC. 206. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE 
                   MANUFACTURER AND SUPPLIERS.

       (a) In General.--Section 712(a) of the Energy Policy Act of 
     2005 (42 U.S.C. 16062(a)) is amended in the second sentence 
     by striking ``grants to automobile manufacturers'' and 
     inserting ``grants and loan guarantees under section 1703 to 
     automobile manufacturers and suppliers''.
       (b) Conforming Amendment.--Section 1703(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by 
     striking paragraph (8) and inserting the following:
       ``(8) Production facilities for the manufacture of fuel-
     efficient vehicles or parts of such vehicles, including 
     hybrid and advanced diesel vehicles.''.

     SEC. 207. FUNDING FOR ALTERNATIVE INFRASTRUCTURE FOR THE 
                   DISTRIBUTION OF TRANSPORTATION FUELS.

       (a) In General.--There is established in the Treasury of 
     the United States a trust fund, to be known as the 
     ``Alternative Fueling Infrastructure Trust Fund'' (referred 
     to in this section as the ``Trust Fund''), consisting of such 
     amounts as are deposited into the Trust Fund under subsection 
     (b) and any interest earned on investment of amounts in the 
     Trust Fund.
       (b) Penalties.--The Secretary of Transportation shall remit 
     90 percent of the

[[Page 7123]]

     amount collected in civil penalties under section 32912 of 
     title 49, United States Code, to the Trust Fund.
       (c) Grant Program.--
       (1) In general.--The Secretary of Energy shall obligate 
     such sums as are available in the Trust Fund to establish a 
     grant program to increase the number of locations at which 
     consumers may purchase alternative transportation fuels.
       (2) Administration.--
       (A) In general.--The Secretary may award grants under this 
     subsection to--
       (i) individual fueling stations; and
       (ii) corporations (including nonprofit corporations) with 
     demonstrated experience in the administration of grant 
     funding for the purpose of alternative fueling 
     infrastructure.
       (B) Maximum amount of grants.--A grant provided under this 
     subsection may not exceed--
       (i) $150,000 for each site of an individual fueling 
     station; and
       (ii) $500,000 for each corporation (including a nonprofit 
     corporation).
       (C) Prioritization.--The Secretary shall prioritize the 
     provision of grants under this subsection to recognized 
     nonprofit corporations that have proven experience and 
     demonstrated technical expertise in the establishment of 
     alternative fueling infrastructure, as determined by the 
     Secretary.
       (D) Administrative expenses.--Not more than 10 percent of 
     the funds provided in any grant may be used by the recipient 
     of the grant to pay administrative expenses.
       (E) Number of vehicles.--In providing grants under this 
     subsection, the Secretary shall consider the number of 
     vehicles in service capable of using a specific type of 
     alternative fuel.
       (F) Match.--Grant recipients shall provide a non-Federal 
     match of not less than $1 for every $3 of grant funds 
     received under this subsection.
       (G) Locations.--Each grant recipient shall select the 
     locations for each alternative fuel station to be constructed 
     with grant funds received under this subsection on a formal, 
     open, and competitive basis.
       (H) Use of information in selection of recipients.--In 
     selecting grant recipients under this subsection, the 
     Secretary may consider--
       (i) public demand for each alternative fuel in a particular 
     county based on State registration records indicating the 
     number of vehicles that may be operated using alternative 
     fuel; and
       (ii) the opportunity to create or expand corridors of 
     alternative fuel stations along interstates or highways.
       (3) Use of grant funds.--Grant funds received under this 
     subsection may be used to--
       (A) construct new facilities to dispense alternative fuels;
       (B) purchase equipment to upgrade, expand, or otherwise 
     improve existing alternative fuel facilities; or
       (C) purchase equipment or pay for specific turnkey fueling 
     services by alternative fuel providers.
       (4) Facilities.--Facilities constructed or upgraded with 
     grant funds under this subsection shall--
       (A) provide alternative fuel available to the public for a 
     period not less than 4 years;
       (B) establish a marketing plan to advance the sale and use 
     of alternative fuels;
       (C) prominently display the price of alternative fuel on 
     the marquee and in the station;
       (D) provide point of sale materials on alternative fuel;
       (E) clearly label the dispenser with consistent materials;
       (F) price the alternative fuel at the same margin that is 
     received for unleaded gasoline; and
       (G) support and use all available tax incentives to reduce 
     the cost of the alternative fuel to the lowest practicable 
     retail price.
       (5) Opening of stations.--
       (A) In general.--Not later than the date on which each 
     alternative fuel station begins to offer alternative fuel to 
     the public, the grant recipient that used grant funds to 
     construct the station shall notify the Secretary of the 
     opening.
       (B) Website.--The Secretary shall add each new alternative 
     fuel station to the alternative fuel station locator on the 
     website of the Department of Energy when the Secretary 
     receives notification under this subsection.
       (6) Reports.--Not later than 180 days after the receipt of 
     a grant award under this subsection, and every 180 days 
     thereafter, each grant recipient shall submit a report to the 
     Secretary that describes--
       (A) the status of each alternative fuel station constructed 
     with grant funds received under this subsection;
       (B) the quantity of alternative fuel dispensed at each 
     station during the preceding 180-day period; and
       (C) the average price per gallon of the alternative fuel 
     sold at each station during the preceding 180-day period.

     SEC. 208. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN 
                   TRANSPORTATION.

       (a) Fuel From Cellulosic Biomass.--
       (1) In general.--The Secretary shall provide deployment 
     incentives under this subsection to encourage a variety of 
     projects to produce transportation fuel from cellulosic 
     biomass, relying on different feedstocks in different regions 
     of the United States.
       (2) Project eligibility.--Incentives under this subsection 
     shall be provided on a competitive basis to projects that 
     produce fuel that--
       (A) meet United States fuel and emission specifications;
       (B) help diversify domestic transportation energy supplies; 
     and
       (C) improve or maintain air, water, soil, and habitat 
     quality.
       (3) Incentives.--Incentives under this subsection may 
     consist of--
       (A) loan guarantees under section 1510 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16501), subject to section 1702 of 
     that Act (22 U.S.C. 16512), for the construction of 
     production facilities and supporting infrastructure; or
       (B) production payments through a reverse auction in 
     accordance with paragraph (4).
       (4) Reverse auction.--
       (A) In general.--In providing incentives under this 
     subsection, the Secretary shall--
       (i) issue regulations under which producers of fuel from 
     cellulosic biomass may bid for production payments under 
     paragraph (3)(B); and
       (ii) solicit bids from producers of different classes of 
     transportation fuel, as the Secretary determines to be 
     appropriate.
       (B) Requirement.--The rules under subparagraph (A) shall 
     require that incentives be provided to the producers that 
     submit the lowest bid (in terms of cents per gallon) for each 
     class of transportation fuel from which the Secretary 
     solicits a bid.
       (b) Advanced Technology Vehicles Manufacturing Incentive 
     Program.--
       (1) Definitions.--In this subsection:
       (A) Adjusted fuel economy.--The term ``adjusted fuel 
     economy'' means the average fuel economy of a manufacturer 
     for all light duty motor vehicles produced by the 
     manufacturer, adjusted such that the fuel economy of each 
     vehicle that qualifies for a credit shall be considered to be 
     equal to the average fuel economy for the weight class of the 
     vehicle for model year 2002.
       (B) Advanced lean burn technology motor vehicle.--The term 
     ``advanced lean burn technology motor vehicle'' means a 
     passenger automobile or a light truck with an internal 
     combustion engine that--
       (i) is designed to operate primarily using more air than is 
     necessary for complete combustion of the fuel;
       (ii) incorporates direct injection; and
       (iii) achieves at least 125 percent of the city fuel 
     economy of vehicles in the same size class as the vehicle for 
     model year 2002.
       (C) Advanced technology vehicle.--The term ``advanced 
     technology vehicle'' means a light duty motor vehicle that--
       (i) is a hybrid motor vehicle or an advanced lean burn 
     technology motor vehicle; and
       (ii) meets--

       (I) the Bin 5 Tier II emission standard established in 
     regulations issued by the Administrator of the Environmental 
     Protection Agency under section 202(i) of the Clean Air Act 
     (42 U.S.C. 7521(i)), or a lower-numbered Bin emission 
     standard;
       (II) any new emission standard for fine particulate matter 
     prescribed by the Administrator under that Act (42 U.S.C. 
     7401 et seq.); and
       (III) at least 125 percent of the base year city fuel 
     economy for the weight class of the vehicle.

       (D) Engineering integration costs.--The term ``engineering 
     integration costs'' includes the cost of engineering tasks 
     relating to--
       (i) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (ii) designing new tooling and equipment for production 
     facilities that produce qualifying components or advanced 
     technology vehicles.
       (E) Hybrid motor vehicle.--The term ``hybrid motor 
     vehicle'' means a motor vehicle that draws propulsion energy 
     from onboard sources of stored energy that are--
       (i) an internal combustion or heat engine using combustible 
     fuel; and
       (ii) a rechargeable energy storage system.
       (F) Qualifying components.--The term ``qualifying 
     components'' means components that the Secretary determines 
     to be--
       (i) specially designed for advanced technology vehicles; 
     and
       (ii) installed for the purpose of meeting the performance 
     requirements of advanced technology vehicles.
       (2) Manufacturer facility conversion awards.--The Secretary 
     shall provide facility conversion funding awards under this 
     subsection to automobile manufacturers and component 
     suppliers to pay not more than 30 percent of the cost of--
       (A) reequipping or expanding an existing manufacturing 
     facility in the United States to produce--
       (i) qualifying advanced technology vehicles; or
       (ii) qualifying components; and
       (B) engineering integration performed in the United States 
     of qualifying vehicles and qualifying components.
       (3) Period of availability.--An award under paragraph (2) 
     shall apply to--

[[Page 7124]]

       (A) facilities and equipment placed in service before 
     December 30, 2017; and
       (B) engineering integration costs incurred during the 
     period beginning on the date of enactment of this Act and 
     ending on December 30, 2017.
       (4) Improvement.--The Secretary shall issue regulations 
     that require that, in order for an automobile manufacturer to 
     be eligible for an award under this subsection during a 
     particular year, the adjusted average fuel economy of the 
     manufacturer for light duty vehicles produced by the 
     manufacturer during the most recent year for which data are 
     available shall be not less than the average fuel economy for 
     all light duty motor vehicles of the manufacturer for model 
     year 2002.

     SEC. 209. 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 ``$200,000,000 for each of fiscal years 2007 
     through 2011''.

    TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

     SEC. 301. RENEWABLE PORTFOLIO STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity it sells to electric 
     consumers in any calendar year from new renewable energy or 
     existing renewable energy. The percentage obtained in a 
     calendar year shall not be less than the amount specified in 
     the following table:
``Calendar year:                             Minimum annual percentage:
2008 through 2011..................................................2.55
2012 through 2015..................................................5.05
2016 through 2019..................................................7.55
2020 through 2030..................................................10.0

