[Congressional Record (Bound Edition), Volume 155 (2009), Part 17]
[Senate]
[Pages 22658-22668]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DORGAN (for himself, Mr. Tester, Mr. Inouye, Mr. Akaka, 
        Mr. Baucus, Mr. Udall of New Mexico, Mr. Bingaman, and Mr. 
        Franken):
  S. 1703. A bill to amend the Act of June 18, 1934, to reaffirm the 
authority of the Secretary of the Interior to take land into trust for 
Indian tribes; to the Committee on Indian Affairs.

  Mr. DORGAN. Mr. President, I rise today to introduce a technical 
amendment to the Act of June 18, 1934.
  On February 24, 2009, the Supreme Court issued its decision in the 
Carcieri v. Salazar case. In that decision the Supreme Court held that 
the Secretary of the Interior exceeded his authority in taking land 
into trust for a tribe that was not under Federal jurisdiction, or 
recognized, at the time the Indian Reorganization Act was enacted in 
1934.
  The legislation I am introducing today is necessary to reaffirm the 
Secretary's authority to take lands into trust for Indian tribes, 
regardless of when they were recognized by the Federal government. The 
amendment ratifies the prior trust acquisitions of the Secretary, who 
for the past 75 years has been exercising his authority to take lands 
into trust, as intended by the Indian Reorganization Act.
  On May 21, 2009, the Senate Committee on Indian Affairs held a 
hearing to examine the executive branch's authority to take land into 
trust for Indian tribes. At that hearing, it became clear that Congress 
needs to act to resolve the uncertainty created by the Supreme Court's 
decision. Therefore, this legislation was developed in consultation 
with interested parties to clarify the Secretary's authority.
  Inaction by Congress could significantly impact planned development 
projects on Indian trust lands, including the building of homes and 
community centers; result in a loss of jobs in an already challenging 
economic environment; and create costly and unnecessary litigation.
  Further, if the decision stands, it would have the effect of creating 
two

[[Page 22659]]

classes of Indian tribes--those who were recognized as of 1934, for 
whom land may be taken into trust, and those recognized after 1934 that 
would be unable to have land taken into trust status. Creating two 
classes of tribes is unacceptable and is contrary to prior Acts of this 
Congress. In 1994, Congress passed the Federally Recognized Indian 
Tribe List Act to ensure that all tribes are treated equally, 
regardless of their date of recognition.
  I want to thank Senators Tester, Inouye, Akaka, Baucus, Udall, 
Bingaman, and Franken for their support on this legislation. My 
cosponsors are well aware of the resulting impact this decision could 
have on our Native American communities. Affected tribes deserve our 
timely consideration of this bill. I urge my colleagues to join me in 
supporting the passage of this legislation.
  Mr. President, 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. 1703

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

     SECTION 1. MODIFICATION OF DEFINITION.

       (a) In General.--Section 19 of the Act of June 18, 1934 
     (commonly known as the ``Indian Reorganization Act'') (25 
     U.S.C. 479), is amended--
       (1) in the first sentence--
       (A) by striking ``The term'' and inserting ``Effective 
     beginning on June 18, 1934, the term''; and
       (B) by striking ``any recognized Indian tribe now under 
     Federal jurisdiction'' and inserting ``any federally 
     recognized Indian tribe''; and
       (2) by striking the third sentence and inserting the 
     following: ``In this section, the term `Indian tribe' means 
     any Indian or Alaska Native tribe, band, nation, pueblo, 
     village, or community that the Secretary of the Interior 
     acknowledges to exist as an Indian tribe.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the Act of June 18, 1934 
     (commonly known as the ``Indian Reorganization Act'') (25 
     U.S.C. 479), on the date of enactment of that Act.
                                 ______
                                 
      By Mr. NELSON, of Florida (for himself, Ms. Snowe, and Mr. 
        Cardin):
  S. 1704. A bill to hold the surviving Nazi war criminals accountable 
for the war crimes, genocide, and crimes against humanity they 
committed during World War II, by encouraging foreign governments to 
more efficiently prosecute and extradite wanted criminals; to the 
Committee on the Judiciary.
  Mr. NELSON of Florida. Mr. President, I rise today to introduce the 
World War II War Crimes Accountability Act of 2009. The bill seeks to 
hold the surviving Nazi war criminals accountable for their crimes by 
encouraging foreign governments to prosecute and extradite wanted 
criminals. I would like to thank my colleagues, Senators Snowe and 
Cardin, for supporting this important legislation.
  The atrocities committed by the Nazis and their allies during the 
Second World War were vast and have helped shape the modern concept of 
crimes against humanity. After the war, some of the perpetrators of 
these heinous crimes escaped justice and have been living out their 
days as free men.
  In an effort to bring these fugitives to justice, the Simon 
Wiesenthal Center and the Targum Shlishi Foundation of Miami, Florida 
launched ``Operation: Last Chance'' to help identify and facilitate the 
prosecution of the remaining unprosecuted Nazi war criminals and to 
assist governments in bringing Nazi war criminals to justice.
  Among the Center's many open cases there is Alois Brunner, a key 
operative of Adolf Eichmann, who was responsible for the deportation of 
47,000 Jews from Austria, 44,000 Jews from Greece, 23,500 Jews from 
France, and 14,000 Jews from Slovakia to Nazi death camps. He lived in 
Syria for decades and the Syrian government refused to cooperate with 
international prosecution efforts. He was convicted in absentia for his 
crimes by France. He was born in 1912 and last seen in 2001. While it 
is doubtful that he is still alive, there is no conclusive evidence of 
his death.
  Another case is that of Milivoj Asner, who served as the police chief 
of the city of Slavonska Pozega. During 1941 and 1942, Mr. Asner 
orchestrated the robbery, persecution and destruction of the local 
Serb, Jewish, and Gypsy communities, which culminated in the 
deportation of hundreds of civilians to Ustasha concentration camps, 
where most of the deportees were murdered. After his exposure in 
Operation: Last Chance, the former police chief later escaped once 
again to Klagenfurt, Austria where he currently resides.
  Within our own government, the Office of Special Investigations at 
the Justice Department is tasked with identifying, investigating and 
denying refuge in the United States to the Nazi persecutors. As a 
result, the U.S. is the only country in the world to have won an ``A'' 
rating from the Simon Wiesenthal Center for effectiveness in pursuing 
justice for Holocaust crimes.
  Yet despite the best efforts of the U.S. Government and tireless work 
of organizations like the Wiesenthal Center, some countries continue to 
harbor wanted Nazis and refuse to accept the extradition of Nazi 
criminals from other countries, including the U.S. This inaction is 
shameful.
  It is incumbent upon us as Americans to honor the memory of those 
killed in the Holocaust and to pay tribute to the sacrifices of the men 
and women who fought and died in World War II. The last surviving Nazi 
war criminals are dying off. We must do everything in our power, 
including equipping our own government with important tools, to bring 
these war criminals to justice before it is too late.
  The World War II War Crimes Accountability Act seeks to strengthen 
U.S. efforts by directing the Attorney General to assess a country's 
cooperation in prosecuting and extraditing war criminals when 
considering prospective countries for admission into the Visa Waiver 
Program. It also requires the President to issue an annual report 
describing such cooperation for countries seeking entry into or renewal 
of the Visa Waiver Program.
  I believe that giving the administration this added review process 
will help encourage foreign governments to prosecute and extradite 
wanted criminals. I hope that others will join me in cosponsoring this 
legislation and voting it into law.
  Time is of the essence. Surviving Nazi war criminals are becoming 
increasingly rare. We must do all that we can before it is too late.
                                 ______
                                 
      By Mr. REID (for himself and Mr. Ensign):
  S. 1711. A bill to amend the Internal Revenue Code of 1986 to provide 
tax incentives for making homes more water-efficient, for building new 
water-efficient homes, for public water conservation, and for other 
purposes; to the Committee on Finance.
  Mr. REID. Mr. President, I rise today to introduce three pieces of 
legislation: the Water Efficiency and Conservation Investment Act, S. 
1711, the Water Efficiency, Conservation and Adaptation Act, S. 1712, 
and the Water Efficiency via Carbon Harvesting and Restoration Act, S. 
1713.
  Water is our world's most precious and important limited natural 
resource--access to water is vital for every person and life form on 
this planet. Albert Szent-Gyorgyi, a Hungarian Nobel Prize winning 
doctor, once said that ``water is life's mater and matrix, mother and 
medium. There is no life without water.''
  While Nevada is blessed with beautiful desert landscapes and 
tremendous clean energy resources, we are not blessed with abundant 
water supplies. That is why I am introducing legislation together with 
my friend Senator Ensign and others that will: encourage Americans to 
use water more efficiently; ensure that future generations have access 
to adequate supplies of clean water; and convert water stealing 
invasive weeds to sequestered carbon and clean-burning fuels.
  A lengthy drought is taking its toll on the Colorado River Basin 
states, especially Nevada, Arizona, and California. More than 30 
million people rely on water from the Colorado River,

