[Congressional Record (Bound Edition), Volume 156 (2010), Part 7]
[Senate]
[Pages 9780-9803]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BINGAMAN (for himself, Mr. Warner, Mr. Graham, Ms. Snowe, 
        Mr. Merkley, Mr. Brown of Massachusetts, Ms. Stabenow, Mr. 
        Sanders, Mr. Dodd, Mrs. Gillibrand, Mr. Carper, Mr. Pryor, Mr. 
        Begich, Ms. Klobuchar, Ms. Cantwell, and Mr. Harkin):
  S. 3434. A bill to provide for the establishment of a Home Star 
Retrofit Rebate Program, and for other purposes; to the Committee on 
Finance.
  Mr. BINGAMAN. Mr. President, I rise to introduce the Home Star Energy 
Retrofit Act of 2010 and to recognize the original cosponsors of the 
bill: Senator Warner, Senator Graham, Senator Snowe, Senator Sanders, 
Senator Brown of Massachusetts, Senator Merkley, Senator Stabenow, 
Senator Dodd, Senator Gillibrand, Senator Carper, Senator Pryor and 
Senator Harkin. This innovative legislation will save consumers money, 
create American skilled labor jobs, and reduce home energy consumption.
  If enacted, HOME STAR will build on existing policies and initiatives 
that have already proved effective. The program is supported by a broad 
coalition

[[Page 9781]]

of over 600 groups including construction contractors, building 
products and mechanical manufacturers, retail sales businesses, 
environmental groups and labor advocates.
  HOME STAR will provide point-of-sale instant savings to encourage 
homeowners to install residential energy upgrades such as air sealing, 
insulation, and high efficiency furnaces and water heaters.
  HOME STAR incorporates a two-tiered approach that will offer 
flexibility to homeowners when choosing efficiency improvements to 
install. Under the Silver Star program, rebates averaging $1,000 will 
be offered for the installation of each eligible energy-saving measure 
such as new insulation and high-efficiency heating and cooling systems, 
up to maximum of $3,000 per home. Under the Gold Star program, there 
will be performance-based grants of $3,000 for a 20 percent reduction 
in home energy consumption and $1,000 for each additional 5 percent of 
verified energy reduction as determined by a comparison of the energy 
consumption of the home before and after the retrofit.
  In addition to the short-term rebate programs in Home Star, our 
revised bill includes longer term efficiency tax policies to maintain 
the momentum for energy efficient home retrofits. These performance-
based energy improvement tax credits will encourage the continuation of 
Gold Star-type whole home retrofits.
  HOME STAR will create American jobs in the construction industry, 
which has lost 1.6 million jobs since December 2007, with unemployment 
rates topping 25 percent in some regions. HOME STAR leverages private 
investment to create a strong market for home energy retrofits, and 
will put hundreds of thousands of unemployed Americans back to work as 
well as stimulating demand for building materials produced by American 
factories.
  Finally, HOME STAR will reduce home energy consumption and dependence 
on foreign oil. HOME STAR helps Americans pay for cost-effective home 
improvements, create permanent reductions in household energy bills, 
and reduce our national carbon footprint. Residential energy efficiency 
improvements covered by the HOME STAR program reduce energy waste in 
most homes by 20 to 40 percent. When combined with low-interest 
financing, these retrofits can be cash-flow positive upon project 
completion. An initiative with a potential to retrofit over 3 million 
homes, HOME STAR will achieve significant reductions in building-
related greenhouse gas emissions while generating long-term energy 
savings for American consumers and reducing energy usage by an amount 
equal to four 300 megawatt power plants.
  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. 3434

       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 ``Home Star 
     Energy Retrofit Act of 2010''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                  TITLE I--HOME STAR ENERGY RETROFITS

Sec. 101. Definitions.
Sec. 102. Home Star Retrofit Rebate Program.
Sec. 103. Contractors.
Sec. 104. Rebate aggregators.
Sec. 105. Quality assurance providers.
Sec. 106. Silver Star Home Energy Retrofit Program.
Sec. 107. Gold Star Home Energy Retrofit Program.
Sec. 108. Grants to States and Indian tribes.
Sec. 109. Quality assurance framework.
Sec. 110. Report.
Sec. 111. Administration.
Sec. 112. Treatment of rebates.
Sec. 113. Penalties.
Sec. 114. Home Star Energy Efficiency Loan Program.
Sec. 115. Funding.

       TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS

Sec. 201. Performance based energy improvements for nonbusiness 
              property.

                  TITLE I--HOME STAR ENERGY RETROFITS

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Accredited contractor.--The term ``accredited 
     contractor'' means a residential energy efficiency contractor 
     that meets the minimum applicable requirements established 
     under section 103.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (3) BPI.--The term ``BPI'' means the Building Performance 
     Institute.
       (4) Certified workforce.--The term ``certified workforce'' 
     means a residential energy efficiency construction workforce 
     that is entirely certified in the appropriate job skills for 
     all employees performing installation work under--
       (A) an applicable third party skills standard established--
       (i) by the BPI;
       (ii) by the North American Technician Excellence;
       (iii) by the Laborers' International Union of North 
     America; or
       (iv) in the State in which the work is to be performed, 
     pursuant to a program operated by the Home Builders Institute 
     in connection with Ferris State University, to be effective 
     beginning on the date that is 30 days after the date notice 
     is provided by those organizations to the Secretary that the 
     program has been established in the State unless the 
     Secretary determines, not later than 30 days after the date 
     of the notice, that the standard or certification is 
     incomplete; or
       (B) other standards approved by the Secretary, in 
     consultation with the Secretary of Labor and the 
     Administrator.
       (5) Conditioned space.--The term ``conditioned space'' 
     means the area of a home that is--
       (A) intended for habitation; and
       (B) intentionally heated or cooled.
       (6) DOE.--The term ``DOE'' means the Department of Energy.
       (7) Electric utility.--The term ``electric utility'' means 
     any person or State agency that delivers or sells electric 
     energy at retail, including nonregulated utilities and 
     utilities that are subject to State regulation and Federal 
     power marketing administrations.
       (8) EPA.--The term ``EPA'' means the Environmental 
     Protection Agency.
       (9) Federal rebate processing system.--The term ``Federal 
     Rebate Processing System'' means the Federal Rebate 
     Processing System established under section 102(b).
       (10) Gold star home energy retrofit program.--The term 
     ``Gold Star Home Energy Retrofit Program'' means the Gold 
     Star Home Energy Retrofit Program established under section 
     107.
       (11) Home.--The term ``home'' means a principal residential 
     dwelling unit in a building with no more than 4 dwelling 
     units that--
       (A) is located in the United States; and
       (B) was constructed before the date of enactment of this 
     Act.
       (12) Homeowner.--The term ``homeowner'' means the resident 
     or non-resident owner of record of a home.
       (13) Home star loan program.--The term ``Home Star loan 
     program'' means the Home Star energy efficiency loan program 
     established under section 114(a).
       (14) Home star retrofit rebate program.--The term ``Home 
     Star Retrofit Rebate Program'' means the Home Star Retrofit 
     Rebate Program established under section 102(a).
       (15) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (16) Natural gas utility.--The term ``natural gas utility'' 
     means any person or State agency that transports, 
     distributes, or sells natural gas at retail, including 
     nonregulated utilities and utilities that are subject to 
     State regulation.
       (17) Qualified contractor.--The term ``qualified 
     contractor'' means a residential energy efficiency contractor 
     that meets minimum applicable requirements established under 
     section 103.
       (18) Quality assurance framework.--The term ``quality 
     assurance framework'' means a policy adopted by a State to 
     develop high standards for ensuring quality in ongoing energy 
     efficiency retrofit activities in which the State has a role, 
     including operation of the quality assurance program and 
     creating significant employment opportunities, in particular 
     for targeted workers.
       (19) Quality assurance program.--
       (A) In general.--The term ``quality assurance program'' 
     means a program established under this title or recognized by 
     the Secretary under this title, to oversee the delivery of 
     home efficiency retrofit programs to ensure that work is 
     performed in accordance with standards and criteria 
     established under this title.
       (B) Inclusions.--For purposes of subparagraph (A), delivery 
     of retrofit programs includes delivery of quality assurance 
     reviews of rebate applications and field inspections for a 
     portion of customers receiving rebates

[[Page 9782]]

     and conducted by a quality assurance provider, with the 
     consent of participating consumers and without delaying 
     rebate payments to participating contractors.
       (20) Quality assurance provider.--The term ``quality 
     assurance provider'' means any entity that meets the minimum 
     applicable requirements established under section 105.
       (21) Rebate aggregator.--The term ``rebate aggregator'' 
     means an entity that meets the requirements of section 104.
       (22) RESNET.--The term ``RESNET'' means the Residential 
     Energy Services Network, which is a nonprofit certification 
     and standard setting organization for home energy raters that 
     evaluate the energy performance of a home.
       (23) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (24) Silver star home energy retrofit program.--The term 
     ``Silver Star Home Energy Retrofit Program'' means the Silver 
     Star Home Energy Retrofit Program established under section 
     106.
       (25) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico;
       (D) Guam;
       (E) American Samoa;
       (F) the Commonwealth of the Northern Mariana Islands;
       (G) the United States Virgin Islands; and
       (H) any other territory or possession of the United States.
       (26) Vendor.--The term ``vendor'' means any retailer that 
     sells directly to homeowners and contractors the materials 
     used for the energy savings measures under section 106.

     SEC. 102. HOME STAR RETROFIT REBATE PROGRAM.

       (a) In General.--The Secretary shall establish the Home 
     Star Retrofit Rebate Program.
       (b) Federal Rebate Processing System.--
       (1) Requirements.--
       (A) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Secretary of the Treasury and the Administrator, shall--
       (i) establish a Federal Rebate Processing System which 
     shall serve as a database and information technology system 
     that will allow rebate aggregators to submit claims for 
     reimbursement using standard data protocols;
       (ii) establish a national retrofit website that provides 
     information on the Home Star Retrofit Rebate Program, 
     including--

       (I) how to determine whether particular efficiency measures 
     are eligible for rebates; and
       (II) how to participate in the program;

       (iii) make available, on a designated website, model forms 
     for compliance with all applicable requirements of this 
     title, to be submitted by--

       (I) each qualified contractor on completion of an eligible 
     home energy retrofit; and
       (II) each quality assurance provider on completion of field 
     verification; and

       (iv) subject to section 115, provide such administrative 
     and technical support to rebate aggregators and States as is 
     necessary to carry out this title.
       (B) Distribution of funds.--Not later than 10 days after 
     the date of receipt of bundled rebate applications from a 
     rebate aggregator, the Secretary shall distribute funds to 
     the rebate aggregator on approved claims for reimbursement 
     made to the Federal Rebate Processing System.
       (C) Funding availability.--The Secretary shall post, on a 
     weekly basis, on the national retrofit website established 
     under subparagraph (A)(ii) information on--
       (i) the number of rebate claims approved for reimbursement; 
     and
       (ii) the total amount of funds disbursed for rebates.
       (D) Program adjustment or termination.--Based on the 
     information described in subparagraph (C), the Secretary 
     shall announce a termination date and reserve funding to 
     process the rebate applications that are in the Federal 
     Rebate Processing System prior to the termination date.
       (2) Model forms.--In carrying out this section, the 
     Secretary shall consider the model forms developed by the 
     National Home Performance Council.
       (c) Administrative and Technical Support.--Effective 
     beginning not later than 30 days after the date of enactment 
     of this Act, the Secretary shall provide such administrative 
     and technical support to rebate aggregators and States as is 
     necessary to carry out this title.
       (d) Public Information Campaign.--Not later than 60 days 
     after the date of enactment of this Act, the Administrator 
     shall develop and implement a public education campaign that 
     describes, at a minimum--
       (1) the benefits of home energy retrofits;
       (2) the availability of rebates for--
       (A) the installation of qualifying efficiency measures; and
       (B) whole home efficiency improvements; and
       (3) the requirements for qualified contractors and 
     accredited contractors.
       (e) Limitation.--Silver Star rebates provided under section 
     106 and Gold Star rebates provided under section 107 may be 
     provided for the same home only if--
       (1) Silver Star rebates are awarded prior to Gold Star 
     rebates;
       (2) energy savings obtained from measures under the Silver 
     Star Home Energy Retrofit Program are not counted towards the 
     simulated energy savings that determine the value of a rebate 
     under the Gold Star Home Energy Retrofit Program; and
       (3) the combined Silver Star and Gold Star rebates provided 
     to the individual homeowner do not exceed $8,000.
       (f) Availability.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall ensure that Home 
     Star retrofit rebates are available to all homeowners in the 
     United States to the maximum extent practicable.