       ``(2) Means of compliance.--An electric utility shall meet 
     the requirements of paragraph (1) by--
       ``(A) generating electric energy using new renewable energy 
     or existing renewable energy;
       ``(B) purchasing electric energy generated by new renewable 
     energy or existing renewable energy;
       ``(C) purchasing renewable energy credits issued under 
     subsection (b); or
       ``(D) a combination of the foregoing.
       ``(b) Renewable Energy Credit Trading Program.--
       ``(1) In general.--Not later than January 1, 2007, the 
     Secretary shall establish a renewable energy credit trading 
     program to permit an electric utility that does not generate 
     or purchase enough electric energy from renewable energy to 
     meet its obligations under subsection (a)(1) to satisfy such 
     requirements by purchasing sufficient renewable energy 
     credits.
       ``(2) Administration.--As part of the program, the 
     Secretary shall--
       ``(A) issue renewable energy credits to generators of 
     electric energy from new renewable energy;
       ``(B) sell renewable energy credits to electric utilities 
     at the rate of 1.5 cents per kilowatt-hour (as adjusted for 
     inflation under subsection (g));
       ``(C) ensure that a kilowatt hour, including the associated 
     renewable energy credit, shall be used only once for purposes 
     of compliance with this section; and
       ``(D) allow double credits for generation from facilities 
     on Indian land, and triple credits for generation from small 
     renewable distributed generators (meaning those no larger 
     than 1 megawatt).
       ``(3) Duration.--Credits under paragraph (2)(A) may only be 
     used for compliance with this section for 3 years from the 
     date issued.
       ``(4) Transfers.--An electric utility that holds credits in 
     excess of the amount needed to comply with subsection (a) may 
     transfer such credits to another electric utility in the same 
     utility holding company system.
       ``(5) Eastern interconnect.--In the case of a retail 
     electric supplier that is a member of a power pool located in 
     the Eastern Interconnect and that is subject to a State 
     renewable portfolio standard program that provides for 
     compliance primarily through the acquisition of certificates 
     or credits in lieu of the direct acquisition of renewable 
     power, the Secretary shall issue renewable energy credits in 
     an amount that corresponds to the kilowatt-hour obligation 
     represented by the State certificates and credits issued 
     pursuant to the State program to the extent the State 
     certificates and credits are associated with renewable 
     resources eligible under this section.
       ``(c) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the renewable energy requirements of subsection (a) 
     shall be subject to a civil penalty.
       ``(2) Amount of penalty.--The amount of the civil penalty 
     shall be determined by multiplying the number of kilowatt-
     hours of electric energy sold to electric consumers in 
     violation of subsection (a) by the greater of 1.5 cents 
     (adjusted for inflation under subsection (g)) or 200 percent 
     of the average market value of renewable energy credits 
     during the year in which the violation occurred.
       ``(3) Mitigation or waiver.--The Secretary may mitigate or 
     waive a civil penalty under this subsection if the electric 
     utility was unable to comply with subsection (a) for reasons 
     outside of the reasonable control of the utility. The 
     Secretary shall reduce the amount of any penalty determined 
     under paragraph (2) by an amount paid by the electric utility 
     to a State for failure to comply with the requirement of a 
     State renewable energy program if the State requirement is 
     greater than the applicable requirement of subsection (a).
       ``(4) Procedure for assessing penalty.--The Secretary shall 
     assess a civil penalty under this subsection in accordance 
     with the procedures prescribed by section 333(d) of the 
     Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
       ``(d) State Renewable Energy Account Program.--
       ``(1) In general.--The Secretary shall establish, not later 
     than December 31, 2008, a State renewable energy account 
     program.
       ``(2) Deposits.--All money collected by the Secretary from 
     the sale of renewable energy credits and the assessment of 
     civil penalties under this section shall be deposited into 
     the renewable energy account established pursuant to this 
     subsection. The State renewable energy account shall be held 
     by the Secretary and shall not be transferred to the Treasury 
     Department.
       ``(3) Use.--Proceeds deposited in the State renewable 
     energy account shall be used by the Secretary, subject to 
     appropriations, for a program to provide grants to the State 
     agency responsible for developing State energy conservation 
     plans under section 362 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322) for the purposes of promoting renewable 
     energy production, including programs that promote 
     technologies that reduce the use of electricity at customer 
     sites such as solar water heating.
       ``(4) Administration.--The Secretary may issue guidelines 
     and criteria for grants awarded under this subsection. State 
     energy offices receiving grants under this section shall 
     maintain such records and evidence of compliance as the 
     Secretary may require.
       ``(5) Preference.--In allocating funds under this program, 
     the Secretary shall give preference--
       ``(A) to States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) to State programs to stimulate or enhance innovative 
     renewable energy technologies.
       ``(e) Rules.--The Secretary shall issue rules implementing 
     this section not later than 1 year after the date of 
     enactment of this section.
       ``(f) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility--
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(g) Inflation Adjustment.--Not later than December 31 of 
     each year beginning in 2008, the Secretary shall adjust for 
     inflation the price of a renewable energy credit under 
     subsection (b)(2)(B) and the amount of the civil penalty per 
     kilowatt-hour under subsection (c)(2).
       ``(h) State Programs.--Nothing in this section shall 
     diminish any authority of a State or political subdivision 
     thereof to adopt or enforce any law or regulation respecting 
     renewable energy, but, except as provided in subsection 
     (c)(3), no such law or regulation shall relieve any person of 
     any requirement otherwise applicable under this section. The 
     Secretary, in consultation with States having such renewable 
     energy programs, shall, to the maximum extent practicable, 
     facilitate coordination between the Federal program and State 
     programs.
       ``(i) Recovery of Costs.--
       ``(1) In general.--The Commission shall issue and enforce 
     such regulations as are necessary to ensure that an electric 
     utility recovers all prudently incurred costs associated with 
     compliance with this section.
       ``(2) Applicable law.--A regulation under paragraph (1) 
     shall be enforceable in accordance with the provisions of law 
     applicable to enforcement of regulations under the Federal 
     Power Act (16 U.S.C. 791a et seq.).
       ``(j) Definitions.--In this section:
       ``(1) Base amount of electricity.--The term `base amount of 
     electricity' means the total amount of electricity sold by an 
     electric utility to electric consumers in a calendar year, 
     excluding--
       ``(A) electricity generated by a hydroelectric facility 
     (including a pumped storage facility but excluding 
     incremental hydropower); and
       ``(B) electricity generated through the incineration of 
     municipal solid waste.
       ``(2) Distributed generation facility.--The term 
     `distributed generation facility' means a facility at a 
     customer site.
       ``(3) Existing renewable energy.--The term `existing 
     renewable energy' means, except as provided in paragraph 
     (7)(B), electric energy generated at a facility (including a 
     distributed generation facility) placed in

[[Page 7125]]

     service prior to January 1, 2003, from solar, wind, or 
     geothermal energy, ocean energy, biomass (as defined in 
     section 203(a) of the Energy Policy Act of 2005), or landfill 
     gas.
       ``(4) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(5) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       ``(i) the total kilowatt hours of electricity produced from 
     a facility (including a distributed generation facility) 
     using geothermal energy; over
       ``(ii) the average annual kilowatt hours produced at such 
     facility for 5 of the previous 7 calendar years before the 
     date of enactment of this section after eliminating the 
     highest and the lowest kilowatt hour production years in such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) that was placed in service at least 7 years before the 
     date of enactment of this section shall commencing with the 
     year in which such date of enactment occurs, reduce the 
     amount calculated under subparagraph (A)(ii) each year, on a 
     cumulative basis, by the average percentage decrease in the 
     annual kilowatt hour production for the 7-year period 
     described in subparagraph (A)(ii) with such cumulative sum 
     not to exceed 30 percent.
       ``(6) Incremental hydropower.--The term `incremental 
     hydropower' means additional energy generated as a result of 
     efficiency improvements or capacity additions made on or 
     after the date of enactment of this section or the effective 
     date of an existing applicable State renewable portfolio 
     standard program at a hydroelectric facility that was placed 
     in service before that date. The term does not include 
     additional energy generated as a result of operational 
     changes not directly associated with efficiency improvements 
     or capacity additions. Efficiency improvements and capacity 
     additions shall be measured on the basis of the same water 
     flow information used to determine a historic average annual 
     generation baseline for the hydroelectric facility and 
     certified by the Secretary or the Federal Energy Regulatory 
     Commission.
       ``(7) New renewable energy.--The term `new renewable 
     energy' means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after January 1, 2003, from--
       ``(i) solar, wind, or geothermal energy or ocean energy;
       ``(ii) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(iii) landfill gas; or
       ``(iv) incremental hydropower; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service prior to the date of enactment of this section--
       ``(i) the additional energy above the average generation in 
     the 3 years preceding the date of enactment of this section 
     at the facility from--

       ``(I) solar or wind energy or ocean energy;
       ``(II) biomass (as defined in section 203(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 15852(b));
       ``(III) landfill gas; or
       ``(IV) incremental hydropower.

       ``(ii) incremental geothermal production.
       ``(8) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.
       ``(k) Sunset.--This section expires on December 31, 
     2030.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     prec. 2601) is amended by adding at the end of the items 
     relating to title VI the following:

``Sec. 610. Federal renewable portfolio standard.''.

     SEC. 302. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY 
                   GENERATED BY RENEWABLE ENERGY.

       Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 
     15852) is amended by striking subsection (a) and inserting 
     the following:
       ``(a) Requirement.--The President, acting through the 
     Secretary, shall ensure that, of the total quantity of 
     electric energy the Federal Government consumes during any 
     fiscal year, the following amounts shall be renewable energy:
       ``(1) Not less than 5 percent in each of fiscal years 2008 
     and 2009.
       ``(2) Not less than 7.5 percent in each of fiscal years 
     2010 through 2012.
       ``(3) Not less than 10 percent in fiscal years 2013 and 
     each fiscal year thereafter.''.

              TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

     SEC. 401. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Retention of Savings.--Section 546(c) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended 
     by striking paragraph (5).
       (b) Financing Flexibility.--Section 801(a)(2) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)) is amended by adding at the end the following:
       ``(E) Separate contracts.--In carrying out a contract under 
     this title, a Federal agency may--
       ``(i) enter into a separate contract for energy services 
     and conservation measures under the contract; and
       ``(ii) provide all or part of the financing necessary to 
     carry out the contract.''.
       (c) Definition of Energy Savings.--Section 804(2) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) 
     is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively, and indenting 
     appropriately;
       (2) by striking ``means a reduction'' and inserting 
     ``means--
       ``(A) a reduction'';
       (3) by striking the period at the end and inserting a 
     semicolon; and
       (4) by adding at the end the following:
       ``(B) the increased efficient use of an existing energy 
     source by cogeneration or heat recovery, and installation of 
     renewable energy systems;
       ``(C) the sale or transfer of electrical or thermal energy 
     generated on-site, but in excess of Federal needs, to 
     utilities or non-Federal energy users; and
       ``(D) the increased efficient use of existing water sources 
     in interior or exterior applications.''.
       (d) Energy and Cost Savings in Nonbuilding Applications.--
       (1) Definitions.--In this subsection:
       (A) Nonbuilding application.--The term ``nonbuilding 
     application'' means--
       (i) any class of vehicles, devices, or equipment that is 
     transportable under the power of the applicable vehicle, 
     device, or equipment by land, sea, or air and that consumes 
     energy from any fuel source for the purpose of--

       (I) that transportation; or
       (II) maintaining a controlled environment within the 
     vehicle, device, or equipment; and

       (ii) any federally-owned equipment used to generate 
     electricity or transport water.
       (B) Secondary savings.--
       (i) In general.--The term ``secondary savings'' means 
     additional energy or cost savings that are a direct 
     consequence of the energy savings that result from the energy 
     efficiency improvements that were financed and implemented 
     pursuant to an energy savings performance contract.
       (ii) Inclusions.--The term ``secondary savings'' includes--

       (I) energy and cost savings that result from a reduction in 
     the need for fuel delivery and logistical support;
       (II) personnel cost savings and environmental benefits; and
       (III) in the case of electric generation equipment, the 
     benefits of increased efficiency in the production of 
     electricity, including revenues received by the Federal 
     Government from the sale of electricity so produced.

       (2) Study.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Defense shall jointly conduct, and submit to Congress and the 
     President a report of, a study of the potential for the use 
     of energy savings performance contracts to reduce energy 
     consumption and provide energy and cost savings in 
     nonbuilding applications.
       (B) Requirements.--The study under this subsection shall 
     include--
       (i) an estimate of the potential energy and cost savings to 
     the Federal Government, including secondary savings and 
     benefits, from increased efficiency in nonbuilding 
     applications;
       (ii) an assessment of the feasibility of extending the use 
     of energy savings performance contracts to nonbuilding 
     applications, including an identification of any regulatory 
     or statutory barriers to such use; and
       (iii) such recommendations as the Secretary and Secretary 
     of Defense determine to be appropriate.

     SEC. 402. DEPLOYMENT OF NEW TECHNOLOGIES FOR HIGH-EFFICIENCY 
                   CONSUMER PRODUCTS.

       (a) Definitions.--In this section:
       (1) Energy savings.--The term ``energy savings'' means 
     megawatt-hours of electricity or million British thermal 
     units of natural gas saved by a product, in comparison to 
     projected energy consumption under the energy efficiency 
     standard applicable to the product.
       (2) High-efficiency consumer product.--The term ``high-
     efficiency consumer product'' means a covered product to 
     which an energy conservation standard applies under section 
     325 of the Energy Policy and Conservation Act (42 U.S.C. 
     6295), if the energy efficiency of the product exceeds the 
     energy efficiency required under the standard.
       (b) Financial Incentives Program.--Effective beginning 
     October 1, 2006, the Secretary shall competitively award 
     financial incentives under this section for the manufacture 
     of high-efficiency consumer products.
       (c) Requirements.--
       (1) In general.--The Secretary shall make awards under this 
     section to manufacturers of high-efficiency consumer 
     products, based on the bid of each manufacturer in terms of 
     dollars per megawatt-hour or million British thermal units 
     saved.
       (2) Acceptance of bids.--In making awards under this 
     section, the Secretary shall--

[[Page 7126]]

       (A) solicit bids for reverse auction from appropriate 
     manufacturers, as determined by the Secretary; and
       (B) award financial incentives to the manufacturers that 
     submit the lowest bids that meet the requirements established 
     by the Secretary.
       (d) Forms of Awards.--An award for a high-efficiency 
     consumer product under this section shall be in the form of a 
     lump sum payment in an amount equal to the product obtained 
     by multiplying--
       (1) the amount of the bid by the manufacturer of the high-
     efficiency consumer product; and
       (2) the energy savings during the projected useful life of 
     the high-efficiency consumer product, not to exceed 10 years, 
     as determined under regulations issued by the Secretary.