[[Page 22660]]

which supplies Southern Nevada with 90 percent of its water. Water 
levels at Lake Mead, where water used by 1.9 million Nevadans is 
stored, have dropped by roughly 100 feet. If the drought in the 
Southwest continues the lake could dry up in the next 12 years, 
according to a study by the Scripps Institution of Oceanography.
  Growing population, rising water demand, climate change induced 
disruptions to the water cycle, aging infrastructure, and water 
disputes all necessitate early action so the water resources we rely on 
today can be enjoyed by the next generation.
  Even without considering the effects of climate change, the U.S. 
Global Change Research Program has identified many serious water supply 
conflicts in the Colorado River Basin states by 2025. Factoring in the 
USGCRP's projection that precipitation runoff will decrease in the 
Southwest by up to 40 percent in some areas over the next half century 
as a result of a changing climate, it is clear that immediate and 
constant attention is and will be necessary to address these water 
supply problems.
  Legislation is urgently needed to promote greater water efficiency 
and create better financing options for improving our infrastructure to 
save, recycle and reuse water. Strong tax incentives to make our homes 
and yards more water efficient and to increase investments in extending 
the life of our existing water supplies will help secure water scarce 
regions against the economic and health catastrophes that would occur 
if their water supplies were to run dry.
  We need to invest meaningfully in planning for, adapting to and 
mitigating the effects of climate change on water supplies and water 
infrastructure with which Nevadans are becoming all too familiar. It is 
important that we start planning right away for a more secure water 
supply future.
  Investing in water efficiency and adapting our water systems to a 
changing climate not only prepares us for the future, it also can save 
consumers hundreds of dollars on their water bills. Additionally, 
adequate funding for the legislation I am introducing today could 
create tens of thousands of jobs. A $1 million direct investment in 
water efficiency is estimated to create between 15 and 22 jobs--more 
than double the jobs created by coal or oil investments.
  Together, the Water Efficiency and Conservation Investment Act and 
the Water Efficiency, Conservation and Adaptation Act provide the right 
balance of tax incentives, financing and grant programs to begin 
formulating a national strategy to address these pressing needs and 
ensure that current and future Nevadans will have greater and more 
sustainable economic growth opportunities.
  The Water Efficiency via Carbon Harvesting and Restoration Act also 
helps protect our water resources, and does much more. Invasive weeds 
and dangerous fuels buildup in Western landscapes have become recipes 
for disaster on a seemingly annual basis. The Bureau of Land Management 
has estimated that a single acre of salt cedar robs our watersheds of 
nearly a million gallons of water each year. The National Park Service 
has found that the infestation at Lake Mead National Recreation Area 
alone covers almost 7,000 acres. Removing the salt cedar from this one 
area would restore enough water to satisfy the needs of 72,000 Las 
Vegas residents.
  At the same time, expansion of pinyon and juniper now covers up to 9 
million acres of the public lands in the Great Basin, forming dense 
thickets impenetrable to most wildlife, and creating enormous wildland 
fire hazards.
  Using biochar production technology, we can restore these impacted 
landscapes, while producing valuable products that can help address 
climate change through long term carbon sequestration, benefit 
agriculture and the environment by reducing the need for chemical 
fertilizers, and produce cleaner-burning fuels to help meet our 
Nation's energy needs. All of this can be achieved while saving 
billions of gallons of water, reducing the risks of hotter and more 
difficult to extinguish wildfires, and creating rural economic 
development opportunities.
  Let me offer a brief description of how biochar technology works: The 
woody material in invasive plants is heated in the absence of oxygen to 
produce biochar, as well as bio-oil and syngas which can then be used 
to power the production process. Biochar is nearly pure carbon, and 
when applied to landscapes and agricultural fields it has long-lasting 
benefits. It significantly improves soil quality, decreases fertilizer 
runoff, and increases plant health and crop yields. Studies have found 
that biochar is stable for hundreds if not thousands of years, keeping 
this carbon from being released into the atmosphere where it would 
contribute to climate change.
  These bills will do much to extend the life of our water resources in 
the face of growing water demand and climate disruptions, while 
improving the health of ecosystems. Under these bills, Nevadans would 
have new options to save money on their water bills and new ways to 
make money by eliminating water-hungry invasive species. And, the low-
cost financing options that will help communities adapt to drought and 
water scarcity due to global climate change will ensure sustainable 
economic growth and stimulate more green job creation.
  As these bills move through the legislative process, I look forward 
to working with my colleagues to ensure that adequate attention is paid 
to the tremendous work our Nation must do so that future generations 
may enjoy a more secure and predictable clean water future.
  Mr. President, 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. 1711

       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 ``Water Efficiency and 
     Conservation Investment Act of 2009''.

     SEC. 2. RESIDENTIAL WATER EFFICIENCY CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code is amended by 
     inserting after section 30D the following new section:

     ``SEC. 30E. RESIDENTIAL WATER EFFICIENCY CREDIT.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to 50 
     percent of the qualified water efficiency property 
     expenditures paid or incurred during such taxable year.
       ``(b) Limitation.--The credit allowed under this section 
     with respect to any taxpayer for any taxable year shall not 
     exceed $750.
       ``(c) Qualified Water Efficiency Property Expenditures.--
     For purposes of this section--
       ``(1) In general.--The term `qualified water efficiency 
     property expenditures' means expenditures for qualified water 
     efficiency property which is--
       ``(A) installed on or in connection with a dwelling unit 
     located in the United States that is owned by the taxpayer 
     (without regard to whether any other person occupies such 
     dwelling unit as a residence), and
       ``(B) originally placed in service by the taxpayer.

     Such term includes expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of such property.
       ``(2) Qualified water efficiency property.--The term 
     `qualified water efficiency property' means--
       ``(A) property which meets the national efficiency 
     standards and specifications for residential water-using 
     fixtures, appliances, and devices under the WaterSense 
     program of the Environmental Protection Agency that are in 
     effect on the date of purchase of such property, but only if 
     such property improves water efficiency by no less than 20 
     percent over standard models of similar water-using fixtures 
     and appliances as determined by the Administrator of such 
     Agency, and
       ``(B) water efficient landscaping which is installed by a 
     landscape irrigation professional certified by such 
     WaterSense program and which reduces water use by no less 
     than 50 percent, as certified by such professional.
       ``(3) State water efficiency standards.--In the case of a 
     State that has mandatory water efficiency standards for any 
     property that are more stringent than the standards and 
     specifications described in paragraph (2), property installed 
     on or in connection with a dwelling unit that is located in 
     such State must meet such water efficiency standards of

[[Page 22661]]

     such State in order to be treated as qualified water 
     efficiency property for purposes of this section.
       ``(d) Special Rules.--For purposes of this section--
       ``(1) Joint ownership of water efficiency items.--
       ``(A) In general.--An expenditure shall not fail to be 
     treated as a qualified water efficiency property expenditure 
     merely because such expenditure was made with respect to 2 or 
     more dwelling units.
       ``(B) Allocation of expenditures.--In the case of an 
     expenditure made with respect to 2 or more dwelling units, 
     for purposes of determining the credit allowable under this 
     section, such expenditure shall be allocated among such 
     dwelling units in proportion to the amount of the expenditure 
     made for each dwelling unit.
       ``(2) Refunds disregarded in the administration of federal 
     programs and federally assisted programs.--Any credit or 
     refund allowed or made to any individual by reason of this 
     section shall not be taken into account as income and shall 
     not be taken into account as resources, for purposes of 
     determining the eligibility of such individual or any other 
     individual for benefits or assistance, or the amount or 
     extent of benefits or assistance, under any Federal program 
     or under any State or local program financed in whole or in 
     part with Federal funds.
       ``(3) Basis adjustments.--For purposes of this subtitle, if 
     a credit is allowed under subsection (a) for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(4) Denial of double benefit.--
       ``(A) In general.--No deduction or credit under any other 
     provision of this chapter shall be allowed with respect to 
     the amount of any qualified water efficiency property 
     expenditure taken into account under this section.
       ``(B) Rebate programs.--The amount of any qualified water 
     efficiency property expenditure for which an individual is 
     reimbursed under any Federal government program shall not be 
     taken into account for purposes of determining the credit 
     under subsection (a) with respect such individual.
       ``(e) Application With Other Credits.--
       ``(1) Business credit.--
       ``(A) Business credit treated as part of general business 
     credit.--So much of the credit which would be allowed under 
     subsection (a) for any taxable year (determined without 
     regard to this subsection) that is attributable to property 
     of a character subject to an allowance for depreciation shall 
     be treated as a credit listed in section 38(b) for such 
     taxable year (and not allowed under subsection (a)).
       ``(B) Disallowance of depreciation.--In the case of an 
     expenditure for property described in subparagraph (A) with 
     respect to which a credit is allowed under section 38(b) by 
     reason of such subparagraph, the depreciation allowance for 
     such property in all taxable years shall be zero and no 
     deduction shall be available under section 167 with respect 
     to such property.
       ``(2) Personal credit.--
       ``(A) In general.--For purposes of this title, the credit 
     allowed under subsection (a) for any taxable year (determined 
     after application of paragraph (1)) shall be treated as a 
     credit allowable under subpart A for such taxable year.
       ``(B) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall not 
     exceed the excess of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)), plus
       ``(ii) the sum of the credits allowable under subpart A 
     (other than this section and sections 23, 25D, 30, 30B, and 
     30D) and section 27 for the taxable year.
       ``(f) Termination.--This section shall not apply with 
     respect to any property placed in service after December 31, 
     2014.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 30D'' and inserting ``, 
     30D, and 30E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``30E,'' after ``30D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``and 30D'' and inserting ``30D, and 30E''.
       (4) Section 904(i) of such Code is amended by striking 
     ``and 30D'' and inserting ``30D, and 30E''.
       (5) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (36), by striking the period 
     at the end of paragraph (37) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(38) to the extent provided in section 30E(d)(3).''.
       (6) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 30D'' and inserting ``30D, and 30E''.
       (c) Credit to Be Part of Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (34), by striking the period 
     at the end of paragraph (35) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(36) the portion of the residential water efficiency 
     credit to which section 30E(e)(1) applies.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 30D the following new item:

``Sec. 30E. Residential water efficiency credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 3. NEW WATER EFFICIENT HOME CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45R. NEW WATER EFFICIENT HOME CREDIT.

