[Congressional Record (Bound Edition), Volume 155 (2009), Part 7]
[Senate]
[Pages 9452-9475]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BINGAMAN (for himself, Mr. Bennett, Mr. Udall of New 
        Mexico, Mr. Kyl, and Mr. Hatch):
  S. 759. A bill to amend the Transportation Equity Act for the 21st 
Century to reauthorize a provision relating to additional contract 
authority for States with Indian reservations; to the Committee on 
Environment and Public Works.
  Mr. BINGAMAN. Mr. President, I rise today with my distinguished 
colleagues Senators Bennett, Udall, Kyl, and Hatch to introduce the 
Indian School Bus Route Safety Reauthorization Act of 2009. This bill 
continues an important Federal program begun in 1998 that addresses a 
unique problem with the roads in and around the nation's single largest 
Indian reservation and the neighboring counties. Through this program, 
Navajo children who had been prevented from getting to school by roads 
that were often impassable are

[[Page 9453]]

now traveling safely to and from their schools. Because of the unusual 
nature of this situation, I believe it must continue to be addressed at 
the Federal level.
  I would like to begin with some statistics on this unique problem and 
why I believe a Federal solution continues to be necessary. The Navajo 
Nation is by far the Nation's largest Indian Reservation, covering 
25,000 square miles. Portions of the Navajo Nation are in three states: 
Arizona, New Mexico, and Utah. No other reservation comes anywhere 
close to the size of Navajo. To give you an idea of its size, the State 
of West Virginia is about 24,000 square miles. In fact, 10 States are 
smaller in size than the Navajo reservation.
  According to the Bureau of Indian Affairs, about 9,700 miles of 
public roads serve the Navajo nation. Only about one-third of these 
roads are paved. The remaining 6,500 miles, 67 percent, are dirt roads. 
Every day school buses use nearly all of these roads to transport 
Navajo children to and from school.
  About 6,200 miles of the roads on the Navajo reservation are BIA 
roads, and about 3,300 miles are State and county roads. All public 
roads within, adjacent to, or leading to the reservation, including 
BIA, State, and county roads are considered part of the Federal Indian 
Reservation Road System. However, only BIA and tribal roads are 
eligible for Federal maintenance funding from BIA. Moreover, 
construction funding and improvement funding from the Federal Lands 
Highways Program in SAFETEA is generally applied only to BIA or tribal 
roads. Thus, the States and counties are responsible for maintenance 
and improvement of their 2,500 miles of roads that serve the 
reservation.
  The counties in the 3 States that include the Navajo reservation are 
simply not in a position to maintain all of the roads on the 
reservation that carry children to and from school. Nearly all of the 
land area in these counties is under Federal or tribal jurisdiction.
  For example, in my State of New Mexico, \3/4\ of McKinley County is 
either tribal or Federal land, including BLM, Forest Service, and 
military land. The Indian land area alone comprises 61 percent of 
McKinley County. Consequently, the county can draw upon only a very 
limited tax base as a source of revenue for maintenance purposes. Of 
the nearly 600 miles of county-maintained roads in McKinley County, 512 
miles serve Indian land.
  In San Juan County, Utah, the Navajo Nation comprises 40 percent of 
the land area. The county maintains 611 miles of roads on the Navajo 
Nation. Of these, 357 miles are dirt, 164 miles are gravel and only 90 
miles are paved. On the reservation, the county has three high schools, 
two elementary schools, two BIA boarding schools and four pre-schools.
  The situation is similar in neighboring San Juan County, New Mexico, 
and Apache, Navajo, and Coconino Counties, Arizona. In light of the 
counties' limited resources, I do believe the Federal Government is 
asking the States and counties to bear too large a burden for road 
maintenance in this unique situation.
  Families living in and around the reservation are no different from 
families anywhere else; their children are entitled to the same 
opportunity to get to school safely and to get a good education. 
However, the many miles of unpaved and deficient roads on the 
reservation are frequently impassable, especially when they are wet, 
muddy or snowy. If the school buses do not get through, the kids simply 
cannot get to school.
  These children are literally being left behind.
  Because of the vast size of the Navajo reservation, the cost of 
maintaining the county roads used by the school buses is more than the 
counties can bear without Federal assistance. I believe it is essential 
that the Federal Government help these counties deal with this one-of-
a-kind situation.
  In response to this unique situation, in 1998 Congress began 
providing direct annual funding to the counties that contain the Navajo 
reservation to help ensure that children on the reservation can get to 
and from their public schools. In 2005, the program was reauthorized in 
SAFETEA through 2009. Under this provision, $1.8 million is made 
available each year to be shared equally among the three states. The 
funding is provided directly to the counties in Arizona, New Mexico, 
and Utah that contain the Navajo reservation. I want to be very clear: 
these Federal funds can be used only on roads that are located within 
or that lead to the reservation, that are on the State or county 
maintenance system, and that are used by school buses.
  This program has been very successful. For the last 12 years, the 
counties have used the annual funding to help maintain the routes used 
by school buses to carry children to school and to Headstart programs. 
I have had an opportunity to see firsthand the importance of this 
funding when I rode in a school bus over some of the roads that are 
maintained using funds from this program.
  The bill I am introducing today provides a simple 6-year 
reauthorization of that program, for fiscal years 2010 through 2015, 
with a modest increase in the annual funding to allow for inflation and 
for additional roads to be maintained in each of the 3 States.
  I believe that continuing this program for 6 more years is fully 
justified because of the vast area of the Navajo reservation by far the 
nation's largest and the unique nature of this need that only the 
Federal Government can deal with effectively.
  I do not believe any child wanting to get to and from school should 
have to risk or tolerate unsafe roads. Kids today, particularly in 
rural and remote areas, face enough barriers to getting a good 
education. The Senate already passed this legislation last year. I ask 
all Senators to join me again this year in assuring that Navajo 
schoolchildren at least have a chance to get to school safely and get 
an education.
  I look forward to working with Chairman Boxer and Ranking Member 
Inhofe of the Environment and Public Works Committee, and Chairman 
Baucus and Ranking Member Voinovich of the Transportation and 
Infrastructure Subcommittee, to incorporate this legislation once again 
into the comprehensive 6-year reauthorization of the surface 
transportation programs.
  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. 759

       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 ``Indian School Bus Route 
     Safety Reauthorization Act of 2009''.

     SEC. 2. REAUTHORIZATION OF ADDITIONAL CONTRACT AUTHORITY FOR 
                   STATES WITH INDIAN RESERVATIONS.

       Section 1214(d)(5)(A) of the Transportation Equity Act for 
     the 21st Century (23 U.S.C. 202 note; 112 Stat. 206; 119 
     Stat. 1460) is amended by striking ``$1,800,000 for each of 
     fiscal years 2005 through 2009'' and inserting ``$2,000,000 
     for each of fiscal years 2010 through 2015''.

  Mr. BENNETT of Utah. Mr. President, I am pleased to join my 
colleagues Senators Bingaman, Hatch, Udall of New Mexico and Kyl as we 
introduce the Indian School Bus Route Safety Reauthorization Act of 
2009. This legislation reauthorizes an important program that has 
served the Navajo Nation and specifically Navajo children since 1998. 
The funding provided in this program is used exclusively to maintain 
roads that provide bus routes for Navajo children. Two thirds of the 
9,700 miles of the Navajo public roads are unpaved, dirt roads. Many of 
these roads are traveled everyday by children heading to school on the 
bus. When the rough rains and snows of winter hit, the deficient roads 
are frequently impassable. Damage caused by winds and rains can create 
huge holes and gullies that often make the roads unfit for a school bus 
even in good weather!
  This program was started in 1998 to ensure the local governments, 
working in partnership with the Navajo, are able to maintain the roads 
and ensure the school bus routes are usable and in good condition. 
Before children can learn at school, they have to get to school! 
Congress answered the urgent call for help by providing direct funding 
to the counties that contain the

[[Page 9454]]

Navajo reservation to help ensure that children on the reservation can 
get to and from their public schools. This program was reauthorized in 
SAFETEA-LU in 2005 and we urge our colleagues in the Senate to join us 
in supporting this important project again in 2009.
  This bill provides for $2 million annually to be shared equally among 
Arizona, New Mexico and Utah. The funding goes directly to the counties 
that contain the Navajo reservation. These funds can only be used on 
roads that are located within or that lead to the reservation and that 
are used by school buses.
  I want to take a moment and pay tribute to San Juan County, UT. San 
Juan County has done a commendable job of working with their Navajo 
neighbors to ensure a strong working relationship and to truly serve 
the Navajo members of their community. The Navajo Nation comprises 40 
percent of the San Juan County land area and the county maintains 611 
miles of roads on the Navajo Nation. Of these, 357 miles are dirt, 164 
miles are gravel and only 90 miles are paved. On the reservation, the 
county has three high schools, two elementary schools, two BIA boarding 
schools and four pre-schools. The funds reauthorized in this bill will 
allow San Juan County to continue their commitment to ensuring busses 
can reach the students and thus the students will be safely transported 
to school.
  I am proud to again bring this authorization before the Senate and I 
look forward to working with my colleagues here and in the House to 
ensure that this important measure is included in the upcoming 
transportation authorization. I thank my colleague Mr. Bingaman for his 
strong work on this legislation and look forward to working closely 
with him as well as Chairman Boxer and Ranking Member Inhofe of the 
Environment and Public Works Committee, and Chairman Baucus and Ranking 
Member Voinovich of the Transportation and Infrastructure Subcommittee 
to ensure that this legislation is again included in the comprehensive 
6-year transportation reauthorization.
                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 762. A bill to promote fire safe communities and for other 
purposes; to the Committee on Homeland Security and Governmental 
Affairs.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce a series of 
bills, S. 762, S. 763, and S. 764, designed to better prepare for 
catastrophic wildfires like the ones that recently devastated 
Southwestern Australia and that have plagued much of our country for 
years.
  California has seen unprecedented devastation from wildfires in the 
last 5 years.
  Over 10,000 families have lost their homes.
  Over 4 million acres have been burned.
  In 2007, wildfires in Southern California caused the evacuation of an 
estimated 750,000 people--the largest evacuation in California history.
  In these fires alone, more than a million acres burned, and more than 
2,000 homes were destroyed.
  These fires killed nine people, and injured 130. Mostly firefighters.
  The financial damage is estimated to be in the billions.
  Simply put, this was a disaster of epic proportions.
  It was not the first. Southern California suffered similar wildfire 
losses just 5 years ago.
  We must face the fact that catastrophic wildfires are in California's 
future, and the future of other States.
  Experts predict that things are only going to get worse in the years 
to come.
  Global warming, extended droughts, dangerous invasive species 
outbreaks, and years of poor forest and fuel management have all 
contributed to the explosive conditions that we now face.
  The reality is that California and much of the West is tinder-dry. 
Fires are larger, and they burn hotter and with more intensity.
  In early February we saw the tragic consequences of catastrophic 
wildfire in Australia. Two hundred are dead, a million acres burned, 
and whole communities were wiped out in a matter of hours.
  Here in the U.S. we face that very same possibility, and we must do 
everything we can to stop a similar tragedy from devastating our 
neighborhoods.
  The problem is that more and more people are living in areas at high 
risk of wildfire. There are more than 5 million homes in California 
alone in this high-threat ``wildland-urban interface.'' Across the rest 
of the country, there are nearly 40 million more homes located in the 
wildland urban interface.
  So the question comes: What can be done?
  There is no doubt that we cannot fully eliminate wildfires.
  But I believe that we can take steps now to better protect 
communities, to improve firefighting capabilities, and to improve 
relief and recovery aid.
  The three bills that I am introducing today will get this process 
started. They are the Fire Safe Communities Act, which would establish 
new incentives for communities at risk of wildfires to adopt 
responsible building codes and mitigation practices.
  The Mortgage and Rental Disaster Relief Act, to make sure that 
qualified individuals, displaced by major disasters, are able to make 
their mortgage and rental payments.
  The Disaster Rebuilding Assistance Act, to increase the amount of 
federal dollars available to homeowners whose rebuilding costs outstrip 
their insurance coverage.
  The Fire Safe Communities Act will help protect our communities from 
the catastrophic effects of wildfires.
  Most importantly, it does three key things.
  It gives incentives to local communities that have adopted 
responsible fire-mitigation plans by allowing for greater federal 
reimbursement of firefighting costs during major fires.
  It creates a grant program to encourage responsible development 
practices that meet wildland-urban interface code guidelines.
  It allows for the Department of the Interior and the Department of 
Agriculture to collaboratively work on mitigation projects that will 
protect homes on State and private lands
  In effect, the Federal Government would become the partner of local 
governments as they seek to make their communities fire-safe.
  As I have said, we can never stop wildfires. But we can take 
important steps to make these fires less destructive.
  This bill starts with the first step, by putting a reliable, 
unambiguous definition to ``Fire Safe'' communities.
  Current Wildland fire codes, such as those produced by the 
International Code Council and the National Fire Protection 
Association, compile a comprehensive set of best practices that can be 
adopted by communities that are looking to protect themselves from fire 
damage. If properly implemented, these codes can greatly improve the 
fire resistance of these communities and their residents.
  The fire code guidelines address water supply, construction materials 
and techniques, defensible space, vegetation management, and 
infrastructure standards.
  The target mitigation measures in fire codes have been proven to be 
effective. Firefighter groups, insurance companies, and blue ribbon 
panels have all come to the same conclusions. It is time that we take 
their advice and start making this important investment.
  The bill authorizes a $25 million per year grant program, 
administered by the Federal Emergency Management Agency's, FEMA, Office 
of Grants, and Training.
  It will help communities implement these standards, and bring the 
safest development practices to their neighborhoods.
  This grant program will be available to local governments located in 
the wildlife-urban interface, and to high-threat regions that have 
adopted--or plan to adopt--these responsible firesafe measures.
  As further incentive, this bill makes the existing Fire Management 
Assistance Grants program contingent on the implementation of Firesafe 
codes, standards and ordinances.

[[Page 9455]]

  Today under the Fire Management Assistance Grant program, the federal 
government covers 75 percent of the cost of fighting wildfires.
  Under this bill, communities that adopt the firesafe codes would be 
eligible for Federal reimbursement of up to 90 percent of their 
firefighting costs.
  It is important to note that firesafe building codes, standards and 
ordinances are not mandatory. The Federal Government should not be in 
the business of telling local governments how and where to build their 
buildings.
  Instead these are voluntary codes; communities can choose to adopt, 
or not to adopt, at their discretion.
  The bill does not step on the toes of local government. Rather, helps 
all of us reach a common goal.
  I come from local government--I am 9 years a mayor, 9 years a county 
supervisor--and I recognize that zoning is the province of local 
government.
  But we have a real problem here: We know that development in the 
wildland-urban interface is accelerating, and it is making fires more 
costly.
  We need to take steps to improve fire safety in these areas.
  This bill is an important step toward becoming better prepared.
  Now I want to discuss two bills intended to improve recovery aid 
after disaster strikes.
  The Mortgage and Rental Disaster Relief Act will provide much-needed 
relief to working families hit hard by disasters.
  It would authorize FEMA to make mortgage and rental assistance 
available for qualified individuals in communities designated as 
disaster areas by the President under the Stafford Act.
  It is based on an important point: While catastrophic wildfires and 
other disasters can destroy homes, they don't relieve people of the 
financial obligations that come with home ownership or lease 
agreements.
  In most cases, these payments must still be made, even if the 
residence has been wiped out.
  This burden is too much for many working families. They incur 
additional expenses--such as hotel or lodging costs--that come with 
being displaced following a major disaster.
  FEMA used to provide mortgage and rental assistance. But these types 
of assistance were eliminated by the Disaster Mitigation Act of 2000.
  This bill would re-authorize the program, and make several changes to 
ensure that assistance is provided only to those most in need.
  First, to qualify for assistance applicants must demonstrate that 
they face significant economic hardships and suffered disaster-related 
income loss.
  The disaster-related income loss must fit into one of the following 
categories: your employer, or your own business, must be located in the 
area declared a major disaster by the President; you lose your job 
because your employer or business has a significant business 
relationship with a company located within the Presidentially declared 
disaster area; or you live in a Presidentially declared disaster area, 
and have suffered financially due to travel restrictions and road 
closures post-disaster.
  To qualify for this aid, applicants must also provide proof that 
their employment was discontinued as a result of disaster.
  They must also show imminent delinquency, eviction, dispossession, or 
foreclosure.
  Finally, this assistance is available only for up to 18 months, and 
is subject to income caps.
  Only households with adjusted gross incomes of $100,000 or less, in 
high-cost states such as California, would be eligible.
  Households in lower-cost States could be eligible if their annual 
adjusted gross incomes do not exceed $75,000.
  In today's market conditions, the federal government needs to make 
sure that we do everything we can to help families stay in their homes.
  The Mortgage and Rental Assistance Act will prevent foreclosures in 
disaster areas by helping families make their payments on time. Given 
the state of the housing market, this bill is of the utmost importance 
and I urge my colleagues to support this legislation.
  The Disaster Rebuilding Assistance Act would increase the amount of 
money FEMA can provide--for rebuilding and temporary housing--in high-
cost states such as California.
  It is designed to help disaster victims whose rebuilding costs exceed 
their insurance coverage. Or for low income earners who have no 
insurance.
  Sadly, many Californians hit by wildfires or other disasters learn 
too late that their insurance coverage is insufficient.
  This is a real problem in California. In fact, California Insurance 
Commissioner Steve Poizner estimates that as many as 25 percent of the 
victims of the 2007 wildfires were underinsured.
  Let me be clear: this bill will not cover the full costs of 
rebuilding.
  But it will help close the gap, for qualified households in areas 
declared by the President to be disaster areas.
  Today, FEMA can provide up to roughly $28,000 to individuals and 
households whose rebuilding costs exceed their insurance coverage. This 
assistance can be used for rebuilding costs, as well as temporary 
housing.
  The Disaster Rebuilding Assistance Act would increase this amount to 
$50,000 for individuals who earn less than $100,000 per year. By 
increasing the amount of assistance, and targeting the program toward 
lower-income homeowners, the FEMA Disaster Assistance program will more 
efficiently help homeowners recover from disasters.
  The legislation also gives the President the discretion to increase 
this cap, if necessary, to cover rebuilding expenses in high-cost 
states.
  I believe this bill will provide an important step toward giving 
Americans the chance they need to rebuild their lives after suffering 
through a major disaster.
  Catastrophic wildfires are not going away. In fact, the evidence 
strongly suggests they will occur with greater frequency and ferocity.
  But we can take important steps--now--to make our communities safer.
  To strengthen our firefighting capabilities.
  To ensure that more relief and recovery aid is provided to victims, 
so they can get back on their feet as soon as possible.
  These bills are not a panacea. But they are an important first step. 
I urge my colleagues to vote for them.
                                 ______
                                 
      By Ms. MURKOWSKI:
  S. 766. A bill to authorize the Secretary of the Interior to issue 
right-of-way permits for natural gas pipeline transportation utility 
systems in non-wilderness areas within the boundary of Denali National 
Park and Preserve; to the Committee on Energy and Natural Resources.
  Ms. MURKOWSKI. Mr. President, I rise today to introduce legislation 
that will authorize a right-of-way for Construction of an in-state 
natural gas pipeline to run along the State's main highway from 
Fairbanks to Anchorage. This bill would provide a right-of-way for a 
natural gas pipeline near the shoulder of the Parks Highway for the 
roughly 7 miles that the highway runs through Denali National Park.
  I wish to explain I am introducing the bill now, and why, rather than 
being an infringement on Alaska's most visited Interior national park, 
the measure is actually the favored route by many in the environmental 
community to bring natural gas from the foothills of Alaska's North 
Slope to Southcentral Alaska.
  While many in this body have heard about plans for a large-volume 
natural gas pipeline to run from the Prudhoe Bay oil fields to the 
Lower 48--the project for which many in this body voted to approve a 
loan guarantee, tax credits and permitting improvements in 2004--there 
is concern that the big pipeline will not be finished in time to get 
gas to Southcentral Alaska. That is gas that is vital for electric 
generation in Anchorage, the Mat-Su Borough and Kenai Peninsula. 
Currently electricity in Alaska's southern Railbelt, as it is called, 
is often generated by burning natural gas that has been produced