     SEC. 403. NATIONAL MEDIA CAMPAIGN TO DECREASE OIL AND NATURAL 
                   GAS CONSUMPTION.

       (a) In General.--The Secretary, acting through the 
     Assistant Secretary for Energy Efficiency and Renewable 
     Energy (referred to in this section as the ``Secretary''), 
     shall develop and conduct a national media campaign for the 
     purpose of decreasing oil and natural gas consumption in the 
     United States over the next decade.
       (b) Contract With Entity.--The Secretary shall carry out 
     subsection (a) directly or through--
       (1) competitively bid contracts with 1 or more nationally 
     recognized media firms for the development and distribution 
     of monthly television, radio, and newspaper public service 
     announcements; or
       (2) collective agreements with 1 or more nationally 
     recognized institutes, businesses, or nonprofit organizations 
     for the funding, development, and distribution of monthly 
     television, radio, and newspaper public service 
     announcements.
       (c) Use of Funds.--
       (1) In general.--Amounts made available to carry out this 
     section shall be used for the following:
       (A) Advertising costs.--
       (i) The purchase of media time and space.
       (ii) Creative and talent costs.
       (iii) Testing and evaluation of advertising.
       (iv) Evaluation of the effectiveness of the media campaign.
       (v) The negotiated fees for the winning bidder on requests 
     from proposals issued either by the Secretary for purposes 
     otherwise authorized in this section.
       (vi) Entertainment industry outreach, interactive outreach, 
     media projects and activities, public information, news media 
     outreach, and corporate sponsorship and participation.
       (B) Administrative costs.--Operational and management 
     expenses.
       (2) Limitations.--In carrying out this section, the 
     Secretary shall allocate not less than 85 percent of funds 
     made available under subsection (e) for each fiscal year for 
     the advertising functions specified under paragraph (1)(A).
       (d) Reports.--The Secretary shall annually submit to 
     Congress a report that describes--
       (1) the strategy of the national media campaign and whether 
     specific objectives of the campaign were accomplished, 
     including--
       (A) determinations concerning the rate of change of oil and 
     natural gas consumption, in both absolute and per capita 
     terms; and
       (B) an evaluation that enables consideration whether the 
     media campaign contributed to reduction of oil and natural 
     gas consumption;
       (2) steps taken to ensure that the national media campaign 
     operates in an effective and efficient manner consistent with 
     the overall strategy and focus of the campaign;
       (3) plans to purchase advertising time and space;
       (4) policies and practices implemented to ensure that 
     Federal funds are used responsibly to purchase advertising 
     time and space and eliminate the potential for waste, fraud, 
     and abuse; and
       (5) all contracts or cooperative agreements entered into 
     with a corporation, partnership, or individual working on 
     behalf of the national media campaign.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 404. ENERGY EFFICIENCY RESOURCE PROGRAMS.

       (a) Electric Utility Programs.--Section 111 of the Public 
     Utilities Regulatory Policy Act of 1978 (16 U.S.C. 2621) is 
     amended by adding at the end the following:
       ``(e) Energy Efficiency Resource Programs.--
       ``(1) Definitions.--In this subsection:
       ``(A) Demand baseline.--The term `demand baseline' means 
     the baseline determined by the Secretary for an appropriate 
     period preceding the implementation of an energy efficiency 
     resource program.
       ``(B) Energy efficiency resource programs.--The term 
     `energy efficiency resource program' means an energy 
     efficiency or other demand reduction program that is designed 
     to reduce annual electricity consumption or peak demand of 
     consumers served by an electric utility by a percentage of 
     the demand baseline of the utility that is equal to not less 
     than 0.75 percent of the number of years during which the 
     program is in effect.
       ``(2) Public hearings; determinations.--
       ``(A) Public hearing.--As soon as practicable after the 
     date of enactment of this subsection, but not later than 3 
     years after that date, each State regulatory authority (with 
     respect to each electric utility over which the State has 
     ratemaking authority) and each nonregulated electric utility 
     shall, after notice, conduct a public hearing on the benefits 
     and feasibility of carrying out an energy efficiency resource 
     program.
       ``(B) Energy efficiency resource program.--A State 
     regulatory authority or nonregulated utility shall carry out 
     an energy efficiency resource program if, on the basis of a 
     hearing under subparagraph (A), the State regulatory 
     authority or nonregulated utility determines that the program 
     would--
       ``(i) benefit end-use customers;
       ``(ii) be cost-effective based on total resource cost;
       ``(iii) serve the public welfare; and
       ``(iv) be feasible to carry out.
       ``(3) Implementation.--
       ``(A) State regulatory authorities.--If a State regulatory 
     authority makes a determination under paragraph (2)(B), the 
     State regulatory authority shall--
       ``(i) require each electric utility over which the State 
     has ratemaking authority to carry out an energy efficiency 
     resource program; and
       ``(ii) allow such a utility to recover expenditures 
     incurred by the utility in carrying out the energy efficiency 
     resource program.
       ``(B) Nonregulated electric utilities.--If a nonregulated 
     electric utility makes a determination under paragraph 
     (2)(B), the utility shall carry out an energy efficiency 
     resource program.
       ``(4) Updating regulations.--A State regulatory authority 
     or nonregulated utility may update periodically a 
     determination under paragraph (2)(B) to determine whether an 
     energy efficiency resource program should be--
       ``(A) continued;
       ``(B) modified; or
       ``(C) terminated.
       ``(5) Exception.--Paragraph (2) shall not apply to a State 
     regulatory authority (or a nonregulated electric utility 
     operating in the State) that demonstrates to the Secretary 
     that an energy efficiency resource program is in effect in 
     the State.''.
       (b) Gas Utilities.--Section 303 of the Public Utilities 
     Regulatory Policy Act of 1978 (15 U.S.C. 3203) is amended by 
     adding at the end the following:
       ``(e) Energy Efficiency Resource Programs.--
       ``(1) Definitions.--In this subsection:
       ``(A) Demand baseline.--The term `demand baseline' means 
     the baseline determined by the Secretary for an appropriate 
     period preceding the implementation of an energy efficiency 
     resource program.
       ``(B) Energy efficiency resource programs.--The term 
     `energy efficiency resource program' means an energy 
     efficiency or other demand reduction program that is designed 
     to reduce annual gas consumption or peak demand of consumers 
     served by a gas utility by a percentage of the demand 
     baseline of the utility that is equal to not less than 0.75 
     percent of the number of years during which the program is in 
     effect.
       ``(2) Public hearings; determinations.--
       ``(A) Public hearing.--As soon as practicable after the 
     date of enactment of this subsection, but not later than 3 
     years after that date, each State regulatory authority (with 
     respect to each gas utility over which the State has 
     ratemaking authority) and each nonregulated gas utility 
     shall, after notice, conduct a public hearing on the benefits 
     and feasibility of carrying out an energy efficiency resource 
     program.
       ``(B) Energy efficiency resource program.--A State 
     regulatory authority or nonregulated utility shall carry out 
     an energy efficiency resource program if, on the basis of a 
     hearing under subparagraph (A), the State regulatory 
     authority or nonregulated utility determines that the program 
     would--
       ``(i) benefit end-use customers;
       ``(ii) be cost-effective based on total resource cost;
       ``(iii) serve the public welfare; and
       ``(iv) be feasible to carry out.
       ``(3) Implementation.--
       ``(A) State regulatory authorities.--If a State regulatory 
     authority makes a determination under paragraph (2)(B), the 
     State regulatory authority shall--
       ``(i) require each gas utility over which the State has 
     ratemaking authority to carry out an energy efficiency 
     resource program; and
       ``(ii) allow such a utility to recover expenditures 
     incurred by the utility in carrying out the energy efficiency 
     resource program.
       ``(B) Nonregulated gas utilities.--If a nonregulated gas 
     utility makes a determination under paragraph (2)(B), the 
     utility shall carry out an energy efficiency resource 
     program.
       ``(4) Updating regulations.--A State regulatory authority 
     or nonregulated utility may update periodically a 
     determination under paragraph (2)(B) to determine whether an 
     energy efficiency resource program should be--
       ``(A) continued;
       ``(B) modified; or
       ``(C) terminated.
       ``(5) Exception.--Paragraph (2) shall not apply to a State 
     regulatory authority (or a

[[Page 7127]]

     nonregulated gas utility operating in the State) that 
     demonstrates to the Secretary that an energy efficiency 
     resource program is in effect in the State.''.

                TITLE V--ASSISTANCE TO ENERGY CONSUMERS

     SEC. 501. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL 
                   BUSINESS AND AGRICULTURAL PRODUCERS.

       (a) Definitions.--In this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Small Business Administration; and
       (2) the term ``small business concern'' has the meaning 
     given the term in section 3 of the Small Business Act (15 
     U.S.C. 632).
       (b) Small Business Producer Energy Emergency Disaster Loan 
     Program.--
       (1) Disaster loan authority.--Section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)) is amended by inserting 
     immediately after paragraph (3) the following:
       ``(4) Energy disaster loans.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `base price index' means the moving average 
     of the closing unit price on the New York Mercantile Exchange 
     for heating oil, natural gas, gasoline, or propane for the 10 
     days that correspond to the trading days described in clause 
     (ii) in each of the most recent 2 preceding years;
       ``(ii) the term `current price index' means the moving 
     average of the closing unit price on the New York Mercantile 
     Exchange, for the 10 most recent trading days, for contracts 
     to purchase heating oil, natural gas, gasoline, or propane 
     during the subsequent calendar month, commonly known as the 
     `front month'; and
       ``(iii) the term `significant increase' means--

       ``(I) with respect to the price of heating oil, natural 
     gas, gasoline, or propane, any time the current price index 
     exceeds the base price index by not less than 40 percent; and
       ``(II) with respect to the price of kerosene, any increase 
     which the Administrator, in consultation with the Secretary 
     of Energy, determines to be significant.