       ``(a) Allowance of Credit.--For purposes of section 38, in 
     the case of an eligible contractor, the new water efficient 
     home credit for the taxable year is an amount equal to $1,500 
     for each qualified new water efficient home which is--
       ``(1) constructed by such eligible contractor, and
       ``(2) acquired by a person from such eligible contractor 
     during the taxable year.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Eligible contractor.--The term `eligible contractor' 
     means a person who is certified as a builder partner under 
     the WaterSense program of the Environmental Protection Agency 
     and who is--
       ``(A) the person who constructed the qualified new water 
     efficient home, or
       ``(B) in the case of a qualified new energy efficient home 
     which is a manufactured home, the manufactured home producer 
     of such home.
       ``(2) Qualified new water efficient home.--The term 
     `qualified new water efficient home' means a dwelling unit--
       ``(A) located in the United States,
       ``(B) the construction of which is substantially completed 
     after the date of the enactment of this section, and
       ``(C) which is certified by the Environmental Protection 
     Agency as complying with the Final Water-Efficient Single-
     Family New Home Specification issued by such Agency.
       ``(3) Construction.--The term `construction' includes 
     substantial reconstruction and rehabilitation.
       ``(4) Acquire.--The term `acquire' includes purchase.
       ``(c) Certification.--
       ``(1) Method of certification.--A certification described 
     in subsection (b)(2)(C) shall be made in accordance with 
     guidance prescribed by the Secretary, after consultation with 
     the Administrator of the Environmental Protection Agency. 
     Such guidance shall specify procedures and methods for 
     calculating water and cost savings.
       ``(2) Form.--Any certification described in subsection 
     (b)(2)(C) shall be made in writing in a manner which 
     specifies in readily verifiable fashion the water efficient 
     components (including toilets, faucets, other plumbing 
     fixtures and appliances, hot water delivery, landscape 
     design, and irrigation systems) installed and their 
     respective rated water efficiency performance.
       ``(d) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section in connection with any 
     expenditure for any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so determined.
       ``(e) Coordination With Other Credits.--Expenditures taken 
     into account under section 45L, 47, or 48(a) shall not be 
     taken into account under this section.
       ``(f) Rebate Programs.--The amount of the credit allowed 
     under subsection (a) to an eligible contractor with respect 
     to any qualified new water efficient home shall be reduced, 
     but not below zero, by the amount of any reimbursement which 
     such contractor receives under any Federal government program 
     for the construction of such home or for expenditures 
     relating to such construction.
       ``(g) Termination.--This section shall not apply to any 
     qualified new water efficient home acquired after December 
     31, 2014.''.
       (b) Credit to Be Part of General Business Credit.--Section 
     38(b) of the Internal Revenue Code of 1986, as amended by 
     this Act, is amended by striking ``plus'' at the end of 
     paragraph (35), by striking the period at the end of 
     paragraph (36) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(37) the new water efficient home credit determined under 
     section 45R.''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 45R. New water efficient home credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2009.

     SEC. 4. WATER CONSERVATION BONDS.

       (a) In General.--Section 54D of the Internal Revenue Code 
     of 1986 is amended--

[[Page 22662]]

       (1) by striking ``energy conservation bond'' each place it 
     appears in subsections (a), (b), and (d), and inserting 
     ``energy and water conservation bond'',
       (2) by inserting ``AND WATER'' after ``QUALIFIED ENERGY'' 
     in the heading,
       (3) by striking ``State or local government'' in subsection 
     (a)(2) and inserting ``State, local government, or water 
     district'',
       (4) by striking ``$3,200,000,000'' in subsection (d) and 
     inserting ``$4,000,000,000, of which not less than 20 percent 
     shall be used for qualified conservation purposes described 
     in subsection (f)(1)(F)'', and
       (5) by adding at the end of subsection (f)(1) the following 
     new subparagraph:
       ``(F) Expenditures incurred for purposes of--
       ``(i) reducing water consumption by a public building or 
     facility by not less than 30 percent,
       ``(ii) advanced water metering infrastructure, including 
     the purchase, installation, and commissioning of advanced 
     water meters and related software and infrastructure,
       ``(iii) investigation, design, or construction of a 
     qualified groundwater remediation, desalination, or recycled 
     water facility or system,
       ``(iv) increasing energy efficiency or the generation and 
     use of renewable energy in the management, conveyance, or 
     treatment of water, wastewater, or stormwater,
       ``(v) reducing water loss in a water distribution system, 
     including training water system personnel, annual testing and 
     calibration of meters, detecting and repairing leaks, and 
     purchase and installation of related equipment, or
       ``(vi) establishing or improving a system for volumetric 
     billing to enable utilities to base retail residential 
     customer bills in whole or in part on the volume of metered 
     water deliveries.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR 
                   ELECTRICITY.

       (a) In General.--Subsection (b) of section 148 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Safe harbor for prepaid electricity supply 
     contracts.--
       ``(A) In general.--The term `investment-type property' does 
     not include a prepayment under a qualified electricity supply 
     contract.
       ``(B) Qualified electricity supply contract.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `qualified electricity supply contract' means--

       ``(I) any contract entered into by a water or sewer utility 
     to acquire electricity for the use of such utility in 
     providing water or sewer services to its customers, if such 
     contract provides that the provider of such electricity under 
     the contract will use not less than 75 percent of the 
     prepayment described in subparagraph (A) to acquire, 
     construct, or improve a qualified renewable energy facility, 
     and
       ``(II) any contract to acquire electricity which is not 
     described in subclause (I) which the Secretary determines 
     does not constitute property of the type intended to be 
     described in paragraph (2)(D).

       ``(ii) Water or sewer utility.--The term `water or sewer 
     utility' means a utility which is a governmental unit or is 
     owned by a governmental unit and which provides--

       ``(I) water for residential, commercial, irrigation, or 
     industrial use, or
       ``(II) sewer services for residential, commercial, or 
     industrial use,

     to retail or wholesale customers in the service territory of 
     such utility.
       ``(iii) Qualified renewable energy facility.--The term 
     `qualified renewable energy facility' means a qualified 
     facility within the meaning of section 45(d) (without regard 
     to paragraphs (8) and (10) thereof, to the placed in service 
     date of such facility, and to the person who owns such 
     facility) which is located in the United States.
       ``(iv) Use of water or sewer utility.--For purposes of 
     clause (i)(I), a contract shall be treated as providing 
     electricity for the use of a water or sewer utility if the 
     sum of--

       ``(I) the total number of kilowatt hours of electricity 
     purchased under such contract and any other contracts for the 
     purchase of electricity by such utility in effect on the date 
     of the execution of such contract, plus
       ``(II) the amount of electricity expected to be generated 
     by any generating facilities owned and used by such utility,

     does not exceed by more than 10 percent the total kilowatt 
     hours of electricity expected to be used by such utility 
     during the term of such contract for the purpose of providing 
     water or sewer services to its customers or for resale to 
     other water or sewer utilities for their use (and not for 
     resale to any entity that is not a water or sewer utility).
       ``(C) Other rules.--Rules similar to the rules of 
     subparagraphs (D)(ii), (G), and (I) of paragraph (4) shall 
     apply for purposes of this paragraph.''.
       (b) Private Loan Financing Test Not to Apply to Prepayments 
     for Electricity.--Paragraph (2) of section 141(c) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``or'' at the end of subparagraph (B),
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``, or'', and
       (3) by adding at the end the following new subparagraph:
       ``(D) is a qualified electricity supply contract (as 
     defined in section 148(b)(5)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. REID (for himself, Mrs. Boxer, and Mr. Cardin):
  S. 1712. A bill to promote water efficiency, conservation, and 
adaptation, and for other purposes; to the Committee on Environment and 
Public Works.
  Mr. REID. Mr. President, 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. 1712