[[Page 9456]]

since the 1960s from the gas fields in Cook Inlet, south of Anchorage. 
But production from Cook Inlet, while the province theoretically holds 
far more gas, has been falling for years. A major fertilizer plant near 
Kenai, for example, had to close in 2007 because there was not enough 
natural gas being produced to allow it to obtain the raw product it 
needed for urea production.
  While there are contract issues involving problems with getting 
sufficient gas quantities for Railbelt utilities starting as early as 
next year, there are serious concerns about the ability of the region 
to produce sufficient gas for electric generation and home heating for 
Alaska's most populated area as early as 2014.
  To provide a new, reliable natural gas supply, one proposal, the so-
called ``bullet'' gas pipeline, is to construct a small diameter 
natural gas line, 24 inches in size, to run from Alaska's North slope 
region, pass Fairbanks along the Parks Highway, and terminate near 
Wasilla, Alaska. This pipeline would tie into existing transmission 
systems and would bring about 500 million cubic feet of gas a day to 
Southcentral Alaska. This project would be completed well in advance of 
when a larger-diameter pipeline might be in service to deliver 4 to 4.5 
billion cubic feet a day to Lower 48 markets. Given the pace of 
planning for construction of the main line, it is unlikely that a 
larger Alaska natural gas pipeline will be able to deliver gas now 
until 2018 or 2019, perhaps four or more years too late to aid 
Southcentral Alaska's growing need for natural gas. Further, any delays 
in solidifying a new gas supply could permanently end chances to reopen 
the Agrium fertilizer plant and to continue operations of the Kenai LNG 
export terminal, both key components of local Kenai Peninsula industry.
  There are two potentially competing proposals for a small diameter, 
in-state gas pipeline. I have just described the ``bullet'' line 
proposal. The second proposal it to run a similarly sized pipeline 
along the Richardson and Glenn Highways to the east, also tying into 
existing transmission systems near Palmer, Alaska. There are advantages 
to both routes, the Parks route delivering gas to communities along the 
Parks Highway and providing clean natural gas to Denali National Park, 
while the Richardson/Glenn project would help provide economic activity 
to differing towns, such as Delta and Glennallen to the east.
  It is not my desire to prejudge the outcome of which project or route 
should be selected, since that decision will be made by Alaska state 
regulators and financial markets. It is my desire, however, to 
introduce legislation that would clear the lone legal impediment to 
planning for the Parks route, that being how to get the gas 
economically through the mountainous central region of the State past 
Denali National Park and Preserve.
  According to a recent analysis of routing options through this area, 
there are two feasible routes for a pipeline through or around the 
roughly 10-mile bottleneck of the Nenana River Canyon and Denali 
National Park and Preserve. The shortest and most logical route follows 
the existing highway through this entire area, 7 miles of which passes 
through Denali National Park. This route causes the least environmental 
and visual impact due to its location in an existing corridor, and 
provides a route that is easily accessible for routine pipeline 
maintenance. The other feasible pipeline route diverts from the highway 
to stay outside of the national park boundaries, but in so doing skirts 
across a steep hillside that dominates a park visitor's view to the 
east. Furthermore, the route that avoids the park will create a new 
disturbed corridor in a remote location, and will cause pipeline 
operations and reliability challenges due to the remoteness and the 
ruggedness of the route. The route that avoids the park is estimated to 
cost twice as much as the route along the highway and through the park.
  Besides being less expensive to construct and operate, the pipeline 
along the existing, previously disturbed Parks Highway right-of-way, 
also permits electric generation for the park facilities at Denali to 
come from natural gas. And for the first time reasonably priced 
compressed natural gas, CNG, would be available to power park 
vehicles--another environmental benefit of the Parks Highway route. 
Currently National Park Service permitted diesel tour buses travel 1 
million road miles annually. Converting the buses to operate on CNG 
would significantly reduce air emissions in the park. A third benefit 
is that for the pipe to cross the Nenana River, not far from the park's 
entrance, will require a new bridge to be built that could carry not 
just the pipe, but provide a new pedestrian access/bicycle path for 
visitors that today need to walk along the heavily traveled highway 
rather than on a separated, pedestrian path toward visitors attractions 
and hotels located just outside of the park's entrance. In all 
probability the installation work will be conducted in the shoulder 
seasons to make sure there are no visitor dislocations for tourists 
visiting the park.
  For those reasons and others, a group of eight environmental groups: 
The National Parks and Conservation Association, the Alaska 
Conservation Alliance, the Denali Citizens Council, The Wilderness 
Society, Cook Inlet Keeper, the Alaska Center for the Environment, the 
Wrangell Mountain Center and the Alaska Wildlife Alliance have formally 
endorsed the granting of a gas line right-of-way through Denali Park, 
along the existing highway right of way.
  The granting of a permanent 20-foot easement, and probably a 100-foot 
construction easement, is not precedent setting. The National Park 
Service already has granted a permit for an installed fiber-optic cable 
along the same basic alignment for an Alaska communications company. 
Obviously the exact right-of-way will have to be delineated to avoid 
the existing cable and to accommodate park goals, such as routing 
around a vernal pond viewing area located along the general right-of-
way.
  I am proposing this bill simply to authorize the right-of-way for a 
Parks Highway route soon so that the decision on which route is best 
for the state and its citizens--if the ``bullet'' line option is 
chosen--can be made based on greater certainty in the cost estimates 
for a Parks Highway project. Removing the uncertainty of permitting and 
regulatory delays will at least permit the Parks Highway route to be on 
a level playing field with the Richardson and Glenn Highway route when 
a routing decision is made. Then the decision on which project makes 
the most sense for all Alaskans can be made without fear that right-of-
way acquisition delays could inflate project costs.
  If the Parks route is chosen and the project proceeds, then the 
national park will benefit from the environmental benefits of natural 
gas and compressed natural gas being available for park activities, 
cutting air quality concerns, and improving pedestrian access. I truly 
believe there are no environmental issues with this legislation. I 
think anyone who has ever traveled on the Parks Highway in Alaska near 
the park would agree, and I hope it can be considered by Congress 
relatively soon.
  Mr. President, I ask unanimous consent that a letter of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  30 January 2009.
     Re Denali National Park & Preserve Title XI process.
     M. Colleen Starring,
     President, ENSTAR Natural Gas Company, Anchorage AK.

       Dear Ms. Starring, thank you and your staff for reaching 
     out to the Alaska conservation community early on in your 
     process to obtain permits to build a bullet gas pipeline from 
     either the Foothills or Prudhoe Bay into the existing 
     Southcentral gas pipeline system. In your presentation to us, 
     your identified immediate concern was location of the right-
     of-way either through or around the Nenana Canyon and Denali 
     National Park & Preserve. We appreciate the two briefings you 
     have provided to the community on the options at Denali.
       Based on the information you have provided to us at these 
     two briefings, the apparent logical environmentally 
     preferable

[[Page 9457]]

     choice for the gas pipeline through Denali National Park & 
     Preserve is the six miles along the Parks Highway. This would 
     seem to make the most sense from both an engineering and an 
     environmental perspective as going around the park would 
     necessitate construction in currently undeveloped lands. 
     While the signers of this letter agree that bringing the gas 
     pipeline along the Parks Highway through Denali seems to be 
     the environmentally preferable alternative, we reserve final 
     judgment until completion of the environmental review.
       As mitigation for the pipeline through the park, we were 
     pleased to hear you discuss the opportunity for a pathway 
     constructed atop the pipeline ROW and a new pedestrian bridge 
     across the Nenana River at McKinley Village. We feel this 
     expansion of the existing front-country trail system would be 
     a benefit to park visitors and would link the many visitors 
     at McKinley village into the park entrance area by trail. We 
     strongly encourage continuation of this part of the plan. In 
     addition, we encourage you to work with the Park Service to 
     see if they would benefit from a lateral line into the park 
     to support both the energy needs of the park headquarters 
     complex and also possible use of natural gas for park buses.
       Assuming the preferred gas pipeline right-of-way is along 
     the Parks Highway, there will need to be a Title XI review 
     for the six miles through Denali, which we anticipate will be 
     included in your environmental review. Currently the National 
     Park Service is not authorized to issue a right-of-way permit 
     for gas pipelines anywhere in the country, which means final 
     approval of the Title XI permit would need to go to the 
     President and then to Congress. While our preference would be 
     to complete the environmental review and, assuming the Parks 
     Highway route is the best, follow the existing Title XI 
     process, we understand that Enstar is developing legislation 
     to give the National Park Service authority to issue a right-
     of-way permit for the six miles within Denali IF the 
     environmental review shows it to be the environmentally 
     preferable route.
       This would not negate the need for a Title XI review, but 
     it would allow the Park Service to make the decision without 
     any additional review by the administration or Congress. We 
     need to withhold any position on this proposed legislation 
     until we see specific language, In keeping with your pattern 
     of outreach early in the process, we would very much like to 
     be a part of crafting this legislation to ensure that it is 
     specific to this project only and it only provides authority 
     to the Park Service to issue the right-of-way should the 
     environmental review show it is the environmentally 
     preferable alternative.
       Furthermore, this letter should not be construed as 
     anything more than an understanding of how to get through the 
     six miles inside the boundaries of Denali National Park & 
     Preserve. There are many unanswered questions about the 
     routing and construction of the pipeline beyond these six 
     miles that remain of interest and concern to many 
     conservation groups in Alaska. We strongly urge you to expand 
     your right-of-way and source of gas discussions with many of 
     these same groups to cover the entire project.
       Signed:
     Jim Stratton,
       Alaska Regional Director, National Parks Conservation 
     Association.
     Kate Troll,
       Executive Director, Alaska Conservation Alliance.
     Nancy Bale,
       President, Denali Citizens Council.
     Eleanor Huffines,
       Alaska Regional Director The Wilderness Society.
     Toby Smith,
       Executive Director, Alaska Center for the Environment.
     Jeremy Pataky,
       Executive Director, Wrangell Mountains Center.
     Bob Shavelson,
       Executive Director Cook Inlet Keeper.
     John Toppenberg,
       Director, Alaska Wildlife Alliance.
                                 ______
                                 
      By Mr. UDALL, of New Mexico (for himself, Mr. Bingaman, Mr. Bond, 
        Mr. Inouye, Mr. Kerry, Mr. Levin, Mr. Udall of Colorado and Ms. 
        Landrieu):
  S. 768. A bill to grant the Congressional Gold Medal to the soldiers 
from the United States who were prisoners of war at Bataan during World 
War II; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. UDALL of New Mexico. Mr. President, I rise today to introduce 
legislation to award the Congressional Gold Medal to some of the 
bravest soldiers ever to wear this country's uniform--the prisoners of 
war from the Bataan Death March.
  For the thousands of soldiers who were surrendered to enemy forces on 
April 9, 1942, the years that have passed since have been filled with 
memories of what occurred that day and in the hundreds of days that 
followed: starvation, torture, forced work, captivity and death.
  But in the 66 years since, the events at Bataan have conjured other 
ideas for the rest of us: bravery, sacrifice, and an unbreakable 
demonstration of courage.
  ``The Battling Bastards of Bataan,'' they were christened by Frank 
Hewlett, one of the last journalists to report on the troops before 
they were surrendered. For 4 months they fought, battling daily against 
the enemy, against illness, and against time. And when there was no 
fight left, when the time for surrender was upon them, they were alone. 
Neither planes in the skies nor boats in the sea appeared, ready to 
give the boost of firepower that would turn the tides. Instead, the men 
at Bataan laid down their weapons and walked into a hell that would 
last over 3 years.
  Many survivors never recovered from their experience. Half died 
within a few years of returning home. Others lived on in physical and 
mental pain for the rest of their lives--a daily reminder of the 
experience they had endured.
  But the story of Bataan is not just about surrender or the suffering 
that followed. By holding off enemy fighters longer than expected, the 
Bataan forces gave the Allies time to regroup after Pearl Harbor. Their 
sacrifice allowed Allied commanders to take the fight to the enemy. And 
they made a future victory possible.
  The soldiers of Bataan also gave America something we needed as much 
as guns or tanks. They gave us an example. Their story inspired 
American soldiers to fight and committed American commanders to 
retaking the Pacific. Just as an earlier generation of Americans had 
remembered the Alamo, our soldiers in World War II remembered Bataan. 
We should remember it today as a place where America's fighting spirit 
showed itself to the world.
  For those of us from New Mexico, the events at Bataan strike home 
particularly hard. Eighteen hundred men from New Mexico's 200th and 
515th regiments left their homes to fight; half returned. These 
soldiers earned the honor of being the ``first to fire'' on the enemy 
on December 8, 1941--the day after Pearl Harbor. They and their 
families have spread the story of Bataan to their New Mexico neighbors. 
We feel the suffering they saw. And we take pride in their heroism.
  For six decades, the Western world has enjoyed the freedom that the 
Bataan veterans helped to win. For six decades, our world has been more 
peaceful because of the sacrifices they made. And for six decades, 
those men have not received the honor that is their due.
  This failure of memory hits particularly hard because so many of the 
men who suffered at Bataan were Hispanic. They fought and died in the 
uniform of a nation that treated them as second class citizens. While 
in uniform, many faced discrimination if they had Hispanic surnames or 
were caught speaking Spanish. This legislation will honor American 
heroes, including those who were asked to sacrifice and then forgotten 
when the fighting was over.
  We must always remember the sacrifice of our soldiers, particularly 
during times of war. The men and women who risk their lives today must 
know that America never forgets those who sacrifice in her name. By 
recognizing the heroes of Bataan, we show our commitment to the heroes 
of Kabul and Baghdad--and to the heroes of the future.
  I thank Senator Bond for joining me as the lead cosponsor of this 
legislation. His home State of Missouri had hundreds of soldiers at 
Bataan, including one, John Playter, who passed away recently this year 
but never stopped telling his story. I also want to thank Senators 
Bingaman, Inouye, Landrieu, Levin, Kerry, and Udall for being original 
cosponsors. I also thank the VFW and AMVETS for their support of this 
legislation.

[[Page 9458]]

  I hope you will join them--and so many others--in supporting this 
legislation.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Kennedy):
  S. 770. A bill to amend titles V, XVIII, and XIX of the Social 
Security Act to promote cessation of tobacco use under the Medicare 
program, the Medicaid program, and the maternal and child health 
services block grant program; to the Committee on Finance.
  Mr. DURBIN. Mr. President, tobacco is responsible for 1 in 5 deaths 
in the U.S.--that is 438,000 deaths every year. Sadly, another 50,000 
Americans die each year from exposure to second hand smoke. Just this 
year, scientists discovered another danger in ``third hand smoke'' 
which describes the chemicals that cling to smokers'' hair and 
clothing, and linger in cushions and carpeting long after smoke has 
cleared a room. This residue includes heavy metals, carcinogens and 
even radioactive materials that young children can get on their hands 
and ingest, especially if they are crawling or playing on the floor.
  Despite the known dangers of tobacco use, more than 45 million adults 
in the U.S. smoke cigarettes. Approximately 90 percent of those adults 
started smoking before the age of 14. Every day over 3,500 kids under 
age 18 try smoking for the first time, and of these, 1,100 will become 
regular, daily smokers. Between \1/3\ and \1/2\ will eventually die as 
a result of their addiction.
  The likelihood of being a smoker varies depending on your ethnicity, 
socioeconomic status, and even where you live. African-Americans are 
twice as likely as the general population to smoke, and communities in 
the South are more likely to be smoker-friendly than other communities 
in the country. While 22.5 percent of the general adult population in 
the U.S. currently smokes, the percentage is about 50 percent higher 
among Medicaid recipients. Thirty-six percent of adults covered by 
Medicaid smoke.
  The costs to our Nation of tobacco use are staggering. Total health 
costs attributable to tobacco approach $100 billion annually, and 
comprise an estimated 14 percent of all Medicaid costs. Our Federal 
Government pays $17.6 billion through Medicaid and $27.4 billion 
through Medicare for smoking related illnesses. Tobacco use is a 
leading cause of pregnancy complications, premature birth, and low 
birth weight.
  Despite the fact that nicotine is a highly addictive drug, research 
has confirmed that smoking cessation strategies that include evidence 
based counseling and FDA-approved pharmacotherapies are effective. More 
than 4 in 5 smokers say they want to quit, and each year about 1.3 
million smokers do quit. Overcoming an addiction to tobacco is arguably 
one of the single most important lifestyle changes that a person can 
make to improve and extend his or her health and life.
  Studies have shown that reducing adult smoking through tobacco 
cessation treatment pays immediate dividends, both in terms of health 
improvements and cost savings. Shortly after quitting smoking, blood 
circulation improves, carbon monoxide levels in the blood decrease, the 
risk of heart attack decreases, lung function and breathing are 
improved, and coughing decreases. Pregnant women who quit smoking 
before their second trimester decrease the chances that they will give 
birth to a low-birth-weight baby. Over the long term, quitting will 
reduce a person's risk of heart disease and stroke, improve symptoms of 
COPD, reduce the risk of developing smoking-caused cancer, and extend 
life expectancy. Breaking an addition to nicotine is a very difficult 
process, and that is why we should make a variety of treatment options 
available to tobacco users.
  I am proud to be joined by my colleagues Senator Kennedy in 
introducing the Medicare, Medicaid and MCH Smoking Cessation Promotion 
Act of 2009. This legislation would make it easier for people to access 
tobacco cessation treatment therapies in three meaningful ways.
  First, this bill adds a smoking cessation counseling benefit and 
coverage of FDA-approved tobacco cessation drugs to Medicare. By 2020, 
17 percent of the U.S. population will be 65 years of age or older. It 
is estimated that Medicare will pay $800 billion to treat tobacco-
related diseases over the next 20 years.
  Second, this bill provides coverage for counseling, prescription and 
non-prescription smoking cessation drugs in the Medicaid program. The 
bill eliminates the provision in current federal law that allows states 
to exclude FDA-approved smoking cessation therapies from coverage under 
Medicaid. Despite the fact that the states have received payments from 
their successful federal lawsuit against the tobacco industry, less 
than half the states provide coverage for smoking cessation in their 
Medicaid program. Even if Medicaid covered cessation products and 
services exclusively to pregnant women, we would see significant cost 
savings and health improvements. Children whose mothers smoke during 
pregnancy are almost twice as likely to develop asthma as those whose 
mothers did not. Over seven years, reducing smoking prevalence by just 
one percentage point among pregnant women would prevent 57,200 low 
birth weight births and save $572 million in direct medical costs.
  Finally, this bill ensures that the Maternal and Child Health Program 
recognizes that medications used to promote smoking cessation and the 
inclusion of anti-tobacco messages in health promotion are considered 
part of quality maternal and child health services.
  As Congress examines more closely the impact of tobacco on our 
country--considering regulation by the FDA or raising taxes to pay for 
public health priorities--we must make sure we assist those fighting 
this deadly addiction. I hope my colleagues will join me in 
cosponsoring this legislation and taking a stand for the public health 
of our Nation.
  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. 770

       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 ``Medicare, Medicaid, and MCH 
     Tobacco Cessation Promotion Act of 2009''.

     SEC. 2. MEDICARE COVERAGE OF COUNSELING FOR CESSATION OF 
                   TOBACCO USE.

       (a) Coverage.--Section 1861(s)(2) of the Social Security 
     Act (42 U.S.C. 1395x(s)(2)), as amended by section 152(b) of 
     the Medicare Improvements for Patients and Providers Act of 
     2008 (Public Law 110-275), is amended--
       (1) in subparagraph (DD), by striking ``and'' at the end;
       (2) in subparagraph (EE), by inserting ``and'' at the end; 
     and
       (3) by adding at the end the following new subparagraph:
       ``(FF) counseling for cessation of tobacco use (as defined 
     in subsection (hhh));''.
       (b) Services Described.--Section 1861 of the Social 
     Security Act (42 U.S.C. 1395x), as so amended, is amended by 
     adding at the end the following new subsection:
       ``(hhh) Counseling for Cessation of Tobacco Use.--(1)(A) 
     Subject to subparagraph (B), the term `counseling for 
     cessation of tobacco use' means diagnostic, therapy, and 
     counseling services for cessation of tobacco use for 
     individuals who use tobacco products or who are being treated 
     for tobacco use which are furnished--
       ``(i) by or under the supervision of a physician;
       ``(ii) by a practitioner described in clause (i), (iii), 
     (iv), (v) or (vi) of section 1842(b)(18)(C); or
       ``(iii) by a licensed tobacco cessation counselor (as 
     defined in paragraph (2)).
       ``(B) Such term is limited to--
       ``(i) services recommended in `Treating Tobacco Use and 
     Dependence: A Clinical Practice Guideline', published by the 
     Public Health Service in May 2008, or any subsequent 
     modification of such Guideline; and
       ``(ii) such other services that the Secretary recognizes to 
     be effective.
       ``(2) In this subsection, the term `licensed tobacco 
     cessation counselor' means a tobacco cessation counselor 
     who--
       ``(A) is licensed as such by the State (or in a State which 
     does not license tobacco cessation counselors as such, is 
     legally authorized to perform the services of a tobacco 
     cessation counselor in the jurisdiction in which the 
     counselor performs such services); and

[[Page 9459]]

       ``(B) meets uniform minimum standards relating to basic 
     knowledge, qualification training, continuing education, and 
     documentation that are established by the Secretary for 
     purposes of this subsection.''.
       (c) Payment and Elimination of Cost-Sharing for Counseling 
     for Cessation of Tobacco Use.--
       (1) Payment and elimination of coinsurance.--Section 
     1833(a)(1) of the Social Security Act (42 U.S.C. 1395l(a)(1)) 
     is amended--
       (A) by striking ``and'' before ``(W)''; and
       (B) by inserting before the semicolon at the end the 
     following: ``, and (X) with respect to counseling for 
     cessation of tobacco use (as defined in section 1861(hhh)), 
     the amount paid shall be 100 percent of the lesser of the 
     actual charge for the service or the amount determined by a 
     fee schedule established by the Secretary for purposes of 
     this subparagraph''.
       (2) Elimination of coinsurance in outpatient hospital 
     settings.--
       (A) Exclusion from opd fee schedule.--Section 
     1833(t)(1)(B)(iv) of the Social Security Act (42 U.S.C. 
     1395l(t)(1)(B)(iv)) is amended by striking ``and diagnostic 
     mammography'' and inserting ``, diagnostic mammography, or 
     counseling for cessation of tobacco use (as defined in 
     section 1861(hhh))''.
       (B) Conforming amendments.--Section 1833(a)(2) of the 
     Social Security Act (42 U.S.C. 1395l(a)(2)) is amended--
       (i) in subparagraph (F), by striking ``and'' after the 
     semicolon at the end;
       (ii) in subparagraph (G)(ii), by striking the comma at the 
     end and inserting ``; and''; and
       (iii) by inserting after subparagraph (G)(ii) the following 
     new subparagraph:
       ``(H) with respect to counseling for cessation of tobacco 
     use (as defined in section 1861(hhh)) furnished by an 
     outpatient department of a hospital, the amount determined 
     under paragraph (1)(X),''.
       (3) Elimination of deductible.--The first sentence of 
     section 1833(b) of the Social Security Act (42 U.S.C. 
     1395l(b)) is amended--
       (A) by striking ``and'' before ``(9)''; and
       (B) by inserting before the period the following: ``, and 
     (10) such deductible shall not apply with respect to 
     counseling for cessation of tobacco use (as defined in 
     section 1861(hhh))''.
       (d) Application of Limits on Billing.--Section 
     1842(b)(18)(C) of the Social Security Act (42 U.S.C. 
     1395u(b)(18)(C)) is amended by adding at the end the 
     following new clause:
       ``(vii) A licensed tobacco cessation counselor (as defined 
     in section 1861(hhh)(2)).''.
       (e) Inclusion as Part of Initial Preventive Physical 
     Examination.--Section 1861(ww)(2) of the Social Security Act 
     (42 U.S.C. 1395x(ww)(2)) is amended by adding at the end the 
     following new subparagraph:
       ``(O) Counseling for cessation of tobacco use (as defined 
     in subsection (hhh)).''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after the date that 
     is 1 year after the date of enactment of this Act.