       ``(B) Loan authority.--The Administrator may make such 
     loans, either directly or in cooperation with banks or other 
     lending institutions through agreements to participate on an 
     immediate or deferred basis, to assist a small business 
     concern that has suffered or that is likely to suffer 
     substantial economic injury on or after January 1, 2005, as 
     the result of a significant increase in the price of heating 
     oil, natural gas, gasoline, propane, or kerosene occurring on 
     or after January 1, 2005.
       ``(C) Interest rate.--Any loan or guarantee extended 
     pursuant to this paragraph shall be made at the same interest 
     rate as economic injury loans under paragraph (2).
       ``(D) Maximum amount.--No loan may be made under this 
     paragraph, either directly or in cooperation with banks or 
     other lending institutions through agreements to participate 
     on an immediate or deferred basis, if the total amount 
     outstanding and committed to the borrower under this 
     subsection would exceed $1,500,000, unless such borrower 
     constitutes a major source of employment in its surrounding 
     area, as determined by the Administrator, in which case the 
     Administrator, in the discretion of the Administrator, may 
     waive the $1,500,000 limitation.
       ``(E) Disaster declaration.--For purposes of assistance 
     under this paragraph--
       ``(i) a declaration of a disaster area based on conditions 
     specified in this paragraph shall be required, and shall be 
     made by the President or the Administrator; or
       ``(ii) if no declaration has been made pursuant to clause 
     (i), the Governor of a State in which a significant increase 
     in the price of heating oil, natural gas, gasoline, propane, 
     or kerosene has occurred may certify to the Administrator 
     that small business concerns have suffered economic injury as 
     a result of such increase and are in need of financial 
     assistance which is not otherwise available on reasonable 
     terms in that State, and upon receipt of such certification, 
     the Administrator may make such loans as would have been 
     available under this paragraph if a disaster declaration had 
     been issued.
       ``(F) Conversion.--Notwithstanding any other provision of 
     law, loans made under this paragraph may be used by a small 
     business concern described in subparagraph (B) to convert 
     from the use of heating oil, natural gas, gasoline, propane, 
     or kerosene to a renewable or alternative energy source, 
     including agriculture and urban waste, geothermal energy, 
     cogeneration, solar energy, wind energy, or fuel cells.''.
       (2) Conforming amendments.--Section 3(k) of the Small 
     Business Act (15 U.S.C. 632(k)) is amended--
       (A) by inserting ``, a significant increase in the price of 
     heating oil, natural gas, gasoline, propane, or kerosene,'' 
     after ``civil disorders''; and
       (B) by inserting ``other'' before ``economic''.
       (c) Agricultural Producer Emergency Loans.--
       (1) In general.--Section 321(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961(a)) is amended--
       (A) in the first sentence--
       (i) by striking ``aquaculture operations have'' and 
     inserting ``aquaculture operations (i) have''; and
       (ii) by inserting before ``: Provided,'' the following: ``, 
     or (ii)(I) are owned or operated by such an applicant that is 
     also a small business concern (as defined in section 3 of the 
     Small Business Act (15 U.S.C. 632)), and (II) have suffered 
     or are likely to suffer substantial economic injury on or 
     after January 1, 2005, as the result of a significant 
     increase in energy costs or input costs from energy sources 
     occurring on or after January 1, 2005, in connection with an 
     energy emergency declared by the President or the 
     Secretary'';
       (B) in the third sentence, by inserting before the period 
     at the end the following: ``or by an energy emergency 
     declared by the President or the Secretary''; and
       (C) in the fourth sentence--
       (i) by striking ``or natural disaster'' each place that 
     term appears and inserting ``, natural disaster, or energy 
     emergency''; and
       (ii) by inserting ``or declaration'' after ``emergency 
     designation''.
       (2) Funding.--Funds available on the date of enactment of 
     this Act for emergency loans under subtitle C of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
     seq.) shall be available to carry out the amendments made by 
     paragraph (1) to meet the needs resulting from natural 
     disasters.
       (d) Guidelines and Rulemaking.--
       (1) Guidelines.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator and the Secretary of 
     Agriculture shall each issue guidelines to carry out 
     subsections (b) and (c), respectively, and the amendments 
     made thereby, which guidelines shall become effective on the 
     date of their issuance.
       (2) Rulemaking.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator, after consultation 
     with the Secretary of Energy, shall promulgate regulations 
     specifying the method for determining a significant increase 
     in the price of kerosene under section 7(b)(4)(A)(iii)(II) of 
     the Small Business Act, as added by this section.
       (e) Reports.--
       (1) Small business administration.--Not later than 12 
     months after the date on which the Administrator issues 
     guidelines under subsection (d)(1), and annually thereafter, 
     until the date that is 12 months after the end of the 
     effective period of section 7(b)(4) of the Small Business 
     Act, as added by this section, the Administrator shall submit 
     to the Committee on Small Business and Entrepreneurship of 
     the Senate and the Committee on Small Business of the House 
     of Representatives, a report on the effectiveness of the 
     assistance made available under section 7(b)(4) of the Small 
     Business Act, as added by this section, including--
       (A) the number of small business concerns that applied for 
     a loan under such section 7(b)(4) and the number of those 
     that received such loans;
       (B) the dollar value of those loans;
       (C) the States in which the small business concerns that 
     received such loans are located;
       (D) the type of energy that caused the significant increase 
     in the cost for the participating small business concerns; 
     and
       (E) recommendations for ways to improve the assistance 
     provided under such section 7(b)(4), if any.
       (2) Department of agriculture.--Not later than 12 months 
     after the date on which the Secretary of Agriculture issues 
     guidelines under subsection (d)(1), and annually thereafter, 
     until the date that is 12 months after the end of the 
     effective period of the amendments made to section 321(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a)) by this section, the Secretary shall submit to the 
     Committee on Small Business and Entrepreneurship and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and to the Committee on Small Business and the 
     Committee on Agriculture of the House of Representatives, a 
     report that--
       (A) describes the effectiveness of the assistance made 
     available under section 321(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1961(a)), as amended by this 
     section; and
       (B) contains recommendations for ways to improve the 
     assistance provided under such section 321(a).
       (f) Effective Date.--
       (1) Small business.--The amendments made by subsection (b) 
     shall apply during the 4-year period beginning on the earlier 
     of the date on which guidelines are published by the 
     Administrator under subsection (d)(1) or 30 days after the 
     date of enactment of this Act, with respect to assistance 
     under section 7(b)(4) of the Small Business Act, as added by 
     this section.
       (2) Agriculture.--The amendments made by subsection (c) 
     shall apply during the 4-year period beginning on the earlier 
     of the date on which guidelines are published by the 
     Secretary of Agriculture under subsection (d)(1) or 30 days 
     after the date of enactment of this Act, with respect to 
     assistance under section 321(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1961(a)), as amended by this 
     section.

     SEC. 502. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM 
                   FOR WEATHERIZATION PURPOSES.

       (a) In General.--Part A of title IV of the Energy 
     Conservation and Production Act is amended--

[[Page 7128]]

       (1) by redesignating section 422 (42 U.S.C. 6872) as 
     section 423; and
       (2) by inserting after section 421 (42 U.S.C. 6871) the 
     following:

     ``SEC. 422. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM 
                   FOR WEATHERIZATION PURPOSES.

       ``(a) Establishment of Program.--The Secretary shall 
     establish, within the Weatherization Assistance Program, a 
     program to assist in the replacement of unsafe or highly 
     inefficient heating and cooling units in low-income 
     households.
       ``(b) Administration.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall administer the program 
     established under this section in accordance with this part.
       ``(2) Exemption for high-efficiency heating and cooling 
     equipment expenditures.--Assistance for high-efficiency 
     heating and cooling equipment under this section shall be 
     exempt from the standards established under section 413(b)(3) 
     and from section 415(c).
       ``(3) Identification of heating and cooling system 
     upgrades.--Assistance for system upgrades under this section 
     shall be based on a standard weatherization audit and 
     appropriate diagnostic procedures in use by the program.
       ``(4) Weatherization of home receiving new heating or 
     cooling system.--Assistance may be perceived for a home 
     receiving a new heating or cooling system under this section 
     regardless of whether the home is fully weatherized in the 
     year that the home received a new heating system.
       ``(5) Fuel.--The Secretary shall make no rule prohibiting a 
     grantee from installing high-efficiency equipment that uses a 
     fuel (including a renewable fuel) most likely to result in 
     reliable supply and the lowest practicable energy bills, 
     regardless of the fuel previously used by the household.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section--
       ``(1) $40,000,000 for fiscal year 2006;
       ``(2) $50,000,000 for fiscal year 2007; and
       ``(3) $60,000,000 for fiscal year 2008.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Conservation and Production Act (42 U.S.C. prec. 
     6901) is amended--
       (1) by redesignating the item relating to section 422 as an 
     item relating to section 423; and
       (2) by inserting after the item relating to section 421 the 
     following:

``Sec. 422. Efficient and safe equipment program.''.

                                S. 2748

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

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

       (a) Short Title.--This Act may be cited as the ``Enhanced 
     Energy Security Tax Incentives Act of 2006''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                    TITLE I--EXTENSION OF INCENTIVES

Sec. 101. Extension of credit for electricity produced from certain 
              renewable resources.
Sec. 102. Extension and expansion of credit to holders of clean 
              renewable energy bonds.
Sec. 103. Extension of energy efficient commercial buildings deduction.
Sec. 104. Extension and expansion of new energy efficient home credit.
Sec. 105. Extension of nonbusiness energy property credit.
Sec. 106. Extension of residential energy efficient property credit.
Sec. 107. Extension of credit for business installation of qualified 
              fuel cells and stationary microturbine power plants.
Sec. 108. Extension of business solar investment tax credit.
Sec. 109. Extension of alternative fuel excise tax provisions, income 
              tax credits, and tariff duties.
Sec. 110. Extension of full credit for qualified electric vehicles.

           TITLE II--INCENTIVES FOR ALTERNATIVE FUEL VEHICLES

Sec. 201. Consumer incentives to purchase advanced technology vehicles.
Sec. 202. Advanced technology motor vehicles manufacturing credit.
Sec. 203. Tax incentives for private fleets.
Sec. 204. Modification of alternative vehicle refueling property 
              credit.
Sec. 205. Inclusion of heavy vehicles in limitation on depreciation of 
              certain luxury automobiles.
Sec. 206. Idling reduction tax credit.

                    TITLE III--ADDITIONAL INCENTIVES

Sec. 301. Energy credit for combined heat and power system property.
Sec. 302. Three-year applicable recovery period for depreciation of 
              qualified energy management devices.
Sec. 303. Three-year applicable recovery period for depreciation of 
              qualified water submetering devices.

                      TITLE IV--REVENUE PROVISIONS

Sec. 401. Revaluation of LIFO inventories of large integrated oil 
              companies.
Sec. 402. Elimination of amortization of geological and geophysical 
              expenditures for major integrated oil companies.
Sec. 403. Modifications of foreign tax credit rules applicable to large 
              integrated oil companies which are dual capacity 
              taxpayers.

                    TITLE I--EXTENSION OF INCENTIVES

     SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 
                   CERTAIN RENEWABLE RESOURCES.

       Section 45(d) (relating to qualified facilities) is amended 
     by striking ``2008'' each place it appears and inserting 
     ``2011''.

     SEC. 102. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF 
                   CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Section 54(m) (relating to termination) is 
     amended by striking ``2007'' and inserting ``2010''.
       (b) Annual Volume Cap for Bonds Issued During Extension 
     Period.--Paragraph (1) of section 54(f) (relating to 
     limitation on amount of bonds designated) is amended to read 
     as follows:
       ``(1) National limitation.--
       ``(A) Initial national limitation.--With respect to bonds 
     issued after December 31, 2005, and before January 1, 2008, 
     there is a national clean renewable energy bond limitation of 
     $800,000,000.
       ``(B) Annual national limitation.--With respect to bonds 
     issued after December 31, 2007, and before January 1, 2011, 
     there is a national clean renewable energy bond limitation 
     for each calendar year of $800,000,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 103. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       Section 179D(h) (relating to termination) is amended by 
     striking ``2007'' and inserting ``2010''.

     SEC. 104. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT 
                   HOME CREDIT.

       (a) Extension.--Section 45L(g) (relating to termination) is 
     amended by striking ``2007'' and inserting ``2010''.
       (b) Inclusion of 30 Percent Homes.--
       (1) In general.--Section 45L(c) (relating to energy saving 
     requirements) is amended--
       (A) by striking ``or'' at the end of paragraph (2),
       (B) by redesignating paragraph (3) as paragraph (4), and
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) certified--
       ``(A) to have a level of annual heating and cooling energy 
     consumption which is at least 30 percent below the annual 
     level described in paragraph (1), and
       ``(B) to have building envelope component improvements 
     account for at least \1/3\ of such 30 percent, or''.
       (2) Applicable amount of credit.--Section 45L(a)(2) is 
     amended by striking ``paragraph (3)'' and inserting 
     ``paragraph (3) or (4)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to qualified new energy efficient homes acquired 
     after the date of the enactment of this Act.

     SEC. 105. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.

       Section 25C(g) (relating to termination) is amended by 
     striking ``2007'' and inserting ``2010''.

     SEC. 106. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY 
                   CREDIT.

       Section 25D(g) (relating to termination) is amended by 
     striking ``2007'' and inserting ``2010''.

     SEC. 107. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF 
                   QUALIFIED FUEL CELLS AND STATIONARY 
                   MICROTURBINE POWER PLANTS.

       Sections 48(c)(1)(E) and 48(c)(2)(E) (relating to 
     termination) are each amended by striking ``2007'' and 
     inserting ``2010''.

     SEC. 108. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.

       Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) (relating 
     to termination) are each amended by striking ``2008'' and 
     inserting ``2011''.

     SEC. 109. EXTENSION OF ALTERNATIVE FUEL EXCISE TAX 
                   PROVISIONS, INCOME TAX CREDITS, AND TARIFF 
                   DUTIES.

       (a) Biodiesel.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(5)(B) are each amended by striking ``2008'' and 
     inserting ``2010''.
       (b) Alternative Fuel.--
       (1) Fuels.--Sections 6426(d)(4) and 6427(e)(5)(C) are each 
     amended by striking ``September 30, 2009'' and inserting 
     ``December 31, 2010''.
       (2) Refueling property.--Section 30C(g) is amended by 
     striking ``2009'' and inserting ``2010''.
       (c) Ethanol Tariff Schedule.--Headings 9901.00.50 and 
     9901.00.52 of the Harmonized

[[Page 7129]]

     Tariff Schedule of the United States (19 U.S.C. 3007) are 
     each amended in the effective period column by striking ``10/
     1/2007'' each place it appears and inserting ``1/1/2011''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2007.

     SEC. 110. EXTENSION OF FULL CREDIT FOR QUALIFIED ELECTRIC 
                   VEHICLES.

       (a) In General.--Section 30(e) is amended by striking 
     ``2006'' and inserting ``2010''.
       (b) Repeal of Phaseout.--Section 30(b) (relating to 
     limitations) is amended by striking paragraph (2) and by 
     redesignating paragraph (3) as paragraph (2).
       (c) Credit Allowable Against Alternative Minimum Tax.--
     Paragraph (2) of section 30(b), as redesignated by subsection 
     (b), is amended to read as follows:
       ``(2) Application with other credits.--The credit allowed 
     by subsection (a) for any taxable year shall not exceed the 
     excess (if any) of--
       ``(A) the sum of the regular tax for the taxable year plus 
     the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     section 27.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

           TITLE II--INCENTIVES FOR ALTERNATIVE FUEL VEHICLES

     SEC. 201. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY 
                   VEHICLES.