     SEC. 103. CONTRACTORS.

       (a) Contractor Qualifications for Silver Star Home Energy 
     Retrofit Program.--A contractor may perform retrofit work 
     under the Silver Star Home Energy Retrofit Program in a State 
     for which rebates are provided under this title only if the 
     contractor meets or provides--
       (1) all applicable contractor licensing requirements 
     established by the State or, if none exist at the State 
     level, the Secretary;
       (2) insurance coverage of at least $1,000,000 for general 
     liability, and for such other purposes and in such other 
     amounts as required by the State;
       (3) warranties to homeowners that completed work will--
       (A) be free of significant defects;
       (B) be installed in accordance with the specifications of 
     the manufacturer; and
       (C) perform properly for a period of at least 1 year after 
     the date of completion of the work;
       (4) an agreement to provide the owner of a home, through a 
     discount, the full economic value of all rebates received 
     under this title with respect to the home; and
       (5) an agreement to provide the homeowner, before a 
     contract is executed between the contractor and a homeowner 
     covering the eligible work, a notice of --
       (A) the rebate amount the contractor intends to apply for 
     with respect to eligible work under this title; and
       (B) the means by which the rebate will be passed through as 
     a discount to the homeowner.
       (b) Contractor Qualifications for Gold Star Home Energy 
     Retrofit Program.--A contractor may perform retrofit work 
     under the Gold Star Home Energy Retrofit Program in a State 
     for which rebates are provided under this title only if the 
     contractor--
       (1) meets the requirements for qualified contractors under 
     subsection (a); and
       (2) is accredited--
       (A) by the BPI; or
       (B) under other standards approved by the Secretary, in 
     consultation with the Administrator.
       (c) Health and Safety Requirements.--Nothing in this title 
     relieves any contractor from the obligation to comply with 
     applicable Federal, State, and local health and safety code 
     requirements.

     SEC. 104. REBATE AGGREGATORS.

       (a) In General.--The Secretary shall develop a network of 
     rebate aggregators that can facilitate the delivery of 
     rebates to participating contractors and vendors for 
     discounts provided to homeowners for energy efficiency 
     retrofit work.
       (b) Responsibilities.--Rebate aggregators shall--
       (1) review the proposed rebate application for completeness 
     and accuracy;
       (2) review measures under the Silver Star Home Energy 
     Retrofit Program and energy savings under the Gold Star Home 
     Energy Retrofit Program for eligibility in accordance with 
     this title;
       (3) provide data to the Federal Data Processing Center 
     consistent with data protocols established by the Secretary; 
     and
       (4) distribute funds received from DOE to contractors, 
     vendors, or other persons.
       (c) Processing Rebate Applications.--A rebate aggregator 
     shall--
       (1) submit the rebate application to the Federal Rebate 
     Processing Center not later than 10 days after the date of 
     receipt of a rebate application from a contractor; and
       (2) distribute funds to the contractor not later than 10 
     days after the date of receipt from the Federal Rebate 
     Processing System.
       (d) Eligibility.--To be eligible to apply to the Secretary 
     for approval as a rebate aggregator, an entity shall be--
       (1) a Home Performance with Energy Star partner;
       (2) an entity administering a residential energy efficiency 
     retrofit program established or approved by a State;
       (3) a Federal Power Marketing Administration, an electric 
     utility, or a natural gas utility that has--
       (A) an approved residential energy efficiency retrofit 
     program; and
       (B) an established quality assurance provider network; or
       (4) an entity that demonstrates to the Secretary that the 
     entity can perform the functions of an rebate aggregator, 
     without disrupting existing residential retrofits in the 
     States that are incorporating the Home Star Program, 
     including demonstration of--
       (A) corporate status or status as a State or local 
     government;

[[Page 9783]]

       (B) the capability to provide electronic data to the 
     Federal Rebate Processing System;
       (C) a financial system that is capable of tracking the 
     distribution of rebates to participating contractors; and
       (D) coordination and cooperation by the entity with the 
     appropriate State energy office regarding participation in 
     the existing energy efficiency programs that will be 
     delivering the Home Star Program.
       (e) Application to Become a Rebate Aggregator.--Not later 
     than 30 days after the date of receipt of an application of 
     an entity seeking to become a rebate aggregator, the 
     Secretary shall approve or deny the application on the basis 
     of the eligibility criteria under subsection (d).
       (f) Application Priority.--In reviewing applications from 
     entities seeking to become rebate aggregators, the Secretary 
     shall give priority to entities that commit--
       (1) to reviewing applications for participation in the 
     program from all qualified contractors within a defined 
     geographic region; and
       (2) to processing rebate applications more rapidly than the 
     minimum requirements established under the program.
       (g) Public Utility Commission Efficiency Targets.--The 
     Secretary shall--
       (1) develop guidelines for States to use to allow utilities 
     participating as rebate aggregators to count the energy 
     savings from the participation of the utilities toward State-
     level energy savings targets; and
       (2) work with States to assist in the adoption of the 
     guidelines for the purposes and duration of the Home Star 
     Retrofit Rebate Program.

     SEC. 105. QUALITY ASSURANCE PROVIDERS.

       (a) In General.--An entity shall be considered a quality 
     assurance provider under this title if the entity--
       (1) is independent of the contractor;
       (2) confirms the qualifications of contractors or 
     installers of home energy efficiency retrofits;
       (3) confirms compliance with the requirements of a 
     ``certified workforce''; and
       (4) performs field inspections and other measures required 
     to confirm the compliance of the retrofit work under the 
     Silver Star program, and the retrofit work and the simulated 
     energy savings under the Gold Star program, based on the 
     requirements of this title.
       (b) Inclusions.--An entity shall be considered a quality 
     assurance provider under this title if the entity is 
     qualified through--
       (1) the International Code Council;
       (2) the BPI;
       (3) the RESNET;
       (4) a State;
       (5) a State-approved residential energy efficiency retrofit 
     program; or
       (6) any other entity designated by the Secretary, in 
     consultation with the Administrator.

     SEC. 106. SILVER STAR HOME ENERGY RETROFIT PROGRAM.

       (a) In General.--If the energy efficiency retrofit of a 
     home is carried out after the date of enactment of this Act 
     in accordance with this section, a rebate shall be awarded 
     for the energy retrofit of a home for the installation of 
     energy savings measures--
       (1) selected from the list of energy savings measures 
     described in subsection (b);
       (2) installed in the home by a qualified contractor not 
     later than 1 year after the date of enactment of this Act;
       (3) carried out in compliance with this section; and
       (4) subject to the maximum amount limitations established 
     under subsection (d)(4).
       (b) Energy Savings Measures.--Subject to subsection (c), a 
     rebate shall be awarded under this section for the 
     installation of the following energy savings measures for a 
     home energy retrofit that meet technical standards 
     established under this section:
       (1) Whole house air-sealing measures, in accordance with 
     BPI standards or other procedures approved by the Secretary.
       (2) Attic insulation measures that--
       (A) include sealing of air leakage between the attic and 
     the conditioned space, in accordance with BPI standards or 
     the attic portions of the DOE or EPA thermal bypass checklist 
     or other procedures approved by the Secretary;
       (B) add at least R-19 insulation to existing insulation;
       (C) result in at least R-38 insulation in DOE climate zones 
     1 through 4 and at least R-49 insulation in DOE climate zones 
     5 through 8, including existing insulation, within the limits 
     of structural capacity; and
       (D) cover at least--
       (i) 100 percent of an accessible attic; or
       (ii) 75 percent of the total conditioned footprint of the 
     house.
       (3) Duct seal or replacement that--
       (A) is installed in accordance with BPI standards or other 
     procedures approved by the Secretary; and
       (B) in the case of duct replacement, replaces and seals at 
     least 50 percent of a distribution system of the home.
       (4) Wall insulation that--
       (A) is installed in accordance with BPI standards or other 
     procedures approved by the Secretary;
       (B) is to full-stud thickness; and
       (C) covers at least 75 percent of the total external wall 
     area of the home.
       (5) Crawl space insulation or basement wall and rim joist 
     insulation that is installed in accordance with BPI standards 
     or other procedures approved by the Secretary--
       (A) covers at least 500 square feet of crawl space or 
     basement wall and adds at least--
       (i) R-19 of cavity insulation or R-15 of continuous 
     insulation to existing crawl space insulation; or
       (ii) R-13 of cavity insulation or R-10 of continuous 
     insulation to basement walls; and
       (B) fully covers the rim joist with at least R-10 of new 
     continuous or R-13 of cavity insulation.
       (6) Window replacement that replaces at least 8 exterior 
     windows, or 75 percent of the exterior windows in a home, 
     whichever is less, with windows that--
       (A) are certified by the National Fenestration Rating 
     Council; and
       (B) comply with criteria applicable to windows under 
     section 25(c) of the Internal Revenue Code of 1986.
       (7) Door replacement that replaces at least 1 exterior door 
     with doors that comply with criteria applicable to doors 
     under the 2010 Energy Star specification for doors.
       (8) Skylight replacement that replaces at least 1 skylight 
     with skylights that comply with criteria applicable to 
     skylights under the 2010 Energy Star specification for 
     skylights.
       (9)(A) Heating system replacement with--
       (i) a natural gas or propane furnace with an AFUE rating of 
     92 or greater;
       (ii) a natural gas or propane boiler with an AFUE rating of 
     90 or greater;
       (iii) an oil furnace with an AFUE rating of 86 or greater 
     and that uses an electrically commutated blower motor;
       (iv) an oil boiler with an AFUE rating of 86 or greater and 
     that has temperature reset or thermal purge controls; or
       (v) a wood or wood pellet furnace, boiler, or stove, if--
       (I) the new system--

       (aa) meets at least 75 percent of the heating demands of 
     the home; and
       (bb) in the case of a wood stove, replaces an existing wood 
     stove with a stove that is EPA-certified, if a voucher is 
     provided by the installer or other responsible party 
     certifying that the old stove has been removed and made 
     inoperable;

       (II) the home has a distribution system (such as ducts, 
     vents, blowers, or affixed fans) that allows heat from the 
     wood stove, furnace, or boiler to reach all or most parts of 
     the home; and
       (III) an independent test laboratory approved by the 
     Secretary or the Administrator certifies that the new 
     system--

       (aa) has thermal efficiency (with a lower heating value) of 
     at least 75 percent for stoves and 80 percent for furnaces 
     and boilers; and
       (bb) has particulate emissions of less than 3.0 grams per 
     hour for wood stoves or pellet stoves, and less than 0.32 lbs 
     per million BTU for outdoor boilers and furnaces.