     SEC. 3. MEDICARE COVERAGE OF TOBACCO CESSATION 
                   PHARMACOTHERAPY.

       (a) Inclusion of Tobacco Cessation Agents as Covered 
     Drugs.--Section 1860D-2(e)(1) of the Social Security Act (42 
     U.S.C. 1395w-102(e)(1)) is amended--
       (1) in subparagraph (A), by striking ``or'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the comma at the end 
     and inserting ``; or''; and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) any agent approved by the Food and Drug 
     Administration for purposes of promoting, and when used to 
     promote, tobacco cessation that may be dispensed without a 
     prescription (commonly referred to as an `over-the-counter' 
     drug), but only if such an agent is prescribed by a physician 
     (or other person authorized to prescribe under State law),''.
       (b) Establishment of Categories and Classes Consisting of 
     Tobacco Cessation Agents.--Section 1860D-4(b)(3)(C) of the 
     Social Security Act (42 U.S.C. 1395w-104(b)(3)(C)) is amended 
     by adding at the end the following new clause:
       ``(iv) Categories and classes of tobacco cessation 
     agents.--There shall be a therapeutic category or class of 
     covered part D drugs consisting of agents approved by the 
     Food and Drug Administration for cessation of tobacco use. 
     Such category or class shall include tobacco cessation agents 
     described in subparagraphs (A) and (C) of section 1860D-
     2(e)(1).''.
       (c) Conforming Amendment.--Section 1860D-2(e)(2)(A) of the 
     Social Security Act (42 U.S.C. 1395w-102(e)(2)(A)), as 
     amended by section 175 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), is 
     amended by striking ``, other than subparagraph (E) of such 
     section (relating to smoking cessation agents),''.

     SEC. 4. PROMOTING CESSATION OF TOBACCO USE UNDER THE MEDICAID 
                   PROGRAM.

       (a) Coverage of Tobacco Cessation Counseling Services.--
       (1) In general.--Section 1905(a) of the Social Security Act 
     (42 U.S.C. 1396d(a)) is amended--
       (A) in paragraph (27), by striking ``and'' after the 
     semicolon at the end;
       (B) in paragraph (28), by striking the comma at the end and 
     inserting ``; and''; and
       (C) by inserting after paragraph (28) the following new 
     paragraph:
       ``(29) at the option of the State, counseling for cessation 
     of tobacco use (as defined in section 1861(hhh)),''.
       (2) Conforming amendment.--Section 1902(a)(10)(C)(iv) of 
     the Social Security Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is 
     amended by inserting ``or (29)'' after ``(24)''.
       (b) Elimination of Optional Exclusion From Medicaid 
     Prescription Drug Coverage for Tobacco Cessation 
     Medications.--Section 1927(d)(2) of the Social Security Act 
     (42 U.S.C. 1396r-8(d)(2)) is amended--
       (1) by striking subparagraph (E);
       (2) by redesignating subparagraphs (F) through (K) as 
     subparagraphs (E) through (J), respectively; and
       (3) in subparagraph (F) (as redesignated by paragraph (2)), 
     by inserting before the period at the end the following: ``, 
     other than agents approved by the Food and Drug 
     Administration for purposes of promoting, and when used to 
     promote, tobacco cessation''.
       (c) Removal of Cost-Sharing for Tobacco Cessation 
     Counseling Services and Medications.--Subsections (a)(2) and 
     (b)(2) of section 1916 of the Social Security Act (42 U.S.C. 
     1396o) are each amended--
       (1) in subparagraph (D), by striking ``or'' after the comma 
     at the end;
       (2) in subparagraph (E), by striking ``; and'' and 
     inserting ``, or''; and
       (3) by adding at the end the following new subparagraph:
       ``(F)(i) counseling for cessation of tobacco use described 
     in section 1905(a)(29); or
       ``(ii) covered outpatient drugs (as defined in paragraph 
     (2) of section 1927(k), and including nonprescription drugs 
     described in paragraph (4) of such section) that are 
     prescribed for purposes of promoting, and when used to 
     promote, tobacco cessation; and''.
       (d) Increased FMAP for Tobacco Cessation Counseling 
     Services and Medications.--The first sentence of section 
     1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is 
     amended--
       (1) by striking ``and'' before ``(4)''; and
       (2) by inserting before the period the following: ``, and 
     (5) for purposes of this title, the Federal medical 
     assistance percentage shall be 80 percent with respect to 
     amounts expended as medical assistance for counseling for 
     cessation of tobacco use described in subsection (a)(29) and 
     for covered outpatient drugs (as defined in paragraph (2) of 
     section 1927(k), and including nonprescription drugs 
     described in paragraph (4) of such section) that are 
     prescribed for purposes of promoting, and when used to 
     promote, tobacco cessation''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after the date that 
     is 1 year after the date of enactment of this Act.

     SEC. 5. PROMOTING CESSATION OF TOBACCO USE UNDER THE MATERNAL 
                   AND CHILD HEALTH SERVICES BLOCK GRANT PROGRAM.

       (a) Quality Maternal and Child Health Services Includes 
     Tobacco Cessation Counseling and Medications.--Section 501 of 
     the Social Security Act (42 U.S.C. 701) is amended by adding 
     at the end the following new subsection:
       ``(d) For purposes of this title, quality maternal and 
     child health services include the following:
       ``(1) Counseling for cessation of tobacco use (as defined 
     in section 1861(hhh)).
       ``(2) The encouragement of the prescribing and use of 
     agents approved by the Food and Drug Administration for 
     purposes of tobacco cessation.
       ``(3) The inclusion of messages that discourage tobacco use 
     in health promotion counseling.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date that is 1 year after the date 
     of enactment of this Act.
                                 ______
                                 
      By Mr. DORGAN (for himself and Mr. Voinovich):
  S. 774. A bill to enhance the energy security of the United States by 
diversifying energy sources for onroad transport, increasing the supply 
of energy resources, and strengthening energy infrastructure, and for 
other purposes; to the Committee on Finance.
  Mr. DORGAN. 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 
placed in the Record, as follows:

                                 S. 774

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Energy Security Act of 2009'' or the ``NESA of 2009''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definition of Secretary.

              DIVISION A--TRANSMISSION AND TRANSPORTATION

                   TITLE I--ELECTRICITY TRANSMISSION

Sec. 101. Siting of interstate electric transmission facilities.

[[Page 9460]]

Sec. 102. Recovery of costs for smart grid technology and advanced 
              materials.

                    TITLE II--TRANSPORTATION SECTOR

          Subtitle A--Electrification of Transportation Sector

Sec. 201. Minimum Federal fleet requirement.
Sec. 202. Use of HOV facilities by light-duty plug-in electric drive 
              vehicles.
Sec. 203. Recharging infrastructure.
Sec. 204. Loan guarantees for advanced battery purchases.
Sec. 205. Study of end-of-useful life options for motor vehicle 
              batteries.

              Subtitle B--Medium- and Heavy-Duty Vehicles

Sec. 211. Maximum weight study.
Sec. 212. Fuel economy.

          Subtitle C--Alternative Transportation Technologies

Sec. 221. Flexible fuel automobiles.
Sec. 222. Transportation roadmap study.

       DIVISION B--DOMESTIC PRODUCTION AND WORKFORCE DEVELOPMENT

                       TITLE I--INCREASING SUPPLY

       Subtitle A--Increasing Production From Domestic Resources

Sec. 300. Amendment of 1986 Code.

                 PART I--Investment in Renewable Energy

Sec. 301. Extension of renewable electricity production credit.
Sec. 302. Expansion and extension of new clean renewable energy bonds.
Sec. 303. Extension of investment tax credit for certain energy 
              property.
Sec. 304. Increase in credit for investment in advanced energy 
              facilities.

            PART II--Investment in Alternative Fuel Property

Sec. 311. Extension of credits for alcohol fuels.
Sec. 312. Extension of credits for biodiesel and renewable diesel.

      PART III--Investment in Electric Drive and Advanced Vehicles

Sec. 321. Extension of credit and extension of temporary increase in 
              credit for alternative fuel vehicle refueling property.
Sec. 322. Extension and expansion of credit for new qualified plug-in 
              electric drive motor vehicles.
Sec. 323. Extension of credit for certain plug-in electric vehicles.
Sec. 324. Extension of credit for medium and heavy duty hybrid 
              vehicles.
Sec. 325. Credit for heavy duty natural gas vehicles.

               PART IV--Low Carbon Loan Guarantee Program

Sec. 331. Innovative low-carbon loan guarantee programs.

                     PART V--Investment in Ethanol

Sec. 341. Research and development of fungible biofuels.

     PART VI--Studies on Market Penetration of Renewable Resources

Sec. 351. Studies on market penetration of renewable resources.

        Subtitle B--Increasing Production From Fossil Resources

                    PART I--Outer Continental Shelf

Sec. 361. Inventory of Outer Continental Shelf oil and gas resources.
Sec. 362. Leasing of offshore areas estimated to contain commercially 
              recoverable oil or gas resources.
Sec. 363. Environmental stewardship and allowable activities.
Sec. 364. Moratorium of oil and gas leasing in certain areas of the 
              Gulf of Mexico.
Sec. 365. Treatment of revenues.

                    PART II--Other Fossil Resources

Sec. 371. Authorization of activities and exports involving hydrocarbon 
              resources.
Sec. 372. Travel in connection with authorized hydrocarbon exploration 
              and extraction activities.
Sec. 373. Alaska OCS joint lease and permitting processing office.
Sec. 374. Alaska Natural Gas Pipeline.

        TITLE II--CLEAN ENERGY TECHNOLOGY WORKFORCE DEVELOPMENT

Sec. 401. Clean energy technology workforce.

                   DIVISION C--GLOBAL RISK MANAGEMENT

Sec. 501. Sense of Congress on geopolitical consequences of oil 
              dependence.
Sec. 502. Study of foreign fuel subsidies.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1)(A) high and volatile international oil prices represent 
     an unsustainable threat to the economic and national security 
     of the United States; and
       (B) approximately 40 percent of the primary energy demand 
     of the United States is met by petroleum, the price for which 
     is set in a fungible and opaque international market 
     vulnerable to geopolitical instability and increasingly 
     complex barriers to investment;
       (2)(A) it should be the goal of the United States to reduce 
     the oil intensity (the number of barrels of oil required to 
     generate $1 of gross domestic product) of the national 
     economy from 2008 levels by at least 50 percent by calendar 
     year 2030 and by at least 80 percent by calendar year 2050; 
     and
       (B) reduced oil intensity is a primary means for improving 
     the resilience of the economy to high and volatile 
     international oil prices;
       (3) the transportation sector of the United States is 
     critical to breaking the oil dependence of the United States 
     because the transportation sector--
       (A) accounts for nearly 70 percent of total national oil 
     consumption;
       (B) is 97-percent reliant on petroleum for the delivered 
     energy needs of the sector; and
       (C) remains an industry of vital national significance and 
     importance;
       (4)(A) electrification of short-haul transportation 
     represents a likely pathway to reduced oil dependence;
       (B) electrified ground transport--
       (i) promotes fuel diversity because the electric power 
     sector uses a diverse range of feedstocks; and
       (ii) relies on a portfolio of fuels that are largely 
     domestic and have prices that are generally less volatile 
     than oil; and
       (C) electricity prices are generally stable relative to oil 
     because the price of fuel in the electric power sector is a 
     small portion of the cost of delivered energy;
       (5)(A) electrification of transportation will require a 
     more modern, technologically advanced national electric power 
     system that draws on a variety of location-constrained 
     generation sources sited in a range of geographic areas; and
       (B) a national transmission system that efficiently 
     delivers power across long distances to load centers should 
     be a high priority;
       (6)(A) widespread deployment of electric vehicles and 
     supporting infrastructure is a long-term process that will 
     require a national commitment over many years;
       (B) in the interim, steps can be taken to minimize the 
     danger that oil dependence poses to the economic and national 
     security of the United States; and
       (C) it is critical to--
       (i) support the continued growth of the domestic biofuels 
     industry;
       (ii) foster domestic production of conventional fuels for 
     which infrastructure and technology exist; and
       (iii) support deployment of additional renewable, cleaner 
     fossil, and nuclear generating capacity for providing the 
     necessary low emissions, reliable, and dispatchable power 
     that is essential for the electricity supply of the United 
     States;
       (7)(A) a robust, dynamic, and diverse biofuels industry is 
     an important component of a secure United States liquid fuels 
     system; and
       (B) a stable market for biofuels, including widespread 
     deployment of flexible fuel vehicles, can reduce oil 
     consumption as the United States transitions to electrified 
     ground transport;
       (8)(A) domestic production of oil and natural gas from the 
     Outer Continental Shelf of the United States is a safe and 
     secure means for increasing energy security in the near-term;
       (B) high oil import levels in the United States present an 
     added threat to the economy in addition to general price 
     volatility; and
       (C) in 2008, the United States net deficit in petroleum 
     trade amounted to more than $380,000,000,000, or nearly 60 
     percent of the total trade deficit;
       (9) a highly skilled, well trained, and adaptable workforce 
     is vital to the economic and energy security of the United 
     States; and
       (10)(A) addressing the twin challenges of energy security 
     and global climate change now and in the future will require 
     the United States to use all instruments of national power, 
     including the military and diplomatic and intelligence 
     services;
       (B) the United States must develop short-term policies and 
     strategies that--
       (i) protect key energy infrastructure;
       (ii) secure critical geographic transit areas;
       (iii) mitigate political instability from energy suppliers; 
     and
       (iv) strengthen the domestic industrial base required for 
     the development and widespread implementation of clean energy 
     technologies; and
       (C) over the long-term, the United States must focus 
     national security organizations on gaining greater clarity on 
     world reserves of energy and strengthening relationships with 
     certain key nations.

     SEC. 3. DEFINITION OF SECRETARY.

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

              DIVISION A--TRANSMISSION AND TRANSPORTATION

                   TITLE I--ELECTRICITY TRANSMISSION

     SEC. 101. SITING OF INTERSTATE ELECTRIC TRANSMISSION 
                   FACILITIES.

       Section 216 of the Federal Power Act (16 U.S.C. 824p) is 
     amended--
       (1) by striking subsections (a) through (g) and inserting 
     the following:
       ``(a) Definitions.--In this section:
       ``(1) Beneficiary.--The term `beneficiary' means a 
     wholesale or retail customer, market participant, or other 
     entity that benefits from a transmission upgrade, 
     enhancement,

[[Page 9461]]

     or expansion under a regional transmission plan, including an 
     economic benefit, improvement in service reliability, or 
     reduction in greenhouse gas emissions.
       ``(2) Clean energy superhighway.--The term `Clean Energy 
     Superhighway' means the interstate extra-high voltage 
     transmission grid overlay established under this section.
       ``(3) Clean energy superhighway facility.--The term `Clean 
     Energy Superhighway facility' means an overhead or 
     underground transmission facility of the Clean Energy 
     Superhighway included in a plan certified under subsection 
     (b)(9) (including conductors, cables, towers, manhole duct 
     systems, phase shifting transformers, reactors, capacitors, 
     and any ancillary facilities and equipment necessary for the 
     proper operation of the facility) that--
       ``(A) operates at or above a voltage of 345 kilovolt 
     alternating current;
       ``(B) operates at or above a voltage of 400 kilovolts 
     direct current;
       ``(C) is a renewable feeder line that transmits electricity 
     directly or indirectly to the Clean Energy Superhighway; or
       ``(D) is a necessary upgrade to an existing transmission 
     facility.
       ``(4) Grid-enabled vehicle.--The term `grid-enabled 
     vehicle' means an electric drive vehicle, electric hybrid 
     vehicle, or fuel cell vehicle that has the ability to 
     communicate electronically with an electric power provider or 
     localized energy storage system to charge or discharge an on-
     board energy storage device, such as a battery.
       ``(5) Interconnection.--The term `Interconnection' has the 
     meaning given the term in section 215(a).
       ``(6) Load-serving entity.--The term `load-serving entity' 
     means any person, Federal, State, or local agency or 
     instrumentality, public utility, or electric cooperative 
     (including an entity described in section 201(f)) that 
     delivers electric energy to end-use customers.
       ``(7) Location-constrained resource.--
       ``(A) In general.--The term `location-constrained resource' 
     means a low-carbon resource used to produce electricity that 
     is geographically constrained such that the resource cannot 
     be relocated to an existing transmission line.
       ``(B) Inclusions.--The term `location-constrained resource' 
     includes the following types of resources described in 
     subparagraph (A):
       ``(i) Renewable energy.
       ``(ii) A fossil fuel electricity plant equipped with carbon 
     capture technology that is located at a site that is 
     appropriate for carbon storage or beneficial reuse.
       ``(8) Renewable energy.--The term `renewable energy' means 
     electric energy generated from--
       ``(A) solar energy, wind, landfill gas, renewable biogas, 
     or geothermal energy;
       ``(B) new hydroelectric generation capacity achieved from 
     increased efficiency, or an addition of new capacity, at an 
     existing nonhydroelectric project if--
       ``(i) the hydroelectric project installed on the 
     nonhydroelectric dam--

       ``(I) is licensed by the Commission; and
       ``(II) meets all other applicable environmental, licensing, 
     and regulatory requirements, including applicable fish 
     passage requirements;

       ``(ii) the nonhydroelectric dam--

       ``(I) was placed in service before the date of enactment of 
     the National Energy Security Act of 2009;
       ``(II) was operated for flood control, navigation, or water 
     supply purposes; and
       ``(III) did not produce hydroelectric power as of the date 
     of enactment of the National Energy Security Act of 2009; and

       ``(iii) the hydroelectric project is operated so that the 
     water surface elevation at any given location and time that 
     would have occurred in the absence of the hydroelectric 
     project is maintained, subject to any license requirements 
     imposed under applicable law that change the water surface 
     elevation for the purpose of improving the environmental 
     quality of the affected waterway, as certified by the 
     Commission;
       ``(C) hydrokinetic energy, including--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas;
       ``(ii) free flowing water in rivers, lakes, and streams;
       ``(iii) free flowing water in man-made channels, including 
     projects that use nonmechanical structures to accelerate the 
     flow of water for electric power production purposes; or
       ``(iv) differentials in ocean temperature through ocean 
     thermal energy conversion; or
       ``(D) electricity that is generated from the combustion of 
     the biogenic portion of municipal solid waste materials from 
     facilities that comply with the maximum pollutant emissions 
     standards established by the Administrator of the 
     Environmental Protection Agency.
       ``(9) Renewable feeder line.--
       ``(A) In general.--The term `renewable feeder line' means 
     an electricity transmission line that--
       ``(i) operates at or above 100 kilovolts alternating 
     current;
       ``(ii) connects 1 or more renewable energy generators 
     directly or indirectly to the Clean Energy Superhighway; and
       ``(iii) is identified in the Clean Energy Superhighway plan 
     certified under subsection (b)(9).
       ``(B) Inclusion.--The term `renewable feeder line' includes 
     an upgrade to an existing transmission line necessary for 
     interconnection to a new transmission line described in 
     subparagraph (A).
       ``(10) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(11) State.--The term `State' means--
       ``(A) a State; and
       ``(B) the District of Columbia.
       ``(b) Planning.--
       ``(1) Purpose.--The purpose of this subsection is to plan 
     for a Clean Energy Superhighway that--
       ``(A) expands and modernizes the electrical transmission 
     grid of the United States to meet the goals of increasing 
     energy security and protecting the environment;
       ``(B) integrates location-constrained resources, including 
     renewable and low-carbon electricity generation;
       ``(C) improves delivery of electricity from location-
     constrained resources to load centers;
       ``(D) ensures sufficient transmission capacity for future 
     demand growth, including energy efficiency, distributed 
     generation and storage, and demand response resources;
       ``(E) integrates smart grid technologies;
       ``(F) enhances the reliability and efficiency of the 
     electrical transmission grid;
       ``(G) relieves congestion on the electrical transmission 
     grid;
       ``(H) plans, to the maximum extent practicable, for at 
     least 50 percent of light-duty vehicles used in the United 
     States by calendar year 2030 to be light-duty grid-enabled 
     vehicles;
       ``(I) meets any renewable electricity standard established 
     by law; and
       ``(J) provides the lowest-cost delivered energy to markets.
       ``(2) Planning requirement.--
       ``(A) In general.--
       ``(i) Requirement.--Not later than 90 days after the date 
     of enactment of the National Energy Security Act of 2009, the 
     Commission shall promulgate regulations consistent with this 
     section for--

       ``(I) the operation, composition, and selection of the 
     regional planning authorities; and
       ``(II) the contents of, and certification requirements for, 
     the regional plans produced by regional planning authorities.