       (a) Elimination on Number of New Qualified Hybrid and 
     Advanced Lean Burn Technology Vehicles Eligible for 
     Alternative Motor Vehicle Credit.--
       (1) In general.--Section 30B is amended by striking 
     subsection (f) and by redesignating subsections (g) through 
     (j) as subsections (f) through (i), respectively.
       (2) Conforming amendments.--
       (A) Paragraphs (4) and (6) of section 30B(h) are each 
     amended by striking ``(determined without regard to 
     subsection (g))'' and inserting ``determined without regard 
     to subsection (f))''.
       (B) Section 38(b)(25) is amended by striking ``section 
     30B(g)(1)'' and inserting ``section 30B(f)(1)''.
       (C) Section 55(c)(2) is amended by striking ``section 
     30B(g)(2)'' and inserting ``section 30B(f)(2)''.
       (D) Section 1016(a)(36) is amended by striking ``section 
     30B(h)(4)'' and inserting ``section 30B(g)(4)''.
       (E) Section 6501(m) is amended by striking ``section 
     30B(h)(9)'' and inserting ``section 30B(g)(9)''.
       (b) Extension of Alternative Vehicle Credit for New 
     Qualified Hybrid Motor Vehicles.--Paragraph (3) of section 
     30B(i) (as redesignated by subsection (a)) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2005, in taxable years ending after such date.

     SEC. 202. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.) is amended 
     by adding at the end the following new section:

     ``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 35 percent of so much of the qualified 
     investment of an eligible taxpayer for such taxable year as 
     does not exceed $75,000,000.
       ``(b) Qualified Investment.--For purposes of this section--
       ``(1) In general.--The qualified investment for any taxable 
     year is equal to the incremental costs incurred during such 
     taxable year--
       ``(A) to re-equip, expand, or establish any manufacturing 
     facility in the United States of the eligible taxpayer to 
     produce advanced technology motor vehicles or to produce 
     eligible components,
       ``(B) for engineering integration performed in the United 
     States of such vehicles and components as described in 
     subsection (d),
       ``(C) for research and development performed in the United 
     States related to advanced technology motor vehicles and 
     eligible components, and
       ``(D) for employee retraining with respect to the 
     manufacturing of such vehicles or components (determined 
     without regard to wages or salaries of such retrained 
     employees).
       ``(2) Attribution rules.--In the event a facility of the 
     eligible taxpayer produces both advanced technology motor 
     vehicles and conventional motor vehicles, or eligible and 
     non-eligible components, only the qualified investment 
     attributable to production of advanced technology motor 
     vehicles and eligible components shall be taken into account.
       ``(c) Advanced Technology Motor Vehicles and Eligible 
     Components.--For purposes of this section--
       ``(1) Advanced technology motor vehicle.--The term 
     `advanced technology motor vehicle' means--
       ``(A) any qualified electric vehicle (as defined in section 
     30(c)(1)),
       ``(B) any new qualified fuel cell motor vehicle (as defined 
     in section 30B(b)(3)),
       ``(C) any new advanced lean burn technology motor vehicle 
     (as defined in section 30B(c)(3)),
       ``(D) any new qualified hybrid motor vehicle (as defined in 
     section 30B(d)(2)(A) and determined without regard to any 
     gross vehicle weight rating),
       ``(E) any new qualified alternative fuel motor vehicle (as 
     defined in section 30B(e)(4), including any mixed-fuel 
     vehicle (as defined in section 30B(e)(5)(B)), and
       ``(F) any other motor vehicle using electric drive 
     transportation technology (as defined in paragraph (3)).
       ``(2) Eligible components.--The term `eligible component' 
     means any component inherent to any advanced technology motor 
     vehicle, including--
       ``(A) with respect to any gasoline or diesel-electric new 
     qualified hybrid motor vehicle--
       ``(i) electric motor or generator,
       ``(ii) power split device,
       ``(iii) power control unit,
       ``(iv) power controls,
       ``(v) integrated starter generator, or
       ``(vi) battery,
       ``(B) with respect to any hydraulic new qualified hybrid 
     motor vehicle--
       ``(i) hydraulic accumulator vessel,
       ``(ii) hydraulic pump, or
       ``(iii) hydraulic pump-motor assembly,
       ``(C) with respect to any new advanced lean burn technology 
     motor vehicle--
       ``(i) diesel engine,
       ``(ii) turbocharger,
       ``(iii) fuel injection system, or
       ``(iv) after-treatment system, such as a particle filter or 
     NOx absorber, and
       ``(D) with respect to any advanced technology motor 
     vehicle, any other component submitted for approval by the 
     Secretary.
       ``(3) Electric drive transportation technology.--The term 
     `electric drive transportation technology' means technology 
     used by vehicles that use an electric motor for all or part 
     of their motive power and that may or may not use off-board 
     electricity, such as battery electric vehicles, fuel cell 
     vehicles, engine dominant hybrid electric vehicles, plug-in 
     hybrid electric vehicles, and plug-in hybrid fuel cell 
     vehicles.
       ``(d) Engineering Integration Costs.--For purposes of 
     subsection (b)(1)(B), costs for engineering integration are 
     costs incurred prior to the market introduction of advanced 
     technology vehicles for engineering tasks related to--
       ``(1) establishing functional, structural, and performance 
     requirements for component and subsystems to meet overall 
     vehicle objectives for a specific application,
       ``(2) designing interfaces for components and subsystems 
     with mating systems within a specific vehicle application,
       ``(3) designing cost effective, efficient, and reliable 
     manufacturing processes to produce components and subsystems 
     for a specific vehicle application, and
       ``(4) validating functionality and performance of 
     components and subsystems for a specific vehicle application.
       ``(e) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means any taxpayer if more than 50 
     percent of its gross receipts for the taxable year is derived 
     from the manufacture of motor vehicles or any component parts 
     of such vehicles.
       ``(f) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of--
       ``(A) the regular tax liability (as defined in section 
     26(b)) for such taxable year, plus
       ``(B) the tax imposed by section 55 for such taxable year 
     and any prior taxable year beginning after 1986 and not taken 
     into account under section 53 for any prior taxable year, 
     over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27, 30, and 30B for the taxable year.
       ``(g) Reduction in Basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(h) No Double Benefit.--
       ``(1) Coordination with other deductions and credits.--
     Except as provided in paragraph (2), the amount of any 
     deduction or other credit allowable under this chapter for 
     any cost taken into account in determining the amount of the 
     credit under subsection (a) shall be reduced by the amount of 
     such credit attributable to such cost.
       ``(2) Research and development costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any amount described in subsection (b)(1)(C) taken into 
     account in determining the amount of the credit under 
     subsection (a) for any taxable year shall not be taken into 
     account for purposes of determining the credit under section 
     41 for such taxable year.
       ``(B) Costs taken into account in determining base period 
     research expenses.--Any amounts described in subsection 
     (b)(1)(C) taken into account in determining the amount of the 
     credit under subsection (a)

[[Page 7130]]

     for any taxable year which are qualified research expenses 
     (within the meaning of section 41(b)) shall be taken into 
     account in determining base period research expenses for 
     purposes of applying section 41 to subsequent taxable years.
       ``(i) Business Carryovers Allowed.--If the credit allowable 
     under subsection (a) for a taxable year exceeds the 
     limitation under subsection (f) for such taxable year, such 
     excess (to the extent of the credit allowable with respect to 
     property subject to the allowance for depreciation) shall be 
     allowed as a credit carryback and carryforward under rules 
     similar to the rules of section 39.
       ``(j) Special Rules.--For purposes of this section, rules 
     similar to the rules of section 179A(e)(4) and paragraphs (1) 
     and (2) of section 41(f) shall apply
       ``(k) Election Not to Take Credit.--No credit shall be 
     allowed under subsection (a) for any property if the taxpayer 
     elects not to have this section apply to such property.
       ``(l) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(m) Termination.--This section shall not apply to any 
     qualified investment after December 31, 2010.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 30D(g).''.
       (2) Section 6501(m) is amended by inserting ``30D(k),'' 
     after ``30C(e)(5),''.
       (3) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.

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

     SEC. 203. TAX INCENTIVES FOR PRIVATE FLEETS.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 48B the 
     following new section:

     ``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.

       ``(a) General Rule.--For purposes of section 46, the fuel-
     efficient fleet credit for any taxable year is 15 percent of 
     the qualified fuel-efficient vehicle investment amount of an 
     eligible taxpayer for such taxable year.
       ``(b) Vehicle Purchase Requirement.--In the case of any 
     eligible taxpayer which places less than 10 qualified fuel-
     efficient vehicles in service during the taxable year, the 
     qualified fuel-efficient vehicle investment amount shall be 
     zero.
       ``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--
     For purposes of this section--
       ``(1) In general.--The term `qualified fuel-efficient 
     vehicle investment amount' means the basis of any qualified 
     fuel-efficient vehicle placed in service by an eligible 
     taxpayer during the taxable year.
       ``(2) Qualified fuel-efficient vehicle.--The term 
     `qualified fuel-efficient vehicle' means an automobile which 
     has a fuel economy which is at least 125 percent greater than 
     the average fuel economy standard for an automobile of the 
     same class and model year.
       ``(3) Other terms.--The terms `automobile', `average fuel 
     economy standard', `fuel economy', and `model year' have the 
     meanings given to such terms under section 32901 of title 49, 
     United States Code.
       ``(d) Eligible Taxpayer.--The term `eligible taxpayer' 
     means, with respect to any taxable year, a taxpayer who owns 
     a fleet of 100 or more vehicles which are used in the trade 
     or business of the taxpayer on the first day of such taxable 
     year.
       ``(e) Termination.--This section shall not apply to any 
     vehicle placed in service after December 31, 2010.''.
       (b) Credit Treated as Part of Investment Credit.--Section 
     46 is amended by striking ``and'' at the end of paragraph 
     (3), by striking the period at the end of paragraph (4) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(5) the fuel-efficient fleet credit.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
     the end of clause (iii), by striking the period at the end of 
     clause (iv) and inserting ``, and'', and by adding at the end 
     the following new clause:
       ``(v) the basis of any qualified fuel-efficient vehicle 
     which is taken into account under section 48C.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48 the following new item:

``Sec. 48C. Fuel-efficient fleet credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2005, in taxable 
     years ending after such date, under rules similar to the 
     rules of section 48(m) of the Internal Revenue Code of 1986 
     (as in effect on the day before the date of the enactment of 
     the Revenue Reconciliation Act of 1990).

     SEC. 204. MODIFICATION OF ALTERNATIVE VEHICLE REFUELING 
                   PROPERTY CREDIT.

       (a) Increase in Credit Amount.--Subsection (a) of section 
     30C is amended by striking ``30 percent'' and inserting ``50 
     percent''.
       (b) Credit Allowable Against Alternative Minimum Tax.--
     Paragraph (2) of section 30C is amended to read as follows:
       ``(2) Personal credit.--The credit allowed under subsection 
     (a) (after the application of paragraph (1)) for any taxable 
     year shall not exceed the excess (if any) of--
       ``(A) the sum of the regular tax for the taxable year plus 
     the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     sections 27, 30, and 30B.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 205. INCLUSION OF HEAVY VEHICLES IN LIMITATION ON 
                   DEPRECIATION OF CERTAIN LUXURY AUTOMOBILES.

       (a) In General.--Section 280F(d)(5)(A) (defining passenger 
     automobile) is amended--
       (1) by striking clause (ii) and inserting the following new 
     clause:
       ``(ii)(I) which is rated at 6,000 pounds unloaded gross 
     vehicle weight or less, or
       ``(II) which is rated at more than 6,000 pounds but not 
     more than 14,000 pounds gross vehicle weight.'',
       (2) by striking ``clause (ii)'' in the second sentence and 
     inserting ``clause (ii)(I)''.
       (b) 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. 206. IDLING REDUCTION TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45N. IDLING REDUCTION CREDIT.