       (B) A rebate may be provided under this section for the 
     replacement of a furnace or boiler described in clauses (i) 
     through (iv) of subparagraph (A) only if the new furnace or 
     boiler is installed in accordance with ANSI/ACCA Standard 5 
     QI - 2007.
       (10) Automatic water temperature controllers that vary 
     boiler water temperature in response to changes in outdoor 
     temperature or the demand for heat, if the retrofit is to an 
     existing boiler and not in conjunction with a new boiler.
       (11) Air-conditioner or heat-pump replacement with a new 
     unit that--
       (A) is installed in accordance with ANSI/ACCA Standard 5 
     QI-2007; and
       (B) meets or exceeds--
       (i) in the case of an air-source conditioner, SEER 16 and 
     EER 13;
       (ii) in the case of an air-source heat pump, SEER 15, EER 
     12.5, and HSPF 8.5; and
       (iii) in the case of a geothermal heat pump, Energy Star 
     tier 2 efficiency requirements.
       (12) Replacement of or with--
       (A) a natural gas or propane water heater with a condensing 
     storage water heater with an energy factor of 0.80 or more or 
     a condensing storage water heater or tankless water heater 
     with a thermal efficiency of 90 percent or more;
       (B) a tankless natural gas or propane water heater with an 
     energy factor of at least .82;
       (C) a natural gas or propane storage water heater with an 
     energy factor of at least .67;
       (D) an indirect water heater with an insulated storage tank 
     that--
       (i) has a storage capacity of at least 30 gallons and is 
     insulated to at least R-16; and
       (ii) is installed in conjunction with a qualifying boiler 
     described in paragraph (7);
       (E) an electric water heater with an energy factor of 2.0 
     or more;
       (F) a water heater with a solar hot water system that--
       (i) is certified by the Solar Rating and Certification 
     Corporation under specification SRCC-OG-300; or
       (ii) meets technical standards established by the State of 
     Hawaii; or
       (G) a water heater installed in conjunction with a 
     qualifying geothermal heat pump described in paragraph (11) 
     that provides domestic water heating through the use of--
       (i) year-round demand water heating capability; or

[[Page 9784]]

       (ii) a desuperheater.
       (13) Storm windows that--
       (A) are installed on a least 5 single-glazed windows that 
     do not have storm windows;
       (B) are installed in a home listed on or eligible for 
     listing in the National Register of Historic Places; and
       (C) comply with any procedures that the Secretary may 
     establish for storm windows (including installation).
       (14) Roof replacement that replaces at least 75 percent of 
     the roof area with energy-saving roof products certified 
     under the Energy Star program.
       (15) Window films that are installed on at least 8 exterior 
     windows, doors, or skylights, or 75 percent of the total 
     exterior square footage of glass, whichever is more, in a 
     home with window films that--
       (A) are certified by the National Fenestration Rating 
     Council;
       (B) have a Solar Heat Gain Coefficient of 0.40 or less with 
     a visible light-to-solar heat gain ratio of at least 1.1 in 
     2009 International Energy Conservation Code climate zones 1 
     through 8; and
       (C) are certified to reduce the U-factor of the National 
     Fenestration Rating Council dual pane reference window by 
     0.05 or greater and are only applied to nonmetal frame dual 
     pane windows in 2009 International Energy Conservation Code 
     climate zones 4 through 8.
       (c) Installation Costs.--Measures described in paragraphs 
     (1) through (15) of subsection (b) shall include expenditures 
     for labor and other installation-related costs (including 
     venting system modification and condensate disposal) properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the component.
       (d) Amount of Rebate.--
       (1) In general.--Except as provided in paragraphs (2) 
     through (4), the amount of a rebate provided under this 
     section shall be $1,000 per measure for the installation of 
     energy savings measures described in subsection (b)
       (2) Higher rebate amount.--Except as provided in paragraph 
     (4), the amount of a rebate provided to the owner of a home 
     or designee under this section shall be $1,500 per measure 
     for--
       (A) attic insulation and air sealing described in 
     subsection (b)(2);
       (B) wall insulation described in subsection (b)(4);
       (C) a heating system described in subsection (b)(9); and
       (D) an air-conditioner or heat-pump replacement described 
     in subsection (b)(11).
       (3) Lower rebate amount.--Except as provided in paragraph 
     (4), the amount of a rebate provided under this section shall 
     be--
       (A) $125 per door for the installation of up to a maximum 
     of 2 Energy Star doors described in subsection (b)(7) for 
     each home;
       (B) $125 per skylight for the installation of up to a 
     maximum of 2 Energy Star skylights described in subsection 
     (b)(8) for each home;
       (C) $750 for a maximum of 1 natural gas or propane tankless 
     water heater described in subsection (b)(12)(B) for each 
     home;
       (D) $450 for a maximum of 1 natural gas or propane storage 
     water heater described in subsection (b)(12)(C) for each 
     home;
       (E) $250 for rim joist insulation described in subsection 
     (b)(5)(B);
       (F) $50 for each storm window described in subsection 
     (b)(13);
       (G) $500 for a desuperheater described in subsection 
     (b)(12)(G)(ii);
       (H) $500 for a wood or pellet stove that has a heating 
     capacity of at least 28,000 BTU per hour (using the upper end 
     of the range listed in the EPA list of Certified Wood Stoves) 
     and meets all of the requirements of subsection (b)(9)(v) 
     other than the requirements in items (aa) and (bb) of 
     subsection (b)(9)(v)(I);
       (I) $250 for an automatic water temperature controller 
     described in subsection (b)(10);
       (J) $500 for a roof described in subsection (b)(14); and
       (K) $500 for window films described in subsection (b)(15).
       (4) Maximum amount.--The total amount of a rebate provided 
     to the owner of a home or designee under this section shall 
     not exceed the lower of--
       (A) $3,000;
       (B) the sum of the amounts per measure specified in 
     paragraphs (1) through (3);
       (C) 50 percent of the total cost of the installed measures; 
     or
       (D) the reduction in the price paid by the owner of the 
     home, relative to the price of the installed measures in the 
     absence of the Silver Star Home Energy Retrofit Program.
       (e) Insulation Products Purchased Without Installation 
     Services.--
       (1) In general.--A rebate shall be awarded under this 
     section for attic, wall, or crawl space insulation or air 
     sealing product if--
       (A) the product--
       (i) qualifies for a credit under section 25C of the 
     Internal Revenue Code of 1986 but is not the subject of a 
     claim for the credit;
       (ii) is purchased by a homeowner for installation by the 
     homeowner in a home identified by the address of the 
     homeowner;
       (iii) is identified and attributed to a specific home in a 
     submission by the vendor to a rebate aggregator;
       (iv) is not part of--

       (I) an energy savings measure described in paragraphs (6) 
     through (11) of subsection (b); and
       (II) a retrofit for which a rebate is provided under the 
     Gold Star Home Energy Retrofit Program; and

       (v) is not part of an energy savings measure described in 
     paragraphs (1) through (5) in subsection (b) for which the 
     homeowner received or will receive contracting services; and
       (B) educational material on proper installation of the 
     product is provided to the homeowner, including material on 
     air sealing while insulating.
       (2) Amount.--A rebate under this subsection shall be 
     awarded in an amount equal to 50 percent of the total cost of 
     the products described in paragraph (1), but not to exceed 
     $250 per home.
       (f) Qualification for Rebate Under Silver Star Home Energy 
     Retrofit Program.--On submission of a claim by a rebate 
     aggregator to the system established under section 104, the 
     Secretary shall provide reimbursement to the rebate 
     aggregator for reduced-cost energy-efficiency measures 
     installed in a home, if--
       (1) the measures undertaken for the retrofit are--
       (A) eligible measures described on the list established 
     under subsection (b);
       (B) installed properly in accordance with applicable 
     technical specifications; and
       (C) installed by a qualified contractor;
       (2) the amount of the rebate does not exceed the maximum 
     amount described in subsection (d)(4);
       (3) not less than--
       (A) 20 percent of the retrofits performed by each qualified 
     contractor under this section are randomly subject to a 
     third-party field verification of all work associated with 
     the retrofit by a quality assurance provider; or
       (B) in the case of qualified contractor that uses a 
     certified workforce, 10 percent of the retrofits performed 
     under this section are randomly subject to a third-party 
     field verification of all work associated with the retrofit 
     by a quality assurance provider; and
       (4)(A) the installed measures will be brought into 
     compliance with the specifications and quality standards for 
     the Home Star Retrofit Rebate Program, by the installing 
     qualified contractor, at no additional cost to the homeowner, 
     not later than 14 days after the date of notification of a 
     defect, if a field verification by a quality assurance 
     provider finds that corrective work is needed;
       (B) a subsequent quality assurance visit is conducted to 
     evaluate the remedy not later than 7 days after notification 
     by the contractor that the defect has been corrected; and
       (C) notification of disposition of the visit occurs not 
     later than 7 days after the date of that visit.
       (g) Homeowner Complaints.--
       (1) In general.--During the 1-year warranty period, a 
     homeowner may make a complaint under the quality assurance 
     program that compliance with the quality assurance 
     requirements of this section has not been achieved.
       (2) Verification.--
       (A) In general.--The quality assurance program shall 
     provide that, on receiving a complaint under paragraph (1), 
     an independent quality assurance provider shall conduct field 
     verification on the retrofit work performed by the 
     contractor.
       (B) Administration.--A verification under this paragraph 
     shall be--
       (i) in addition to verifications conducted under subsection 
     (f)(3); and
       (ii) corrected in accordance with subsection (f)(4).
       (h) Audits.--
       (1) In general.--On making payment for a submission under 
     this section, the Secretary shall review rebate requests to 
     determine whether program requirements were met in all 
     respects.
       (2) Incorrect payment.--On a determination of the Secretary 
     under paragraph (1) that a payment was made incorrectly to a 
     party, the Secretary may--
       (A) recoup the amount of the incorrect payment; or
       (B) withhold the amount of the incorrect payment from the 
     next payment made to the party pursuant to a subsequent 
     request.

     SEC. 107. GOLD STAR HOME ENERGY RETROFIT PROGRAM.

       (a) In General.--If the energy efficiency retrofit of a 
     home is carried out after the date of enactment of this Act 
     by an accredited contractor in accordance with this section, 
     a rebate shall be awarded for retrofits that achieve whole 
     home energy savings.
       (b) Amount of Rebate.--Subject to subsection (e), the 
     amount of a rebate provided to the owner of a home or a 
     designee of the owner under this section shall be--
       (1) $3,000 for a 20-percent reduction in whole home energy 
     consumption; and
       (2) an additional $1,000 for each additional 5-percent 
     reduction up to the lower of--
       (A) $8,000; or
       (B) 50 percent of the total retrofit cost (including the 
     cost of audit and diagnostic procedures).
       (c) Energy Savings.--
       (1) In general.--Reductions in whole home energy 
     consumption under this section shall be determined by a 
     comparison of the simulated energy consumption of the home 
     before and after the retrofit of the home.