       ``(ii) Requirement.--The Commission shall certify not less 
     than 1, and not more than 4, regional planning authorities 
     for each of the Eastern and Western Interconnections of the 
     United States.
       ``(iii) Clean energy superhighway.--Each regional planning 
     authority certified by the Commission shall participate in 
     the development of the Clean Energy Superhighway.
       ``(iv) Number of regional planning authorities.--The 
     Commission shall minimize, to the maximum extent practicable, 
     the number of regional planning authorities in the Eastern 
     and Western Interconnections while ensuring that the entire 
     domestic footprint of the Interconnections is covered.
       ``(B) Certification of regional planning authorities.--
       ``(i) In general.--To be eligible to be certified as a 
     regional planning authority for a region under this 
     subsection, a regional planning organization shall apply to, 
     and be approved by, the Commission.
       ``(ii) Request for applications.--Not later than 90 days 
     after the date of enactment of National Energy Security Act 
     of 2009, the Commission shall issue a request for from 
     entities seeking to be certified as a regional planning 
     authority for the Eastern or Western Interconnection.
       ``(iii) Eligibility.--

       ``(I) In general.--Any group of Regional Transmission 
     Organizations, Independent System Operators, regional 
     entities (as defined in section 215(a)), or other multistate 
     organizations or entities may apply to be certified as a 
     regional planning authority under this subsection.
       ``(II) State participation.--An organization that applies 
     for certification under subclause (I) shall invite the 
     Governor or the designee of the Governor from each affected 
     State and a representative from each affected Indian tribe to 
     participate in the organization.
       ``(III) Minimum size.--To be certified as a regional 
     planning authority under this subparagraph, an organization 
     shall represent a region that is of sufficient size--

       ``(aa) to encompass generation resources that are 
     sufficient to meet load requirements in the region, taking 
     into account potential generation from location-constrained 
     resources and projected load growth; and
       ``(bb) to possess sufficient market scope to produce 
     economic and operational efficiencies.
       ``(iv) Planning principles.--The Commission shall establish 
     rules and procedures for the designation of regional planning 
     authorities to ensure that the planning process proposed by 
     an applicant--

       ``(I) is consistent with the purposes described in 
     paragraph (1);
       ``(II) is open, transparent, and nondiscriminatory;
       ``(III) includes consultation with all affected Federal 
     land management agencies, Indian tribes, and States within a 
     region;

[[Page 9462]]

       ``(IV) builds on planning undertaken by States, Indian 
     tribes, Federal transmitting utilities, Regional Transmission 
     Organizations, Independent System Operators, utilities, and 
     others;
       ``(V) is developed in conformance with Commission 
     requirements for planning using open access transmission 
     tariffs;
       ``(VI) solicits input from load-serving and wholesale 
     entities, transmission owners and operators, renewable energy 
     developers, environmental organizations, Indian tribes, and 
     other interested parties;
       ``(VII) includes an interim process to evaluate 
     expeditiously whether new renewable feeder lines should be 
     added to the plan; and
       ``(VIII) uses the best available information on resources, 
     load, and demand projections.

       ``(v) Certification.--

       ``(I) In general.--Except as provided in subclauses (II) 
     and (III), not later than 90 days after the date on which the 
     Commission issues a request for applications under clause 
     (ii), the Commission shall certify at least 1 regional 
     planning authority for each of the Eastern and Western 
     Interconnections.
       ``(II) Insufficient application.--Subclause (I) shall not 
     apply if the Commission--

       ``(aa) has not received an application from any entity in 
     the applicable Interconnection; or
       ``(bb) has received applications from entities that do not 
     satisfy the criteria established by the Commission for a 
     regional planning authority.

       ``(III) Commission responsibility.--If the Commission does 
     not receive sufficient applications as described in subclause 
     (II) for any portion of an Interconnection, the Commission 
     shall--

       ``(aa) assume the responsibilities of a regional planning 
     authority for the uncovered portion of the Interconnection; 
     and
       ``(bb) submit to Congress written notification of an intent 
     to assume responsibility under this subclause at least 30 
     days before the date that responsibility is assumed.
       ``(C) Oversight of regional planning authorities.--The 
     Commission shall establish procedures to oversee certified 
     regional planning authorities under this subsection.
       ``(3) Duties of secretary.--
       ``(A) Resource assessments.--
       ``(i) In general.--The Secretary shall conduct nationwide 
     assessments to identify areas with a significant potential 
     for the development of location-constrained resources.
       ``(ii) Formats.--The resource assessments shall be made 
     available to the public in multiple formats, including in a 
     Geographical Information System compatible format.
       ``(iii) Timing.--The Secretary shall--

       ``(I) make the initial resource assessment required under 
     this subparagraph not later than 180 days after the date of 
     enactment of the National Energy Security Act of 2009; and
       ``(II) refine the resource assessment on a regular basis 
     that is consistent with regional planning cycles.

       ``(B) Technical assistance.--The Secretary shall provide 
     technical assistance to regional planning authorities, on 
     request, to assist the authorities in carrying out this 
     section.
       ``(C) Congestion studies.--
       ``(i) In general.--The Secretary shall conduct or update a 
     study of electric transmission congestion and report the 
     results of the study to certified regional planning 
     authorities to assist the authorities in carrying out this 
     section.
       ``(ii) Recent study.--The Secretary shall ensure that a 
     congestion study that is not more than 2 years old is 
     available at the time regional planning authorities are 
     certified by the Commission.
       ``(iii) Updates.--The Secretary shall update a congestion 
     study at least once every 2 years, consistent with the 
     planning cycle.
       ``(4) Planning process.--
       ``(A) In general.--Once certified, a regional planning 
     authority shall establish a regional or Interconnection-wide 
     Clean Energy Superhighway plan that--
       ``(i) meets the purposes of this subsection; and
       ``(ii) identifies necessary Clean Energy Superhighway 
     facilities and transmission infrastructure that need to be 
     added or upgraded to achieve the planned Clean Energy 
     Superhighway.
       ``(B) Stakeholder involvement.--
       ``(i) In general.--In carrying out this section, a regional 
     planning authority shall establish a consultative public 
     process that, to the maximum extent practicable, engages 
     regional stakeholders, including--

       ``(I) public service commissions and other relevant State 
     agencies;
       ``(II) load-serving entities and wholesale entities that 
     provide transmission and power supply services;
       ``(III) representatives of the retail customers of the 
     load-serving entities;
       ``(IV) transmission owners and operators;
       ``(V) utilities and merchant generators;
       ``(VI) renewable energy developers;
       ``(VII) environmental organizations;
       ``(VIII) Indian tribes;
       ``(IX) Federal land use agencies; and
       ``(X) other interested parties.

       ``(ii) Criteria.--A regional planning authority shall 
     encourage stakeholders, to the maximum extent practicable, to 
     provide input to establish criteria based on paragraphs (1) 
     and (2)(B)(iv) to create a Clean Energy Superhighway plan.
       ``(iii) Public meetings.--A regional planning authority 
     shall provide notice and hold public meetings to solicit 
     public input in carrying out this subsection.
       ``(5) Planning.--Not later than 1 year after the 
     certification of a regional planning authority under this 
     subsection, the certified regional planning authority shall 
     submit to the Commission for approval a Clean Energy 
     Superhighway plan that--
       ``(A) evaluates potential location-constrained resources;
       ``(B) provides for long-term planning for both the 10 year- 
     and 20 year-horizons, that takes into account future demand 
     growth and reasonable models of future generation growth, 
     including energy efficiency, demand response, and distributed 
     storage and generation;
       ``(C) establishes (in consultation with Federal and State 
     land agencies, environmental groups, and Indian tribes) 
     appropriate areas to be avoided in siting of Clean Energy 
     Superhighway facilities, to the maximum extent practicable, 
     including--
       ``(i) national parks, national marine sanctuaries, 
     reserves, recreation areas, and other similar units of the 
     National Park System;
       ``(ii) designated wilderness, designated wilderness study 
     areas, and other areas managed for wilderness 
     characteristics;
       ``(iii) national historic sites and historic parks;
       ``(iv) inventoried roadless areas and significant 
     noninventoried roadless areas within the National Forest 
     System;
       ``(v) national monuments;
       ``(vi) national conservation areas;
       ``(vii) national wildlife refuges and areas of critical 
     environmental concern;
       ``(viii) national historic and national scenic trails;
       ``(ix) areas designated as critical habitat;
       ``(x) national wild, scenic, and recreational rivers;
       ``(xi) any area in which Federal law prohibits energy 
     development; and
       ``(xii) any area in which applicable State law or Indian 
     tribal code enacted prior to the date of enactment of the 
     National Energy Security Act of 2009 prohibits transmission 
     development;
       ``(D) identifies the transmission infrastructure to be 
     included as Clean Energy Superhighway facilities, taking into 
     consideration--
       ``(i) that, to the maximum extent practicable--

       ``(I) areas with the potential for the development of 
     location-constrained resources shall be connected to the 
     Clean Energy Superhighway;
       ``(II) load centers shall be connected to the Clean Energy 
     Superhighway; and
       ``(III) areas in subparagraph (C) shall be avoided by the 
     Clean Energy Superhighway; and

       ``(ii) all other relevant factors;
       ``(E) performs necessary engineering analyses;
       ``(F) permits persons to propose to the regional planning 
     authority Clean Energy Superhighway facilities to meet the 
     needs identified in the long-term plan of the regional 
     planning authority; and
       ``(G) considers staging of projects, including the logical 
     order of building and construction timelines.
       ``(6) Allowance of waivers for certain lines.--A regional 
     planning authority may petition the Commission to allow the 
     inclusion of 230 kilovolt lines in an approved plan if the 
     regional planning authority demonstrates to the Commission 
     that unique regional conditions exist that require a lower 
     voltage line.
       ``(7) Multiple regional planning authorities.--
       ``(A) In general.--If more than 1 regional planning 
     authority is certified in an Interconnection, the regional 
     planning authorities in the Interconnection shall ensure that 
     the submitted plan integrates with the other plans in the 
     Interconnection.
       ``(B) Modification.--The Commission shall modify the plans 
     submitted under paragraph (9)(B), as necessary, to ensure 
     that plans established under this section are integrated.
       ``(8) Coordination.--In the development of a Clean Energy 
     Superhighway plan, a regional planning authority shall 
     coordinate, as appropriate, with planning authorities and 
     other interested parties in Canada, Mexico, the Electric 
     Reliability Council of Texas, and other Interconnections.
       ``(9) National plan certification.--
       ``(A) In general.--The Commission shall determine whether 
     the plans submitted by the regional planning authorities 
     under this subsection carry out the purposes of this section.
       ``(B) Administration.--
       ``(i) Public comment.--The Commission shall provide an 
     opportunity for public comment on each plan submitted by a 
     regional planning authority.
       ``(ii) Modifications.--

       ``(I) In general.--The Commission may modify or reject a 
     plan as necessary to achieve the purposes of this section.
       ``(II) Opinion.--If the Commission modifies or rejects a 
     plan, not later than 60 days after the date the plan is 
     submitted by the regional planning authority, the Commission

[[Page 9463]]

     shall provide a written opinion to the regional planning 
     authority that contains the facts and reasons supporting the 
     action of the Commission.

       ``(iii) Resubmission.--Subject to paragraph (10)(A)(iii), 
     if the Commission rejects a plan, the regional planning 
     authority may submit a revised plan within 90 days of the 
     Commission's rejection.
       ``(iv) Certification.--If the Commission determines that a 
     plan meets the purposes of this section, the Commission shall 
     certify the plan for establishing a Clean Energy 
     Superhighway.
       ``(10) Best practices.--The Commission shall--
       ``(A) conduct regular reviews of best practices in planning 
     under this subsection; and
       ``(B) make available and use those best practices in 
     carrying out this subsection.
       ``(11) Timing.--
       ``(A) Implementation.--
       ``(i) In general.--Not later than 1 year after the date of 
     certification by the Commission, a regional planning 
     authority shall complete the planning process required under 
     this section.
       ``(ii) Withholding of planning funds.--If the Commission 
     has not received a plan from a regional planning authority by 
     the date that is 1 year after the date of the certification 
     of the regional planning authority by the Commission, the 
     Commission shall--

       ``(I) determine the cause for the delay; and
       ``(II) inform the Secretary, who may withhold future 
     planning funds from the regional planning authority under 
     this subsection, if the Commission determines that the 
     process of the regional planning authority is not 
     sufficiently implementing this subsection.

       ``(iii) Assumption of planning responsibility.--If the 
     Commission has not certified the regional plan for a region 
     by the date that is 18 months after the date of the 
     certification of the regional planning authority by the 
     Commission, the Commission shall assume the responsibility 
     for creating a regional plan for the region consistent with 
     the planning process established under paragraph (4).
       ``(iv) Notification.--The Commission shall submit to 
     Congress written notification of an intent to assume 
     responsibility under clause (iii) at least 30 days before the 
     date that responsibility is assumed.
       ``(B) Updates.--Not later than 2 years after the initial 
     establishment of a plan under this section and every 2 years 
     thereafter, a regional planning authority shall (in 
     accordance with procedures required for the initial 
     establishment of a plan) review and (as necessary) modify the 
     plan established under this section to ensure that the plan 
     promotes the purposes of this section.
       ``(12) Recovery of costs associated with interconnection-
     wide transmission grid project planning.--
       ``(A) In general.--A regional planning authority and a 
     participating State shall be permitted to recover prudently 
     incurred costs to carry out the planning activities required 
     under this subsection pursuant to a Federal transmission 
     surcharge that will be established by the Commission for the 
     purposes of carrying out this section.
       ``(B) Surcharge.--A regional planning authority shall--
       ``(i) establish a Federal transmission surcharge based on a 
     formula rate that is submitted to the Commission for 
     approval; and
       ``(ii) adjust the formula and surcharge on an annual basis.
       ``(C) Cost responsibility.--Cost responsibility under each 
     surcharge shall be assigned based on energy usage to all 
     load-serving entities within each regional planning 
     authority.
       ``(D) Limitation.--The total amount of surcharges that may 
     be imposed or collected nationally under this paragraph shall 
     not exceed $80,000,000 for any calendar year.
       ``(E) Other funds.--Funds made available for transmission 
     planning under the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) may be used to carry out this 
     subsection.
       ``(c) Cost Allocation.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to ensure that the costs of the Clean Energy 
     Superhighway are borne widely by all beneficiaries of new 
     transmission and are not borne disproportionately by 
     ratepayers or generators in specific areas; and
       ``(B) to promote the national interest in an Clean Energy 
     Superhighway in accordance with the purposes of this part.
       ``(2) Submission.--Not later than 1 year after the date of 
     the certification of the last regional planning authority, 
     all regional planning authorities within an Interconnection 
     may submit jointly a single integrated Interconnection-wide 
     cost allocation proposal to the Commission for allocating the 
     costs of Clean Energy Superhighway facilities under this 
     section.
       ``(3) Action by commission.--Not later than 120 days after 
     the date of receipt of a cost-allocation plan submitted under 
     paragraph (2), the Commission shall--
       ``(A) provide notice and an opportunity for a hearing;
       ``(B) evaluate the plan; and
       ``(C)(i) approve the plan if the Commission finds that the 
     plan results in just and reasonable rates that promote the 
     purposes of this section (including this subsection); or
       ``(ii) reject or modify the plan if the Commission finds 
     that the plan does not result in just and reasonable rates 
     that promote the purposes of this section (including this 
     subsection).
       ``(4) Resubmission of plan.--
       ``(A) In general.--If the Commission rejects the cost 
     allocation plan under paragraph (3)(C)(ii), the Commission 
     shall give guidance to the regional planning authorities on 
     remediation measures.
       ``(B) Resubmission.--Not later than 90 days after the date 
     of the rejection, the regional planning authorities may 
     submit to the Commission a revised cost allocation plan for 
     the region under this subsection.
       ``(C) Modifications.--
       ``(i) In general.--Not later than 60 days after the date of 
     resubmission of a cost-allocation plan, the Commission shall 
     approve, modify, or reject the plan as necessary to achieve 
     the purposes of this section.
       ``(ii) Opinion.--If the Commission modifies or rejects a 
     plan, not later than 60 days after the date the plan is 
     resubmitted by the regional planning authority, the 
     Commission shall provide a written opinion to the regional 
     planning authority that contains the facts and reasons 
     supporting the action of the Commission.
       ``(5) Commission allocation of costs.--If the regional 
     planning authorities do not submit an Interconnection-wide 
     cost allocation plan within the time periods specified in 
     paragraphs (2) and (4) or if the Commission does not approve 
     a cost allocation plan submitted by the regional planning 
     authorities for an Interconnection, the Commission shall 
     allocate the costs of new transmission in the region under 
     this section to all of the load-serving entities in the 
     Interconnection on a load-ratio share basis.
       ``(6) Implementation.--
       ``(A) In general.--The Commission shall adopt such rules, 
     require inclusion of such provisions in transmission tariffs, 
     and take such other actions as are necessary to efficiently--
       ``(i) collect the costs for development and operation of 
     Clean Energy Superhighway facilities; and
       ``(ii) distribute the resultant revenues to owners of the 
     facilities.
       ``(B) Transmission customer.--The rules or tariffs may 
     consider each load-serving entity in an Interconnection to be 
     a transmission customer under 1 or more of the tariffs 
     established for collection of the costs for development and 
     operation of Clean Energy Superhighway facilities.
       ``(d) Siting.--
       ``(1) Purposes.--The purpose of the integrated siting 
     process provided for in this subsection is to provide an 
     efficient and timely certification process that ensures 
     participation of Federal land management agencies, States, 
     and Indian tribes, and the appropriate protection of 
     resources, in siting applications before the Commission.
       ``(2) Prefiling.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of the National Energy Security Act of 2009, the 
     Commission shall promulgate regulations to implement an 
     integrated prefiling process for the preparation of an 
     application for the certification of a Clean Energy 
     Superhighway facility.
       ``(B) Preapplication information.--
       ``(i) In general.--The regulations for the prefiling 
     process shall include the appropriate information required 
     for the Commission to determine if the proposed facility is 
     included in the Clean Energy Superhighway plan certified by 
     the Commission under subsection (b)(9).
       ``(ii) Steps.--The regulations shall establish a list of 
     steps that shall be completed before submitting an 
     application for a certificate, including the steps required 
     under this subparagraph.
       ``(iii) Notice of intent to apply.--The applicant shall 
     submit to the Commission a notice of intent to apply for a 
     Clean Energy Superhighway certificate that includes a 
     preliminary routing plan.
       ``(iv) Determination of inclusion in plan.--The Commission 
     shall determine whether the proposed facility is included in 
     a Clean Energy Superhighway plan certified under subsection 
     (b)(9).
       ``(v) Notification.--The Commission shall provide notice to 
     the public, affected States, Federal land agencies, and 
     Indian tribes of a notice of any intent to apply for a 
     certificate.
       ``(vi) Prefiling schedule.--The Commission shall establish 
     a prefiling schedule for the applicant, agencies, and Indian 
     tribes.
       ``(vii) State siting constraints.--The applicant shall 
     consider the State siting constraints identified under 
     paragraph (3).
       ``(viii) Consultation.--The applicant shall consult with 
     affected States, Federal land agencies, and Indian tribes in 
     carrying out this subsection
       ``(ix) Early scoping process.--The Commission shall conduct 
     an early scoping process that is consistent with the terms 
     and conditions of section 5.8 of title 18, Code of Federal 
     Regulations (or a successor section), as determined by the 
     Commission.
       ``(x) Consolidated record.--The Commission shall create and 
     maintain a consolidated record for all decisions made or 
     actions taken by the Commission or by a Federal, State, 
     Indian tribe administrative agency, or officer under this 
     subsection.

[[Page 9464]]

       ``(xi) Siting dispute resolution board.--The Commission 
     shall establish a siting dispute resolution board that is 
     consistent with the terms and conditions of section 5.14 of 
     title 18, Code of Federal Regulations and paragraph (3)(B), 
     as determined by the Commission.
       ``(C) Certificate of public convenience and necessity.--An 
     applicant shall comply with the prefiling process established 
     under this paragraph before filing an application for a 
     certificate of public convenience and necessity with the 
     Commission.
       ``(3) State siting constraints.--
       ``(A) State agency.--
       ``(i) In general.--The Governor of a State in which a Clean 
     Energy Superhighway facility is proposed pursuant to 
     paragraph (2) shall designate the appropriate State agency to 
     coordinate with the Commission on siting.
       ``(ii) Siting constraints and mitigation measures.--

       ``(I) In general.--Applicants shall work with affected 
     States in the prefiling process described in paragraph (2).
       ``(II) Designated state agency.--At the conclusion of the 
     prefiling process, the designated State agency may identify 
     and communicate to the applicant and the Commission 
     information on siting constraints and mitigation measures 
     (including habitat protection, environmental considerations, 
     cultural site protection, or other factors) for a Clean 
     Energy Superhighway facility within the State.

       ``(B) Siting dispute resolution board.--
       ``(i) In general.--During the prefiling process for each 
     Clean Energy Superhighway facility application, the 
     Commission shall establish a siting dispute resolution board 
     to ensure appropriate siting within and across the borders of 
     the State.
       ``(ii) Composition.--The board for a Clean Energy 
     Superhighway facility shall be composed of--

       ``(I) 1 representative of the Commission, who is not 
     otherwise involved in the applicable proceeding;
       ``(II) 1 representative of each affected State, as 
     designated by the Governor, and who is not otherwise involved 
     in the proceeding; and
       ``(III) 1 independent person with expertise in the area, 
     selected by the other 2 panelists from a preestablished list 
     of individuals who have that expertise (as established by the 
     Commission).

       ``(iii) Appeals.--If the applicant does not agree with the 
     siting constraints and mitigation measures proposed by a 
     State, the applicant may appeal the constraints and measures 
     to the appropriate siting dispute resolution board.
       ``(iv) Decision.--The board shall--

       ``(I) make a decision on any appeal made under clause 
     (iii); and
       ``(II) submit to the Commission a recommendation for final 
     dispute resolution.

       ``(C) Federal action.--
       ``(i) In general.--The Commission shall incorporate State 
     siting constraints and mitigation measures in the certificate 
     issued under paragraph (9), unless the Commission finds that 
     any recommendation referred to in subparagraph (A) (based on 
     the recommendation of the applicable sitting dispute 
     resolution board) is inconsistent with the purposes and 
     requirements of this section or other applicable Federal law.
       ``(ii) Findings.--If (after any proceedings of a siting 
     dispute resolution board) the Commission does not adopt in 
     whole or in part a recommendation of the State agency, the 
     Commission shall publish (together with a description of the 
     basis for each finding)--

       ``(I) a finding that adoption of the recommendation of the 
     siting dispute resolution board is inconsistent with the 
     purposes and requirements of this section or with other 
     applicable provisions of Federal law; or
       ``(II) a finding that adopts the recommendations of the 
     siting dispute resolution board conditions selected by the 
     Commission comply with the State siting constraints and 
     mitigation measures described in subparagraph (A).