       ``(a) General Rule.--For purposes of section 38, the idling 
     reduction tax credit determined under this section for the 
     taxable year is an amount equal to 25 percent of the amount 
     paid or incurred for each qualifying idling reduction device 
     placed in service by the taxpayer during the taxable year.
       ``(b) Limitation.--The maximum amount allowed as a credit 
     under subsection (a) shall not exceed $1,000 per device.
       ``(c) Definitions.--For purposes of subsection (a)--
       ``(1) Qualifying idling reduction device.--The term 
     `qualifying idling reduction device' means any device or 
     system of devices that--
       ``(A) is installed on a heavy-duty diesel-powered on-
     highway vehicle,
       ``(B) is designed to provide to such vehicle those services 
     (such as heat, air conditioning, or electricity) that would 
     otherwise require the operation of the main drive engine 
     while the vehicle is temporarily parked or remains 
     stationary,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) is acquired for use by the taxpayer and not for 
     resale, and
       ``(E) is certified by the Secretary of Energy, in 
     consultation with the Administrator of the Environmental 
     Protection Agency and the Secretary of Transportation, to 
     reduce long-duration idling of such vehicle at a motor 
     vehicle rest stop or other location where such vehicles are 
     temporarily parked or remain stationary.
       ``(2) Heavy-duty diesel-powered on-highway vehicle.--The 
     term `heavy-duty diesel-powered on-highway vehicle' means any 
     vehicle, machine, tractor, trailer, or semi-trailer propelled 
     or drawn by mechanical power and used upon the highways in 
     the transportation of passengers or property, or any 
     combination thereof determined by the Federal Highway 
     Administration.
       ``(3) Long-duration idling.--The term `long-duration 
     idling' means the operation of a main drive engine, for a 
     period greater than 15 consecutive minutes, where the main 
     drive engine is not engaged in gear. Such term does not apply 
     to routine stoppages associated with traffic movement or 
     congestion.
       ``(d) No Double Benefit.--For purposes of this section--
       ``(1) Reduction in basis.--If a credit is determined under 
     this section with respect to any property by reason of 
     expenditures described in subsection (a), the basis of such 
     property shall be reduced by the amount of the credit so 
     determined.
       ``(2) Other deductions and credits.--No deduction or credit 
     shall be allowed under any other provision of this chapter 
     with respect to the amount of the credit determined under 
     this section.
       ``(e) Election Not to Claim Credit.--This section shall not 
     apply to a taxpayer for any taxable year if such taxpayer 
     elects to have this section not apply for such taxable year.
       ``(f) Termination.--This section shall not apply to any 
     property placed in service after December 31, 2010.''.
       (b) Credit to Be Part of General Business Credit.--
     Subsection (b) of section 38 (relating to general business 
     credit) is amended by striking ``and'' at the end of 
     paragraph (29), by striking the period at the end of 
     paragraph (30) and inserting ``, plus'' , and by adding at 
     the end the following new paragraph:
       ``(31) the idling reduction tax credit determined under 
     section 45N(a).''.

[[Page 7131]]

       (c) Conforming Amendments.--
       (1) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 45M the following new item:

``Sec. 45N. Idling reduction credit''.
       (2) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by adding at the end the following:
       ``(39) in the case of a facility with respect to which a 
     credit was allowed under section 45N, to the extent provided 
     in section 45N(d)(A).''.
       (3) Section 6501(m) is amended by inserting ``45N(e),'' 
     after ``45D(c)(4),''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
       (e) Determination of Certification Standards by Secretary 
     of Energy for Certifying Idling Reduction Devices.--Not later 
     than 6 months after the date of the enactment of this Act and 
     in order to reduce air pollution and fuel consumption, the 
     Secretary of Energy, in consultation with the Administrator 
     of the Environmental Protection Agency and the Secretary of 
     Transportation, shall publish the standards under which the 
     Secretary, in consultation with the Administrator of the 
     Environmental Protection Agency and the Secretary of 
     Transportation, will, for purposes of section 45N of the 
     Internal Revenue Code of 1986 (as added by this section), 
     certify the idling reduction devices which will reduce long-
     duration idling of vehicles at motor vehicle rest stops or 
     other locations where such vehicles are temporarily parked or 
     remain stationary in order to reduce air pollution and fuel 
     consumption.

                    TITLE III--ADDITIONAL INCENTIVES

     SEC. 301. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
                   PROPERTY.

       (a) In General.--Section 48(a)(3)(A) (defining energy 
     property) is by striking ``or'' at the end of clause (iii), 
     by inserting ``or'' at the end of clause (iv), and by adding 
     at the end the following new clause:
       ``(v) combined heat and power system property,''.
       (b) Combined Heat and Power System Property.--Section 48 is 
     amended by adding at the end the following new subsection:
       ``(d) Combined Heat and Power System Property.--For 
     purposes of subsection (a)(3)(A)(v)--
       ``(1) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--
       ``(A) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(B) which has an electrical capacity of not more than 15 
     megawatts or a mechanical energy capacity of not more than 
     2,000 horsepower or an equivalent combination of electrical 
     and mechanical energy capacities,
       ``(C) which produces--
       ``(i) at least 20 percent of its total useful energy in the 
     form of thermal energy which is not used to produce 
     electrical or mechanical power (or combination thereof), and
       ``(ii) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),
       ``(D) the energy efficiency percentage of which exceeds 60 
     percent, and
       ``(E) which is placed in service before January 1, 2011.
       ``(2) Special rules.--
       ``(A) Energy efficiency percentage.--For purposes of this 
     subsection, the energy efficiency percentage of a system is 
     the fraction--
       ``(i) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and expected to be consumed 
     in its normal application, and
       ``(ii) the denominator of which is the higher heating value 
     of the primary fuel sources for the system.
       ``(B) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under paragraph 
     (1)(C) shall be determined on a Btu basis.
       ``(C) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(D) Certain exception not to apply.--The first sentence 
     of the matter in subsection (a)(3) which follows subparagraph 
     (D) thereof shall not apply to combined heat and power system 
     property.
       ``(3) Systems using bagasse.--If a system is designed to 
     use bagasse for at least 90 percent of the energy source--
       ``(A) paragraph (1)(D) shall not apply, but
       ``(B) the amount of credit determined under subsection (a) 
     with respect to such system shall not exceed the amount which 
     bears the same ratio to such amount of credit (determined 
     without regard to this paragraph) as the energy efficiency 
     percentage of such system bears to 60 percent.
       ``(4) Nonapplication of certain rules.--For purposes of 
     determining if the term `combined heat and power system 
     property' includes technologies which generate electricity or 
     mechanical power using back-pressure steam turbines in place 
     of existing pressure-reducing valves or which make use of 
     waste heat from industrial processes such as by using organic 
     rankin, stirling, or kalina heat engine systems, paragraph 
     (1) shall be applied without regard to subparagraphs (C) and 
     (D) thereof .''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2006, in taxable 
     years ending after such date, under rules similar to the 
     rules of section 48(m) of the Internal Revenue Code of 1986 
     (as in effect on the day before the date of the enactment of 
     the Revenue Reconciliation Act of 1990).

     SEC. 302. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT 
                   DEVICES.

       (a) In General.--Section 168(e)(3)(A) (defining 3-year 
     property) is amended by striking ``and'' at the end of clause 
     (ii), by striking the period at the end of clause (iii) and 
     inserting ``, and'', and by adding at the end the following 
     new clause:
       ``(iv) any qualified energy management device.''.
       (b) Definition of Qualified Energy Management Device.--
     Section 168(i) (relating to definitions and special rules) is 
     amended by inserting at the end the following new paragraph:
       ``(18) Qualified energy management device.--
       ``(A) In general.--The term `qualified energy management 
     device' means any energy management device which is placed in 
     service before January 1, 2011, by a taxpayer who is a 
     supplier of electric energy or a provider of electric energy 
     services.
       ``(B) Energy management device.--For purposes of 
     subparagraph (A), the term `energy management device' means 
     any meter or metering device which is used by the taxpayer--
       ``(i) to measure and record electricity usage data on a 
     time-differentiated basis in at least 4 separate time 
     segments per day, and
       ``(ii) to provide such data on at least a monthly basis to 
     both consumers and the taxpayer.''.
       (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, in taxable years ending after such 
     date.

     SEC. 303. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR 
                   DEPRECIATION OF QUALIFIED WATER SUBMETERING 
                   DEVICES.

       (a) In General.--Section 168(e)(3)(A) (defining 3-year 
     property), as amended by this Act, is amended by striking 
     ``and'' at the end of clause (iii), by striking the period at 
     the end of clause (iv) and inserting ``, and'', and by adding 
     at the end the following new clause:
       ``(v) any qualified water submetering device.''.
       (b) Definition of Qualified Water Submetering Device.--
     Section 168(i) (relating to definitions and special rules), 
     as amended by this Act, is amended by inserting at the end 
     the following new paragraph:
       ``(19) Qualified water submetering device.--
       ``(A) In general.--The term `qualified water submetering 
     device' means any water submetering device which is placed in 
     service before January 1, 2011, by a taxpayer who is an 
     eligible resupplier with respect to the unit for which the 
     device is placed in service.
       ``(B) Water submetering device.--For purposes of this 
     paragraph, the term `water submetering device' means any 
     submetering device which is used by the taxpayer--
       ``(i) to measure and record water usage data, and
       ``(ii) to provide such data on at least a monthly basis to 
     both consumers and the taxpayer.
       ``(C) Eligible resupplier.--For purposes of subparagraph 
     (A), the term `eligible resupplier' means any taxpayer who 
     purchases and installs qualified water submetering devices in 
     every unit in any multi-unit property.''.
       (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, in taxable years ending after such 
     date.

                      TITLE IV--REVENUE PROVISIONS

     SEC. 401. 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

[[Page 7132]]

     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 has an 
     average daily worldwide production of crude oil of at least 
     500,000 barrels for the taxable year and which had gross 
     receipts in excess of $1,000,000,000 for its last taxable 
     year ending during calendar year 2005. For purposes of this 
     subsection 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. 402. 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.

     SEC. 403. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO LARGE INTEGRATED OIL COMPANIES 
                   WHICH ARE 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 (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rules Relating to Large Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a large integrated oil company 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.
       ``(4) Large integrated oil company.--For purposes of this 
     subsection, the term `large integrated oil company' means, 
     with respect to any taxable year, an integrated oil company 
     (as defined in section 291(b)(4)) which--
       ``(A) had gross receipts in excess of $1,000,000,000 for 
     such taxable year, and
       ``(B) has an average daily worldwide production of crude 
     oil of at least 500,000 barrels for such taxable year.''
       (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.
                                 ______
                                 
      By Mr. BROWNBACK (for himself, Mr. Kyl and Mrs. Hutchison):
  S. 2749. A bill to update the Silk Road Strategy Act of 1999 to 
modify targeting of assistance in order to support the economic and 
political independence of the countries of Central Asia and the South 
Caucasus in recognition of political and economic changes in these 
regions since enactment of the original legislation; to the Committee 
on Foreign Relations.
  Mr. BROWNBACK. Mr. President, I rise to introduce the Silk Road 
Strategy Act of 2006. Joining me as original cosponsors are Senators 
Kyl and Hutchison. I would like to extend my thanks to both of my 
colleagues and their staff for their assistance and guidance on many of 
the provisions in the bill.
  The original Silk Road Strategy Act of 1999 saw the countries of the 
Caucasus and Central Asia--specifically, Armenia, Azerbaijan, Georgia, 
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan--as a 
distinct region bound by history and common interests with a shared 
potential that was of critical importance to the United States.
  The goals of that legislation were as follows: to promote 
independent, democratic government; to promote the protection of human 
rights, tolerance, and pluralism; to aid in the resolution of conflicts 
and support political, economic, and security cooperation in order to 
foster regional stability and economic interdependence; to promote 
financial and economic development based on market principles; to aid 
in the development of communications, transportation, health and human 
services infrastructure; to promote and protect the interests of U.S. 
businesses and investments.
  These basic policy goals have not changed; however, historic events 
since 1999 have had a significant impact on the region's political 
systems, economic conditions, and security situation which affect U.S. 
perceptions of and interests in the region. These changes include: the 
September 11, 2001 terrorist attack on the United States, which 
clarified the nature and source of the key threats facing this country; 
the Operation Enduring Freedom in Afghanistan and the removal of the 
Taliban regime; the series of ``colored revolutions'' in Georgia, 
Ukraine and Kyrgyzstan; Deteriorating relations between the U.S. and 
certain regional leaders, especially Uzbekistan's President Islam 
Karimov, and the closure of the U.S. base in that country; the growing 
influence of regional powers, namely Russia and China; greater U.S. oil 
and gas interests in the Caspian region; and the threat posed by Iran, 
which is seeking to develop a nuclear potential.
  In light of these changes, the Silk Road Act needs to be updated and 
revised to better address some of the new challenges the U.S. faces in 
its relations with Central Asia and the Caucasus.
  The U.S.'s vital interests in the Caspian region include: ensuring 
the independence and security of Azerbaijan and Georgia, through which 
critical oil and gas pipelines transit; containing Iran; ensuring 
access to oil and gas reserves; maintaining good relations with 
Kazakhstan; promoting peaceful