[[Page 9785]]

       (2) Documentation.--The percent improvement in energy 
     consumption under this section shall be documented through--
       (A)(i) the use of a whole home simulation software program 
     that has been approved as a commercial alternative under the 
     Weatherization Assistance Program for Low-Income Persons 
     established under part A of title IV of the Energy 
     Conservation and Production Act (42 U.S.C. 6861 et seq.); or
       (ii) a equivalent performance test established by the 
     Secretary, in consultation with the Administrator; or
       (B)(i) the use of a whole home simulation software program 
     that has been approved under RESNET Publication No. 06-001 
     (or a successor publication approved by the Secretary);
       (ii) an equivalent performance test established by the 
     Secretary; or
       (iii) a State-certified equivalent rating network, as 
     specified by IRS Notice 2008-35; or
       (iv) a HERS rating system required by State law.
       (3) Monitoring.--The Secretary--
       (A) shall continuously monitor the software packages used 
     for determining rebates under this section; and
       (B) may disallow the use of software programs that 
     improperly assess energy savings.
       (4) Assumptions and testing.--The Secretary may--
       (A) establish simulation tool assumptions for the 
     establishment of the pre-retrofit energy use;
       (B) require compliance with software performance tests 
     covering--
       (i) mechanical system performance;
       (ii) duct distribution system efficiency;
       (iii) hot water performance; or
       (iv) other measures; and
       (C) require the simulation of pre-retrofit energy usage to 
     be bounded by metered pre-retrofit energy usage.
       (5) Recommended measures.--The simulation tool shall have 
     the ability at a minimum to assess the savings associated 
     with all the measures for which incentives are specifically 
     provided under the Silver Star Home Energy Retrofit Program.
       (d) Qualification for Rebate Under Gold Star Home Energy 
     Retrofit Program.--On submission of a claim by a rebate 
     aggregator to the system established under section 104, the 
     Secretary shall provide reimbursement to the rebate 
     aggregator for reduced-cost whole-home retrofits, if--
       (1) the retrofit is performed by an accredited contractor;
       (2) the amount of the reimbursement is not more than the 
     amount described in subsection (b);
       (3) documentation described in subsection (c) is 
     transmitted with the claim;
       (4) a home receiving a whole-home retrofit is subject to 
     random third-party field verification by a quality assurance 
     provider in accordance with subsection (e); and
       (5)(A) the installed measures will be brought into 
     compliance with the specifications and quality standards for 
     the Home Star Retrofit Rebate Program, by the installing 
     qualified contractor, at no additional cost to the homeowner, 
     not later than 14 days after the date of notification of a 
     defect if a field verification by a quality assurance 
     provider finds that corrective work is needed;
       (B) a subsequent quality assurance visit is conducted to 
     evaluate the remedy not later than 7 days after notification 
     by the contractor that the defect has been corrected; and
       (C) notification of disposition of the visit occurs not 
     later than 7 days after the date of that visit.
       (e) Verification.--
       (1) In general.--Subject to paragraph (2), all work 
     installed in a home receiving a whole-home retrofit by an 
     accredited contractor under this section shall be subject to 
     random third-party field verification by a quality assurance 
     provider at a rate of--
       (A) 15 percent; or
       (B) in the case of work performed by an accredited 
     contractor using a certified workforce, 10 percent.
       (2) Verification not required.--A home shall not be subject 
     to random third-party field verification under this section 
     if--
       (A) a post-retrofit home energy rating is conducted by an 
     eligible certifier in accordance with--
       (i) RESNET Publication No. 06-001 (or a successor 
     publication approved by the Secretary);
       (ii) a State-certified equivalent rating network, as 
     specified in IRS Notice 2008-35; or
       (iii) a HERS rating system required by State law;
       (B) the eligible certifier is independent of the qualified 
     contractor or accredited contractor in accordance with RESNET 
     Publication No. 06-001 (or a successor publication approved 
     by the Secretary); and
       (C) the rating includes field verification of measures.
       (f) Homeowner Complaints.--
       (1) In general.--A homeowner may make a complaint under the 
     quality assurance program during the 1-year warranty period 
     that compliance with the quality assurance requirements of 
     this section has not been achieved.
       (2) Verification.--
       (A) In general.--The quality assurance program shall 
     provide that, on receiving a complaint under paragraph (1), 
     an independent quality assurance provider shall conduct field 
     verification on the retrofit work performed by the 
     contractor.
       (B) Administration.--A verification under this paragraph 
     shall be--
       (i) in addition to verifications conducted under subsection 
     (e)(1); and
       (ii) corrected in accordance with subsection (e).
       (g) Audits.--
       (1) In general.--On making payment for a submission under 
     this section, the Secretary shall review rebate requests to 
     determine whether program requirements were met in all 
     respects.
       (2) Incorrect payment.--On a determination of the Secretary 
     under paragraph (1) that a payment was made incorrectly to a 
     party, the Secretary may--
       (A) recoup the amount of the incorrect payment; or
       (B) withhold the amount of the incorrect payment from the 
     next payment made to the party pursuant to a subsequent 
     request.

     SEC. 108. GRANTS TO STATES AND INDIAN TRIBES.

       (a) In General.--A State or Indian tribe that receives a 
     grant under subsection (d) shall use the grant for--
       (1) administrative costs;
       (2) oversight of quality assurance plans;
       (3) development of ongoing quality assurance framework;
       (4) establishment and delivery of financing pilots in 
     accordance with this title;
       (5) coordination with existing residential retrofit 
     programs and infrastructure development to assist deployment 
     of the Home Star program;
       (6) assisting in the delivery of services to rental units; 
     and
       (7) the costs of carrying out the responsibilities of the 
     State or Indian tribe under the Silver Star Home Energy 
     Retrofit Program and the Gold Star Home Energy Retrofit 
     Program.
       (b) Initial Grants.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary shall make the 
     initial grants available under this section.
       (c) Indian Tribes.--The Secretary shall reserve an 
     appropriate amount of funding to be made available to carry 
     out this section for each fiscal year to make grants 
     available to Indian tribes under this section.
       (d) State Allotments.--From the amounts made available to 
     carry out this section for each fiscal year remaining after 
     the reservation required under subsection (c), the Secretary 
     shall make grants available to States in accordance with 
     section 115.
       (e) Quality Assurance Programs.--
       (1) In general.--A State or Indian tribe may use a grant 
     made under this section to carry out a quality assurance 
     program that is--
       (A) operated as part of a State energy conservation plan 
     established under part D of title III of the Energy Policy 
     and Conservation Act (42 U.S.C. 6321 et seq.);
       (B) managed by the office or the designee of the office 
     that is--
       (i) responsible for the development of the plan under 
     section 362 of that Act (42 U.S.C. 6322); and
       (ii) to the maximum extent practicable, conducting an 
     existing energy efficiency program; and
       (C) in the case of a grant made to an Indian tribe, managed 
     by an entity designated by the Indian tribe to carry out a 
     quality assurance program or a national quality assurance 
     program manager.
       (2) Noncompliance.--If the Secretary determines that a 
     State or Indian tribe has not provided or cannot provide 
     adequate oversight over a quality assurance program to ensure 
     compliance with this title, the Secretary may--
       (A) withhold further quality assurance funds from the State 
     or Indian tribe; and
       (B) require that quality assurance providers operating in 
     the State or by the Indian tribe be overseen by a national 
     quality assurance program manager selected by the Secretary.
       (f) Implementation.--A State or Indian tribe that receives 
     a grant under this section may implement a quality assurance 
     program through the State, the Indian tribe, or a third party 
     designated by the State or Indian tribe, including--
       (1) an energy service company;
       (2) an electric utility;
       (3) a natural gas utility;
       (4) a third-party administrator designated by the State or 
     Indian tribe; or
       (5) a unit of local government.
       (g) Public-private Partnerships.--A State or Indian tribe 
     that receives a grant under this section are encouraged to 
     form partnerships with utilities, energy service companies, 
     and other entities--
       (1) to assist in marketing a program;
       (2) to facilitate consumer financing;
       (3) to assist in implementation of the Silver Star Home 
     Energy Retrofit Program and the Gold Star Home Energy 
     Retrofit Program, including installation of qualified energy 
     retrofit measures; and
       (4) to assist in implementing quality assurance programs.
       (h) Coordination of Rebate and Existing State-sponsored 
     Programs.--

[[Page 9786]]

       (1) In general.--A State or Indian tribe shall, to the 
     maximum extent practicable, prevent duplication through 
     coordination of a program authorized under this title with--
       (A) the Energy Star appliance rebates program authorized 
     under the American Recovery and Reinvestment Act of 2009 
     (Public Law 111-5; 123 Stat. 115); and
       (B) comparable programs planned or operated by States, 
     political subdivisions, electric and natural gas utilities, 
     Federal power marketing administrations, and Indian tribes.
       (2) Existing programs.--In carrying out this subsection, a 
     State or Indian tribe shall--
       (A) give priority to--
       (i) comprehensive retrofit programs in existence on the 
     date of enactment of this Act, including programs under the 
     supervision of State utility regulators; and
       (ii) using Home Star funds made available under this title 
     to enhance and extend existing programs; and
       (B) seek to enhance and extend existing programs by 
     coordinating with administrators of the programs.

     SEC. 109. QUALITY ASSURANCE FRAMEWORK.

       (a) In General.--Not later than 180 days after the date 
     that the Secretary initially provides funds to a State under 
     this title, the State shall submit to the Secretary a plan to 
     implement a quality assurance program that covers all 
     federally assisted residential efficiency retrofit work 
     administered, supervised, or sponsored by the State.
       (b) Implementation.--The State shall--
       (1) develop a quality assurance framework in consultation 
     with industry stakeholders, including representatives of 
     efficiency program managers, contractors, and environmental, 
     energy efficiency, and labor organizations; and
       (2) implement the quality assurance framework not later 
     than 1 year after the date of enactment of this Act.
       (c) Components.--The quality assurance framework 
     established under this section shall include--
       (1) a requirement that contractors be prequalified in order 
     to be authorized to perform federally assisted residential 
     retrofit work;
       (2) maintenance of a list of prequalified contractors 
     authorized to perform federally assisted residential retrofit 
     work; and
       (3) minimum standards for prequalified contractors that 
     include--
       (A) accreditation;
       (B) legal compliance procedures;
       (C) proper classification of employees; and
       (D) maintenance of records needed to verify compliance;
       (4) targets and realistic plans for--
       (A) the recruitment of small minority or women-owned 
     business enterprises;
       (B) the employment of graduates of training programs that 
     primarily serve low-income populations with a median income 
     that is below 200 percent of the poverty line (as defined in 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2), including any revision required by that 
     section)) by participating contractors; and
       (5) a plan to link workforce training for energy efficiency 
     retrofits with training for the broader range of skills and 
     occupations in construction or emerging clean energy 
     industries.
       (d) Noncompliance.--If the Secretary determines that a 
     State has not taken the steps required under this section, 
     the Secretary shall provide to the State a period of at least 
     90 days to comply before suspending the participation of the 
     State in the program.

     SEC. 110. REPORT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report on the use of funds under this 
     title.
       (b) Contents.--The report shall include a description of--
       (1) the energy savings produced as a result of this title;
       (2) the direct and indirect employment created as a result 
     of the programs supported by the funds provided under this 
     title;
       (3) the specific entities implementing the energy 
     efficiency programs;
       (4) the beneficiaries who received the efficiency 
     improvements;
       (5) the manner in which funds provided under this title 
     were used;
       (6) the sources (such as mortgage lenders, utility 
     companies, and local governments) and types of financing used 
     by the beneficiaries to finance the retrofit expenses that 
     were not covered by grants provided under this title; and
       (7) the results of verification requirements; and
       (8) any other information the Secretary considers 
     appropriate
       (c) Noncompliance.--If the Secretary determines that a 
     rebate aggregator, State, or Indian tribe has not provided 
     the information required under this section, the Secretary 
     shall provide to the rebate aggregator, State, or Indian 
     tribe a period of at least 90 days to provide any necessary 
     information, subject to penalties imposed by the Secretary 
     for entities other than States and Indian tribes, which may 
     include withholding of funds or reduction of future grant 
     amounts.

     SEC. 111. ADMINISTRATION.

       (a) In General.--Subject to section 115(b), not later than 
     30 days after the date of enactment of this Act, the 
     Secretary shall provide such administrative and technical 
     support to rebate aggregators, States, and Indian tribes as 
     is necessary to carry out the functions designated to States 
     under this title.
       (b) Appointment of Personnel.--Notwithstanding the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service and General Schedule 
     classifications and pay rates, the Secretary may appoint such 
     professional and administrative personnel as the Secretary 
     considers necessary to carry out this title.
       (c) Rate of Pay.--The rate of pay for a person appointed 
     under subsection (a) shall not exceed the maximum rate 
     payable for GS-15 of the General Schedule under chapter 53 of 
     title 5, United States Code.
       (d) Consultants.--Notwithstanding section 303 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253), the Secretary may retain such consultants on a 
     noncompetitive basis as the Secretary considers necessary to 
     carry out this title.
       (e) Contracting.--In carrying out this title, the Secretary 
     may waive all or part of any provision of the Competition in 
     Contracting Act of 1984 (Public Law 98-369; 98 Stat. 1175), 
     an amendment made by that Act, or the Federal Acquisition 
     Regulation on a determination that circumstances make 
     compliance with the provisions contrary to the public 
     interest.
       (f) Regulations.--
       (1) In general.--Notwithstanding section 553 of title 5, 
     United States Code, the Secretary may issue regulations that 
     the Secretary, in the sole discretion of the Secretary, 
     determines necessary to carry out the Home Star Retrofit 
     Rebate Program.
       (2) Deadline.--If the Secretary determines that regulations 
     described in paragraph (1) are necessary, the regulations 
     shall be issued not later than 60 days after the date of the 
     enactment of this Act.
       (g) Information Collection.--Chapter 35 of title 44, United 
     States Code, shall not apply to any information collection 
     requirement necessary for the implementation of the Home Star 
     Retrofit Rebate Program.
       (h) Adjustment of Rebate Amounts.--Effective beginning on 
     the date that is 180 days after the date of enactment of this 
     Act, the Secretary may, after not less than 30 days public 
     notice, prospectively adjust the rebate amounts provided in 
     this section based on--
       (1) the use of the Silver Star Home Energy Retrofit Program 
     and the Gold Star Home Energy Retrofit Program; and
       (2) other program data.