       ``(4) Federal authority.--
       ``(A) In general.--Except as otherwise provided in this 
     subsection, the Commission shall have exclusive jurisdiction 
     over the granting of a certificate for the siting of a Clean 
     Energy Superhighway facility.
       ``(B) Rights of way.--
       ``(i) In general.--The Secretary of the Interior shall 
     provide a route for a Clean Energy Superhighway facility on 
     public land in accordance with the terms and conditions of 
     agency land use plans.
       ``(ii) Indian land.--In carrying out this subparagraph, the 
     Secretary of the Interior shall use the process established 
     under the terms and conditions of section 2604 of the Energy 
     Policy Act of 1992 (25 U.S.C. 3504) and the Act of February 
     5, 1948 (25 U.S.C. 323 et seq.) (including applicable 
     regulations) to establish a right-of-way for a Clean Energy 
     Superhighway on Indian land, as determined by the Secretary 
     of the Interior.
       ``(iii) Connection of individual lines.--The Commission 
     shall work with the Secretary of the Interior to ensure that 
     the routing of an individual line across public and private 
     land is appropriately connected.
       ``(5) Schedule.--
       ``(A) In general.--The Commission shall establish a 
     schedule for all Federal authorizations under this 
     subsection.
       ``(B) Administration.--In establishing the schedule, the 
     Commission shall--
       ``(i) ensure expeditious completion of all such 
     proceedings; and
       ``(ii) comply with applicable schedules established by 
     Federal law.
       ``(6) Existing corridors.--A route for a Clean Energy 
     Superhighway facility shall, to the maximum extent 
     practicable, use existing corridors, including multiuse and 
     highway corridors.
       ``(7) Environmental protection.--
       ``(A) In general.--Except as otherwise specifically 
     provided in this section, nothing in this section affects any 
     requirements of an environmental law of the United States, 
     including the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       ``(B) Environmental review of individual lines.--In the 
     case of a Clean Energy Superhighway facility, the Commission 
     shall--
       ``(i) serve as lead agency for the purposes of coordinating 
     the environmental review that is required by law between all 
     relevant Federal agencies;
       ``(ii) in consultation with the affected Federal and State 
     agencies and Indian tribes, prepare a single environmental 
     review document as required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
       ``(iii) in the case of a line that traverses Federal land, 
     take any action that is required under the terms and 
     conditions of applicable land use plans.
       ``(C) Deadline.--The environmental reviews described in 
     subparagraph (B) shall be completed not later than 1 year 
     after date of application for a certificate.
       ``(D) Memorandum of understanding.--Not later than 1 year 
     after the date of enactment of the National Energy Security 
     Act of 2009, the Commission shall enter into a memorandum of 
     understanding with all applicable Federal land agencies to 
     create a streamlined and consolidated environmental review 
     process to carry out this section.
       ``(8) Certificate of public convenience and necessity.--
       ``(A) In general.--No individual or entity (including 
     States and entities described in subsection (f)) shall 
     construct, acquire, or operate any Clean Energy Superhighway 
     facility, or modify a Clean Energy Superhighway facility for 
     which a certificate was previously issued under this 
     subsection, unless there is in force with respect to the 
     individual or entity a certificate of public convenience and 
     necessity issued by the Commission authorizing such acts or 
     operation.
       ``(B) Application for certificate.--Any individual or 
     entity that seeks to operate, construct, acquire, or modify 
     any Clean Energy Superhighway facility shall--
       ``(i) complete the prefiling process under paragraph (2);
       ``(ii) submit to the Commission a written application in 
     such form and containing such information as the Commission 
     may by regulation require; and
       ``(iii) provide notice of and opportunity for hearing on 
     the application to interested parties in such manner as the 
     Commission shall by regulation require.
       ``(C) Hearing.--On receipt of an application under this 
     paragraph, the Commission--
       ``(i) shall--

       ``(I) provide notice and opportunity to interested persons; 
     and
       ``(II) include any applicable conditions; and

       ``(ii) may approve or disapprove the application, in 
     accordance with paragraph (9).
       ``(9) Grant of certificate.--
       ``(A) In general.--A certificate shall be issued to a 
     qualified applicant for the certificate authorizing the whole 
     or partial operation, construction, acquisition, or 
     modification covered by the application, only if the 
     Commission determines that--
       ``(i) the facility is included in the Clean Energy 
     Superhighway plan certified by the Commission;
       ``(ii) 1 or more applicants are able and willing--

       ``(I) to carry out the acts and perform the service 
     proposed; and
       ``(II) to comply with this Act (including regulations); and

       ``(iii) the proposed operation, construction, acquisition, 
     or modification, to the extent authorized by the certificate, 
     is or will be required by the present or future public 
     convenience and necessity.
       ``(B) Terms and conditions.--The Commission shall have the 
     power to attach to the issuance of a certificate under this 
     paragraph and to the exercise of the rights granted under the 
     certificate such reasonable terms and conditions as the 
     public convenience and necessity may require, including (as 
     may be required by applicable law) land use plans or 
     applicable rights-of-way.
       ``(C) Evaluation of abilities of applicant.--
       ``(i) In general.--In evaluating the ability of 1 or more 
     applicants described in subparagraph (A)(ii), the Commission 
     shall consider whether the financial and technical 
     capabilities of the applicant are adequate to support 
     construction and operation of the project proposed in the 
     application.
       ``(ii) Joint ownership projects.--In evaluating 
     applications that feature joint ownership projects by 
     multiple load-serving or wholesale entities, the Commission 
     shall

[[Page 9465]]

     consider benefits from the greater diversification of 
     financial risk inherent in the applications.
       ``(D) Public convenience and necessity.--In making a 
     determination with respect to public convenience and 
     necessity described in subparagraph (A)(iii), the Commission 
     shall presume that there is a public need for a proposed 
     project that is included in the Clean Energy Superhighway 
     plan developed pursuant to this section or that constitutes 
     all of or a portion of a renewable feeder line.
       ``(10) Right of eminent domain.--
       ``(A) In general.--If any holder of a certificate issued 
     under paragraph (9) cannot acquire by contract, or is unable 
     to agree with the owner of property on the compensation to be 
     paid for, the right-of-way to construct, operate, and 
     maintain the project to which the certificate relates, and 
     the necessary land or other property necessary to the proper 
     operation of the project, the holder may acquire the right-
     of-way by the exercise of the right of eminent domain through 
     a proceeding in--
       ``(i) the United States district court for the district in 
     which the property is located; or
       ``(ii) a State court, to the extent permitted under State 
     law.
       ``(B) Practice and procedure.--The practice and procedure 
     for any action or proceeding described in subparagraph (A) in 
     a United States district court shall conform, to the maximum 
     extent practicable, to the practice and procedure for similar 
     actions or proceedings in the courts of the State in which 
     the property is located.'';
       (2) by striking subsections (i), (j), (k);
       (3) by redesignating subsection (h) as subsection (e);
       (4) in subsection (e) (as redesignated by paragraph (3))--
       (A) in paragraph (2), by striking ``Department of Energy'' 
     and inserting ``Federal Energy Regulatory Commission 
     (referred to in this subsection as the `Commission')''; and
       (B) in paragraph (3), by striking ``Secretary'' and 
     inserting ``Commission''; and
       (5) by adding at the end the following:
       ``(f) Applicability.--This section does not apply to the 
     State of Alaska or Hawaii or to the Electric Reliability 
     Council of Texas, unless the State or the Council voluntarily 
     elects to be covered by this section.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums are necessary to 
     carry out this section.''.

     SEC. 102. RECOVERY OF COSTS FOR SMART GRID TECHNOLOGY AND 
                   ADVANCED MATERIALS.

       Section 219(b)(4) of the Federal Power Act (16 U.S.C. 
     824s(b)(4)) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(C) all prudently incurred costs relating to the 
     deployment of smart grid technology for transmission 
     infrastructure (within the meaning of title XIII of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 17381 
     et seq.)); and
       ``(D) all prudently incurred costs relating to the use of 
     advanced materials for the construction of technology 
     transmission facilities if the advanced materials are at 
     least 25 percent more efficient than standard transmission 
     materials.''.

                    TITLE II--TRANSPORTATION SECTOR

          Subtitle A--Electrification of Transportation Sector

     SEC. 201. MINIMUM FEDERAL FLEET REQUIREMENT.

       Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
     13212) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by inserting after paragraph (1) the following:
       ``(2) Plug-in electric drive vehicles.--Of the total number 
     of vehicles acquired by a Federal fleet under paragraph (1), 
     at least the following percentage of the vehicles shall be 
     plug-in electric drive vehicles (as defined in section 131(a) 
     of the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17011(a))):
       ``(A) 10 percent for fiscal year 2012.
       ``(B) The applicable percentage for the preceding fiscal 
     year increased by 5 percentage points (but not to exceed a 
     total of 50 percent) for fiscal year 2013 and each subsequent 
     fiscal year.''; and
       (C) in paragraph (3) (as redesignated by subparagraph (A)), 
     by inserting ``or (2)'' after ``paragraph (1)''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Allocation of Incremental Costs.--Subject to the 
     availability of funds appropriated to carry out this 
     subsection (to remain available until expended), the General 
     Services Administration shall pay the incremental cost of 
     alternative fueled vehicles over the cost of comparable 
     gasoline vehicles for vehicles that the Administration 
     purchased for the use of the Administration or on behalf of 
     other agencies, in a total amount of not to exceed 
     $300,000,000 for any of fiscal years 2012 through 2016.'';
       (3) in subsection (f), by adding at the end the following:
       ``(4) Compliance.--Compliance with this subsection shall 
     not relieve the Federal agency of the obligations of the 
     agency under subsection (b).''; and
       (4) in subsection (g), by striking ``fiscal years 1993 
     through 1998'' and inserting ``each fiscal year''.

     SEC. 202. USE OF HOV FACILITIES BY LIGHT-DUTY PLUG-IN 
                   ELECTRIC DRIVE VEHICLES.

       Section 166(b)(5) of title 23, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``Before'' and 
     inserting ``Except as provided in subparagraph (D), before'';
       (2) in subparagraph (B), by striking ``Before'' and 
     inserting ``Except as provided in subparagraph (D), before''; 
     and
       (3) by adding at the end the following:
       ``(D) Use by plug-in electric drive vehicles.--
       ``(i) Definition of plug-in electric drive vehicle.--In 
     this subparagraph, the term `plug-in electric drive vehicle' 
     has the meaning given the term in section 131(a) of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17011(a)).
       ``(ii) Use of hov facilities.--A State agency--

       ``(I) shall permit vehicles that are certified as low 
     emission and energy-efficient vehicles in accordance with 
     subsection (e) that are light-duty plug-in electric drive 
     vehicles, and that are purchased on or before December 31 of 
     the calendar year described in clause (iii), as determined by 
     the Secretary, to use HOV facilities in the State; and
       ``(II) shall not impose any toll or other charge on such a 
     vehicle for use of a HOV facility in the State.

       ``(iii) Calendar year.--The calendar year referred to in 
     clause (ii)(I) is the calendar year during which, as 
     determined by the Secretary, the aggregate number of plug-in 
     electric drive vehicles sold in the United States during all 
     calendar years exceeds 2,000,000.
       ``(iv) Petition.--A State may petition the Secretary to 
     limit or discontinue the use of a HOV facility by plug-in 
     electric drive vehicles if the State demonstrates to the 
     Secretary that the presence of the plug-in electric drive 
     vehicles has degraded the operation of the HOV facility.''.

     SEC. 203. RECHARGING INFRASTRUCTURE.

       (a) Definitions.--In this section:
       (1) Local government.--The term ``local government'' has 
     the meaning given the term in section 3371 of title 5, United 
     States Code.
       (2) Plug-in electric drive vehicle.--The term ``plug-in 
     electric drive vehicle'' has the meaning given the term in 
     section 131(a) of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17011(a)).
       (3) Range extension infrastructure.--The term ``range 
     extension infrastructure'' includes equipment, products, or 
     services for recharging plug-in electric drive vehicles 
     that--
       (A) are available to retail consumers of electric drive 
     vehicles on a non-discriminatory basis;
       (B) provide for extending driving range through battery 
     exchange or rapid recharging; and
       (C) are comparable in convenience and price to petroleum-
     based refueling services.
       (b) Study.--
       (1) In general.--The Secretary shall conduct a study of--
       (A) the number and distribution of recharging facilities, 
     including range extension infrastructure, that will be 
     required for drivers of plug-in electric drive vehicles to 
     reliably recharge the electric drive vehicles;
       (B) minimum technical standards for public recharging 
     facilities in coordination with the National Institute of 
     Standards and Technology; and
       (C) the concurrent technical and infrastructure investments 
     that electric utilities and electricity providers will be 
     required to make to support widespread deployment of 
     recharging infrastructure and the estimated costs of the 
     investments.
       (2) Components.--In conducting the study required under 
     this subsection, the Secretary shall analyze--
       (A) the variety and density of recharging infrastructure 
     options necessary to power plug-in electric drive vehicles 
     under diverse scenarios, including--
       (i) the ratio of residential, commercial, and public 
     recharging infrastructure options necessary to support 10 
     percent, 20 percent, and 50 percent penetration of plug-in 
     electric vehicles on a city fleet basis;
       (ii) the ratio of residential, commercial, and public 
     recharging infrastructure options necessary to support 10 
     percent, 20 percent, and 50 percent penetration of plug-in 
     electric vehicles on a national fleet basis; and
       (iii) the potential impact of fast charging on penetration 
     rates and utility power management requirements;
       (B) whether use of parking spots with access to recharging 
     facilities should be limited to plug-in electric drive 
     vehicles;
       (C) whether model building codes should be amended to cover 
     recharging facilities; and
       (D) such other issues as the Secretary considers 
     appropriate.

[[Page 9466]]

       (3) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report on the results of 
     the study conducted under this subsection, including any 
     recommendations.
       (c) Grants and Loans to State and Local Governments for 
     Recharging Infrastructure.--
       (1) In general.--Effective beginning October 1, 2010, the 
     Secretary shall establish a program under which the Secretary 
     shall provide grants and loans to local governments to assist 
     in the installation of recharging facilities for electric 
     drive vehicles in areas under the jurisdiction of the local 
     governments. The Secretary shall provide funding under this 
     section to State or local governments to pay not more than 
     fifty percent of the recharging infrastructure cost.
       (2) Eligibility.--To be eligible to obtain a grant or loan 
     under this subsection, a local government shall--
       (A) demonstrate to the Secretary that the applicant has 
     taken into consideration the findings of the report submitted 
     under subsection (b)(3), unless the local government 
     demonstrates to the Secretary that an alternative variety and 
     density of recharging infrastructure options would better 
     meet the purposes of this section; and
       (B) agree not to charge a premium for use of a parking 
     space used to recharge an electric drive vehicle other than a 
     charge for electric energy.
       (3) Guidelines.--The Secretary shall establish guidelines 
     for carrying out this subsection that are consistent with the 
     report submitted under subsection (b)(3).
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     subsection a total of $250,000,000 for grants and a total of 
     $250,000,000 for loans, to remain available until expended.

     SEC. 204. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

       Subtitle B of title I of the Energy and Independence and 
     Security Act of 2007 (42 U.S.C. 17011 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 137. LOAN GUARANTEES FOR ADVANCED BATTERY PURCHASES.

       ``(a) Definitions.--In this section:
       ``(1) Plug-in electric drive vehicle.--The term `plug-in 
     electric drive vehicle' has the meaning given the term in 
     section 131(a).
       ``(2) Range extension infrastructure.--The term `range 
     extension infrastructure' includes equipment, products, or 
     services for recharging plug-in electric drive vehicles 
     that--
       ``(A) are available to retail consumers of electric drive 
     vehicles on a nondiscriminatory basis;
       ``(B) provide for extended driving range through battery 
     exchange or rapid recharging; and
       ``(C) are comparable in convenience and price to petroleum-
     based refueling services.
       ``(b) Loan Guarantees.--The Secretary shall guarantee loans 
     made to eligible entities for the aggregate purchase by an 
     eligible entity of not less than 5,000 batteries that use 
     advanced battery technology within a calendar year.
       ``(c) Eligible Entities.--To be eligible to obtain a loan 
     guarantee under this section, an entity shall be--
       ``(1) an original equipment manufacturer;
       ``(2) a vehicle manufacturer;
       ``(3) an electric utility;
       ``(4) any provider of range extension infrastructure; or
       ``(5) any other qualified entity, as determined by the 
     Secretary.
       ``(d) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 205. STUDY OF END-OF-USEFUL LIFE OPTIONS FOR MOTOR 
                   VEHICLE BATTERIES.

       (a) In General.--In combination with the research, 
     demonstration, and deployment activities conducted under 
     section 641(k) of the Energy and Independence and Security 
     Act of 2007 (42 U.S.C. 17231(k)), the Secretary shall conduct 
     a study on the end-of-useful life options for motor vehicle 
     batteries, including recommendations for stationary storage 
     applications and recyclability design specifications.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report on the results of 
     the study conducted under subsection (a), including any 
     recommendations.

              Subtitle B--Medium- and Heavy-Duty Vehicles

     SEC. 211. MAXIMUM WEIGHT STUDY.

       (a) In General.--The Secretary of Transportation, in 
     consultation with the Administrator of the National Highway 
     Traffic Safety Administration, shall conduct a study to 
     investigate whether oil savings goals can be achieved in the 
     trucking industry without adverse safety consequences by 
     determining the safety impacts and other effects of 
     increasing the maximum allowable gross weight for vehicles 
     using the Interstate System to allow for larger, more fuel-
     efficient tractor-trailers.
       (b) Study Components.--In conducting the study under this 
     section, the Secretary of Transportation shall--
       (1) determine whether a vehicle with a supplementary sixth 
     axle and a gross weight of up to 97,000 pounds that is 
     traveling at 60 miles per hour is capable of stopping at a 
     distance of 355 feet or less;
       (2) determine whether the use of the Interstate System by 
     vehicles described in paragraph (1) would require a 
     fundamental alteration of the vehicle architecture that is 
     commonly used for the transportation of goods as of the day 
     before the date of the enactment of this Act;
       (3) analyze the safety impacts of allowing vehicles 
     described in paragraph (1) to use the Interstate System; and
       (4) consider the potential impact on highway safety of 
     applying lower speed limits on such vehicles than the speed 
     limits in effect on the day before the date of the enactment 
     of this Act.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall submit a report to 
     Congress that contains the results of the study conducted 
     under this section, including a determination by the 
     Secretary as to whether permitting vehicles with a 
     supplementary sixth axle and a gross weight of not more than 
     97,000 pounds to use the Interstate System would have an 
     adverse impact on highway safety.
       (d) Definition.--In this section, the term ``Interstate 
     System'' has the meaning given that term in section 101(a) of 
     title 23, United States Code.

     SEC. 212. FUEL ECONOMY.

       Section 32912(e)(1) of title 49, United States Code, is 
     amended by inserting ``provide equipment and facilities for 
     the program established under section 32902(k), and to'' 
     after ``shall be used by the Secretary to''.

          Subtitle C--Alternative Transportation Technologies

     SEC. 221. FLEXIBLE FUEL AUTOMOBILES.

       (a) In General.--Chapter 329 of title 49, United States 
     Code, is amended--
       (1) in section 32901(a)--
       (A) by redesignating paragraphs (10) through (19) as 
     paragraphs (11) through (20), respectively; and
       (B) by inserting after paragraph (9) the following:
       ``(10) `flexible fuel automobile' means an automobile that 
     has been warranted by the manufacturer of the automobile to 
     operate on gasoline and fuel mixtures containing 15 percent 
     gasoline and 85 percent ethanol or methanol.''; and
       (2) by inserting after section 32902 the following:

     ``Sec. 32902A. Requirement to manufacture flexible fuel 
       automobiles

       ``(a) In General.--For each model year listed in the 
     following table, each manufacturer shall ensure that the 
     percentage of automobiles manufactured by the manufacturer 
     for sale in the United States that are flexible fuel 
     automobiles is not less than the percentage set forth for 
     that model year in the following table:

------------------------------------------------------------------------
               ``Model Year                          Percentage
------------------------------------------------------------------------
  model year 2012........................  50 percent
  model year 2013........................  60 percent
  model year 2014........................  70 percent
  model year 2015........................  80 percent
  model year 2016........................  90 percent
  model year 2017........................  100 percent
------------------------------------------------------------------------

       ``(b) Automobiles Excluded.--The requirement under 
     subsection (a) shall not apply to any automobile that 
     operates on diesel, natural gas, hydrogen, or electricity.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     329 of title 49, United States Code, is amended by inserting 
     after the item relating to section 32902 the following:

``32902A. Requirement to manufacture flexible fuel automobiles.''.

       (c) Rulemaking.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of Transportation 
     shall prescribe regulations to carry out section 32902A of 
     title 49, United States Code, as added by subsection (a).

     SEC. 222. TRANSPORTATION ROADMAP STUDY.

       (a) In General.--The Secretary shall enter into an 
     arrangement with the National Academy of Sciences under which 
     the Academy shall--
       (1) conduct a comprehensive analysis of energy use by 
     automobiles; and
       (2) use the analysis to conduct an integrated assessment of 
     the technological options that could lead to reduced 
     petroleum consumption and greenhouse gas emissions.
       (b) Components.--The study required under this section 
     shall--
       (1) assess the status of technology options, including--
       (A) prospects of future fuels and pathways;
       (B) the infrastructure and other barriers for increased 
     market penetration;
       (C) potential timing of market adoption;
       (D) potential reductions of petroleum consumption and 
     greenhouse gas emissions; and
       (E) improvements in and priorities for Federal research and 
     development program activities;
       (2) consider issues relating to duty cycles, regional 
     distinctions, and technological development timelines;

[[Page 9467]]

       (3) build on and integrate applicable research conducted in 
     recent years, including by the Academy;
       (4) evaluate technical options and assess the extent to 
     which the United States can employ the options to reduce oil 
     intensity by 80 percent by calendar year 2050 and reduce 
     carbon dioxide emissions at a rate that is consistent with 
     national goals; and
       (5) recommend policies to help facilitate the United States 
     to meet national goals.
       (c) Report.--Not later than 21 months after funds are first 
     made available to carry out this section, the Secretary shall 
     submit to the appropriate committees of Congress a report on 
     the results of the study conducted under subsection (a), 
     including any recommendations.
       (d) Updates.--
       (1) In general.--Not later than 5 years after the initial 
     study is conducted under this section and every 5 years 
     thereafter, the Secretary shall enter into an arrangement 
     with the National Academy of Sciences under which the Academy 
     shall update the study required under this section.
       (2) Report.--Not later than 21 months after the date an 
     arrangement is entered into under paragraph (1), the 
     Secretary shall submit to the appropriate committees of 
     Congress a report on the results of the updated study 
     conducted under paragraph (1), including any recommendations.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,200,000.