[[Page 7133]]

resolution of conflicts; and keeping Russian geopolitical ambitions in 
check.
  Further East, U.S. interests include: helping Kyrgyzstan to make its 
Tulip Revolution a success; the political stabilization of Afghanistan 
and enhancement of its security by defeating the Taliban and Al Qaeda 
and its satellite organizations; political reform and liberalization in 
the countries of Central Asia to neutralize radical Islamic movements, 
such as Hizb-ut- Tahrir al-Islami, HUT--Islamic Army of Liberation; 
reduction of drug production and exports; creation and/or support of 
the U.S. military base network; and social and economic development in 
the states of Central Asia.
  To these ends, among other priorities, this bill emphasizes the 
importance of East-West gas and oil pipelines, such as the Baku-
Tbilisi-Ceyhan pipeline, BTC. BTC ensures Azerbaijan's security and 
economic future, and binds the country with neighboring Georgia and 
Turkey, anchoring Azerbaijan in the network of Western states and 
institutions.
  The bill also includes Afghanistan as a Silk Road country and 
promotes the integration of Afghanistan with neighboring Central Asian 
states in terms of security, trade, infrastructure and energy grids.
  In all the states of Central Asia and the Caucasus, it is critical to 
promote democratic development. Among this bill's initiatives are calls 
for supporting independent media outlets, especially electronic media, 
and also for satellite TV programming, to provide authoritative news 
and more diverse opinions than are otherwise available. Specifically, 
it supports satellite TV broadcasting into Uzbekistan, Turk-
menistan and Iran and the activities of their diasporas in the United 
States. Furthermore, the bill offers assistance for the establishment 
of civil service institutes to train civil servants at all levels in 
the rule of law, conduct of elections, respect for citizens' rights, 
and the needs of a market economy.
  No less important is the need to accelerate and broaden economic 
reform and modernization in the Silk Road countries. Accordingly, this 
bill provides assistance in the privatization of state enterprises and 
deregulation of the economy.
  The bill also calls for assistance with the establishment of the 
Caspian Bank of Reconstruction and Development, CBRD, to help Silk Road 
states address problems caused by increased revenues from energy 
exports, and dangers to macroeconomic stability and overheating of the 
economy infrastructure, as well as promote development in the region.
  In light of Trans-Caspian Oil and Gas Pipelines, this bill encourages 
the governments of Azerbaijan, Kazakhstan and especially Turkmenistan 
to improve their business climate and investor confidence by fully 
disclosing their internationally audited hydrocarbon reserve.
  The bill strongly supports activities that promote the participation 
of U.S. companies and investors in the planning, financing, and 
construction of infrastructure for communications, transportation, 
including air transportation, and energy and trade including highways, 
railroads, port facilities, shipping, banking, insurance, 
telecommunications networks, and gas and oil pipelines.
  Furthermore, the bill would assist in the removal of legal and 
institutional barriers to continental and regional trade and the 
harmonization of border and tariff regimes, including improved 
mechanisms for transit through Pakistan to Afghanistan and the rest of 
Central Asia.
  With respect to the World Trade Organization, the bill offers support 
to Silk Road countries seeking WTO accession, providing assistance in 
reform as needed. Recognizing that PNTR status, through graduation from 
the Jackson-Vanik Amendment of 1974 Trade Act, and WTO membership have 
been extended to Armenia, Georgia and Kyrgyzstan, the bill calls for 
extending the same status to the other two most advanced economies of 
the region, Azerbaijan and Kazakhstan, by graduating them from the 
Jackson-Vanik Amendment, extending PNTR status and aiding in WTO 
accession. But before that support is offered, it is important for the 
two countries to demonstrate that they are capable of dealing with the 
demands of a vibrant economy in a democratic setting.
  A detailed examination of this bill will reveal many more 
initiatives. But as you can see, Mr. President, the Silk Road Strategy 
Act of 2006 takes a comprehensive approach to the region, encompassing 
security, economic development, democratic governance and human rights. 
I believe it targets the key issues that U.S. policymakers must address 
in our ever more important effort to establish solid, long-lasting 
relationships with the countries of the Silk Road. I hope my colleagues 
will support this bill and I look forward to discussing it with them.
                                 ______
                                 
      By Mr. DeMINT:
  S. 2750. A bill to improve access to emergency medical services 
through medical liability reform and additional Medicare payments; to 
the Committee on Finance.
  Mr. DeMINT. Mr. President, I rise to introduce legislation to 
strengthen our nation's emergency departments, which are the backbone 
of our health care safety net.
  Events of recent years--9/11, Hurricanes Katrina and Rita--have 
allowed all of us to see our emergency departments in action, 24 hours 
a day, 7 days a week. With every natural disaster or terrorist attack, 
emergency physicians, on-call specialists and nurses are on the front 
lines. Many times, it's their expertise that recognizes a problem. For 
example, it was the diagnosis and prompt communication of the incidence 
of anthrax that prevented more deaths a couple years ago here in D.C. 
Likewise, should we face pandemic influenza, it is likely to be 
discovered first in our emergency rooms.
  Federal law requires that each person who comes to an emergency 
department be stabilized. Yet health plans are paying less and less of 
this cost, and many of the 45 million patients without health insurance 
can't pay at all. In fact, more than one-third of all emergency 
department patients are uninsured or are Medicaid or SCHIP enrollees. 
This results in huge amounts of uncompensated care in our nation's 
emergency departments, which threatens their viability and everyone's 
access to emergency care.
  Unfortunately, America's emergency patients are suffering because 
emergency departments are not supported well enough to handle day-to-
day emergencies, let alone a pandemic flu or terrorist attack. Patients 
wait hours to see physicians, ``boarding'' sometimes for days in 
emergency departments and diverted in ambulances to other hospitals. 
This gridlock threatens access to emergency care for everyone--both 
insured and uninsured.
  Emergency departments are under-funded and suffer from severe 
staffing shortages. A new study just released by the Robert Wood 
Johnson Foundation and the American College of Emergency Physicians 
found that three-fourths of emergency medical directors reported 
inadequate on-call specialist coverage, compared with two-thirds in 
2004: a sure sign that a bad situation is getting even worse.
  Frivolous lawsuits and the nation's broken medical liability system 
are also driving up the costs of health care for everyone and threaten 
to leave already disadvantaged patients without access to necessary 
health care services.
  But, even in the best of times, the number of visits to emergency 
departments continue to increase, while the number of emergency 
departments in hospitals continue to decrease. In fact, we've even seen 
a number of emergency departments have to close their doors.
  Surprisingly, there are no standard measures to report the extent of 
overcrowding in emergency departments. During the last Congress, the 
Government Accountability Office (GAO) surveyed hospital emergency 
departments and reported back to Congress--providing us with the data 
needed to begin to address these issues.
  The GAO report told Congress that patient ``boarding'' in the 
emergency department was the most common factor associated with 
overcrowding. The

[[Page 7134]]

term ``boarding'' refers to those patients who have been admitted to 
the hospital but have not yet been moved from the emergency department 
to an inpatient hospital bed. When these patients remain in the 
emergency department long after the decision to admit them is made (at 
times on gurneys in halls and elsewhere)--it diminishes the space to 
care for other patients, and adversely impacts the staff and other 
resources.
  My bill requires Medicare to establish regulations to reduce or 
eliminate overcrowding and boarding of emergency department patients. 
We have the data to recognize this problem. Hopefully, national 
standards coupled with incentive payments for those hospitals 
implementing the standards and documenting improvement will improve the 
quality of care in this country.
  My legislation, the ``Access to Emergency Medical Services Act,'' 
directly addresses the issues of low reimbursement, emergency 
department overcrowding, and increasing medical liability insurance 
costs.
  First, my bill expands the current liability protection granted to 
commissioned officers and employees of the Public Health Service to 
include Medicare participating hospitals or emergency departments 
subject to the Emergency Medical Treatment and Labor Act (EMTALA). This 
would also cover physicians and physician groups employed by, under 
contract, or on-call for duty to stabilize an individual with an 
emergency medical condition. This safeguard does not prevent someone 
from taking legal action. Rather, the bill requires that any tort or 
medical liability case must be brought against the United States, which 
in turn must defend any civil action or proceeding. Awards for 
malpractice judgments would be paid from a specific fund established 
for this purpose.
  Second, my bill increases physician payments by 10% for services 
provided to Medicare beneficiaries in the emergency department of a 
hospital or critical access hospital. EMTALA is an unfunded federal 
mandate. Current law does not require health insurance companies, 
governments or individuals to pay for services that have been provided. 
As a result, emergency physicians bear the brunt of uncompensated care. 
This increased reimbursement recognizes and funds this mandate, and I 
hope it will go a long way toward improving physician recruitment and 
retention.
  Finally, my bill provides financial incentive payments to hospitals 
that meet standards for prompt admissions of emergency department 
patients requiring inpatient hospital services. The bill would increase 
payments to these hospitals by 10 percent for Medicare beneficiaries' 
emergency department visits. The payments would be made only if the 
hospital certifies, subject to audit, that it met the standards for 
prompt admission.
  The issues addressed by my bill impact each one of us. When you, or a 
family member, need the emergency room, you don't want to worry about 
it being crowded, closed, under-funded, or not having the staff it 
needs.
  Emergency physicians, nurses and on-call specialists are the heroes 
in America's hospitals, working under incredibly difficult conditions 
on patients who need critical attention. Congress needs to step up and 
take action. The ``Access to Emergency Medical Services Act'' is an 
important first step to address these issues.
                                 ______
                                 
      By Mr. NELSON of Nebraska (for himself and Mr. Domenici):
  S. 2751. A bill to strengthen the National Oceanic and Atmospheric 
Administration's drought monitoring and forecasting capabilities; to 
the Committee on Commerce, Science, and Transportation.
  Mr. NELSON of Nebraska. Mr. President, I rise today to introduce 
legislation that would establish the ``National Integrated Drought 
Information System'' (NIDIS) within the National Oceanic and 
Atmospheric Administration (NOAA) for purposes of improving drought 
monitoring and forecasting capabilities.
  Over the last decade, several severe and long-term droughts have 
occurred in the United States. Recent severe drought conditions across 
the Nation and in particular in the West have created life-threatening 
situations, as well as financial burdens for both government and 
individuals.
  Extremely dry conditions have led to numerous forest and rangeland 
fires, burning hundreds of thousands of acres of land, destroying homes 
and communities, and eliminating critical habitats for wildlife and 
grazing lands for livestock. The subsequent ash and sediment loading 
threatens the health of our streams. In addition to the millions of 
board-feet of timber lost, these fires have cost hundreds of millions 
of dollars to fight and have put thousands of lives at risk.
  The droughts have caused shortages of grain and other agricultural 
products resulting in soaring prices that will be passed on to 
consumers. In addition, deteriorating soil conditions and lack of 
forage are devastating the farm and ranching communities. The droughts 
have negatively affected livestock market prices and caused the 
premature selloffs of herds.
  The droughts have threatened municipal water supplies, causing many 
communities to develop new water management plans which institute water 
restrictions and other water conservation measures. Drought causes 
social, economic and environmental consequences including negative 
effects on commerce and industry, tourism, air, water and other natural 
resources, and quality of life for our citizens, ranging from limits on 
recreational opportunities to loss of employment.
  The fiscal impacts of drought on individuals and governments are 
significant. According to NOAA, the federal government spends on 
average $6-8 billion per year on drought. The most devastating of these 
was the 1988 drought in the central and eastern U.S. which caused 
severe losses to agriculture and related industries totaling $40 
billion and an estimated 5,000-10,000 deaths.
  The issue of drought is one I have been involved with for many years. 
Fortunately, drought conditions are improving in Nebraska, but we have 
endured a number of very difficult years struggling with the impact 
drought has had on our economy and environment and the social 
implications that go along with a disaster like this.
  One of my biggest frustrations the past few years as an elected 
official, trying to help the areas of my State devastated by drought, 
has been making people understand that this drought really was a 
disaster--as much as a hurricane, or an earthquake, or a tornado.
  I even named the drought in Nebraska--Drought David--in an effort to 
crystallize it so people could see that it is the same kind of 
experience as any other natural disaster.
  Unlike other natural disasters, however, droughts are much more 
difficult to identify. It is hard to miss an oncoming flood or 
tornado--or their immediate aftermath. Drought, and its effects, is 
much harder to quantify. It develops slowly; it doesn't necessarily 
have a beginning point or an ending point but it spans over an extended 
period of time.
  Because it is difficult to forecast and plan for droughts, it is 
especially important that we have programs in place such as the 
National Drought Mitigation Center at the University of Nebraska-
Lincoln. The Drought Mitigation Center, among other things, maintains a 
web-based information clearinghouse, provides drought monitoring, 
prepares the weekly U.S. Drought Monitor which covers all 50 States, 
and develops drought policy and planning techniques. I believe it is 
crucial to encourage more investment in research programs such as the 
Drought Mitigation Center.
  The research done upfront in monitoring drought trends will help our 
capabilities to mitigate and respond to its effects in a much more 
effective manner. It is cost effective to support programs such as the 
National Drought Mitigation Center and I advocate for continued support 
for this important program.
  The National Drought Policy Commission stated in their May 2000 
report

[[Page 7135]]

to Congress that ``Drought is the most obstinate and pernicious of the 
dramatic events that Nature conjures up. It can last longer and extend 
across larger areas than hurricanes, tornadoes, floods and earthquakes 
. . . causing hundreds of millions of dollars in losses, and dashing 
hopes and dreams.'' Among its recommendations to move the country 
toward a more proactive approach to drought preparedness and response, 
the Commission called for improved ``collaboration among scientists and 
managers to enhance the effectiveness of observation networks, 
monitoring, prediction, information delivery, and applied research and 
to foster public understanding of and preparedness for drought.''
  The call for improved drought monitoring and forecasting has also 
been advocated by the Western Governors' Association (WGA). In the WGA 
policy resolution adopted in June 2005, ``Future Management of 
Drought,'' the Governors state that NIDIS ``would provide water users 
across the board--farmers, ranchers, utilities, tribes, land managers, 
business owners, recreationalists, wildlife managers, and decision-
makers at all levels of government--with the ability to assess their 
drought risk in real time and before the onset of drought, in order to 
make informed and timely decisions that may mitigate a drought's 
impacts. The Governors urge Congress and the President to authorize 
NIDIS and provide funding for its implementation.''
  NIDIS has also become a key component of the multi-national effort to 
create the Global Earth Observation System of Systems (GEOSS), a 
mechanism for linking the individual networks of satellites, ocean 
buoys, weather stations and other instruments scattered across the 
globe. The U.S. Integrated Earth Observation System (IEOS), the U.S. 
contribution to GEOSS, has identified NIDIS as one of six ``near-term 
opportunities'' in their Strategic Plan.
  Finally, the Administration supports this program. Funding for NIDIS 
is included in the President's FY 2007 budget request.
  The National Integrated Drought Information System Act of 2006 that 
Senator Domenici and I are introducing today would authorize the much 
needed drought early warning system envisioned by the National Drought 
Policy Commission, the Western Governors' Association, and the 
Integrated Earth Observation System. If enacted, this bill will allow 
our Nation to become much more proactive in mitigating and avoiding the 
costly impacts and contentious conflicts that so often happen today 
when water shortages and droughts occur.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2751

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Integrated Drought 
     Information System Act of 2006''.