     SEC. 112. TREATMENT OF REBATES.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, rebates received for eligible measures under this 
     title--
       (1) shall not be considered taxable income to a homeowner;
       (2) shall prohibit the consumer from applying for a tax 
     credit allowed under section 25C, 25D, or 25E of that Code 
     for the same eligible measures performed in the home of the 
     homeowner; and
       (3) shall be considered a credit allowed under section 25C, 
     25D, or 25E of that Code for purposes of any limitation on 
     the amount of the credit under that section.
       (b) Notice.--
       (1) In general.--A participating contractor shall provide 
     notice to a homeowner of the provisions of subsection (a) 
     before eligible work is performed in the home of the 
     homeowner.
       (2) Notice in rebate form.--A homeowner shall be notified 
     of the provisions of subsection (a) in the appropriate rebate 
     form developed by the Secretary, in consultation with the 
     Secretary of the Treasury.
       (3) Availability of rebate form.--A participating 
     contractor shall obtain the rebate form on a designated 
     website in accordance with section 102(b)(1)(A)(iii).

     SEC. 113. PENALTIES.

       (a) In General.--It shall be unlawful for any person to 
     violate this title (including any regulation issued under 
     this title), other than a violation as the result of a 
     clerical error.
       (b) Civil Penalty.--Any person who commits a violation of 
     this title shall be liable to the United States for a civil 
     penalty in an amount that is not more than the higher of--
       (1) $15,000 for each violation; or
       (2) 3 times the value of any associated rebate under this 
     title.
       (c) Administration.--The Secretary may--
       (1) assess and compromise a penalty imposed under 
     subsection (b); and
       (2) require from any entity the records and inspections 
     necessary to enforce this title.
       (d) Fraud.--In addition to any civil penalty, any person 
     who commits a fraudulent violation of this title shall be 
     subject to criminal prosecution.

     SEC. 114. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible participant.--The term ``eligible 
     participant'' means a homeowner who receives financial 
     assistance from a qualified financing entity to carry out 
     energy efficiency or renewable energy improvements to

[[Page 9787]]

     an existing home or other residential building of the 
     homeowner in accordance with the Gold Star Home Energy 
     Retrofit Program or the Silver Star Home Energy Retrofit 
     Program.
       (2) Program.--The term ``program'' means the Home Star 
     Energy Efficiency Loan Program established under subsection 
     (b).
       (3) Qualified financing entity.--The term ``qualified 
     financing entity'' means a State, political subdivision of a 
     State, tribal government, electric utility, natural gas 
     utility, nonprofit or community-based organization, energy 
     service company, retailer, or any other qualified entity 
     that--
       (A) meets the eligibility requirements of this section; and
       (B) is designated by the Governor of a State in accordance 
     with subsection (e).
       (4) Qualified loan program mechanism.--The term ``qualified 
     loan program mechanism'' means a loan program that is--
       (A) administered by a qualified financing entity; and
       (B) principally funded--
       (i) by funds provided by or overseen by a State; or
       (ii) through the energy loan program of the Federal 
     National Mortgage Association.
       (b) Establishment.--The Secretary shall establish a Home 
     Star Energy Efficiency Loan Program under which the Secretary 
     shall make funds available to States to support financial 
     assistance provided by qualified financing entities for 
     making, to existing homes, energy efficiency improvements 
     that qualify under the Gold Star Home Energy Retrofit Program 
     or the Silver Star Home Energy Retrofit Program.
       (c) Eligibility of Qualified Financing Entities.--To be 
     eligible to participate in the program, a qualified financing 
     entity shall--
       (1) offer a financing product under which eligible 
     participants may pay over time for the cost to the eligible 
     participant (after all applicable Federal, State, local, and 
     other rebates or incentives are applied) of making 
     improvements described in subsection (b);
       (2) require all financed improvements to be performed by 
     contractors in a manner that meets minimum standards that are 
     at least as stringent as the standards provided under 
     sections 106 and 107; and
       (3) establish standard underwriting criteria to determine 
     the eligibility of program applicants, which criteria shall 
     be consistent with--
       (A) with respect to unsecured consumer loan programs, 
     standard underwriting criteria used under the energy loan 
     program of the Federal National Mortgage Association; or
       (B) with respect to secured loans or other forms of 
     financial assistance, commercially recognized best practices 
     applicable to the form of financial assistance being provided 
     (as determined by the designated entity administering the 
     program in the State).
       (d) Allocation.--In making funds available to States for 
     each fiscal year under this section, the Secretary shall use 
     the formula used to allocate funds to States to carry out 
     State energy conservation plans established under part D of 
     title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6321 et seq.).
       (e) Qualified Financing Entities.--Before making funds 
     available to a State under this section, the Secretary shall 
     require the Governor of the State to provide to the Secretary 
     a letter of assurance that the State--
       (1) has 1 or more qualified financing entities that meet 
     the requirements of this section;
       (2) has established a qualified loan program mechanism 
     that--
       (A) includes a methodology to ensure credible energy 
     savings or renewable energy generation;
       (B) incorporates an effective repayment mechanism, which 
     may include--
       (i) on-utility-bill repayment;
       (ii) tax assessment or other form of property assessment 
     financing;
       (iii) municipal service charges;
       (iv) energy or energy efficiency services contracts;
       (v) energy efficiency power purchase agreements;
       (vi) unsecured loans applying the underwriting requirements 
     of the energy loan program of the Federal National Mortgage 
     Association; or
       (vii) alternative contractual repayment mechanisms that 
     have been demonstrated to have appropriate risk mitigation 
     features; and
       (C) will provide, in a timely manner, all information 
     regarding the administration of the program as the Secretary 
     may require to permit the Secretary to meet the reporting 
     requirements of subsection (h).
       (f) Use of Funds.--Funds made available to States under the 
     program may be used to support financing products offered by 
     qualified financing entities to eligible participants for 
     eligible energy efficiency work, by providing--
       (1) interest rate reductions;
       (2) loan loss reserves or other forms of credit 
     enhancement;
       (3) revolving loan funds from which qualified financing 
     entities may offer direct loans; or
       (4) other debt instruments or financial products 
     necessary--
       (A) to maximize leverage provided through available funds; 
     and
       (B) to support widespread deployment of energy efficiency 
     finance programs.
       (g) Use of Repayment Funds.--In the case of a revolving 
     loan fund established by a State described in subsection 
     (f)(3), a qualified financing entity may use funds repaid by 
     eligible participants under the program to provide financial 
     assistance for additional eligible participants to make 
     improvements described in subsection (b) in a manner that is 
     consistent with this section or other such criteria as are 
     prescribed by the State.
       (h) Program Evaluation.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall submit to 
     Congress a program evaluation that describes--
       (1) how many eligible participants have participated in the 
     program;
       (2) how many jobs have been created through the program, 
     directly and indirectly;
       (3) what steps could be taken to promote further deployment 
     of energy efficiency and renewable energy retrofits;
       (4) the quantity of verifiable energy savings, homeowner 
     energy bill savings, and other benefits of the program; and
       (5) the performance of the programs carried out by 
     qualified financing entities under this section, including 
     information on the rate of default and repayment.
       (i) Credit Support for Financing Programs.--Section 1705 of 
     the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(4) Energy efficiency projects, including projects to 
     retrofit residential, commercial, and industrial buildings, 
     facilities, and equipment, including financing programs that 
     finance the retrofitting of residential, commercial, and 
     industrial buildings, facilities, and equipment.''.
       (2) by redesignating subsection (e) as subsection (f); and
       (3) by inserting after subsection (d) the following:
       ``(e) Credit Support for Financing Programs.--
       ``(1) In general.--In the case of programs that finance the 
     retrofitting of residential, commercial, and industrial 
     buildings, facilities, and equipment described in subsection 
     (a)(4), the Secretary may--
       ``(A) offer loan guarantees for portfolios of debt 
     obligations; and
       ``(B) purchase or make commitments to purchase portfolios 
     of debt obligations.
       ``(2) Term.--Notwithstanding section 1702(f), the term of 
     any debt obligation that receives credit support under this 
     subsection shall require full repayment over a period not to 
     exceed the lesser of--
       ``(A) 30 years; and
       ``(B) the projected weighted average useful life of the 
     measure or system financed by the debt obligation or 
     portfolio of debt obligations (as determined by the 
     Secretary).
       ``(3) Underwriting.--The Secretary may--
       ``(A) delegate underwriting responsibility for portfolios 
     of debt obligations under this subsection to financial 
     institutions that meet qualifications determined by the 
     Secretary; and
       ``(B) determine an appropriate percentage of loans in a 
     portfolio to review in order to confirm sound underwriting.
       ``(4) Administration.--Subsections (c) and (d)(3) of 
     section 1702 and subsection (c) of this section shall not 
     apply to loan guarantees made under this subsection.''.
       (j) Termination of Effectiveness.--The authority provided 
     by this section and the amendments made by this section 
     terminates effective on the date that is 2 years after the 
     date of enactment of this Act.

     SEC. 115. FUNDING.

       (a) Authorization of Appropriations.--
       (1) In general.--Subject to subsection (j), there is 
     authorized to be appropriated to carry out this title 
     $5,000,000,000 for the period of fiscal years 2010 through 
     2012.
       (2) Maintenance of funding.--Funds provided under this 
     section shall supplement and not supplant any Federal and 
     State funding provided to carry out energy efficiency 
     programs in existence on the date of enactment of this Act.
       (b) Grants to States.--
       (1) In general.--Of the amount provided under subsection 
     (a), $380,000,000 or not more than 6 percent, whichever is 
     less, shall be used to carry out section 108.
       (2) Distribution to state energy offices.--
       (A) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall--
       (i) provide to State energy offices 25 percent of the funds 
     described in paragraph (1); and
       (ii) determine a formula to provide the balance of funds to 
     State energy offices through a performance-based system.
       (B) Allocation.--
       (i) Allocation formula.--Funds described in subparagraph 
     (A)(i) shall be made available in accordance with the 
     allocation formula for State energy conservation plans 
     established under part D of title III of the Energy Policy 
     and Conservation Act (42 U.S.C.6321 et seq.).
       (ii) Performance-based system.--The balance of the funds 
     described in subparagraph (A)(ii) shall be made available in 
     accordance with the performance-based system described in 
     subparagraph (A)(ii).