       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 ``Water Efficiency, 
     Conservation, and Adaptation Act of 2009''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1)(A) human-induced climate change is affecting the 
     natural water cycle, decreasing precipitation levels in the 
     West, especially the Southwest, and making droughts and 
     floods more frequent and more intense;
       (B) declining precipitation levels will severely impact 
     water supplies in Southwestern States; and
       (C) a sharp increase in the number of days with very heavy 
     precipitation throughout the Northeast and the Midwest will 
     stress aging water infrastructure;
       (2) changes in the water cycle caused by climate 
     disruptions will adversely affect water infrastructure, 
     energy production and use, human health, transportation, 
     agriculture, and ecosystems, while also aggravating water 
     disputes across the United States;
       (3)(A) the Colorado River, which supplies water for over 
     30,000,000 people, is experiencing the worst drought in over 
     100 years of recordkeeping; and
       (B) the primary reservoirs of the Colorado River Basin and 
     Lakes Mead and Powell have lost nearly half of the storage 
     waters of the reservoirs and Lakes, and clean hydropower 
     generated from Hoover Dam risks reduction if the extended 
     drought persists;
       (4) States and local governments and water utilities can 
     begin to address the challenges described in this section by 
     providing incentives for water efficiency and conservation, 
     while also planning and investing in infrastructure to adapt 
     to the impacts of climate change, particularly those impacts 
     already affecting the United States;
       (5) residential water demand can be reduced by 25 to 40 
     percent using existing, cost-effective technologies that also 
     can reduce the water bills of consumers by hundreds of 
     dollars per year; and
       (6) water and energy use are inseparable activities, and 
     supplying and treating water consumes around 4 percent of the 
     electricity of the United States, and electricity makes up 75 
     percent of the cost of processing and delivering municipal 
     water.

     SEC. 3. DEFINITION OF ADMINISTRATOR.

       In this Act, the term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.

     SEC. 4. WATERSENSE.

       (a) In General.--There is established within the 
     Environmental Protection Agency a WaterSense program to 
     identify and promote water efficient products, buildings, 
     landscapes, facilities, processes, and services so as--
       (1) to reduce water use;
       (2) to reduce the strain on water, wastewater, and 
     stormwater infrastructure;
       (3) to conserve energy used to pump, heat, transport, and 
     treat water; and
       (4) to preserve water resources for future generations, 
     through voluntary labeling of, or other forms of 
     communications about, products, buildings, landscapes, 
     facilities, processes, and services that meet the highest 
     water efficiency and performance criteria.
       (b) Duties.--The Administrator shall--
       (1) establish--
       (A) a WaterSense label to be used for certain items; and
       (B) the procedure by which an item may be certified to 
     display the WaterSense label;
       (2) promote WaterSense-labeled products, buildings, 
     landscapes, facilities, processes, and services in the market 
     place as the preferred technologies and services for--
       (A) reducing water use; and
       (B) ensuring product and service performance;
       (3) work to enhance public awareness of the WaterSense 
     label through public outreach, education, and other means;
       (4) preserve the integrity of the WaterSense label by--
       (A) establishing and maintaining performance criteria so 
     that products, buildings,

[[Page 22663]]

     landscapes, facilities, processes, and services labeled with 
     the WaterSense label perform as well or better than less 
     water-efficient counterparts;
       (B) overseeing WaterSense certifications made by third 
     parties;
       (C) conducting reviews of the use of the WaterSense label 
     in the marketplace and taking corrective action in any case 
     in which misuse of the label is identified; and
       (D) carrying out such other measures as the Administrator 
     determines to be appropriate;
       (5) regularly review and, if appropriate, update WaterSense 
     criteria for categories of products, buildings, landscapes, 
     facilities, processes, and services, at least once every 4 
     years;
       (6) to the maximum extent practicable, regularly estimate 
     and make available to the public the production and relative 
     market shares of, and the savings of water, energy, and 
     capital costs of water, wastewater, and stormwater 
     infrastructure attributable to the use of WaterSense-labeled 
     products, buildings, landscapes, facilities, processes, and 
     services, at least annually;
       (7) solicit comments from interested parties and the public 
     prior to establishing or revising a WaterSense category, 
     specification, installation criterion, or other criterion (or 
     prior to effective dates for any such category, 
     specification, installation criterion, or other criterion);
       (8) provide reasonable notice to interested parties and the 
     public of any changes (including effective dates), on the 
     adoption of a new or revised category, specification, 
     installation criterion, or other criterion, along with--
       (A) an explanation of the changes; and
       (B) as appropriate, responses to comments submitted by 
     interested parties and the public;
       (9) provide appropriate lead time (as determined by the 
     Administrator) prior to the applicable effective date for a 
     new or significant revision to a category, specification, 
     installation criterion, or other criterion, taking into 
     account the timing requirements of the manufacturing, 
     marketing, training, and distribution process for the 
     specific product, building and landscape, or service category 
     addressed;
       (10) identify and, if appropriate, implement other 
     voluntary approaches in commercial, institutional, 
     residential, industrial, and municipal sectors to encourage 
     recycling and reuse technologies to improve water efficiency 
     or lower water use; and
       (11) if appropriate, apply the WaterSense label to water-
     using products that are labeled by the Energy Star program 
     implemented by the Administrator and the Secretary of Energy.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $7,500,000 for fiscal year 2010;
       (2) $10,000,000 for fiscal year 2011;
       (3) $20,000,000 for fiscal year 2012;
       (4) $50,000,000 for fiscal year 2013; and
       (5) for each subsequent fiscal year, the applicable amount 
     during the preceding fiscal year, as adjusted to reflect 
     changes for the 12-month period ending the preceding November 
     30 in the Consumer Price Index for All Urban Consumers 
     published by the Bureau of Labor Statistics of the Department 
     of Labor.

     SEC. 5. STATE RESIDENTIAL WATER EFFICIENCY AND CONSERVATION 
                   INCENTIVES PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means a 
     State government, local or county government, tribal 
     government, wastewater or sewerage utility, municipal water 
     authority, energy utility, water utility, or nonprofit 
     organization that meets the requirements of subsection (b).
       (2) Incentive program.--The term ``incentive program'' 
     means a program for administering financial incentives for 
     consumer purchase and installation of water-efficient 
     products, buildings (including new water-efficient homes), 
     landscapes, processes, or services described in subsection 
     (b)(1).
       (3) Residential water-efficient product, building, 
     landscape, process, or service.--
       (A) In general.--The term ``residential water-efficient 
     product, building, landscape, process, or service'' means a 
     product, building, landscape, process, or service for a 
     residence or its landscape that is rated for water efficiency 
     and performance--
       (i) by the WaterSense program; or
       (ii) if a WaterSense specification does not exist, by the 
     Energy Star program or an incentive program approved by the 
     Administrator.
       (B) Inclusions.--The term ``residential water-efficient 
     product, building, landscape, process, or service'' 
     includes--
       (i) faucets;
       (ii) irrigation technologies and services;
       (iii) point-of-use water treatment devices;
       (iv) reuse and recycling technologies;
       (v) toilets;
       (vi) clothes washers;
       (vii) dishwashers;
       (viii) showerheads;
       (ix) xeriscaping and other landscape conversions that 
     replace irrigated turf; and
       (x) new water efficient homes certified under the 
     WaterSense program.
       (4) Watersense program.--The term ``WaterSense program'' 
     means the program established by section 4.
       (b) Eligible Entities.--An entity shall be eligible to 
     receive an allocation under subsection (c) if the entity--
       (1) establishes (or has established) an incentive program 
     to provide financial incentives to residential consumers for 
     the purchase of residential water-efficient products, 
     buildings, landscapes, processes, or services;
       (2) submits an application for the allocation at such time, 
     in such form, and containing such information as the 
     Administrator may require; and
       (3) provides assurances satisfactory to the Administrator 
     that the entity will use the allocation to supplement, but 
     not supplant, funds made available to carry out the incentive 
     program.
       (c) Amount of Allocations.--For each fiscal year, the 
     Administrator shall determine the amount to allocate to each 
     eligible entity to carry out subsection (d), taking into 
     consideration--
       (1) the population served by the eligible entity during the 
     most recent calendar year for which data are available;
       (2) the targeted population of the incentive program of the 
     eligible entity, such as general households, low-income 
     households, or first-time homeowners, and the probable 
     effectiveness of the incentive program for that population;
       (3) for existing programs, the effectiveness of the program 
     in encouraging the adoption of water-efficient products, 
     buildings, landscapes, facilities, processes, and services;
       (4) any allocation to the eligible entity for a preceding 
     fiscal year that remains unused and
       (5) the per capita water demand of the population served by 
     the eligible entity during the most recent calendar year for 
     which data are available and the accessibility of water 
     supplies to the eligible entity.
       (d) Use of Allocated Funds.--Funds allocated to an eligible 
     entity under subsection (c) may be used to pay up to 50 
     percent of the cost of establishing and carrying out an 
     incentive program.
       (e) Fixture Recycling.--Eligible entities are encouraged to 
     promote or implement fixture recycling programs to manage the 
     disposal of older fixtures replaced due to the incentive 
     program under this section.
       (f) Issuance of Incentives.--
       (1) In general.--Financial incentives may be provided to 
     residential consumers that meet the requirements of the 
     applicable incentive program.
       (2) Manner of issuance.--An eligible entity may--
       (A) issue all financial incentives directly to residential 
     consumers; or
       (B) with approval of the Administrator, delegate all or 
     part of financial incentive administration to other 
     organizations, including local governments, municipal water 
     authorities, water utilities, and nonprofit organizations.
       (3) Amount.--The amount of a financial incentive shall be 
     determined by the eligible entity, taking into 
     consideration--
       (A) the amount of any Federal or State tax incentive 
     available for the purchase of the residential water-efficient 
     product or service;
       (B) the amount necessary to change consumer behavior to 
     purchase water-efficient products and services; and
       (C) the consumer expenditures for onsite preparation, 
     assembly, and original installation of the product.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section--
       (1) $100,000,000 for fiscal year 2010;
       (2) $150,000,000 for fiscal year 2011;
       (3) $200,000,000 for fiscal year 2012;
       (4) $150,000,000 for fiscal year 2013;
       (5) $100,000,000 for fiscal year 2014; and
       (6) for each subsequent fiscal year, the applicable amount 
     during the preceding fiscal year, as adjusted to reflect 
     changes for the 12-month period ending the preceding November 
     30 in the Consumer Price Index for All Urban Consumers 
     published by the Bureau of Labor Statistics of the Department 
     of Labor.