       DIVISION B--DOMESTIC PRODUCTION AND WORKFORCE DEVELOPMENT

                       TITLE I--INCREASING SUPPLY

       Subtitle A--Increasing Production From Domestic Resources

     SEC. 300. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                 PART I--INVESTMENT IN RENEWABLE ENERGY

     SEC. 301. EXTENSION OF RENEWABLE ELECTRICITY PRODUCTION 
                   CREDIT.

       (a) In General.--Subsection (d) of section 45 is amended--
       (1) by striking ``January 1, 2013'' in paragraph (1) and 
     inserting ``January 1, 2015'', and
       (2) by striking ``January 1, 2014'' each place it appears 
     in paragraphs (2), (3), (4), (6), (7), (9), and (11)(B) and 
     inserting ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 302. EXPANSION AND EXTENSION OF NEW CLEAN RENEWABLE 
                   ENERGY BONDS.

       (a) In General.--Paragraph (2) of section 54C(c) is amended 
     by inserting ``, for calendar years 2011, 2012, 2013, and 
     2014, an additional $500,000,000 for each year, and, except 
     as provided in paragraph (5) for years after 2014, zero,'' 
     after ``$800,000,000''.
       (b) Carryover of Unused Limitation.--Subsection (c) of 
     section 54C is amended by adding at the end the following new 
     paragraph:
       ``(5) Carryover of unused limitation.--If for any calendar 
     year--
       ``(A) the amount allocated under paragraph (2) for such 
     calendar year, exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (a) pursuant to such allocation,

     then the limitation amount under paragraph (2) for the 
     following calendar year shall be increased by the amount of 
     such excess.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2010.

     SEC. 303. EXTENSION OF INVESTMENT TAX CREDIT FOR CERTAIN 
                   ENERGY PROPERTY.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) are each amended by striking 
     ``January 1, 2017'' and inserting ``January 1, 2019''.
       (b) Fuel Cell Property.--Subparagraph (E) of section 
     48(c)(1) is amended by striking ``December 31, 2016'' and 
     inserting ``December 31, 2018''.
       (c) Qualified Small Wind Energy Property.--Subparagraph (D) 
     of section 48(c)(4) is amended by striking ``December 31, 
     2016'' and inserting ``December 31, 2018''.
       (d) Geothermal Heat Pump Systems.--Clause (vii) of section 
     48(a)(3)(A) is amended by striking ``January 1, 2017'' and 
     inserting ``January 1, 2019''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 304. INCREASE IN CREDIT FOR INVESTMENT IN ADVANCED 
                   ENERGY FACILITIES.

       (a) In General.--Subparagraph (B) of section 48C(d)(1) is 
     amended by striking ``$2,300,000,000'' and inserting 
     ``$4,000,000,000''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendments made by 
     section 1302 of the American Recovery and Reinvestment Tax 
     Act of 2009.

            PART II--INVESTMENT IN ALTERNATIVE FUEL PROPERTY

     SEC. 311. EXTENSION OF CREDITS FOR ALCOHOL FUELS.

       (a) In General.--Sections 40, 6426(b)(6), and 6427(e)(6)(A) 
     are amended by striking ``2010'' each place it appears and 
     inserting ``2011''.
       (b) Conforming Amendment.--Section 40(e)(1)(B) is amended 
     by striking ``2011'' and inserting ``2012''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales and uses after the date of the enactment 
     of this Act.

     SEC. 312. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE 
                   DIESEL.

       (a) In General.--Sections 40A(g), 6426(c)(6), and 
     6427(e)(6)(B) are each amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales and uses after the date of the enactment 
     of this Act.

      PART III--INVESTMENT IN ELECTRIC DRIVE AND ADVANCED VEHICLES

     SEC. 321. EXTENSION OF CREDIT AND EXTENSION OF TEMPORARY 
                   INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) Extension of Credit.--Subsection (g) of section 30C is 
     amended by striking ``service--'' and all that follows and 
     inserting ``service after December 31, 2018.''.
       (b) Extension of Temporary Increase.--Paragraph (6) of 
     section 30C(e) is amended--
       (1) by striking ``January 1, 2011'' and inserting ``January 
     1, 2019'', and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``through 2018''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 322. EXTENSION AND EXPANSION OF CREDIT FOR NEW QUALIFIED 
                   PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

       (a) Extension.--Section 30D is amended by adding at the end 
     the following new subsection:
       ``(g) Termination.--This section shall not apply to any 
     property purchased after December 31, 2018.''.
       (b) Restoration of Credit for Large New Qualified Plug-in 
     Electric Drive Motor Vehicles Weighing Over 14,000 Pounds.--
       (1) In general.--The last sentence of section 30D(b)(3) is 
     amended to read as follows: ``The amount determined under 
     this paragraph shall not exceed--
       ``(A) $5,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of not more than 14,000 pounds,
       ``(B) $10,000, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(C) $12,500, in the case of any new qualified plug-in 
     electric drive motor vehicle with a gross vehicle weight 
     rating of more than 26,000 pounds.''.
       (2) Conforming amendments.--Paragraph (1) of section 30D(d) 
     is amended by adding ``and'' at the end of subparagraph (D), 
     by striking subparagraph (E), and by redesignating 
     subparagraph (F) as subparagraph (E).
       (c) Increase in Per Manufacturer Cap.--Paragraph (2) of 
     section 30D(e) is amended by striking ``200,000'' and 
     inserting ``400,000''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 323. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC 
                   VEHICLES.

       (a) In General.--Subsection (f) of section 30 is amended by 
     striking ``December 31, 2011'' and inserting ``December 31, 
     2018''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 324. EXTENSION OF CREDIT FOR MEDIUM AND HEAVY DUTY 
                   HYBRID VEHICLES.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

     SEC. 325. CREDIT FOR HEAVY DUTY NATURAL GAS VEHICLES.

       (a) In General.--Paragraph (4) of section 30B(k) is amended 
     by inserting ``(December 31, 2018, in the case of such a 
     vehicle which has a gross vehicle weight rating of more than 
     26,000 pounds and which operates on compressed natural gas or 
     liquified natural gas)'' after ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles acquired after the date of the 
     enactment of this Act.

               PART IV--LOW CARBON LOAN GUARANTEE PROGRAM

     SEC. 331. INNOVATIVE LOW-CARBON LOAN GUARANTEE PROGRAMS.

       Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 
     16513) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(11) Innovative low-carbon technology projects in 
     accordance with subsection (f).''; and

[[Page 9468]]

       (2) by adding at the end the following:
       ``(f) Innovative Low-Carbon Technology Projects.--
       ``(1) In general.--The Secretary may make guarantees to 
     carry out innovative low-carbon technologies projects.
       ``(2) Funding.--
       ``(A) In general.--Subject to the Federal Credit Reform Act 
     of 1990 (2 U.S.C. 661 et seq.), the total principal amount of 
     loans guaranteed to carry out projects under this subsection 
     shall not exceed $50,000,000,000, to remain available until 
     committed.
       ``(B) Additional amounts.--Amounts made available to carry 
     out this subsection shall be in addition to any other 
     authority provided for fiscal year 2010 or any previous 
     fiscal year.
       ``(C) Source of funds.--
       ``(i) In general.--Amounts made available to carry out this 
     subsection shall be--

       ``(I) derived from amounts received from borrowers pursuant 
     to section 1702(b)(2) for fiscal year 2010 or any previous 
     fiscal year; and
       ``(II) collected in accordance with the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.).

       ``(ii) Treatment.--The source of payment received from 
     borrowers described in clause (i) shall be not considered a 
     loan or other debt obligation that is guaranteed by the 
     Federal Government.
       ``(D) Subsidy cost.--In accordance with section 1702(b)(2), 
     no appropriations to carry out this subsection shall be 
     available to pay the subsidy cost of guarantees.''.

                     PART V--INVESTMENT IN ETHANOL

     SEC. 341. RESEARCH AND DEVELOPMENT OF FUNGIBLE BIOFUELS.

       There is authorized to be appropriated for advanced 
     biofuels research, development, and demonstration that will 
     create fuels that are fungible in existing infrastructure 
     $100,000,000.

     PART VI--STUDIES ON MARKET PENETRATION OF RENEWABLE RESOURCES

     SEC. 351. STUDIES ON MARKET PENETRATION OF RENEWABLE 
                   RESOURCES.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall conduct--
       (1) a study on the quantity of solar energy (including 
     photovoltaic and solar thermal energy) that can reasonably be 
     expected to be deployed in the United States by calendar year 
     2030 and the requirements and costs associated with that 
     deployment;
       (2) a study on the quantity of geothermal energy (including 
     regular and advanced geothermal energy) that can reasonably 
     be expected to be deployed in the United States by calendar 
     year 2030 and the requirements and costs associated with that 
     deployment;
       (3) a study on the quantity of hydrokinetic energy that can 
     reasonably be expected to be deployed in the United States by 
     calendar year 2030 and the requirements and costs associated 
     with that deployment; and
       (4) in consultation with the Secretary of Agriculture, a 
     study on the quantity of renewable biomass energy that can 
     reasonably be expected to be deployed in the United States by 
     calendar year 2030, including consideration of--
       (A) the needs of biofuels, biomass-based electricity, and 
     thermal applications;
       (B) the highest efficiency energy use of biomass resources; 
     and
       (C) the requirements and costs associated with deployment.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress, and make publicly 
     available, a report that integrates the results of the 
     studies conducted under subsection (a), and other relevant 
     studies, including an analysis and recommendations on--
       (1) the best areas and rates for deployment of solar, 
     geothermal, wind, biomass, and hydrokinetic energy by 
     calendar year 2030 (based on multiple alternative scenarios); 
     and
       (2) the levels of market penetration that can be 
     accomplished by calendar year 2030 (based on multiple 
     alternative scenarios).

        Subtitle B--Increasing Production From Fossil Resources

                    PART I--OUTER CONTINENTAL SHELF

     SEC. 361. INVENTORY OF OUTER CONTINENTAL SHELF OIL AND GAS 
                   RESOURCES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act and subject to subsection (b), the 
     Secretary of the Interior (referred to in this subtitle as 
     the ``Secretary'') shall complete an inventory of oil and 
     natural gas resources in areas of the Outer Continental Shelf 
     (as defined in section 2 of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331)) with the greatest potential for 
     containing oil or gas reserves.
       (b) Requirements.--
       (1) In general.--The Secretary shall carry out the 
     inventory under subsection (a) in stages, focusing first on 
     areas that the Secretary identifies as having the greatest 
     potential for oil and gas reserves.
       (2) Public comments.--To assist the Secretary in 
     identifying areas that have the greatest potential for oil 
     and gas reserves under paragraph (1), the Secretary shall, 
     not later than 60 days after the date of enactment of this 
     Act, issue a notice in the Federal Register requesting 
     comments from the public on areas of the Outer Continental 
     Shelf that may contain the most significant oil and gas 
     deposits.
       (3) Initiation of certain inventories.--Not later than 90 
     days after the date of enactment of this Act, the Secretary 
     shall begin conducting any inventories in the Atlantic and 
     Pacific areas of the Outer Continental Shelf.
       (4) Best available technology.--In conducting the inventory 
     under subsection (a), the Secretary shall--
       (A) use the best technology available to obtain accurate 
     resource estimates; and
       (B) include the results of geological and geophysical 
     explorations carried out--
       (i) under existing or expired leases; or
       (ii) under part 251 of title 30, Code of Federal 
     Regulations (or successor regulations).
       (5) Reports.--On completion of any independent reports 
     prepared as part of an inventory under this section, the 
     Secretary shall make the independent reports immediately 
     available to the public.
       (c) Environmental Studies.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary shall 
     complete any environmental studies necessary to gather 
     information essential to an accurate inventory, including 
     geological and geophysical explorations under part 251 of 
     title 30, Code of Federal Regulations (or successor 
     regulations).
       (d) Reports.--
       (1) In general.--On completion of an inventory under this 
     section, the Secretary shall submit to Congress and the 
     Governors of any affected coastal States a report that 
     describes the results of the inventory.
       (2) Assessment.--A report submitted under paragraph (1) 
     shall include an assessment of the economic, energy, 
     environmental, and national security impacts on the United 
     States, any affected coastal States, and any affected local 
     units of government if the oil and natural gas resources 
     identified by the inventory were developed and produced, 
     including estimates of any direct and indirect revenues that 
     would be available to the Federal Government, the affected 
     coastal State governments, and units of local government.
       (e) Effect on Oil and Gas Leasing.--No inventory that is 
     conducted under this section or any other Federal law 
     (including regulations) shall restrict, limit, delay, or 
     otherwise adversely affect--
       (1) the development of any Outer Continental Shelf leasing 
     program under section 18 of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1344); or
       (2) any leasing, exploration, development, or production of 
     any Federal offshore oil and gas leases.
       (f) Funding.--
       (1) In general.--The Secretary of the Treasury shall make a 
     1-time transfer to the Secretary, from royalties collected in 
     conjunction with the production of oil and gas, such sums as 
     are necessary to carry out this section, including the 
     completion of environmental studies necessary to conduct 
     geological and geophysical explorations in all of the Outer 
     Continental Shelf areas of the Atlantic and the Pacific under 
     part 251 of title 30, Code of Federal Regulations (or 
     successor regulations).
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (3) Limitation.--The amounts transferred under paragraph 
     (1) shall not exceed $150,000,000.

     SEC. 362. LEASING OF OFFSHORE AREAS ESTIMATED TO CONTAIN 
                   COMMERCIALLY RECOVERABLE OIL OR GAS RESOURCES.

       (a) Definition of Potential Producing Area.--In this 
     section, the term ``potential producing area'' means any area 
     in an Outer Continental Shelf planning area, as defined by 
     the Minerals Management Service, that a seismic survey or 
     other geologic study identifies as exhibiting geologic 
     characteristics similar to the characteristics found in other 
     commercial oil and gas producing regions in the Outer 
     Continental Shelf or other oil and gas producing areas.
       (b) Leasing of Potential Producing Areas.--Not later than 1 
     year after the date of the release of an inventory or report 
     under section 361 that identifies a potential producing area, 
     the Secretary may make the potential producing area available 
     for oil and gas leasing under the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331 et seq.).
       (c) Leasing Plan.--The omission of a potential producing 
     area from the applicable 5-year plan developed by the 
     Secretary pursuant to section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344) may allow the leasing of a 
     potential producing area under subsection (b).

     SEC. 363. ENVIRONMENTAL STEWARDSHIP AND ALLOWABLE ACTIVITIES.

       (a) In General.--The Secretary shall promulgate regulations 
     that establish appropriate environmental safeguards for the 
     exploration and production of oil and natural gas on the 
     Outer Continental Shelf.
       (b) Minimum Requirements.--At a minimum, the regulations 
     shall include--
       (1) provisions requiring surety bonds of sufficient value 
     to ensure the mitigation of any

[[Page 9469]]

     reasonably foreseeable incident that could be directly caused 
     by persons engaged in oil and natural gas development, in 
     accordance with subpart A of part 256 of title 30, Code of 
     Federal Regulations (or successor regulations);
       (2) provisions assigning liability to responsible parties 
     of environmental damage to the Outer Continental Shelf to the 
     extent that the damage is not otherwise implicitly or 
     explicitly authorized or permitted by Federal law (including 
     regulations);
       (3) provisions no less stringent than the regulations 
     promulgated under the Oil Pollution Act of 1990 (33 U.S.C. 
     2701 et seq.); and
       (4) provisions ensuring that--
       (A) no surface facility is installed for the purpose of 
     production of oil or gas resources in any area visible to the 
     unassisted eye from any shore of any coastal State in any 
     areas in the Outer Continental Shelf that have not previously 
     been made available for oil and gas leasing;
       (B) only temporary surface facilities are installed for 
     areas that are--
       (i) beyond the area described in subparagraph (A); and
       (ii) located not more than 25 miles from the shore of any 
     coastal State in any areas in the Outer Continental Shelf 
     that have not previously been made available for oil and gas 
     leasing; and
       (C) the impact of offshore production facilities on coastal 
     vistas is otherwise mitigated.
       (c) Exclusions.--No regulations promulgated under this 
     section shall apply to the development, construction, or 
     operation of renewable energy facilities on the Outer 
     Continental Shelf.
       (d) Conforming Amendment.--Section 105 of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 521) 
     (as amended by section 103(d) of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432)) is amended by inserting ``and any other area that the 
     Secretary of the Interior may offer for leasing, preleasing, 
     or any related activity under section 104 of that Act'' after 
     ``2006)''.

     SEC. 364. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF THE GULF OF MEXICO.

       (a) Moratorium.--Section 104 of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) In General.--Effective during the period beginning on 
     the date of enactment of this Act and ending on June 30, 
     2022, the Secretary shall not offer for leasing, preleasing, 
     or any related activity any area east of 85 degrees, 50 
     minutes West Longitude in the Eastern Planning Area that is 
     within 45 miles of the coastline of the State of Florida.''.
       (b) National Defense Area.--Section 12(d) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1341(d)) is amended--
       (1) by striking ``The United States'' and inserting the 
     following:
       ``(1) In general.--The United States''; and
       (2) by adding at the end the following:
       ``(2) Review.--Annually, the Secretary of Defense shall 
     review the areas of the Outer Continental Shelf that have 
     been designated as restricted from exploration and operation 
     to determine whether the areas should remain under 
     restriction.''.
       (c) Leasing of Moratorium Areas.--
       (1) In general.--As soon as practicable, after the date of 
     enactment of this Act, the Secretary shall offer for leasing 
     under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.), any areas made available for leasing as a result of 
     the amendment made by subsection (a).
       (2) Administration.--Any areas made available for leasing 
     under paragraph (1) shall be offered for lease under this 
     section--
       (A) notwithstanding the omission of any of these respective 
     areas from the applicable 5-year plan developed by the 
     Secretary pursuant to section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344); and
       (B) in a manner consistent with section 363.

     SEC. 365. TREATMENT OF REVENUES.

       Section 8(g) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(g)) is amended--
       (1) in paragraph (2), by striking ``Notwithstanding'' and 
     inserting ``Except as provided in paragraph (6), and 
     notwithstanding'';
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (3) by inserting after paragraph (5) the following:
       ``(6) Renewable energy reserve fund.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Fund.--The term `fund' means the Renewable Energy 
     Reserve Fund established by subparagraph (B).
       ``(ii) Qualified lease.--The term `qualified lease' means a 
     natural gas or oil lease granted under this Act after the 
     date of enactment of the National Energy Security Act of 2009 
     for an area that is made available for leasing under part I 
     of subtitle B of title I of division B of that Act.
       ``(B) Establishment.--There is established in the Treasury 
     of the United States a reserve account, to be known as the 
     `Renewable Energy Reserve Account', consisting of such 
     amounts as are appropriated to the Fund under subparagraph 
     (C).
       ``(C) Transfers to fund.--There are appropriated to the 
     Fund, out of funds of the Treasury not otherwise 
     appropriated, amounts equivalent to amounts received by the 
     United States after September 30, 2009, as bonus bids, 
     royalties, or rentals from, or otherwise collected under, any 
     qualified lease on submerged land made available for leasing 
     under this Act by the National Energy Security Act of 2009 
     (including any amendment made by that Act).
       ``(D) Use of fund.--Subject to subparagraph (E), amounts in 
     the Fund shall be used to offset the costs of carrying out 
     the National Energy Security Act of 2009.
       ``(E) Termination of fund.--
       ``(i) In general.--The Fund shall terminate on the date on 
     which the Secretary determines that the costs of carrying out 
     the National Energy Security Act of 2009 have been repaid.
       ``(ii) Transfer.--On termination of the Fund under clause 
     (i), the remaining balance in the Fund shall be transferred 
     to the appropriate fund of the Treasury.''.

                    PART II--OTHER FOSSIL RESOURCES

     SEC. 371. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING 
                   HYDROCARBON RESOURCES.

       (a) Definition.--In this section, the term ``United States 
     person'' means--
       (1) any United States citizen or alien lawfully admitted 
     for permanent residence in the United States; and
       (2) any person other than an individual, if 1 or more 
     individuals described in paragraph (1) own or control at 
     least 51 percent of the securities or other equity interest 
     in the person.
       (b) Authorization.--Notwithstanding any other provision of 
     law (including a regulation), United States persons 
     (including agents and affiliates of those United States 
     persons) may--
       (1) engage in any transaction necessary for the exploration 
     for and extraction of hydrocarbon resources from any portion 
     of any foreign exclusive economic zone that is contiguous to 
     the exclusive economic zone of the United States; and
       (2) export without license authority all equipment 
     necessary for the exploration for or extraction of 
     hydrocarbon resources described in paragraph (1).

     SEC. 372. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON 
                   EXPLORATION AND EXTRACTION ACTIVITIES.