[[Page 9788]]

       (c) Quality Assurance Costs.--
       (1) In general.--Of the amount provided under subsection 
     (a), not more than 5 percent shall be used to carry out the 
     quality assurance provisions of this title.
       (2) Management.--Funds provided under this subsection shall 
     be overseen by--
       (A) State energy offices described in subsection (b)(2); or
       (B) other entities determined by the Secretary to be 
     eligible to carry out quality assurance functions under this 
     title.
       (3) Distribution to quality assurance providers or rebate 
     aggregators.--The Secretary shall use funds provided under 
     this subsection to compensate quality assurance providers, or 
     rebate aggregators, for services under the Silver Star Home 
     Energy Retrofit Program or the Gold Star Home Energy Retrofit 
     Program through the Federal Rebate Processing Center based on 
     the services provided to contractors under a quality 
     assurance program and rebate aggregation.
       (4) Incentives.--The amount of incentives provided to 
     quality assurance providers or rebate aggregators shall be--
       (A)(i) in the case of the Silver Star Home Energy Retrofit 
     Program--
       (I) $25 per rebate review and submission provided under the 
     program; and
       (II) $150 for each field inspection conducted under the 
     program; and
       (ii) in the case of the Gold Star Home Energy Retrofit 
     Program--
       (I) $35 for each rebate review and submission provided 
     under the program; and
       (II) $300 for each field inspection conducted under the 
     program; or
       (B) such other amounts as the Secretary considers necessary 
     to carry out the quality assurance provisions of this title.
       (d) Tracking of Rebates and Expenditures.--Of the amount 
     provided under subsection (a), not more than $150,000,000 
     shall be used for costs associated with database systems to 
     track rebates and expenditures under this title and related 
     administrative costs incurred by the Secretary.
       (e) Public Education and Coordination.--Of the amount 
     provided under subsection (a), not more than $10,000,000 
     shall be used for costs associated with public education and 
     coordination with the Federal Energy Star program incurred by 
     the Administrator.
       (f) Indian Tribes.--Of the amount provided under subsection 
     (a), the Secretary shall reserve not more than 3 percent to 
     make grants available to Indian tribes under this section.
       (g) Silver Star Home Energy Retrofit Program.--
       (1) In general.--In the case of the Silver Star Home Energy 
     Retrofit Program, of the amount provided under subsection (a) 
     after funds are provided in accordance with subsections (b) 
     through (e), $2,751,000,000 for the 1-year period beginning 
     on the date of enactment of this Act (less any amounts 
     required under subsection (f)) shall be used by the Secretary 
     to provide rebates and incentives authorized under the Silver 
     Star Home Energy Retrofit Program.
       (2) Products purchased without installation services.--Of 
     the amounts made available for the Silver Star Home Energy 
     Retrofit Program under this section, not more than 
     $250,000,000 shall be made available for rebates under 
     section 106(e).
       (h) Gold Star Home Energy Retrofit Program.--In the case of 
     the Gold Star Home Energy Retrofit Program, of the amount 
     provided under subsection (a) after funds are provided in 
     accordance with subsections (b) through (e), $1,349,000,000 
     for the 2-year period beginning on the date of enactment of 
     this Act (less any amounts required under subsection (f)) 
     shall be used by the Secretary to provide rebates and 
     incentives authorized under the Gold Star Home Energy 
     Retrofit Program.
       (i) Program Review and Backstop Funding.--
       (1) Review and analysis.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall perform a State-
     by-State analysis and review the distribution of Home Star 
     retrofit rebates under this title.
       (B) Rental units.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary shall perform a 
     review and analysis, with input and review from the Secretary 
     of Housing and Urban Development, of the procedures for 
     delivery of services to rental units.
       (2) Adjustment.--The Secretary may allocate technical 
     assistance funding to assist States that, as determined by 
     the Secretary--
       (A) have not sufficiently benefitted from the Home Star 
     Retrofit Rebate Program; or
       (B) in which rental units have not been adequately served.
       (j) Return of Undisbursed Funds.--
       (1) Silver star home energy retrofit program.--If the 
     Secretary has not disbursed all the funds available for 
     rebates under the Silver Star Home Energy Retrofit Program by 
     the date that is 1 year after the date of enactment of this 
     Act, any undisbursed funds shall be made available to the 
     Gold Star Home Energy Retrofit Program.
       (2) Gold star home energy retrofit program.--If the 
     Secretary has not disbursed all the funds available for 
     rebates under the Gold Star Home Energy Retrofit Program by 
     the date that is 2 years after the date of enactment of this 
     Act, any undisbursed funds shall be returned to the Treasury.
       (k) Financing.--Of the amounts allocated to the States 
     under subsection (b), not less than $200,000,000 shall be 
     used to carry out the financing provisions of this title in 
     accordance with section 114.

       TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS

     SEC. 201. PERFORMANCE BASED ENERGY IMPROVEMENTS FOR 
                   NONBUSINESS PROPERTY.

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

     ``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 50 percent of 
     the amount of qualified home energy efficiency expenditures 
     paid or incurred by the taxpayer during the taxable year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--
       ``(A) In general.--The amount of the credit allowed under 
     subsection (a) with respect to any individual for any taxable 
     year shall not exceed the amount determined under 
     subparagraph (B) with respect to the principal residence of 
     such individual.
       ``(B) Amount determined.--
       ``(i) In general.--Subject to clause (iv), the amount 
     determined under this subparagraph is the base amount 
     increased by the amount determined under clause (iii).
       ``(ii) Base amount.--For purposes of this subparagraph, the 
     base amount is--

       ``(I) $3,000, in the case of a residence the construction 
     of which is completed before January 1, 2000, and
       ``(II) $2,000, in the case of a residence the construction 
     of which is completed after December 31, 1999.

       ``(iii) Increase amount.--The amount determined under this 
     clause is--

       ``(I) in the case of a residence described in clause 
     (ii)(I) which has a rating system score equal to the rating 
     system score which corresponds to the IECC Standard Reference 
     Design for a home of the size and in the climate zone of such 
     residence, $1,000, and
       ``(II) in the case of any residence with a rating system 
     score which is lower than that which corresponds to such IECC 
     Standard Reference Design by not less than 5 points, $500 for 
     each 5 points by which the rating system score which 
     corresponds to such IECC Standard Reference Design exceeds 
     the rating system score of such residence (in addition to the 
     amount provided under clause (i), if applicable).

       ``(iv) Limitation.--In no event shall the amount determined 
     under this subparagraph exceed $8,000 with respect to any 
     individual.
       ``(2) Limitation based on amount of tax.--In the case of 
     taxable years to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section and sections 23, 24, and 25B) and 
     section 27 for the taxable year.
       ``(c) Qualified Home Energy Efficiency Expenditures.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified home energy 
     efficiency expenditures' means any amount paid or incurred 
     for a qualified whole home energy efficiency retrofit, 
     including the cost of audit diagnostic procedures, of a 
     principal residence of the taxpayer which is located in the 
     United States.
       ``(2) Qualified whole home energy efficiency retrofit.--
       ``(A) In general.--The term `qualified whole home energy 
     efficiency retrofit' means a retrofit of an existing 
     residence if, after such retrofit, such residence--
       ``(i) has a rating system score of not greater than--

       ``(I) 100, determined under the HERS Index, in the case of 
     a residence the construction of which is completed before 
     January 1, 2000, and
       ``(II) the rating system score which corresponds to the 
     IECC Standard Reference Design for a home of the size and in 
     the climate zone of such residence, in the case of a 
     residence the construction of which is completed after 
     December 31, 1999, or

       ``(ii) achieves a degree of energy efficiency improvement 
     which is equivalent to the standard applicable to such 
     residence under clause (i), as determined by the Secretary.

     For purposes of the preceding sentence, the HERS Index is the 
     HERS Index established by the Residential Energy Services 
     Network, as in effect on January 1, 2011.
       ``(B) Accreditation rule.--A retrofit shall not be treated 
     as a qualified whole home energy efficiency retrofit unless 
     such retrofit is conducted by a company which is accredited 
     by the Building Performance Institute, or which fulfills an 
     equivalent standard as determined by the Secretary.
       ``(C) Determination of rating system score or equivalent.--

[[Page 9789]]

       ``(i) In general.--Subject to clause (ii), the rating 
     system score of a residence, or the equivalent described in 
     subparagraph (A)(ii), shall be determined by an auditor or 
     rater certified by the Residential Energy Services Network or 
     the Building Performance Institute.
       ``(ii) Secretarial determination.--At the discretion of the 
     Secretary, the Secretary may, in consultation with the 
     Secretary of Energy, determine an alternative standard for 
     certification of an auditor or rater for purposes of 
     determining the rating system score (or equivalent described 
     in subparagraph (A)(ii)) of a residence. If the Secretary 
     establishes such an alternative standard, clause (i) shall 
     cease to apply unless the Secretary determines otherwise.
       ``(D) Regulations.--Not later than December 31, 2011, in 
     consultation with the Secretary, the Secretary of Energy 
     shall prescribe regulations which specify the costs with 
     respect to energy improvements which may be taken into 
     account under this paragraph as part of a qualified whole 
     home energy efficiency retrofit.
       ``(3) No double benefit.--
       ``(A) In general.--No credit shall be allowed under this 
     section for any taxable year in which the taxpayer elects the 
     credit under section 25C.
       ``(B) No double benefit for certain expenditures.--The term 
     `qualified home energy efficiency expenditures' shall not 
     include any expenditure for which a deduction or credit is 
     otherwise allowed to the taxpayer under this chapter for the 
     taxable year or with respect to which the taxpayer receives 
     any Federal rebate.
       ``(4) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121, except 
     that--
       ``(A) no ownership requirement shall be imposed, and
       ``(B) the period for which a building is treated as used as 
     a principal residence shall also include the 60-day period 
     ending on the 1st day on which it would (but for this 
     subparagraph) first be treated as used as a principal 
     residence.
       ``(d) Rating System Score.--For purposes of this section--
       ``(1) In general.--Subject to paragraph (2), the rating 
     system score shall be the score assigned under the HERS Index 
     established by the Residential Energy Services Network.
       ``(2) Secretarial determination.--At the discretion of the 
     Secretary, the Secretary may, in consultation with the 
     Secretary of Energy, determine an alternative rating system 
     (including an alternative system based on the HERS Index 
     established by the Residential Energy Services Network). If 
     the Secretary establishes such an alternative rating system, 
     the rating system score with respect to any residence shall 
     be the score assigned under such alternative rating system.
       ``(e) IECC Standard Reference Design.--
       ``(1) In general.--The term `IECC Standard Reference 
     Design' means the Standard Reference Design determined under 
     the International Energy Conservation Code in effect for the 
     taxable year in which the credit under this section is 
     determined.
       ``(2) Limitation to residences constructed after effective 
     date of most recent code.--No credit shall be allowed under 
     this section with respect to a principal residence the 
     construction of which is completed after the effective date 
     of the International Energy Conservation Code in effect for 
     the taxable year for which such credit would otherwise be 
     determined.
       ``(f) Special Rules.--For purposes of this section, rules 
     similar to the rules under paragraphs (4), (5), (6), (7), and 
     (8) of section 25D(e) and section 25C(e)(2) shall apply.
       ``(g) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this subsection) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(h) Election Not To Claim Credit.--This section shall not 
     apply to a taxpayer for any taxable year if such taxpayer 
     elects to have this section not apply for such taxable year.
       ``(i) Termination.--This section shall not apply with 
     respect to any costs paid or incurred after December 31, 
     2013.''.
       (b) Conforming Amendments.--
       (1) Section 26(a)(1) of the Internal Revenue Code of 1986 
     is amended by inserting ``25E,'' after ``25D''.
       (2) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (36), by striking the period 
     at the end of paragraph (37) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(38) to the extent provided in section 25E(g).''.
       (3) Section 6501(m) of such Code is amended by inserting 
     ``25E(h),'' after ``section''.
       (4) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 of such Code is amended by inserting 
     after the item relating to section 25D the following new 
     item:

``Sec. 25E. Performance based energy improvements.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2010.
                                 ______
                                 