     SEC. 6. BLUE BANK FOR WATER SYSTEM MITIGATION AND ADAPTATION.

       (a) Definitions.--In this section:
       (1) Abrupt climate change.--The term ``abrupt climate 
     change'' means a large-scale change in the climate system 
     that--
       (A) takes place over a few decades or less;
       (B) persists (or is anticipated to persist) for at least a 
     few decades; and
       (C) causes substantial disruptions in human and natural 
     systems.
       (2) Owner or operator.--
       (A) In general.--The term ``owner or operator'' means a 
     person (including a regional, State, local, municipal, or 
     private entity) that owns or operates a water system.
       (B) Inclusion.--The term ``owner or operator'' includes a 
     non-Federal entity that has operational responsibilities for 
     a federally owned water system.
       (3) Water system.--The term ``water system'' means--
       (A) a community water system (as defined in section 1401 of 
     the Safe Drinking Water Act (42 U.S.C. 300f));
       (B) a publicly owned treatment works (as defined in section 
     212 of the Federal Water

[[Page 22664]]

     Pollution Control Act (33 U.S.C. 1292)), including a 
     municipal separate storm sewer system;
       (C) a decentralized wastewater treatment system for 
     domestic sewage;
       (D) a groundwater storage and replenishment system; or
       (E) a system for transport and delivery of water for 
     irrigation or conservation.
       (b) Grants.--Beginning in fiscal year 2010, the 
     Administrator shall make grants to owners or operators of 
     water systems to address any ongoing or forecasted (based on 
     the best available research and data) climate-related impact 
     on the water quality or quantity of a region of the United 
     States, for the purposes of mitigating or adapting to the 
     impacts of climate change.
       (c) Eligible Uses.--In carrying out this section, the 
     Administrator shall make grants to assist in the planning, 
     design, construction, implementation, or maintenance of any 
     program or project to increase the resilience of a water 
     system to climate change by--
       (1) conserving water or enhancing water use efficiency, 
     including through the use of water metering to measure the 
     effectiveness of a water efficiency program;
       (2) modifying or relocating existing water system 
     infrastructure made or projected to be made inoperable by 
     climate change impacts;
       (3) preserving or improving water quality, including 
     through measures to manage, reduce, treat, or reuse municipal 
     stormwater, wastewater, or drinking water;
       (4) investigating, designing, or constructing groundwater 
     remediation, recycled water, or desalination facilities or 
     systems;
       (5) enhancing water management by increasing watershed 
     preservation and protection, such as through the use of 
     natural or engineered green infrastructure in the management, 
     conveyance, or treatment of water, wastewater, or stormwater;
       (6) enhancing energy efficiency or the use and generation 
     of renewable energy in the management, conveyance, or 
     treatment of water, wastewater, or stormwater;
       (7) supporting the adoption and use of advanced water 
     treatment, water supply management (such as reservoir 
     reoperation), or water demand management technologies, 
     projects, or processes (such as water reuse and recycling or 
     adaptive conservation pricing) that maintain or increase 
     water supply or improve water quality;
       (8) modifying or replacing existing systems or constructing 
     new systems for existing communities or land currently in 
     agricultural production to improve water availability, 
     storage, or conveyance in a manner that--
       (A) promotes more efficient use of available water 
     supplies; and
       (B) does not further exacerbate stresses on ecosystems;
       (9) supporting practices and projects, such as improved 
     irrigation systems, water banking and other forms of water 
     transactions, groundwater recharge, stormwater capture, and 
     reuse or recycling of drainage water, to improve water 
     quality or promote more efficient water use, including on 
     land currently in agricultural production;
       (10) conducting and completing studies or assessments to 
     project how climate change may impact the future operations 
     and sustainability of water systems; or
       (11) developing and implementing mitigation measures to 
     rapidly address impacts on water systems most susceptible to 
     abrupt climate change, including those in the Colorado River 
     Basin and coastal regions at risk from rising sea levels.
       (d) Application.--To be eligible to receive a grant from 
     the Administrator under subsection (b), the owner or operator 
     of a water system shall submit to the Administrator an 
     application that--
       (1) includes a proposal of the program, strategy, or 
     infrastructure improvement to be planned, designed, 
     constructed, implemented, or maintained by the water system;
       (2) cites the best available research or data that 
     demonstrates--
       (A) the risk to the water resources or infrastructure of 
     the water system as a result of ongoing or forecasted changes 
     to the hydrological system brought about by factors arising 
     from climate change, including rising sea levels and changes 
     in precipitation levels; and
       (B) how the proposed program, strategy, or infrastructure 
     improvement would perform under the anticipated climate 
     conditions;
       (3) explains how the proposed program, strategy, or 
     infrastructure improvement is expected to enhance the 
     resiliency of the water system, including source water 
     protection for community water systems, to these risks or 
     reduce the direct or indirect greenhouse gas emissions of the 
     water system; and
       (4) demonstrates that the program, strategy, or 
     infrastructure improvement is--
       (A) consistent with any approved State and tribal climate 
     adaptation plan; and
       (B) not inconsistent with any approved natural resources 
     plan.
       (e) Competitive Process.--
       (1) In general.--Each calendar year, the Administrator 
     shall conduct a competitive process to select and fund 
     applications under this section.
       (2) Priority requirements and weighting.--In carrying out 
     the process, the Administrator shall--
       (A) prioritize funding of applications that are submitted 
     by the owners or operators of water systems that are, based 
     on the best available research and data, at the greatest and 
     most immediate risk of facing significant climate-related 
     negative impacts on water quality or quantity;
       (B) in selecting among the priority applications determined 
     under subparagraph (A), ensure that the final list of 
     applications funded for each year includes a substantial 
     number that, to the maximum extent practicable, includes each 
     eligible use described in subsection (c);
       (C) solicit applications from water systems that are--
       (i) located in all regions of the United States; and
       (ii) facing varying risks as a result of climate change; 
     and
       (D) provide for solicitation and consideration of public 
     input in the development of criteria used in evaluating 
     applications.
       (f) Cost Sharing.--
       (1) Federal share.--The Federal share of the cost of any 
     program, strategy, or infrastructure improvement that is the 
     subject of a grant awarded by the Administrator to a water 
     system under subsection (b) shall not exceed 50 percent of 
     the cost of the program, strategy, and infrastructure 
     improvement.
       (2) Calculation of non-federal share.--In calculating the 
     non-Federal share of the cost of a program, strategy, or 
     infrastructure improvement proposed by a water system through 
     an application submitted by the water system under subsection 
     (d), the Administrator shall--
       (A) include the value of any in-kind services that are 
     integral to the completion of the program, strategy, or 
     infrastructure improvement, as determined by the 
     Administrator; and
       (B) not include any other amount that the water system 
     receives from a Federal agency.
       (g) Labor Standards.--
       (1) In general.--All laborers and mechanics employed on 
     infrastructure improvements funded directly by or assisted in 
     whole or in part by this section shall be paid wages at rates 
     not less than those prevailing for the same type of work on 
     similar construction in the immediate locality, as determined 
     by the Secretary of Labor in accordance with subchapter IV of 
     chapter 31 of part A of subtitle II of title 40, United 
     States Code.
       (2) Authority and functions.--With respect to the labor 
     standards in this subsection, the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (h) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     final regulations to carry out this section.
       (2) Special rule for the construction of treatment works.--
     In carrying out this subsection, the Administrator shall 
     incorporate all relevant and appropriate requirements of 
     title VI of the Federal Water Pollution Control Act (33 
     U.S.C. 1381 et seq.) applicable to the construction of 
     treatment works that are carried out under this section.
       (i) Report to Congress.--Not later than 3 years after the 
     date of enactment of this Act, and every 3 years thereafter, 
     the Administrator shall submit to the Congress a report on 
     progress in implementing this section, including information 
     on project applications received and funded annually.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Baucus, Mr. Hatch, Mr. Tester, and 
        Mr. Udall of New Mexico):
  S. 1713. A bill to establish loan guarantee programs to develop 
biochar technology using excess plant biomass, to establish biochar 
demonstration projects on public land, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. REID. Mr. President, 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. 1713