       Section 910 of the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (22 U.S.C. 7209) is amended by adding 
     at the end the following:
       ``(c) General License Authority for Travel-Related 
     Expenditures by Persons Engaging in Hydrocarbon Exploration 
     and Extraction Activities.--
       ``(1) In general.--The Secretary of the Treasury shall 
     authorize under a general license the travel-related 
     transactions listed in section 515.560(c) of title 31, Code 
     of Federal Regulations, for travel to, from, or within Cuba 
     in connection with exploration for and the extraction of 
     hydrocarbon resources in any part of a foreign maritime 
     Exclusive Economic Zone that is contiguous to the United 
     States' Exclusive Economic Zone.
       ``(2) Persons authorized.--Persons authorized to travel to 
     Cuba under this section include full-time employees, 
     executives, agents, and consultants of oil and gas producers, 
     distributors, and shippers.''.

     SEC. 373. ALASKA OCS JOINT LEASE AND PERMITTING PROCESSING 
                   OFFICE.

       (a) Establishment.--The Secretary of the Interior (referred 
     to in this section as the ``Secretary'') shall establish a 
     regional joint Outer Continental Shelf lease and permit 
     processing office for the Alaska Outer Continental Shelf 
     region.
       (b) Memorandum of Understanding.--Not later than 90 days 
     after the date of enactment of this Act, the Secretary shall 
     enter into a memorandum of understanding for the purposes of 
     carrying out this section with--
       (1) the Secretary of Commerce;
       (2) the Chief of Engineers;
       (3) the Administrator of the Environmental Protection 
     Agency; and
       (4) any other Federal agency that may have a role in 
     permitting activities.
       (c) Designation of Qualified Staff.--
       (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (b), each Federal signatory party shall, if 
     appropriate, assign to the office described in subsection (a) 
     an employee who has expertise in the regulatory issues 
     administered by the office in which the employee is employed 
     relating to leasing and the permitting of oil and gas 
     activities on the Outer Continental Shelf.
       (2) Duties.--An employee assigned under paragraph (1) 
     shall--
       (A) not later than 90 days after the date of assignment, 
     report to the office described in subsection (a);
       (B) be responsible for all issues relating to the 
     jurisdiction of the home office or agency of the employee; 
     and
       (C) participate as part of the team of personnel working on 
     proposed oil and gas leasing and permitting, including 
     planning and environmental analyses.

     SEC. 374. ALASKA NATURAL GAS PIPELINE.

       Section 116(c)(2) of the Alaska Natural Gas Pipeline Act 
     (15 U.S.C. 720n(c)(2)) is amended

[[Page 9470]]

     by striking ``$18,000,000,000'' and inserting 
     ``$30,000,000,000''.

        TITLE II--CLEAN ENERGY TECHNOLOGY WORKFORCE DEVELOPMENT

     SEC. 401. CLEAN ENERGY TECHNOLOGY WORKFORCE.

       (a) Grants.--
       (1) In general.--The Secretary shall award competitive, 
     merit-based grants to institutions of higher education (as 
     defined in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a))) for the establishment of programs 
     providing training and education for vocational workforce 
     development through centers of excellence for a broad range 
     of clean energy sector needs in the clean energy technology 
     workforce of the United States, as determined by the 
     Secretary.
       (2) Other institutions.--In carrying out this subsection, 
     the Secretary shall accept proposals for centers from 
     institutions of higher education that have or are prepared to 
     develop a meaningful curriculum and program described in 
     paragraph (1).
       (b) National Merit Scholarship Program.--
       (1) In general.--The Secretary shall establish a national 
     merit scholarship program that provides scholarships each 
     fiscal year for at least 1,000 undergraduate and 500 graduate 
     students that are studying engineering, geosciences, and 
     other energy-related fields.
       (2) Eligibility.--To be eligible to obtain a scholarship 
     under this subsection, a student shall be enrolled in a 
     program offered by an institution of higher education that 
     provides training and education for a clean energy workforce 
     described in subsection (a)(1).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                   DIVISION C--GLOBAL RISK MANAGEMENT

     SEC. 501. SENSE OF CONGRESS ON GEOPOLITICAL CONSEQUENCES OF 
                   OIL DEPENDENCE.

       (a) Findings.--Congress finds that--
       (1) it is imperative to the national security, economic 
     prosperity, and environmental integrity of the United States 
     to have reliable, diverse, and affordable energy supplies;
       (2)(A) the United States faces a multifaceted and growing 
     threat to energy security;
       (B) State-owned energy companies, especially those of 
     adversarial governments, are using the energy supplies of the 
     companies as leverage to promote foreign policies of states; 
     and
       (C) politically motivated domestic groups, pirates, and 
     terrorists further present an increasing risk to critical 
     energy infrastructure and key corridors of international 
     energy supplies;
       (3) efforts to develop a long-term energy policy for the 
     United States is partially hindered by the lack of consistent 
     and accurate information on world energy reserves;
       (4) the United States should develop short-term policies 
     and strategies that--
       (A) protect key energy infrastructure;
       (B) secure critical geographic transit routes; and
       (C) mitigate political instability from energy suppliers;
       (5) over the long-term, the United States should focus 
     national security organizations on obtaining better 
     information on world reserves of energy and strengthening 
     relationships with certain key nations;
       (6) addressing the challenge of energy security now and in 
     the future will require the United States to use all 
     instruments of national power, including the military, 
     diplomatic, and intelligence services; and
       (7) the United States should make it a priority to engage 
     key developing nations such as China and India on fossil fuel 
     use in order to address global energy security and climate 
     change challenges.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) sufficient resources should be provided to United 
     States national security agencies to enable the agencies to 
     protect tankers and other vessels, critical infrastructure, 
     and supply routes;
       (2) the President should work with Congress--
       (A) to coordinate efforts between the Department of State 
     and the Department of Justice to bolster programs to train 
     national police and domestic security forces tasked with 
     defending energy infrastructure in key countries;
       (B) to promote initiatives by the Department of State and 
     the Department of Defense--
       (i) to provide allied nations with the technical expertise 
     to minimize the consequences of an infrastructure accident or 
     attack;
       (ii) to engage the North Atlantic Treaty Organization 
     (NATO) and other allies in negotiations on creating a 
     security architecture to protect the strategic terrain; and
       (iii) to work with the Coast Guard to strengthen the 
     capacity of local, national, and regional maritime security 
     forces;
       (C) to mobilize the Department of Defense and the 
     Department of Energy, in conjunction with the intelligence 
     community, to conduct detailed scenario planning exercises on 
     the repercussions of attacks on critical energy 
     infrastructure; and
       (D)(i) to authorize the Department of State to provide the 
     President with diplomatic options, including the imposition 
     of sanctions, for addressing states that use energy as a 
     political weapon; and
       (ii) to improve the capacity of the Department of State to 
     provide diplomatic support to resolve conflicts that impact 
     the energy security of the United States; and
       (3) the intelligence community should be given an integral 
     role in bolstering United States national energy security 
     interests by--
       (A) completing a comprehensive national intelligence 
     estimate on energy security that assesses the most vulnerable 
     aspects of critical energy infrastructure and the future 
     stability of major energy suppliers;
       (B) improving warning time to prevent attacks on key energy 
     infrastructure;
       (C) expanding the collection of intelligence on national 
     energy companies and the energy reserves of those companies; 
     and
       (D) bolstering collection and analysis of potential 
     strategic conflicts that could disrupt key energy supplies.

     SEC. 502. STUDY OF FOREIGN FUEL SUBSIDIES.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Secretary of State and the Secretary of Commerce, 
     shall conduct a study of foreign fuel subsidies, including--
       (1) the impact of the subsidies on global energy supplies, 
     global energy demand, and global economic impacts; and
       (2) recommendations on actions that should be taken to 
     reduce the impact of the subsidies.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report that describes 
     the results of the study conducted under this section, 
     including any recommendations.
                                 ______
                                 
      By Mr. BROWN (for himself, Ms. Snowe, and Mrs. Murray):
  S. 777. A bill to promote industry growth and competitivenes and to 
improve worker training, retention, and advancement, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. BROWN. Mr. President, today, Senator Snowe of Maine, Senator 
Murray of Washington, and I are introducing a workforce development 
bill--the Strengthening Employment Clusters to Organize Regional 
Success, or SECTORS Act.
  Over the last 2 years, I have held more than 130 roundtable 
discussions in communities all over Ohio.
  One of the themes that has recurred in the roundtables--from workers 
and employers, business and labor, teachers and professors--is that we 
need to do a better job connecting workers with the middle and high 
skills needed for careers that are growing in Ohio.
  Today, Ohio has an unemployment rate of 9.4 percent higher than the 
national average. As many in this chamber are aware, older workers have 
been hit hard by the economic downturn. The Urban Institute reported 
that job loss for older workers is at a 31-year high.
  Over the past eight years, Ohio lost more than 230,000 manufacturing 
jobs--a 24 percent drop of employment in a sector so vital to Ohio's 
economy.
  That said, employers throughout the State talk about jobs gone 
begging, and not being able to fill middle and high skilled positions. 
There are open jobs in high-tech, healthcare, and even manufacturing 
that are going unfilled.
  A recent report by labor economists Harry Holzer and Robert Lerman 
found that substantial demand remains in today's labor market for 
skilled workers. This is particularly true for ``middle- skill'' jobs 
that require more than a high school degree but less than a four-year 
college degree. These jobs make up nearly half of America's labor 
market and provide good compensation for workers.
  Congress needs to focus on skills training now more than ever.
  The approach Senator Snowe, Senator Murray, and I take in this bill 
is to organize training around industry clusters.
  Silicon Valley, the Research Triangle in North Carolina, Route 128 
around Boston--these are examples of clusters.
  But, it is not just high tech jobs either.
  Think of tourism in Florida, or insurance in Connecticut, or food 
packaging in Pennsylvania. These are successful clusters that build 
around a skilled labor force.

[[Page 9471]]

  The Ohio Workforce Board has compiled great information about 
emerging industries and skills programs needed to see people fill these 
jobs.
  Ohio Governor Ted Strickland and Chancellor Eric Fingerhut are giving 
workforce training a high priority.
  This bill provides incentives to employers, labor, educators, and 
workforce investment boards to model the best skills training 
approaches happening in Ohio and around the country.
  The SECTORS Act focuses on targeted training, with multiple 
stakeholders in the same industry. The bill right now requires four 
principal stakeholders to be part of a training program: industry, 
labor unions, workforce investment boards, and community colleges.
  It encourages official economic development organizations, where 
appropriate, to be partners.
  We want to build in a process that makes a training program 
sustainable and not just a one-time infusion of money. With that in 
mind, our bill contains a matching funds requirement.
  The legislation builds in rigorous evaluation so lawmakers and 
policymakers know how tax dollars are being spent, something that has 
not been the cause under President Bush's Department of Labor's 
training initiatives.
  The Government Accountability Office found in May 2008 that the Labor 
Department's demand-driven workforce training programs have often been 
awarded through a non-competitive process, and have lacked 
accountability and evaluation so that Americans know how their tax 
dollars are being spent.
  We need to break clean from this approach.
  I plan to work with Senator Snowe, Senator Murray, and colleagues in 
both chambers to authorize an industry sector skills training program 
that builds in accountability and sustainability, and helps workers and 
businesses thrive in Ohio, Maine, Washington, and throughout the 
country.
  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. 777

       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 ``Strengthening Employment 
     Clusters to Organize Regional Success Act of 2009'' or the 
     ``SECTORS Act of 2009''.

     SEC. 2. INDUSTRY OR SECTOR PARTNERSHIP GRANT.

       Subtitle D of title I of the Workforce Investment Act of 
     1998 (29 U.S.C. 2911 et seq.) is amended by inserting after 
     section 173A the following:

     ``SEC. 173B. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM.

       ``(a) Purpose.--It is the purpose of this section to create 
     designated capacity to promote industry or sector 
     partnerships that lead collaborative planning, resource 
     alignment, and training efforts across multiple firms for a 
     range of workers employed or potentially employed in a 
     targeted industry cluster, in order to encourage industry 
     growth and competitiveness and to improve worker training, 
     retention, and advancement in targeted industry clusters. The 
     activities carried out by the partnerships may include the 
     development of--
       ``(1) immediate strategies for regions and communities to 
     fulfill pressing skilled workforce needs;
       ``(2) long-term plans to grow targeted industry clusters 
     with better training and a more productive workforce;
       ``(3) core competencies and competitive advantages for 
     regions and communities undergoing structural economic 
     redevelopment; and
       ``(4) skill standards, career ladders, job redefinitions, 
     employer practices, and shared training and support 
     capacities for the targeted industry cluster that facilitate 
     the advancement of workers at all skill levels.
       ``(b) Definitions.--In this section:
       ``(1) Career ladder.--The term `career ladder' means an 
     identified series of positions, work experiences, and 
     educational benchmarks or credentials that offer occupational 
     and financial advancement within a specified career field or 
     related fields over time.
       ``(2) Economic self-sufficiency.--The term `economic self-
     sufficiency' means, with respect to a worker, earning a wage 
     sufficient to support a family adequately over time, based on 
     factors such as--
       ``(A) family size;
       ``(B) the number and ages of children in the family;
       ``(C) the cost of living in the worker's community; and
       ``(D) other factors that may vary by region.
       ``(3) Eligible entity.--The term `eligible entity' means--
       ``(A) an industry or sector partnership; or
       ``(B) an eligible State agency.
       ``(4) Eligible state agency.--The term `eligible State 
     agency' means a State agency designated by the Governor of 
     the State for the purposes of the grant program under this 
     section.
       ``(5) High-priority occupation.--The term `high-priority 
     occupation' means an occupation that--
       ``(A) has a significant presence in an industry cluster;
       ``(B) is in demand by employers;
       ``(C) pays family-sustaining wages that enable workers to 
     achieve economic self-sufficiency, or can reasonably be 
     expected to lead to such wages;
       ``(D) has a documented career ladder; and
       ``(E) has a significant impact on a region's economic 
     development strategy.
       ``(6) Industry cluster.--The term `industry cluster' means 
     a concentration of interconnected businesses, suppliers, 
     research and development entities, education and training 
     providers, and associated institutions in a particular field 
     that are linked by common workforce needs.
       ``(7) Industry or sector partnership.--The term `industry 
     or sector partnership' means a workforce collaborative that--
       ``(A) organizes key stakeholders in a targeted industry 
     cluster into a working group that focuses on the shared goals 
     and human resources needs of a targeted industry cluster and 
     that includes, at the appropriate stage of development of the 
     partnership--
       ``(i) representatives (including workers) of multiple firms 
     or employers in a targeted industry cluster, including small- 
     and medium-sized employers when practicable;
       ``(ii) 1 or more representatives of a recognized State 
     labor organization or central labor council, or other labor 
     representatives as determined appropriate by the Secretary;
       ``(iii) 1 or more representatives of a local board;
       ``(iv) 1 or more representatives of a postsecondary 
     educational institution or other training provider; and
       ``(v) 1 or more representatives of a State workforce agency 
     or other entity providing employment services; and
       ``(B) may include representatives of--
       ``(i) State or local government;
       ``(ii) State or local economic development agencies;
       ``(iii) other State or local agencies;
       ``(iv) business or trade associations;
       ``(v) official economic development organizations;
       ``(vi) community-based organizations;
       ``(vii) philanthropic organizations;
       ``(viii) industry associations; and
       ``(ix) other organizations, as determined necessary by the 
     members comprising the industry or sector partnership.
       ``(8) Targeted industry cluster.--The term `targeted 
     industry cluster' means an industry cluster that has--
       ``(A) significant current or potential economic impact in a 
     local or regional area;
       ``(B) immediate workforce development needs; and
       ``(C) documented opportunities for career advancement.
       ``(c) Grants Authorized.--
       ``(1) In general.--From amounts appropriated under 
     subsection (i), the Secretary shall award, on a competitive 
     basis, planning grants described in paragraph (3) and 
     implementation grants described in paragraph (4) to eligible 
     entities, to enable the eligible entities to plan and 
     implement, respectively, the eligible entities' strategic 
     objectives in accordance with subsection (f).
       ``(2) Maximum amount.--
       ``(A) Planning grants.--A planning grant awarded under 
     paragraph (3) shall not exceed $250,000.
       ``(B) Implementation grants.--An implementation grant 
     awarded under paragraph (4)(A) shall not exceed a total of 
     $2,500,000 for a 3-year period.
       ``(C) Renewal grants.--A renewal grant awarded under 
     paragraph (4)(C) shall not exceed a total of $1,500,000 for a 
     3-year period.
       ``(3) Planning grants.--
       ``(A) In general.--The Secretary may award a planning grant 
     under this section to an eligible entity that--
       ``(i) is a newly formed industry or sector partnership; and
       ``(ii) has not received a grant under this section.
       ``(B) Duration.--A planning grant shall be for a duration 
     of 1 year.
       ``(4) Implementation grants.--
       ``(A) In general.--The Secretary may award an 
     implementation grant under this section to--
       ``(i) an eligible entity that has already received a 
     planning grant under this section; or
       ``(ii) an eligible entity that is an established industry 
     or sector partnership.
       ``(B) Duration.--An implementation grant shall be for a 
     duration of not more than 3 years, and may be renewed in 
     accordance with subparagraph (C).
       ``(C) Renewal.--The Secretary may renew an implementation 
     grant for not more than

[[Page 9472]]

     3 years. A renewal of such grant shall be subject to the 
     requirements of this section, except that the Secretary 
     shall--
       ``(i) prioritize renewals to eligible entities that can 
     demonstrate the long-term sustainability of an industry or 
     sector partnership funded under this section;
       ``(ii) as a condition of renewing the grant, and 
     notwithstanding subparagraph (D), decrease the amount of the 
     Federal share and increase the amount of the non-Federal 
     share required for the grant, which must include at least a 
     25 percent cash match from the State, the industry cluster, 
     or some combination thereof; and
       ``(iii) require assurances that the eligible entity will 
     leverage, each year, additional funding sources in accordance 
     with subparagraph (D)(ii) than the eligible entity provided 
     for the preceding year of the grant.
       ``(D) Federal and non-federal share.--
       ``(i) Federal share.--Except as provided in subparagraph 
     (C)(ii), the Federal share of an implementation grant under 
     this section shall be--

       ``(I) 90 percent of the costs of the activities described 
     in subsection (f), in the first year of the grant;
       ``(II) 80 percent of such costs in the second year of the 
     grant; and
       ``(III) 70 percent of such costs in the third year of the 
     grant.

       ``(ii) Non-federal.--The non-Federal share of an 
     implementation grant under this section may be in cash or in-
     kind, and may come from State, local, philanthropic, private, 
     or other sources.
       ``(5) Fiscal agent.--Each eligible entity receiving a grant 
     under this section that is an industry or sector partnership 
     shall designate an entity in the partnership as the fiscal 
     agent for purposes of this grant.
       ``(6) Use of grant funds during grant periods.--An eligible 
     entity receiving grant funds under a planning grant, 
     implementation grant, or a renewal grant under this section 
     shall expend grant funds or obligate grant funds to be 
     expended by the last day of the grant period.
       ``(d) Application Process.--
       ``(1) Identification of a targeted industry cluster.--In 
     order to qualify for a grant under this section, an eligible 
     entity shall identify a targeted industry cluster that could 
     benefit from such grant by--
       ``(A) working with businesses, industry associations and 
     organizations, labor organizations, State boards, local 
     boards, economic development agencies, and other 
     organizations that the eligible entity determines necessary, 
     to identify an appropriate targeted industry cluster based on 
     criteria that include, at a minimum--
       ``(i) data showing the competitiveness of the industry 
     cluster;
       ``(ii) the importance of the industry cluster to the 
     economic growth of the area served by the eligible entity;
       ``(iii) the identification of supply and distribution 
     chains within the industry cluster; and
       ``(iv) research studies on industry clusters; and
       ``(B) working with appropriate employment agencies, local 
     boards, economic development agencies, community 
     organizations, and other organizations that the eligible 
     entity determines necessary, to ensure that the targeted 
     industry cluster identified under subparagraph (A) should be 
     targeted for investment, based primarily on the following 
     criteria:
       ``(i) Demonstrated demand for job growth.
       ``(ii) Measurable evidence of competitiveness.
       ``(iii) Employment base.
       ``(iv) Wages and benefits.
       ``(v) Demonstrated importance of the targeted industry 
     cluster to the area's economy.
       ``(vi) Workforce development needs of the area surrounding 
     the targeted industry cluster.
       ``(2) Application.--An eligible entity desiring to receive 
     a grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. An application 
     submitted under this paragraph shall contain, at a minimum, 
     the following:
       ``(A) A description of the eligible entity, evidence of the 
     eligible entity's capacity to carry out activities in support 
     of the strategic objectives identified in the application 
     under subparagraph (D), and, if the eligible entity is an 
     industry or sector partnership, a description of the expected 
     participation and responsibilities of each of the mandatory 
     partners described in subsection (b)(8)(A).
       ``(B) A description of the targeted industry cluster for 
     which the eligible entity intends to carry out activities 
     through a grant under this section, and a description of how 
     such targeted industry cluster was identified in accordance 
     with paragraph (1).
       ``(C) A description of the workers that will be targeted or 
     recruited by the partnership, including an analysis of the 
     existing labor market, a description of potential barriers to 
     employment for targeted workers, and a description of 
     strategies that will be employed to help workers overcome 
     such barriers.
       ``(D) A description of the strategic objectives that the 
     eligible entity intends to carry out for the targeted 
     industry cluster, which objectives shall include--
       ``(i) recruiting key stakeholders in the targeted industry 
     cluster, such as businesses and employers, labor 
     organizations, industry associations, local boards, State 
     boards, and education and training providers, and regularly 
     convening the stakeholders in a collaborative structure that 
     supports the sharing of information, ideas, and challenges 
     common to the targeted industry cluster;
       ``(ii) identifying the shared training needs of multiple 
     businesses, especially skill gaps critical to competitiveness 
     and innovation in the targeted industry cluster;
       ``(iii) facilitating economies of scale by aggregating 
     training and education needs of multiple employers in the 
     targeted industry cluster;
       ``(iv) helping postsecondary educational institutions, 
     training institutions, and registered apprenticeship programs 
     align curricula, entrance requirements, and programs to 
     industry demand, particularly for higher skill, high-priority 
     occupations validated by the industry;
       ``(v) ensuring that the State agency carrying out the State 
     program under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
     including staff of the agency that provide services under 
     such Act, shall inform recipients of unemployment insurance 
     and trade adjustment assistance under chapter 2 or 6 of title 
     II of the Trade Act of 1974 (19 U.S.C. 2271 et seq., 2401 et 
     seq.) of the job and training opportunities that may result 
     from the implementation of this grant;
       ``(vi) informing and collaborating with organizations such 
     as youth councils, business-education partnerships, 
     registered apprenticeship programs, secondary schools, and 
     postsecondary educational institutions, and with parents and 
     career counselors, for the purpose of addressing the 
     challenges of connecting disadvantaged adults, as defined in 
     section 132(b)(1)(B)(v), and disadvantaged youth, as defined 
     in section 127(b)(2), to careers;
       ``(vii) helping companies in the targeted industry cluster 
     identify, and work together to address, common organizational 
     and human resources challenges, such as--