     SEC. 2. NOAA PROGRAM TO MONITOR AND FORECAST DROUGHTS.

       (a) In General.--The Under Secretary of Commerce for Oceans 
     and Atmosphere shall establish a National Integrated Drought 
     Information System within the National Oceanic and 
     Atmospheric Administration.
       (b) System Functions.--The System shall--
       (1) provide an effective drought early warning system 
     that--
       (A) is a comprehensive system that collects and integrates 
     information on the key indicators of drought in order to make 
     usable, reliable, and timely drought forecasts and 
     assessments of drought, including assessments of the severity 
     of drought conditions and impacts;
       (B) communicates drought forecasts, drought conditions, and 
     drought impacts on an ongoing basis to--
       (i) decisionmakers at the Federal, regional, State, tribal, 
     and local levels of government;
       (ii) the private sector; and
       (iii) the public,

     in order to facilitate better informed, more timely decisions 
     and support drought mitigation and preparedness programs that 
     will reduce impacts and costs; and
       (C) includes timely (where possible real-time) data, 
     information, and products that reflect local, regional, and 
     State differences in drought conditions; and
       (2) coordinate, and integrate as practicable, Federal 
     research in support of a drought early warning system, 
     improved forecasts, and the development of mitigation and 
     preparedness tools and techniques;
       (3) build upon existing drought forecasting, assessment, 
     and mitigation programs at the National Oceanic and 
     Atmospheric Administration, including programs conducted in 
     partnership with other Federal departments and agencies and 
     existing research partnerships, such as that with the 
     National Drought Mitigation Center at the University of 
     Nebraska-Lincoln; and
       (4) be incorporated into the Global Earth Observation 
     System of Systems.
       (c) Consultation.--The Under Secretary shall consult with 
     relevant Federal, regional, State, tribal, and local 
     government agencies, research institutions, and the private 
     sector in the development of the National Integrated Drought 
     Information System.
       (d) Cooperation From Other Federal Agencies.--Each Federal 
     agency shall cooperate as appropriate with the Under 
     Secretary in carrying out this Act.
       (e) Drought Defined.--In this section, the term ``drought'' 
     means a deficiency in precipitation--
       (1) that leads to a deficiency in surface or sub-surface 
     water supplies (including rivers, streams, wetlands, ground 
     water, soil moisture, reservoir supplies, lake levels, and 
     snow pack); and
       (2) that causes or may cause--
       (A) substantial economic or social impacts; or
       (B) substantial physical damage or injury to individuals, 
     property, or the environment.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Commerce for use by the Under Secretary of Commerce for 
     Oceans and Atmosphere in implementing section 2--
       (1) $8,000,000 for fiscal year 2007;
       (2) $9,000,000 for fiscal year 2008;
       (3) $10,000,000 for each of fiscal years 2009 and 2010; and
       (4) $11,000,000 for each of fiscal years 2011 and 2012.

  Mr. DOMENICI. Mr. President, I rise today to join Senator Nelson of 
Nebraska to introduce the National Integrated Drought Information 
System Act of 2006. I would like to thank Senator Ben Nelson; his 
strong leadership and hard work on this bill has been key in bringing 
us forward on this important issue.
  Drought is a unique emergency situation; it creeps in unlike other 
abrupt weather disasters. Without a national drought policy we 
constantly live not knowing what the next year will bring. 
Unfortunately, when we find ourselves facing a drought, towns often 
scramble to drill new water wells, fires often sweep across bone dry 
forests and farmers and ranchers are forced to watch their way of life 
blow away with the dust. This year, my home State of New Mexico is 
facing a very real threat of devastating drought, as our snow pack was 
far below average.
  We must be vigilant and prepare ourselves for quick action as this 
next drought cycle begins. Better planning on our part could limit some 
of the damage felt by drought. I submit that this bill is the exact 
tool needed for facilitating better planning.
  This Act establishes the National Integrated Drought Information 
System within the National Oceanic and Atmospheric Administration to 
improve national drought preparedness, information collection and 
analysis. This information system collects and integrates information 
on key indicators of drought in order to make usable, reliable and 
timely drought forecasts and assessments. This information will be 
disseminated to federal, state, tribal and local decision makers in 
order to better prepare them for the effects of drought.
  The impacts of drought are also very costly. According to NOAA, there 
have been 12 different drought events since 1980 that resulted in 
damages and costs exceeding $1 billion each. In 2000, severe drought in 
the South-Central and Southeastern states caused losses to agriculture 
and related industries of over $4 billion. Western wildfires that year 
totaled over $2 billion in damages. The Eastern drought in 1999 led to 
$1 billion in losses. These are just a few of the statistics.
  On April 18, 2006, the Texas Agriculture Experiment Station predicted 
a dramatic decrease in water flows and reservoir storage throughout New 
Mexico. Early predictions indicate that river water supply will be at 
54 percent

[[Page 7136]]

due primarily to receiving half our annual snow pack and above average 
temperatures in my state. Additionally, several of our reservoirs are 
at severely diminished capacity. Specifically, the Elephant Butte, El 
Vado and Caballo reservoirs will all be below 10 percent of capacity by 
Labor Day. Several New Mexico communities have already begun to 
institute water restrictions in preparation for what is predicted to be 
one of the worst years on record. As this drought persists, I want to 
ensure each New Mexican that I am committed to doing everything 
possible to make sure they have the tools and information they need to 
make the best decisions.
  While drought affects the economic and environmental well-being of 
the entire nation, the United States has lacked a cohesive strategy for 
dealing with serious drought emergencies. As many of you know, the 
impact of drought emerges gradually rather than suddenly, as is the 
case with other natural disasters.
  I am pleased to be following through on what I started in 1997. The 
bill that we are introducing today is the next step in implementing a 
national, cohesive drought policy. The bill recognizes that drought is 
a recurring phenomenon that causes serious economic and environmental 
loss and that a national drought policy is needed to ensure an 
integrated, coordinated strategy.
                                 ______
                                 
      By Mr. AKAKA:
  S. 2753. A bill to require a program to improve the provision of 
caregiver assistance services for veterans; to the Committee on 
Veterans' Affairs.
  Mr. AKAKA. Mr. President, I rise proudly today to introduce 
legislation that would provide assistance to those who care for our 
Nation's veterans. These caregivers provide a great service to our 
country and play a vital role in providing non-institutional long-term 
health care for veterans.
  There is deep concern regarding the anticipated number of veterans 
that will need long-term care by the year 2010. In 2005, there were 
almost one million veterans age 85 and over, and by 2010, it is 
anticipated that the number of veterans in this age category will grow 
to 1.3 million. The Department of Veterans Affairs (VA) will be faced 
with a crisis related to the demand for care of this population, and we 
must help VA prepare for this situation.
  VA has been disturbingly inactive in instituting the long-term care 
provisions of the 1999 Millennium Health Care Act. The General 
Accounting Office has been the most critical, citing major 
inconsistencies across the VA system in the implementation of non-
institutional care. During the Committee on Veterans' Affairs' 
oversight work in Hawaii, we found that the Kauai clinic lacked a home 
care specialist and the Maui clinic was arbitrarily limiting non-
institutional care. Caregivers are crucial in bridging these gaps in 
non-institutional long-term care services.
  With more veterans returning from combat with severely debilitating 
injuries, young spouses and parents have been forced to take on an 
unexpected role as caregivers. Many have interrupted their own careers 
to dedicate time and attention to the care and rehabilitation of loved 
ones. These caregivers do not plan for this to happen and are not 
prepared mentally or financially for their new role. Therefore, we must 
protect, educate, and lend a helping hand to the caregivers who take on 
the responsibility and costly burden of caring for veterans, both young 
and old.
  This legislation serves to provide comprehensive assistance to these 
caregivers. By providing such services as respite care, caregivers can 
have time to run errands and attend to their own health concerns. They 
can rest easier knowing that there is someone there to care for their 
disabled veteran while they are out. Another service provided through 
this legislation is adult-day care for veterans. This serves a dual 
purpose in that it provides short-term supervision and also gives 
veterans a place to go for some camaraderie.
  The last years of a veteran's life can be difficult for both the 
veteran and for the caregiver. This legislation would also provide 
hospice services so that this period is one of peace and comfort.
  Other services that would support caregivers under this legislation 
include education, training, transportation services, readjustment 
services, rehabilitation services, home care services, and any other 
new and innovative modalities of non-institutional long-term care.
  I cannot try to quantify the invaluable service that caregivers 
provide. What can be done is to make funds available to carry out 
programs to assist them. The legislation authorizes $10 million to be 
allocated to individual medical facilities within VA, especially to 
those in rural areas without a long-term care facility, based upon the 
proposals submitted by the facilities. In efforts to evaluate the 
improvements made in caregiver assistance services, a report shall be 
submitted to Congress by the Secretary no later than a year after 
enactment of this bill. The report should include information on the 
allocation of funds to facilities and a description of the improvements 
made with the funds.
  Let us meet these caregivers halfway by giving them the assistance 
they need to care for the veterans that depend on them. I ask my 
colleagues to join me in supporting this effort.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2753

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

     SECTION 1. IMPROVEMENT OF SERVICES FOR CAREGIVERS OF 
                   VETERANS.

       (a) In General.--The Secretary of Veterans Affairs shall 
     carry out a program to expand and improve the services that 
     assist caregivers of veterans, including veterans of the 
     Global War on Terrorism.
       (b) Caregiver Assistance Services.--For purposes of this 
     section, the term ``caregiver assistance services'' includes 
     the following:
       (1) Adult-day health care services.
       (2) Coordination of services needed by veterans, including 
     services for readjustment and rehabilitation.
       (3) Transportation services.
       (4) Caregiver support services, including education, 
     training, and certification of family members in caregiver 
     activities.
       (5) Home care services.
       (6) Respite care.
       (7) Hospice services.
       (8) Any modalities of non-institutional long-term care.
       (c) Funding.--
       (1) Source of funds.--In carrying out the program required 
     by subsection (a), the Secretary shall identify, from funds 
     available to the Department of Veterans Affairs for medical 
     care, an amount not less than $10,000,000 to be available to 
     carry out the program and to be allocated to facilities of 
     the Department pursuant to subsection (d).
       (2) Minimum allocation of funds.--In identifying available 
     amounts pursuant to paragraph (1), the Secretary shall ensure 
     that, after the allocation of funds under subsection (d), the 
     total expenditure for programs in support of caregiver 
     assistance services for veterans is not less than $10,000,000 
     in excess of the baseline amount.
       (3) Baseline amount.--For purposes of paragraph (2), the 
     baseline amount is the amount of the total expenditures on 
     programs in support of caregiver assistance services for 
     veterans for the most recent fiscal year for which final 
     expenditure amounts are known, adjusted to reflect any 
     subsequent increase in applicable costs to support such 
     services through the Veterans Health Administration.
       (d) Allocation of Funds to Facilities.--The Secretary shall 
     allocate funds identified pursuant to subsection (c)(1) to 
     individual medical facilities of the Department in such 
     amounts as the Secretary determines appropriate based upon 
     proposals submitted by such facilities for the use of such 
     funds for improvements to the support of the provision of 
     caregiver assistance services for veterans. Special 
     consideration should be given to rural facilities, including 
     those without a long-term care facility of the Department.
       (e) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Veterans' Affairs of the Senate and the 
     Committee on Veterans' Affairs of the House of 
     Representatives a report on the implementation of this 
     section. The report shall include information on the 
     allocation of funds to facilities of the Department under 
     subsection (d) and a description of the improvements made 
     with funds so allocated to the support

[[Page 7137]]

     of the provision of caregiver assistance services for 
     veterans.

                          ____________________