       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 ``Water Efficiency via Carbon 
     Harvesting and Restoration (WECHAR) Act of 2009''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) numerous expert reports have brought attention to the 
     negative impacts caused by invasive weed species, including 
     the consumption of water in areas with diminishing supplies;

[[Page 22665]]

       (2) salt cedar, or Tamarix species, a noxious and invasive 
     plant commonly found on public land can consume 200 gallons 
     of water per plant each day;
       (3) salt cedar now covers as much as 1,000,000 acres of 
     floodplains, riparian acres, wetland, and lake margins in the 
     Western United States;
       (4) minimizing the impact of and eradicating invasive 
     species that wrest water from delicate watersheds is in the 
     best interest of the United States;
       (5) as drought conditions worsen and legal requirements 
     relating to water supply accelerate water shortages, 
     innovative approaches are needed to address the increasing 
     demand for water;
       (6) pine bark beetle has killed thousands of acres of 
     standing forests in the Western United States, creating a 
     hazardous buildup of dead tree biomass that is a serious fire 
     threat to those and surrounding areas;
       (7) biochar technology would result in a more cost-
     effective, environmentally beneficial, and successful 
     approach to combating invasive weeds and removing excess 
     biomass and plant waste from public land;
       (8) invasive weeds and excess biomass on public land can 
     serve as feedstock for biochar and alternative fuel 
     production;
       (9) it is in the best interest of the United States to 
     conduct a comprehensive and thorough research, development, 
     and demonstration program on biochar and related bioenergy so 
     as to better understand how to use excess biomass available 
     on public land; and
       (10) biochar production and use systems have been shown to 
     have many ancillary beneficial environmental impacts.
       (b) Purposes.--The purposes of this Act are--
       (1) to restore the natural hydrology of Western landscapes 
     by removing water-intensive invasive plant species;
       (2) to reduce dangerous forest and rangeland fuel loads;
       (3) to develop technologies to convert undesirable invasive 
     plant species to useful materials;
       (4) to develop markets for those materials; and
       (5) to provide technologies to land managers to continue 
     those processes into the future.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Biochar.--The term ``biochar'' means charcoal or black 
     carbon derived from organic matter through pyrolysis.
       (2) Bioenergy.--The term ``bioenergy'' means hydrocarbons 
     derived from organic matter through pyrolysis, including bio-
     oil, syngas, or thermal energy.
       (3) Excess biomass.--
       (A) In general.--The term ``excess biomass'' means any 
     plant matter targeted for removal from public land to promote 
     ecosystem health.
       (B) Inclusions.--The term ``excess biomass'' includes--
       (i) trees or tree waste on public land;
       (ii) wood and wood wastes and residues; and
       (iii) weedy plants and grasses (including aquatic, noxious, 
     or invasive plants).
       (4) Feedstock.--The term ``feedstock'' means excess biomass 
     in the form of plant matter or materials that serves as the 
     raw material for the production of biochar and bioenergy.
       (5) Invasive plant species.--The term ``invasive plant 
     species'' means a species--
       (A) that is nonnative to a specified ecosystem; and
       (B) the introduction to an ecosystem of which causes, or 
     may cause, harm to--
       (i) the economy;
       (ii) the environment;
       (iii) water resources; or
       (iv) human, animal, or plant health.
       (6) Secretary concerned.--The term ``Secretary concerned'' 
     means the Secretary of the Interior or the Secretary of 
     Agriculture, as appropriate.

     SEC. 4. RESOURCE ASSESSMENT.

       (a) In General.--The Director of the United States 
     Geological Survey shall conduct resources assessments that 
     collect and synthesize interagency and State data to 
     quantify--
       (1) invasive plant species and excess biomass in the form 
     of dangerous fuel loads on public land that can be used for 
     feedstock;
       (2) estimated carbon content in that feedstock;
       (3) estimated potential biochar and bioenergy producible 
     from that feedstock; and
       (4) potential water savings resulting from removal of 
     invasive plant species and excess biomass on public land, by 
     watershed.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act and biennially thereafter, the Director 
     of United States Geological Survey shall submit to Congress a 
     report that describes the results of each resource assessment 
     conducted under subsection (a).

     SEC. 5. TECHNOLOGY RESEARCH.

       (a) Development of Mobile Biochar Production Units.--Not 
     later than 1 year after the date of enactment of this Act and 
     in accordance with subsection (c), the Secretary of the 
     Interior shall establish a program to provide guarantees of 
     loans by private institutions--
       (1) to develop and optimize commercially and 
     technologically viable biochar production units that--
       (A) are designed to use woody invasive plant species and 
     excess biomass feedstock such as tamarisk, pinyon pine, and 
     juniper;
       (B) produce net negative carbon emissions relative to 
     natural decomposition;
       (C) are self-contained on a portable platform suitable for 
     deployment to remote locations and on unpaved roads; and
       (D) can capture biochar and bioenergy produced for 
     immediate energy needs or transport to market; and
       (2) to produce, not later than 2 years after the date of 
     securing a guaranteed loan under this section for the 
     purposes described in section 7(a)(2), 4 biochar production 
     units for deployment to remote landscapes, of which--
       (A) 2 shall be dedicated primarily to contract work with 
     the Bureau of Land Management; and
       (B) 2 shall be dedicated primarily to contract work with 
     the National Park Service.
       (b) Development of Fixed Biochar Production Units.--Not 
     later than 1 year after the date of enactment of this Act and 
     in accordance with subsection (c), the Secretary of 
     Agriculture shall establish a program to provide guarantees 
     of loans by private institutions--
       (1) to develop and optimize commercially and 
     technologically viable biochar production units that--
       (A) while not necessarily self contained, can be 
     disassembled, moved, and reassembled to be operational on a 
     new site within 30 days, so as to support fuels reduction 
     work;
       (B) are designed to use excess biomass feedstock, such as 
     trees killed by bark beetle infestations;
       (C) produce net negative carbon emissions relative to 
     natural decomposition;
       (D) can capture biochar and bioenergy produced for 
     immediate energy needs or transport to market; and
       (2) to produce, not later than 2 years after the date of 
     securing a guaranteed loan under this section for the 
     purposes described in section 7(a)(3), 2 biochar production 
     units for deployment to remote landscapes.
       (c) Guaranteed Loan Program.--
       (1) In general.--The Secretary concerned may provide loan 
     guarantees under this section to an applicant if the biochar 
     production units produced by the applicant will be dedicated 
     primarily to contract restoration work with the Bureau of 
     Land Management, National Park Service, or Forest Service, 
     using--
       (A) pinyon pine and juniper feedstock in the Great Basin;
       (B) tamarisk feedstock in the Mojave Desert; or
       (C) excess biomass feedstock, such as trees killed by bark 
     beetle infestations in the Intermountain West.
       (2) Criteria.--In selecting recipients of loan guarantees 
     from among applicants, the Secretary concerned shall give 
     preference to proposals that, as determined by the Secretary 
     concerned--
       (A) meet all applicable Federal and State permitting 
     requirements;
       (B) are most likely to be successful; and
       (C) are located in local markets that have the greatest 
     need for the biochar production units due to--
       (i) identified high-priority landscape restoration needs;
       (ii) availability of sufficient quantities of feedstocks 
     described in subsection (b); or
       (iii) a high level of demand for biochar or other 
     commercial byproducts of the biochar production units.
       (3) Maturity.--A loan guaranteed under this section shall 
     have a maturity of not more than 20 years.
       (4) Terms and conditions.--The loan agreement for a loan 
     guaranteed under this section shall provide that no provision 
     of the loan agreement may be amended or waived without the 
     consent of the Secretary.
       (5) Guarantee fee.--The recipient of a loan guarantee under 
     this section shall pay to the Secretary concerned a guarantee 
     fee in an amount determined by the Secretary concerned to be 
     sufficient to cover the administrative costs of the Secretary 
     concerned relating to the loan guarantee.
       (6) Full faith and credit.--
       (A) In general.--The full faith and credit of the United 
     States is pledged to the payment of all guarantees made by 
     the Secretary concerned under this section.
       (B) Evidence.--Any guarantee made by the Secretary 
     concerned under this section shall be conclusive evidence of 
     the eligibility of the loan for the guarantee with respect to 
     principal and interest.
       (C) Validity.--The validity of any guarantee made by the 
     Secretary concerned under this section shall be incontestable 
     in the hands of a holder of the guaranteed loan.
       (7) Annual reports.--Until the date on which each 
     guaranteed loan under this section has been repaid in full, 
     each year the Secretary concerned shall submit to Congress a 
     report on the activities of the Secretary concerned under 
     this section during the preceding year.