       ``(I) recruiting new workers;
       ``(II) developing and implementing effective workplace 
     practices;
       ``(III) retaining dislocated and incumbent workers;
       ``(IV) implementing a high-performance work organization;
       ``(V) recruiting and retaining women in nontraditional 
     occupations;
       ``(VI) adopting new technologies; and
       ``(VII) fostering experiential and contextualized on-the-
     job learning;

       ``(viii) developing and strengthening career ladders within 
     and across companies (in cooperation with labor organizations 
     if the labor organizations represent employees engaged in 
     similar work in the industry cluster), in order to enable 
     dislocated, incumbent and entry-level workers to improve 
     skills and advance to higher-wage jobs;
       ``(ix) improving job quality through improving wages, 
     benefits, and working conditions;
       ``(x) helping partner companies in industry or sector 
     partnerships to attract potential employees from a diverse 
     job seeker base, including individuals with barriers to 
     employment (such as job seekers who are low-income, youth, 
     older workers, or individuals who have completed a term of 
     imprisonment), by identifying such barriers through analysis 
     of the existing labor market and implementing strategies to 
     help such workers overcome such barriers; and
       ``(xi) strengthening connections among businesses in the 
     targeted industry cluster, leading to cooperation beyond 
     workforce issues that will improve competitiveness and job 
     quality, such as joint purchasing, market research, or 
     centers for technology and innovation.
       ``(E) A description of the manner in which the eligible 
     entity intends to make sustainable progress toward the 
     strategic objectives described in subparagraph (D).
       ``(F) Performance measures, including quantifiable interim 
     performance benchmarks, for measuring progress toward the 
     strategic objectives. Such measures shall consider, at a 
     minimum, the benefits provided by the grant activities funded 
     under this section for--
       ``(i) workers employed in the targeted industry cluster, 
     disaggregated by gender and race, including--

       ``(I) the number of workers receiving portable industry-
     recognized credentials;
       ``(II) the number of workers with increased wages, the 
     percentage of workers with increased wages, and the average 
     wage increase; and
       ``(III) for dislocated or nonincumbent workers, the number 
     of workers placed in sector-related jobs; and

       ``(ii) firms and industries in the targeted industry 
     cluster, including--

       ``(I) the creation or updating of an industry plan to meet 
     current and future workforce demand;
       ``(II) the creation or updating of published industry-wide 
     skill standards or career pathways;
       ``(III) the creation or updating of portable, industry-
     recognized credentials, or where there is not such a 
     credential, the creation or updating of a training curriculum 
     that

[[Page 9473]]

      can lead to the development of such a credential;
       ``(IV) in the case of an eligible entity that is an 
     industry or sector partnership, the number of firms, and the 
     percentage of the local industry, participating in the 
     industry or sector partnership; and
       ``(V) the number of firms, and the percentage of the local 
     industry, receiving workers or services through the grant 
     funded under this section.

       ``(G) A timeline for achieving progress toward the 
     strategic objectives.
       ``(H) In the case of an eligible entity desiring an 
     implementation grant under this section, an assurance that 
     the eligible entity will leverage other funding sources, in 
     addition to the amount required for the non-Federal share 
     under subsection (c)(4)(D), to provide training or supportive 
     services to workers under the grant program. Such additional 
     funding sources may include--
       ``(i) funding under this title used for such training and 
     supportive services;
       ``(ii) funding under the Adult Education and Family 
     Literacy Act of 1998 (20 U.S.C. 9201 et seq.);
       ``(iii) funding under chapter 2 or 6 of title II of the 
     Trade Act of 1974 (19 U.S.C. 2271 et seq.);
       ``(iv) economic development funding;
       ``(v) employer contributions to training initiatives; or
       ``(vi) providing employees with employee release time for 
     such training or supportive services.
       ``(e) Award Basis.--
       ``(1) Geographic distribution.--The Secretary shall award 
     grants under this section in a manner to ensure geographic 
     diversity.
       ``(2) Priorities.--In awarding grants under this section, 
     the Secretary shall give priority to eligible entities that--
       ``(A) work with employers within a targeted industry 
     cluster to retain and expand employment in high wage, high 
     growth areas;
       ``(B) focus on helping workers move toward economic self-
     sufficiency and ensuring the workers have access to adequate 
     supportive services;
       ``(C) address the needs of firms with limited human 
     resources or in-house training capacity, including small- and 
     medium-sized firms; and
       ``(D) coordinate with entities carrying out--
       ``(i) State and local workforce investment activities, 
     including the one-stop delivery system;
       ``(ii) adult secondary education, career and technical 
     education, and postsecondary education; and
       ``(iii) economic development activities.
       ``(f) Activities.--
       ``(1) In general.--An eligible entity receiving a grant 
     under this section shall carry out the activities necessary 
     to meet the strategic objectives described in the entity's 
     application in a manner that--
       ``(A) integrates services and funding sources in a way that 
     enhances the effectiveness of the activities; and
       ``(B) uses grant funds awarded under this section 
     efficiently.
       ``(2) Administrative costs.--An eligible entity may retain 
     a portion of a grant awarded under this section for a fiscal 
     year to carry out the administration of this section in an 
     amount not to exceed 10 percent of the grant amount.
       ``(g) Evaluation and Progress Reports.--
       ``(1) Annual activity report and evaluation.--Not later 
     than 1 year after receiving a grant under this section, and 
     annually thereafter for the duration of the grant, an 
     eligible entity shall--
       ``(A) report to the Secretary, and to the Governor of the 
     State that the eligible entity serves, on the activities 
     funded pursuant to a grant under this section; and
       ``(B) evaluate the progress the eligible entity has made 
     toward the strategic objectives identified in the application 
     under subsection (d)(2)(D), and measure the progress using 
     the performance measures identified in the application under 
     subsection (d)(2)(F).
       ``(2) Report to the secretary.--An eligible entity 
     receiving a grant under this section shall submit to the 
     Secretary a report containing the results of the evaluation 
     described in paragraph (1)(B) at such time and in such manner 
     as the Secretary may require.
       ``(h) Administration by the Secretary.--
       ``(1) Administrative costs.--The Secretary may retain not 
     more than 10 percent of the funds appropriated pursuant to 
     the authorization of appropriations under subsection (i) for 
     each fiscal year to administer this section.
       ``(2) Technical assistance and oversight.--The Secretary 
     shall provide technical assistance and oversight to assist 
     the eligible State and local agencies or eligible entities in 
     applying for and administering grants awarded under this 
     section. The Secretary shall also provide technical 
     assistance to eligible entities in the form of conferences 
     and through the collection and dissemination of information 
     on best practices developed by eligible partnerships. The 
     Secretary may award a grant or contract to 1 or more national 
     or State organizations to provide technical assistance to 
     foster the planning, formation, and implementation of 
     industry cluster partnerships.
       ``(3) Performance measures.--The Secretary shall issue a 
     range of performance measures, with quantifiable benchmarks, 
     and methodologies that eligible entities may use to evaluate 
     the effectiveness of each type of activity in making progress 
     toward the strategic objectives described in subsection 
     (d)(2)(D). Such measures shall consider the benefits of the 
     industry or sector partnership and its activities for 
     workers, firms, industries, and communities.
       ``(4) Dissemination of information.--The Secretary shall--
       ``(A) coordinate the annual review of each eligible entity 
     receiving a grant under this section and produce an overview 
     report that, at a minimum, includes--
       ``(i) the critical learning of each industry or sector 
     partnership, such as--

       ``(I) the training that was most effective;
       ``(II) the human resource challenges that were most common;
       ``(III) how technology is changing the targeted industry 
     cluster; and
       ``(IV) the changes that may impact the targeted industry 
     cluster over the next 5 years; and

       ``(ii) a description of what eligible entities serving 
     similar targeted industry clusters consider exemplary 
     practices, such as--

       ``(I) how to work effectively with postsecondary 
     educational institutions;
       ``(II) the use of internships;
       ``(III) coordinating with apprenticeships and cooperative 
     education programs;
       ``(IV) how to work effectively with schools providing 
     vocational education;
       ``(V) how to work effectively with adult populations, 
     including--

       ``(aa) dislocated workers;
       ``(bb) women in nontraditional occupations; and
       ``(cc) individuals with barriers to employment, such as job 
     seekers who--
       ``(AA) are economically disadvantaged;
       ``(BB) have limited English proficiency;
       ``(CC) require remedial education;
       ``(DD) are older workers;
       ``(EE) are individuals with disabilities;
       ``(FF) are veterans;
       ``(GG) are individuals who have completed a sentence for a 
     criminal offense; and
       ``(HH) have other barriers to employment;

       ``(VI) employer practices that are most effective;
       ``(VII) the types of training that are most effective; and
       ``(VIII) other areas where industry or sector partnerships 
     can assist each other;

       ``(B) make resource materials, including all reports 
     published and all data collected under this section, 
     available on the Internet; and
       ``(C) conduct conferences and seminars to--
       ``(i) disseminate information on best practices developed 
     by eligible entities receiving a grant under this section; 
     and
       ``(ii) provide information to the communities of eligible 
     entities.
       ``(5) Report.--Not later than 18 months after the date of 
     enactment of the Strengthening Employment Clusters to 
     Organize Regional Success Act of 2009, and annually 
     thereafter, the Secretary shall transmit a report to Congress 
     on the industry or sector partnership grant program 
     established by this section. The report shall include a 
     description of--
       ``(A) the eligible entities receiving funding;
       ``(B) the activities carried out by the eligible entities;
       ``(C) how the eligible entities were selected to receive 
     funding under this section; and
       ``(D) an assessment of the results achieved by the grant 
     program including findings from the annual reviews described 
     in paragraph (4)(A).
       ``(i) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary for 
     fiscal year 2010 and for each succeeding fiscal year.
       ``(2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) for the 
     fiscal year shall remain available until the end of the 
     second fiscal year following the fiscal year in which such 
     amounts were first appropriated.''.

     SEC. 3. FEDERAL AGENCY COORDINATION.

       (a) Interagency Cooperation.--The head of each Federal 
     department or agency whose funding, regulations, or other 
     policies impact workers shall cooperate with the Secretary of 
     Labor to--
       (1) maintain up-to-date information on jobs, wages, 
     benefits, skills, and careers of workers impacted by the 
     actions of such agency or department;
       (2) develop and implement policies that would improve the 
     jobs and careers of workers impacted by the actions of such 
     agency or department; and
       (3) report the department or agency's job creation and 
     economic development strategies to the Secretary.
       (b) Alignment.--Notwithstanding any other provision of law, 
     the Secretary and the heads of other Federal departments or 
     agencies shall work together to align existing education and 
     training programs with the demonstrated needs of industry or 
     sector partnerships, as defined in section 173B(b) of the 
     Workforce Investment Act. These collaborative efforts shall 
     include the following:

[[Page 9474]]

       (1) Department of commerce.--The Secretary of Commerce 
     shall advise the Secretary of Labor of the Department of 
     Commerce's workforce and economic development strategies, 
     programs, and initiatives.
       (2) Justice department.--The Attorney General shall--
       (A) align federally funded programs offering training for 
     inmates with industry clusters (as defined in section 173B(b) 
     of the Workforce Investment Act) and high-priority 
     occupations, and annually review these training programs to 
     assure that the training programs prepare individuals for 
     high-priority occupations; and
       (B) align federally funded reentry programs to take 
     advantage of information and career opportunities provided by 
     industry and sector partnerships.
       (3) Department of education.--The Secretary of Education 
     shall--
       (A) develop and support career ladders for high-priority 
     occupations critical to targeted industry clusters served by 
     a grant under section 173B of the Workforce Investment Act;
       (B) develop and support innovative programs to address 
     literacy (including English as a second language) and 
     numeracy shortcomings, especially in those occupations 
     critical to such targeted industry clusters;
       (C) develop and support programs and strategies to reduce 
     barriers to adult education;
       (D) develop and support career education initiatives in 
     middle and high schools; and
       (E) support initiatives to develop industry-recognized 
     credentials and new credit-bearing programs in public and 
     private postsecondary educational institutions, especially in 
     occupations critical to such targeted industry clusters.
       (4) Department of health and human services.--The Secretary 
     of Health and Human Services shall--
       (A) develop and support innovative programs that connect 
     qualified individuals receiving assistance under the State 
     temporary assistance for needy families program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.) with employment opportunities in the targeted 
     industry clusters served by a grant under section 173B of the 
     Workforce Investment Act;
       (B) develop and support strategies to prepare individuals 
     receiving assistance under the State temporary assistance for 
     needy families programs funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.) for success 
     in postsecondary education and training programs; and
       (C) develop and support career education initiatives that 
     provide such individuals with information to guide the 
     clients' education and training plans.

  Ms. SNOWE. Mr. President, I rise today in support of the Selecting 
Employment Clusters to Organize Regional Success, SECTORS, Act which 
Senators Brown and I are introducing. This legislation would amend the 
Workforce Investment Act of 1998 to establish a new industry or sector 
partnership grant program administered by the Department of Labor.
  The SECTORS Act provides grants to industry clusters--interrelated 
group of businesses, service providers, and associated institutions--in 
order to establish and expand sector partnerships. By providing 
financial assistance to these partnerships, this legislation would 
create customized workforce training solutions for specific industries 
at a regional level. A sector approach is beneficial because it can 
focus on the dual goals of promoting the long-term competitiveness of 
industries and advancing employment opportunities for workers, thereby 
encouraging economic growth. Existing sector partnerships have long 
been recognized as key strategic elements within some of the most 
successful economic development initiatives throughout the country. 
Unfortunately, current Federal policy does not provide sufficient 
support for these critical ventures.
  As Co-Chair of the bipartisan Senate Task Force on Manufacturing, one 
of my key goals is to ensure that manufacturers have access to a 
capable workforce. Unfortunately, manufacturers across the country have 
raised significant concerns about whether the next generation of 
workers is being trained to meet the needs of an increasingly high-tech 
workplace.
  In fact, in my home State of Maine, the manufacturing sector has shed 
an alarming 23,600 jobs in the past 10 years; nearly 30 percent of the 
State's manufacturing employment. It is thereby critical that we as a 
Nation provide unemployed manufacturing workers the training needed to 
excel as our manufacturing sector becomes increasingly technical. This 
legislation provides a crucial link between establishing worker 
training programs and fostering new employment opportunities for those 
who have been affected by the manufacturing industry's decline. By 
promoting this innovative partnership we will take a crucial step 
toward rejuvenating our economy.
  Throughout the country, sector partnerships are being used to promote 
the long-term competitiveness of industries and to advance employment 
opportunities. For example, the State of Maine has created the North 
Star Alliance Initiative. The Alliance has brought together Maine's 
boat builders, the University of Maine's Advanced Engineered Wood 
Composites Centers, Maine's marine and composite trade association, 
economic development groups, and investment organizations for the 
purpose of advancing workforce training.
  Our Nation's capacity to innovate is a key reason why our economy 
continues to grow and remains the envy of the world. Ideas by 
innovative Americans in the private and public sector have paid 
enormous dividends, improving the lives of millions throughout the 
world. We must continue to encourage all avenues for advancing this 
vital sector if America is to compete at the forefront of innovation.
                                 ______
                                 
      By Mr. NELSON, of Florida (for himself, Mr. Cornyn, Mr. Martinez, 
        and Mr. Dodd):
  S. 780 bill to amend the Andean Trade Preference Act to add Paraguay 
to the list of countries that are eligible to be designated as 
beneficiary countries and ATPDEA beneficiary countries; to the 
Committee on Finance.
  Mr. NELSON of Florida. Mr. President, I rise today to introduce a 
bill, the U.S.-Paraguay Partnership Act of 2009, to add Paraguay as a 
beneficiary under the Andean Trade Promotion and Drug Eradication Act.
  I want to thank my colleague on the Finance Committee, Senator John 
Cornyn, for joining me in sponsoring this legislation. I understand a 
companion bill is being introduced in the House today as well by 
Representatives Engel and Burton.
  Paraguay, located in the important Tri-Border region of South 
America, shares borders with Brazil, Bolivia, and Argentina. Paraguay 
is one of the poorest nations in the Western Hemisphere, with 30 
percent of its population surviving on less than $2 a day. In 2007, 
U.S. exports to Paraguay exceeded $1.2 billion, while Paraguayan 
imports to the U.S. totaled just $68 million. Florida has historically 
served as a key source and transit point for U.S. two-way trade with 
Paraguay and will likely benefit from increased economic links between 
our two countries. Florida's deep-water ports serve as the main 
shipping points for goods coming from or going to Latin America. In 
addition, Paraguay, a major drug transit hub, has been a reliable U.S. 
partner for many years in our counternarcotics and counterterrorism 
efforts in the region. Nevertheless, we have neglected to include 
Paraguay in the important Andean trade program.
  I believe that Paraguay is deserving of inclusion in this program.
  The Andean Trade Promotion and Drug Eradication Act is a preference 
program that was established in 1991 and reauthorized with the drug 
cooperation element in 2002. It currently grants duty-free access to a 
range of exports from four Andean countries including Colombia, 
Ecuador, Peru, and Bolivia. This bill will add Paraguay as the fifth 
beneficiary country of this program, which will help connect Paraguay 
to the U.S. market and foster closer cooperation on a range of 
important anti-drug trafficking and national security issues. 
Currently, Paraguayan products are not competitive in U.S. markets 
because they are subject to higher tariffs than other Latin American 
and Caribbean countries that ship these same items duty-free to the 
U.S.
  You may recall that the very first Summit of the Americas was held in 
1994 in Miami, FL, where delegates discussed trade, combating drugs, 
and promotion of democracy. The new administration and our 
international partners will continue to grapple with these vital issues 
at the 5th Summit of the Americas, which will take place in Trinidad 
from April 17 to 19.

[[Page 9475]]

  President Obama, who will be leading the U.S. delegation to the 
Summit in Trinidad, has said that we must work to develop a 
``partnership based on respect that the people of Latin America are 
looking for and that will be beneficial to the United States.''
  The upcoming Summit of the Americas is dedicated to promoting 
prosperity and democracy in the Western Hemisphere. Surely, the thirty-
four democratically elected heads of state who will be in attendance in 
Trinidad must focus on the situation of poverty-stricken countries such 
as Paraguay and Haiti. The election of President Fernando Lugo of 
Paraguay in May 2008 marked the democratic transfer of power in 
Paraguay after six decades of uninterrupted rule by the Colorado Party. 
It is in America's interest to support democracy and economic 
prosperity throughout the Hemisphere and I believe that adding Paraguay 
to this trade program is a positive step in that direction. The proud 
Paraguayan-American citizens of Florida and of other States, who have 
made important contributions to American society, will no doubt support 
this move.
  In the spirit of the Summit of the Americas, we should strengthen our 
relationship with Latin America as a whole. We should continue to 
support representative democracy and expand prosperity in the 
Hemisphere. Therefore, I urge the Senate to include Paraguay in the 
Andean Trade Preference Act, a decision that will benefit both our 
countries as trade expands. Together with the other nations of the 
Western Hemisphere, we must strive to find common solutions to common 
problems, given the tremendous challenges we face today.
  Mr. CORNYN. Mr. President, I rise to speak in favor of the U.S.-
Paraguay Partnership Act of 2009. I introduced this legislation earlier 
today along with my colleague from the Finance Committee, Senator Bill 
Nelson of Florida.
  This legislation will do two things; it will reduce trade barriers 
between the U.S., and Paraguay and it will encourage continued bi-
national security cooperation. Paraguay is a friendly ally in Latin 
America, and it is beneficial to support and empower our allies in this 
sometimes-hostile region of the Americas.
  The U.S.-Paraguay Partnership Act will add Paraguay to our Nation's 
existing trade pact with four countries in the Andean region of Latin 
America. The Andean Trade Promotion and Drug Enforcement Act, ATPDEA, 
enacted in 2002, is an economic tool that provides incentives for 
Andean nations to grow and manufacture legitimate products in order to 
reduce the grip of illegal drug cultivation and trafficking.
  The ATPDEA has helped reduce the flow of narcotics from Peru, 
Colombia, and Ecuador since its enactment. In addition to the illegal 
drug eradication function, the accord also fostered much greater 
economic cooperation between the Andean region and the U.S. Moreover, 
the two free trade agreements President George W. Bush negotiated and 
signed with Peru and Colombia were borne out of the cooperation 
developed by the Andean trade accord.
  Paraguay is an important ally in U.S. counternarcotics efforts and is 
helping crackdown on terrorist financing activities in its region. The 
government of Paraguay recognizes the value in developing its economy 
by promoting legitimate alternatives to narcotics cultivation and 
trade. Our bi-national eradication strategy is working, and this bill 
will provide economic incentives to continue the fight against narco-
terrorism from the ground up.
  The ATPDEA is a temporary trade preferences law and is due for 
reconsideration later this year. I encourage my colleagues to seriously 
consider the merits of adding Paraguay as a beneficiary country when 
the ATPDEA is reauthorized. It is time to extend the benefits of the 
ATPDEA to the nation of Paraguay.

                          ____________________