      By Mr. REID. (for himself, Mr. Ensign, Mr. Harkin, Mr. Tester, 
        Mr. Bennet, and Ms. Klobuchar):
  S. 3438. A bill to promote clean energy infrastructure for rural 
communities; to the Committee on Finance.
  Mr. REID. Mr. President, in 1935, President Franklin Delano Roosevelt 
signed the Rural Electrification Act to bring electricity to the 
sparsely-populated rural areas of our vast Nation. Today, with advances 
in renewable energy from the sun, the wind, water, and geothermal 
energy beneath the Earth's surface, our rural communities are ready to 
produce clean, renewable electricity and sell it to cities and towns. 
Just as our national highway system grew out of the network of farm 
roads to bring agricultural products to market, our electric 
transmission system needs connections to rural areas to bring our 
abundant rural renewable energy resources to load centers. For example, 
Nye and Lincoln counties in Nevada have the potential to generate more 
solar and wind energy than their small populations can use. Without 
transmission to connect these rural areas to load centers, they cannot 
fully develop their local renewable energy industry and are losing out 
on important opportunities to create jobs and diversify their 
economies.
  That is why I am introducing two bills today to give rural 
communities more options to finance the clean energy infrastructure we 
need to develop our rich renewable resources. These two bills would 
help rural communities fund clean energy infrastructure, which will 
create many short and long term jobs and attract badly needed 
investment in rural Nevada's struggling economy. While Nevada is in an 
especially good position to benefit from this bill, I am pleased to be 
joined by Senators Ensign, Harkin, Tester, Michael Bennet, and 
Klobuchar whose states also have renewable energy resources stranded by 
a lack of transmission.
  Existing government loan and tax-exempt bond programs are available 
to finance rural renewable generation, but not to finance the 
connections between that generation and the high-voltage transmission 
system that carries electricity to load centers. These proposed bills 
would provide three ways to finance important transmission for rural 
renewable generators--through the USDA Rural Utilities Service, through 
modifications to the Clean Renewable Energy Bond, CREB, program, and 
through modifications to the Exempt Facility Bonds program.
  As we have seen with the electric and telephone infrastructure 
financed by the USDA Rural Utilities Service since 1935, energy 
infrastructure is crucial to economic development for rural 
communities. Natural gas pipelines crisscross rural communities, but 
small towns near these pipelines lack natural gas today. Some of these 
towns, including some in Nevada, have plans for natural gas 
distribution systems and local economic development that depend on 
access to natural gas. Federal programs to provide loans, loan 
guarantees, or tax-exempt bonds do not fit these plans.
  The USDA does not currently finance these types of projects. My bill 
would allow the USDA to finance natural gas systems to connect rural 
communities to natural gas pipelines. Access to natural gas will 
provide these communities with a clean, efficient energy source, and 
encourage economic development.
  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. 3438

       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 ``Clean Transmission for Rural 
     Communities Act of 2010''.

     SEC. 2. TRANSMISSION FOR RENEWABLES.

       (a) Clarification of Qualified Facilities for Clean 
     Renewable Energy Bonds.--
       (1) In general.--Section 54C(d)(1) of the Internal Revenue 
     Code of 1986 is amended by

[[Page 9790]]

     inserting ``, or a facility primarily for the purpose of 
     interconnecting one or more such qualified facilities to a 
     high-voltage transmission line'' after ``electric company''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to bonds issued after the date of enactment of 
     this Act.
       (b) Tax-exempt Financing of Certain Electric Transmission 
     Facilities.--
       (1) In general.--Subsection (a) of section 142 of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``or'' at the end of paragraph (14),
       (B) by striking the period at the end of paragraph (15) and 
     inserting ``, or'', and
       (C) by adding at the end the following new paragraph:
       ``(16) qualified electric transmission facilities.''.
       (2) Definition.--Section 142 of such Code is amended by 
     adding at the end the following new subsection:
       ``(n) Qualified Electric Transmission Facilities.--
       ``(1) In general.--For purposes of subsection (a)(16), the 
     term `qualified electric transmission facility' means any 
     electric transmission facility which is--
       ``(A) owned by--
       ``(i) a State or political subdivision of a State, or any 
     agency, authority, or instrumentality of any of the 
     foregoing, providing electric service, directly or indirectly 
     to the public, or
       ``(ii) a State or political subdivision of a State 
     expressly authorized under State law to finance and own 
     electric transmission facilities; and
       ``(B) primarily for the purpose of interconnecting one or 
     more renewable energy facilities to a high-voltage 
     transmission line.
       ``(2) Termination.--Subsection (a)(16) shall not apply with 
     respect to any bond issued after December 31, 2011.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to bonds issued after the date of enactment of 
     this Act.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Ensign, Mr. Harkin, Mr. Tester, Mr. 
        Bennet, and Ms. Klobuchar):
  S. 3439. A bill to promote clean energy infrastructure for rural 
communities; to the Committee on Agriculture, Nutrition, and Forestry.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3439

       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 ``Clean Energy Infrastructure 
     for Rural Communities Act of 2010''.

     SEC. 2. ELECTRIC LOANS FOR RENEWABLE ENERGY.

       Section 317 of the Rural Electrification Act of 1936 (7 
     U.S.C. 940g) is amended--
       (1) in subsection (b)--
       (A) by striking ``for electric generation'' and inserting 
     ``for--
       ``(1) electric generation'';
       (B) by striking the period at the end and inserting``; 
     and''; and
       (C) by adding at the end the following:
       ``(2) transmission facilities primarily for the purpose of 
     interconnecting one or more renewable energy facilities to a 
     high-voltage transmission line.''; and
       (2) by striking subsection (c).

     SEC. 3. RURAL NATURAL GAS INFRASTRUCTURE.

       Section 310B(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(a)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Natural gas.--The term `natural gas' means --
       ``(i) unmixed natural gas; or
       ``(ii) any mixture of natural and artificial gas.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (C) by inserting after subparagraph (C) the following:
       ``(D) improving the economic and environmental climate by 
     encouraging the development and construction of 
     infrastructure to provide access to natural gas in rural 
     communities; and''.
                                 ______
                                 
      By Mr. GRASSLEY:
  S. 3440. A bill to amend the Internal Revenue Code of 1986 to extend 
the incentives for biodiesel and renewable diesel; to the Committee on 
Finance.
  Mr. GRASSLEY. 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. 3440

       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 ``Emergency Biodiesel Tax 
     Incentive Extension Act of 2010''.

     SEC. 2. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A of the Internal Revenue 
     Code of 1986 is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) of the Internal 
     Revenue Code of 1986 is amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2010''.
       (2) Subparagraph (B) of section 6427(e)(6) of the Internal 
     Revenue Code of 1986 is amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.
                                 ______
                                 
      By Mr. DURBIN (himself and Mr. Gregg):
  S. 3441. A bill to provide high-quality public charter school options 
for students by enabling such public charter schools to expand and 
replicate; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, I rise today to introduce legislation 
designed to improve educational opportunities for struggling students. 
The All Students Achieving Through Reform Act, or All-STAR Act, would 
provide Federal resources to the most successful charter schools to 
help them grow and replicate.
  Last week, I visited the KIPP Ascend Charter School in Chicago. You 
might have heard of the KIPP charter schools. The first KIPP school was 
founded in Texas by two Teach for America teachers. Mike Feinberg and 
Dave Levin wanted to start a school that would inspire high achievement 
for students living in disadvantaged communities. The 82 KIPP schools 
nationwide focus on high expectations, an intense academic curriculum, 
expanded school days and years, parental involvement, and high quality 
teachers. The results are impressive. While less than one in five low-
income students attends college nationally, KIPP's college 
matriculation rate stands at more than 85 percent for students who 
complete the 8th grade at KIPP. More than 90 percent of KIPP alumni go 
on to college-preparatory high schools. Collectively, they have earned 
millions of dollars in scholarships and financial aid since 2000.
  I saw this success when I visited Chicago's KIPP school. Students at 
KIPP Ascend are actively engaged in learning and their teachers are 
energetic and inspiring. The students there are outscoring their peers 
in other Chicago Public Schools, and 100 percent of the 8th graders who 
have graduated from KIPP Ascend have been accepted to college-
preparatory high schools.
  Right now there is only one KIPP school in Chicago, but there should 
be more. The bill I am introducing today with Senator Gregg would help 
make that possible. Currently, federal funding for charter schools can 
only be used to create new schools, not expand or replicate existing 
schools. My bill would create new grants within the existing charter 
school program to fund the expansion and replication of the most 
successful charter schools. Schools in Chicago, like KIPP and Noble 
Street, that have achieved amazing results with their students will be 
able to apply for federal grants to expand their schools to additional 
grades or replicate the model to a new school. Successful charters 
across the country will be able to grow more easily, providing better 
educational opportunities to thousands of students.
  The bill also incentivizes the adoption of strong charter school 
policies by states. We know that successful charter schools thrive when 
they have autonomy, freedom to grow, and strong accountability based on 
meeting performance targets. The bill would give grant priority to 
States that provide

[[Page 9791]]

that environment. The bill also requires new levels of charter school 
authorizer reporting and accountability to ensure that good charter 
schools are able to succeed while bad charter schools are improved or 
shut down.
  This bill will improve educational opportunities for students across 
the Nation. Charter schools represent some of the brightest spots in 
urban education today, and successful models have the full support of 
the President and Secretary Duncan. We need to help these schools grow 
and bring their best lessons into our regular public schools so that 
all students can benefit. This bill has the support of more than 25 
education organizations including some of the Nation's highest 
performing charter networks like KIPP and Green Dot. Supporting the 
growth of successful charter schools should be a part of the 
conversation when we take up reauthorization of the Elementary and 
Secondary Education Act. I thank Senator Gregg and Representative Polis 
in the House for joining me in this effort.
  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. 3441

       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 ``All Students Achieving 
     through Reform Act of 2010'' or ``All-STAR Act of 2010''.

     SEC. 2. CHARTER SCHOOL EXPANSION AND REPLICATION.

       (a) In General.--Subpart 1 of part B of title V of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7221 et seq.) is amended--
       (1) by striking section 5212;
       (2) by redesignating section 5210 as section 5211; and
       (3) by inserting after section 5209 the following:

     ``SEC. 5210. CHARTER SCHOOL EXPANSION AND REPLICATION.

       ``(a) Purpose.--It is the purpose of this section to 
     support State efforts to expand and replicate high-quality 
     public charter schools to enable such schools to serve 
     additional students, with a priority to serve those students 
     who attend identified schools or schools with a low 
     graduation rate.
       ``(b) Support for Proven Charter Schools and Increasing the 
     Supply of High-quality Charter Schools.--
       ``(1) Grants authorized.--From the amounts appropriated 
     under section 5200 for any fiscal year, the Secretary shall 
     award grants, on a competitive basis, to eligible entities to 
     enable the eligible entities to make subgrants to eligible 
     public charter schools under subsection (e)(1) and carry out 
     the other activities described in subsection (e), in order to 
     allow the eligible public charter schools to serve additional 
     students through the expansion and replication of such 
     schools.
       ``(2) Amount of grants.--In determining the grant amount to 
     be awarded under this subsection to an eligible entity, the 
     Secretary shall consider--
       ``(A) the number of eligible public charter schools under 
     the jurisdiction or in the service area of the eligible 
     entity that are operating;
       ``(B) the number of openings for new students that could be 
     created in such schools with such grant;
       ``(C) the number of students eligible for free or reduced 
     price lunches under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.) who are on waiting lists 
     for charter schools under the jurisdiction or in the service 
     area of the eligible entity, and other information with 
     respect to charter schools in such jurisdiction or the 
     service area that suggest the interest of parents in charter 
     school enrollment for their children;
       ``(D) the number of students attending identified schools 
     or schools with a low graduation rate in the State or area 
     where an eligible entity intends to replicate or expand 
     eligible public charter schools; and
       ``(E) the success of the eligible entity in overseeing 
     public charter schools and the likelihood of continued or 
     increased success because of the grant under this section.
       ``(3) Duration of grants.--A grant under this section shall 
     be for a period of not more than 5 years, except that an 
     eligible entity receiving such grant may, at the discretion 
     of the Secretary, continue to expend grant funds after the 
     end of the grant period.
       ``(c) Application Requirements.--
       ``(1) Application requirements.--To be considered for a 
     grant under this section, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(2) Contents.--The application described in paragraph (1) 
     shall include, at a minimum, the following:
       ``(A) Record of success.--Documentation of the record of 
     success of the eligible entity in overseeing or operating 
     public charter schools, including--
       ``(i) the performance of public charter school students on 
     the academic assessments described in section 1111(b)(3) of 
     the State where such schools are located, disaggregated by--