     SEC. 6. EXISTING TECHNOLOGY.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Agriculture shall each establish a program to 
     provide guarantees of loans by private institutions for the 
     construction or acquisition of facilities for the production 
     of biochar.

[[Page 22666]]

       (b) Requirement.--The Secretary concerned may provide a 
     loan guarantee under this section to an applicant if 
     facilities constructed or acquired by the applicant will be 
     dedicated primarily to contract restoration work with the 
     Bureau of Land Management, National Park Service, or Forest 
     Service, using--
       (1) pinyon pine and juniper feedstock in the Great Basin;
       (2) tamarisk feedstock in the Mojave Desert; or
       (3) excess biomass feedstock, such as trees killed by bark 
     beetle infestations in the Intermountain West.
       (c) Criteria.--In selecting recipients of loan guarantees 
     from among applicants, the Secretary concerned shall give 
     preference to proposals that, as determined by the Secretary 
     concerned--
       (1) meet all applicable Federal and State permitting 
     requirements;
       (2) are most likely to be successful; and
       (3) are located in local markets that have the greatest 
     need for the facility due to--
       (A) identified high-priority landscape restoration needs;
       (B) availability of sufficient quantities of feedstocks 
     described in subsection (b); or
       (C) a high level of demand for biochar or other commercial 
     byproducts of the facility.
       (d) Maturity.--A loan guaranteed under this section shall 
     have a maturity of not more than 20 years.
       (e) Terms and Conditions.--The loan agreement for a loan 
     guaranteed under this section shall provide that no provision 
     of the loan agreement may be amended or waived without the 
     consent of the Secretary concerned.
       (f) Guarantee Fee.--The recipient of a loan guarantee under 
     this section shall pay the Secretary concerned a guarantee 
     fee in an amount determined by the Secretary concerned to be 
     sufficient to cover the administrative costs of the Secretary 
     concerned relating to the loan guarantee.
       (g) Full Faith and Credit.--
       (1) In general.--The full faith and credit of the United 
     States is pledged to the payment of all guarantees made by 
     the Secretary concerned under this section.
       (2) Evidence.--Any guarantee made by the Secretary 
     concerned under this section shall be conclusive evidence of 
     the eligibility of the loan for the guarantee with respect to 
     principal and interest.
       (3) Validity.--The validity of any guarantee made by the 
     Secretary concerned under this section shall be incontestable 
     in the hands of a holder of the guaranteed loan.
       (h) Annual Reports.--Until the date on which each 
     guaranteed loan under this section has been repaid in full, 
     each year the Secretary concerned shall submit to Congress a 
     report on the activities of the Secretary concerned under 
     this section during the preceding year.

     SEC. 7. DEPLOYMENT.

       (a) New Technology.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of the Interior and the 
     Secretary of Agriculture shall initiate 3-year programs to 
     employ the biochar production units provided under section 5 
     in pilot applications in various climates and ecosystems of 
     the United States.
       (2) Mobile units.--In the case of biochar production units 
     developed or optimized under section 5(a)--
       (A) the Director of the National Park Service shall carry 
     out initial programs using invasive tamarisk in the Mojave 
     Desert as feedstock; and
       (B) the Director of the Bureau of Land Management shall 
     carry out initial programs using excess pinyon pine and 
     juniper biomass in the Great Basin as feedstock.
       (3) Fixed units.--In the case of biochar production units 
     developed or optimized under section 5(b), the Chief of the 
     Forest Service shall carry out the initial program using bark 
     beetle-killed trees in the Intermountain West.
       (b) Existing Technology.--
       (1) In general.--Not later than 180 days after enactment of 
     this Act, the Secretary of the Interior and the Secretary of 
     Agriculture shall prepare plans for carrying out 3-year 
     landscape restoration programs in various climates and 
     ecosystems of the United States to employ facilities 
     constructed or acquired under section 6.
       (2) Requirements.--In carrying out the landscape 
     restoration programs described in paragraph (1), the 
     Secretary of the Interior and the Secretary of Agriculture 
     shall carry out programs using invasive tamarisk in the 
     Mojave Desert, excess pinyon pine and juniper biomass in the 
     Great Basin, and bark beetle-killed trees in the 
     Intermountain West.

     SEC. 8. APPLICATION AND MARKET RESEARCH.

       (a) Attributes.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     provide competitive grants to conduct research and analysis 
     that identifies--
       (1) attributes and composition profiles of biochar produced 
     from different feedstocks for use as soil amendments; and
       (2) attributes and composition profiles of bioenergy 
     produced from different feedstocks for use as fuel for 
     transportation, heating, or other uses identified in 
     subsection (b)(1).
       (b) Market Development.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Agriculture, 
     acting through the Director of the National Institute of Food 
     and Agriculture, the Administrator of the Agricultural 
     Research Service, and the Administrator of the Agricultural 
     Marketing Service shall provide competitive grants to conduct 
     research and analysis that--
       (1) identifies potential uses and markets for biochar and 
     bioenergy; and
       (2) in the case of economic and life-cycle issues, 
     analyzes--
       (A) the full production costs versus the economic benefits 
     of biochar production systems;
       (B) the impact of the production and use of biochar, 
     including the performance of biochar in carbon sequestration 
     programs; and
       (C) the availability of feedstocks and the efficiency of 
     using those feedstock for biochar production as compared to 
     other biofuel-production systems.
       (c) Environmental Review.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Agriculture 
     shall provide competitive grants to conduct research and 
     analysis relating to--
       (1) the environmental benefits of biochar production and 
     use, including--
       (A) the water savings resulting from reducing populations 
     of invasive or noxious plant species;
       (B) the potential of biochar production systems--
       (i) to reduce fertilizer use, nutrient leaching, and run-
     off; and
       (ii) to reduce water pollution from feedlot runoff by 
     capturing ammonia; and
       (C) the reduction in greenhouse gas emissions resulting 
     from the production and use of related bioenergy;
       (2) the potential environmental impacts of biochar and 
     bioenergy use, including--
       (A) the potential toxicity and other adverse ecosystem 
     effects resulting from biochar production or use of different 
     biochars, as identified under subsection (a)(1);
       (B) the characterization of combustion products of 
     bioenergy, as identified under subsection (a)(2), and the 
     effects of those combustion products on air and water 
     quality; and
       (C) impacts on human health and safety.
       (d) Development of Biochar in Landscape Restoration.--Not 
     later than 1 year after the date of enactment of this Act, 
     the Secretary of Agriculture, acting through the Director of 
     the National Institute of Food and Agriculture and the 
     Administrator of the Agricultural Research Service, shall 
     provide competitive grants to research and analyze--
       (1) the potential uses of biochar in landscape restoration 
     in different ecosystems and soil types;
       (2) the relative benefits and potential adverse effects of 
     use of different biochars, as identified under subsection 
     (a)(1) in different western ecosystems and soil types; and
       (3) the safety and efficacy of different methods of 
     application.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out 
     sections 4 through 8, including for the cost of grants and 
     loan guarantees under those sections, such sums as are 
     necessary for each of fiscal years 2010 through 2016.
                                 ______
                                 
      By Mr. DURBIN:
  S. 1714. A bill to authorize grants for the creation, update, or 
adaption of open textbooks, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.

  Mr. DURBIN. Mr. President, technology has transformed the way we 
work, the way we entertain ourselves, and the way we understand the 
world around us. But one area of our lives that has been more resistant 
to technological change has been the way we educate our children. And 
yet I see tremendous potential in technology to improve access to 
education and decrease its often high costs. One example of this is 
open educational resources. Today, I am introducing a bill that will 
provide a short-term federal investment in the development of one type 
of open educational resource--college textbooks. I believe this 
investment will improve learning in our college classrooms and help 
bring down the cost of college for students.
  The growth of the Internet has enabled the creation and sharing of 
open content. A teacher or professor in Illinois can create a lecture, 
a lesson, a book, or an entire curriculum and share it online. A 
teacher across the country or even across the world can access that 
educational material, adapt it, and use it in his or her classroom. 
More and more often educators are utilizing technology in this way to 
improve student learning.
  The President recognizes the potential of this new technology. He has 
proposed a significant new Federal investment in the creation of online 
open-

[[Page 22667]]

source courses for community colleges. These courses will be made 
freely available online and widely distributed so that all colleges can 
make use of them. I believe this initiative will help make higher 
education more accessible for students, especially non-traditional 
students or students living in rural areas far away from brick-and-
mortar institutions. Because the courses will be available for free, 
the initiative will also help bring down the high cost of a college 
education for students struggling to pay.
  I think we can go even further. The high cost of textbooks continues 
to be a barrier for many students struggling to pay for college. The 
College Board reported that for the 2007 to 2008 school year, students 
spent an estimated $805 to $1,229 on books and supplies. A little over 
a year ago, the Higher Education Opportunity Act was signed into law. 
That law includes provisions that I authored to increase transparency 
in college textbook pricing for professors and students. I hope that 
new law will help decrease the high cost of textbooks when these 
provisions are enacted next year, but there is more that the Federal 
Government can do to provide cheap alternatives to professors and 
students.
  The bill I am introducing today, the Open College Textbook Act, will 
create a grant program for the creation of freely-available, online 
open college textbooks. Making high-quality open textbooks freely 
available to the general public would significantly lower college 
textbook costs. Under my bill, the Secretary of Education would award 
grants to colleges, professors, nonprofit organizations or for-profit 
companies to create introductory-level college textbooks. Once 
produced, these books would be posted on an easily-accessible website 
and made available to students, professors, and the public for free. 
The result would be a set of high-quality college textbooks that could 
be adopted in any introductory course at any college in the country. 
This would be a limited investment of Federal grant funding over just a 
few years, not a permanent federal funding stream. The choice would 
ultimately still be the professor's. Each professor could choose 
whether to assign the open textbook to his class, but I hope that he 
would seriously consider this high-quality, free online option that 
would save his students $150 or $200 each at the college bookstore.
  Along with the clear cost benefits, open textbooks can also improve 
teaching and learning. The content of an open textbook can be adapted, 
supplemented, and personalized by professors for their course. Instead 
of framing a course around a textbook, a professor can modify an open 
textbook to fit the needs of a particular course or group of students. 
When professors take advantage of the flexibility and adaptability of 
open textbooks, student learning improves.
  The use of Federal funding for textbooks and curricula is not new. 
For years, the National Science Foundation has been awarding grants to 
professors for research into the improvement of learning in the 
classroom. Sometimes these grants have resulted in the creation of 
textbooks, which the author can then license for profit to a commercial 
publisher. I believe textbooks created with Federal funding should be 
made available for free so that all students and professors can benefit 
from our investment. This bill would also require that all future 
Federal grants that lead to the creation of a textbook or curriculum 
for use in the classroom be licensed openly and made freely available 
to all educators for their use.
  Over the past decade, I have watched textbook publishers use 
technology to drive up the cost of textbooks through unnecessary online 
supplements and CD-ROMs. It is time that we use the potential of 
technology to improve college access, learning, and affordability for 
all students. I believe the Open College Textbook Act that I am 
introducing today will accomplish that goal.
  Mr. President, 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. 1714

       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 ``Open College Textbook Act of 
     2009''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The growth of the Internet has enabled the creation and 
     sharing of open content, including open educational 
     resources.
       (2) The President has proposed a new, significant Federal 
     investment in the creation of online open-source courses for 
     community colleges that will make learning more accessible, 
     adaptable, and affordable for students.
       (3) The President has challenged the United States with a 
     goal of having the highest college graduation rate in the 
     world by 2020.
       (4) More than 80 percent of the 23,000,000 jobs that will 
     be created in the next 10 years will require postsecondary 
     education, but only 36 percent of all 18- to 24-year-olds are 
     currently enrolled in postsecondary education.
       (5) The high cost of college textbooks continues to be a 
     barrier for many students in achieving higher education, and 
     according to the Advisory Committee on Student Financial 
     Assistance, 200,000 qualified students fail to enroll in 
     college each year due to cost.
       (6) The College Board reported that for the 2007-2008 
     academic year an average student spent an estimated $805 to 
     $1,229 on college books and supplies.
       (7) Making high quality open textbooks freely available to 
     the general public could significantly lower college textbook 
     costs and increase accessibility to such education materials.
       (8) Open textbooks can improve learning and teaching by 
     creating course materials that are more flexible, adaptable, 
     and accessible through the use of technology.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Director.--The term ``Director'' means the Director of 
     the National Science Foundation.
       (2) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001).
       (3) Open license.--The term ``open license'' means an 
     irrevocable intellectual property license that grants the 
     public the right to access, customize, and distribute a 
     copyrighted material.
       (4) Open textbook.--The term ``open textbook'' means a 
     textbook or set of course materials in electronic format 
     designed for use in a college course at an institution of 
     higher education that is licensed under an open license.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.

     SEC. 4. GRANT PROGRAM.

       (a) Grants Authorized.--From the amounts appropriated under 
     subsection (i), the Secretary is authorized to award grants, 
     on a competitive basis, to eligible entities to carry out the 
     activities described in this section, including creating, 
     updating, or adapting open textbooks. The Secretary shall 
     award grants in a manner that will result in the creation of 
     a comprehensive slate of high quality course materials for 
     introductory courses in a variety of subject areas.
       (b) Eligible Entity.--In this section, the term ``eligible 
     entity'' means--
       (1) an institution of higher education;
       (2) a professor or group of professors at an institution of 
     higher education; or
       (3) a nonprofit or for-profit organization that produces 
     open textbooks.
       (c) Duration.--Grants awarded under this section shall be 1 
     year in duration.
       (d) Applications.--
       (1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       (2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of the project to be 
     completed with grant funds and--
       (A) a plan for quality review and review of accuracy of 
     content;
       (B) a plan for access to ensure the widest possible 
     availability of the digital version of the open textbook;
       (C) a plan for distribution and adoption of the open 
     textbook to ensure the widest possible adoption of the open 
     textbook in postsecondary courses, including, where 
     applicable, a marketing plan or a plan to partner with for-
     profit or nonprofit organizations to assist in marketing and 
     distribution; and
       (D) a plan for tracking and reporting formal adoptions of 
     the open textbook within postsecondary institutions, 
     including an estimate of the number of students impacted by 
     the adoptions.
       (e) Special Consideration.--In awarding grants under this 
     section, the Secretary shall give special consideration to 
     applications that demonstrate the greatest potential to 
     produce--
       (1) the highest quality and most marketable open textbooks;

[[Page 22668]]

       (2) open textbooks that correspond to the highest 
     enrollment courses at institutions of higher education;
       (3) open textbooks that are easily utilized by faculty 
     members at institutions of higher education; and
       (4) open textbooks created in partnership with for-profit 
     or nonprofit organizations to assist in marketing and 
     distribution.
       (f) Uses of Grants.--
       (1) Open textbooks.--An eligible entity that receives a 
     grant under this section shall--
       (A) create a new open textbook for use in postsecondary 
     coursework;
       (B) update an open textbook for use in postsecondary 
     coursework; or
       (C) adapt a textbook into an open format for use in 
     postsecondary coursework.
       (2) License.--An open textbook created, updated, or adapted 
     under paragraph (1) shall be licensed through an open 
     license.
       (3) Accessibility.--The full and complete digital content 
     of each open textbook created, updated, or adapted under 
     paragraph (1) shall be--
       (A) posted on an easily accessible and interoperable 
     website, which site shall be identified to the Secretary by 
     the eligible entity; and
       (B) made available free of charge to, and may be 
     downloaded, redistributed, changed, revised, or otherwise 
     altered by, any member of the general public.
       (g) Review Process.--The Secretary shall develop a peer 
     review and evaluation process in consultation with the 
     Director to ensure that open textbooks created, updated, or 
     adapted under this section are of the highest quality, 
     accurate in content, and meet or exceed market quality and 
     accessibility standards.
       (h) Report.--Upon an eligible entity's completion of a 
     project supported under this section, the eligible entity 
     shall prepare and submit a report to the Secretary regarding 
     all project costs, including the value of any volunteer labor 
     and institutional capital used for the project.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated $15,000,000 to carry out this section for 
     fiscal year 2010 and such sums as are necessary for each of 
     the 5 succeeding fiscal years.

     SEC. 5. LICENSING MATERIALS WITH A FEDERAL CONNECTION.

       (a) In General.--Notwithstanding any other provision of 
     law, educational materials such as curricula and textbooks 
     created through grants distributed by Federal agencies, 
     including the National Science Foundation, for use in 
     elementary, secondary, or postsecondary courses shall be 
     licensed under an open license.
       (b) Accessibility.--The full and complete digital content 
     of each of the materials created as described in subsection 
     (a) shall be--
       (1) posted on an easily accessible and interoperable 
     website, which site shall be identified to the Secretary by 
     the grant recipient; and
       (2) made available free of charge to, and may be 
     downloaded, redistributed, changed, revised, or otherwise 
     altered by, any member of the general public.

     SEC. 6. SENSE OF CONGRESS.

       It is the sense of Congress that institutions of higher 
     education should encourage the consideration of open 
     textbooks by professors within the generally accepted 
     principles of academic freedom that established the right and 
     responsibility of faculty members, individually and 
     collectively, to select course materials that are 
     pedagogically most appropriate for their classes.

     SEC. 7. REPORT TO CONGRESS.

       Not later than September 30, 2015, the Secretary shall 
     prepare and submit a report to the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Education and Labor of the House of 
     Representatives detailing--
       (1) the open textbooks created, updated, or adapted under 
     this Act;
       (2) the adoption of such open textbooks; and
       (3) the savings generated for students, States, and the 
     Federal Government through the use of open textbooks.

                          ____________________