       ``(I) economic disadvantage;
       ``(II) race and ethnicity;
       ``(III) disability status; and
       ``(IV) status as a student with limited English 
     proficiency;

       ``(ii) the status of such schools under section 1116 in 
     making adequate yearly progress or as identified schools; and
       ``(iii) in the case of public charter schools that are 
     secondary schools, the graduation rates and rates of college 
     acceptance, enrollment, and persistence of students, where 
     possible.
       ``(B) Plan.--A plan for--
       ``(i) replicating and expanding eligible public charter 
     schools operated or overseen by the eligible entity;
       ``(ii) identifying eligible public charter schools, or 
     networks of eligible public charter schools, to receive 
     subgrants under this section;
       ``(iii) increasing the number of openings in eligible 
     public charter schools for students attending identified 
     schools and schools with a low graduation rate;
       ``(iv) ensuring that eligible public charter schools 
     receiving a subgrant under this section enroll students 
     through a random lottery for admission, unless the charter 
     school is using the subgrant to expand the school to serve 
     additional grades, in which case such school may reserve 
     seats in the additional grades for--

       ``(I) each student enrolled in the grade preceding each 
     such additional grade;
       ``(II) siblings of students enrolled in the charter school, 
     if such siblings desire to enroll in such grade; and
       ``(III) children of the charter school's founders, staff, 
     or employees;

       ``(v)(I) in the case of an eligible entity described in 
     subparagraph (A) or (C) of subsection (k)(4), the manner in 
     which the eligible entity will work with identified schools 
     and schools with a low graduation rate that are eligible to 
     enroll students in a public charter school receiving a 
     subgrant under this section and that are under the eligible 
     entity's jurisdiction, and the local educational agencies 
     serving such schools, to--

       ``(aa) engage in community outreach, provide information in 
     a language that the parents can understand, and communicate 
     with parents of students at identified schools and schools 
     with a low graduation rate who are eligible to attend a 
     public charter school receiving a subgrant under this section 
     about the opportunity to enroll in or transfer to such 
     school, in a manner consistent with section 444 of the 
     General Education Provisions Act (commonly known as the 
     `Family Educational Rights and Privacy Act of 1974'); and
       ``(bb) ensure that a student can transfer to an eligible 
     public charter school if the public charter school such 
     student was attending in the previous school year is no 
     longer an eligible public charter school; and

       ``(II) in the case of an eligible entity described in 
     subparagraph (B) or (D) of subsection (k)(4), the manner in 
     which the eligible entity will work with the local 
     educational agency to carry out the activities described in 
     items (aa) and (bb) of subclause (I); and
       ``(vi) disseminating to public schools under the 
     jurisdiction or in the service area of the eligible entity, 
     in a manner consistent with section 444 of the General 
     Education Provisions Act (commonly known as the `Family 
     Educational Rights and Privacy Act of 1974'), the best 
     practices, programs, or strategies learned by awarding 
     subgrants to eligible public charter schools under this 
     section, with particular emphasis on the best practices with 
     respect to--

       ``(I) focusing on closing the achievement gap; or
       ``(II) successfully addressing the education needs of low-
     income students.

       ``(C) Charter school information.--The number of--
       ``(i) eligible public charter schools that are operating in 
     the State in which the eligible entity intends to award 
     subgrants under this section;
       ``(ii) public charter schools approved to open or likely to 
     open during the grant period in such State;
       ``(iii) available openings in eligible public charter 
     schools in such State that could be created through the 
     replication or expansion of such schools if the grant is 
     awarded to the eligible entity;
       ``(iv) students on public charter school waiting lists (if 
     such lists are available) in--

       ``(I) the State in which the eligible entity intends to 
     award subgrants under this section; and
       ``(II) each local educational agency serving an eligible 
     public charter school that may receive a subgrant under this 
     section from the eligible entity; and

       ``(v) students, and the percentage of students, in a local 
     educational agency who are attending eligible public charter 
     schools that may receive a subgrant under this section from 
     the eligible entity.

[[Page 9792]]

       ``(D) Traditional public school information.--In the case 
     of an eligible entity that is a State educational agency or 
     local educational agency, a list of the following schools 
     under the jurisdiction of the eligible entity, including the 
     name and location of each such school, the number and 
     percentage of students under the jurisdiction of the eligible 
     entity who are attending such school, and such demographic 
     and socioeconomic information as the Secretary may require:
       ``(i) Identified schools.
       ``(ii) Schools with a low graduation rate.
       ``(E) Assurance.--In the case of an eligible entity 
     described in subsection (k)(4)(A), an assurance that the 
     eligible entity will include in the notifications provided 
     under section 1116(c)(6) to parents of each student enrolled 
     in a school served by a local educational agency identified 
     for school improvement or corrective action under paragraph 
     (1) or (7) of section 1116(c), information (in a language 
     that the parents can understand) about the eligible public 
     charter schools receiving subgrants under this section.
       ``(d) Priorities for Awarding Grants.--
       ``(1) In general.--In awarding grants under this section, 
     the Secretary shall give priority to an eligible entity 
     that--
       ``(A) serves or plans to serve a large percentage of low-
     income students from identified schools or public schools 
     with a low graduation rate;
       ``(B) oversees or plans to oversee one or more eligible 
     public charter schools;
       ``(C) provides evidence of effective monitoring of the 
     academic success of students who attend public charter 
     schools under the jurisdiction of the eligible entity;
       ``(D) in the case of an eligible entity that is a local 
     educational agency under State law, has a cooperative 
     agreement under section 1116(b)(11); and
       ``(E) is under the jurisdiction of, or plans to award 
     subgrants under this section in, a State that--
       ``(i) ensures that all public charter schools (including 
     such schools served by a local educational agency and such 
     schools considered to be a local educational agency under 
     State law) receive, in a timely manner, the Federal, State, 
     and local funds to which such schools are entitled under 
     applicable law;
       ``(ii) does not have a cap that restricts the growth of 
     public charter schools in the State;
       ``(iii) provides funding (such as capital aid distributed 
     through a formula or access to revenue generated bonds, and 
     including funding for school facilities) on a per-pupil basis 
     to public charter schools commensurate with the amount of 
     funding (including funding for school facilities) provided to 
     traditional public schools;
       ``(iv) provides strong evidence of support for public 
     charter schools and has in place innovative policies that 
     support academically successful charter school growth;
       ``(v) authorizes public charter schools to offer early 
     childhood education programs, including prekindergarten, in 
     accordance with State law;
       ``(vi) ensures that each public charter school in the 
     State--

       ``(I) has a high degree of autonomy over the public charter 
     school's budget and expenditures;
       ``(II) has a written performance contract with an 
     authorized public chartering agency that ensures that the 
     school has an independent governing board with a high degree 
     of autonomy; and
       ``(III) in the case of an eligible public charter school 
     receiving a subgrant under this section, amends its charter 
     to reflect the growth activities described in subsection (e);

       ``(vii) has an appeals process for the denial of an 
     application for a charter school;
       ``(viii) provides that an authorized public chartering 
     agency that is not a local educational agency, such as a 
     State chartering board, is available for each individual or 
     entity seeking to operate a charter school pursuant to such 
     State law;
       ``(ix) allows any public charter school to be a local 
     educational agency in accordance with State law;
       ``(x) ensures that each authorized public chartering agency 
     in the State submits annual reports to the State educational 
     agency, and makes such reports available to the public, on 
     the performance of the schools authorized or approved by such 
     public chartering agency, which reports shall include--

       ``(I) the authorized public chartering agency's strategic 
     plan for authorizing or approving public charter schools and 
     any progress toward achieving the objectives of the strategic 
     plan;
       ``(II) the authorized public chartering agency's policies 
     for authorizing or approving public charter schools, 
     including how such policies examine a school's--

       ``(aa) financial plan and policies, including financial 
     controls and audit requirements;
       ``(bb) plan for identifying and successfully (in compliance 
     with all applicable laws and regulations) serving students 
     with disabilities, students who are English language 
     learners, students who are academically behind their peers, 
     and gifted students; and
       ``(cc) capacity and capability to successfully launch and 
     subsequently operate a public charter school, including the 
     backgrounds of the individuals applying to the agency to 
     operate such school and any record of such individuals 
     operating a school;

       ``(III) the authorized public chartering agency's policies 
     for renewing, not renewing, and revoking a charter school's 
     charter, including the role of student academic achievement 
     in such decisions;
       ``(IV) the authorized public chartering agency's 
     transparent, timely, and effective process for closing down 
     academically unsuccessful public charter schools;
       ``(V) the academic performance of each operating public 
     charter school authorized or approved by the authorized 
     public chartering agency, including the information reported 
     by the State in the State annual report card under section 
     1111(h)(1)(C) for such school;
       ``(VI) the status of the authorized public chartering 
     agency's charter school portfolio, by identifying all charter 
     schools served by the public chartering agency in each of the 
     following categories: approved (but not yet open), operating, 
     renewed, transferred, revoked, not renewed, voluntarily 
     closed, or never opened;
       ``(VII) the authorizing functions (such as approval, 
     monitoring, and oversight) performed by the authorized public 
     chartering agency to the public charter schools authorized or 
     approved by such agency, including an itemized accounting of 
     the actual costs of such functions; and
       ``(VIII) the services purchased (such as accounting, 
     transportation, and data management and analysis) from the 
     authorized public chartering agency by the public charter 
     schools authorized or approved by such agency, including an 
     itemized accounting of the actual costs of such services; and

       ``(xi) has or will have (within 1 year after receiving a 
     grant under this section) a State policy and process for 
     overseeing and reviewing the effectiveness and quality of the 
     State's authorized public chartering agencies, including--

       ``(I) a process for reviewing and evaluating the 
     performance of the authorized public chartering agencies in 
     authorizing or approving charter schools, including a process 
     that enables the authorized public chartering agencies to 
     respond to any State concerns; and
       ``(II) any other necessary policies to ensure effective 
     charter school authorizing in the State in accordance with 
     the principles of quality charter school authorizing, as 
     determined by the State in consultation with the charter 
     school community and stakeholders.

       ``(2) Special rule.--In awarding grants under this section, 
     the Secretary may determine how the priorities described in 
     paragraph (1) will apply to the different types of eligible 
     entities defined in subsection (k)(4).
       ``(e) Use of Funds.--An eligible entity receiving a grant 
     under this section shall use the grant funds for the 
     following:
       ``(1) Subgrants.--
       ``(A) In general.--To award subgrants, in such amount as 
     the eligible entity determines is appropriate, to eligible 
     public charter schools to replicate or expand such schools.
       ``(B) Application.--An eligible public charter school 
     desiring to receive a subgrant under this subsection shall 
     submit an application to the eligible entity at such time, in 
     such manner, and containing such information as the eligible 
     entity may require.
       ``(C) Uses of funds.--An eligible public charter school 
     receiving a subgrant under this subsection shall use the 
     subgrant funds to provide for an increase in the school's 
     enrollment of students through the replication or expansion 
     of the school, which may include use of funds to--
       ``(i) support the physical expansion of school buildings, 
     including financing the development of new buildings and 
     campuses to meet increased enrollment needs;
       ``(ii) pay costs associated with hiring additional teachers 
     to serve additional students;
       ``(iii) provide transportation to additional students to 
     and from the school, including providing transportation to 
     students who transfer to the school under a cooperative 
     agreement established under section 1116(b)(11);
       ``(iv) purchase instructional materials, implement teacher 
     and principal professional development programs, and hire 
     additional non-teaching staff; and
       ``(v) support any necessary activities associated with the 
     school carrying out the purposes of this section.
       ``(D) Priority.--In awarding subgrants under this 
     subsection, an eligible entity shall give priority to an 
     eligible public charter school--
       ``(i) that has significantly closed any achievement gap on 
     the State academic assessments described in section 
     1111(b)(3) among the groups of students described in section 
     1111(b)(2)(C)(v) by improving scores;
       ``(ii) that--

       ``(I)(aa) ranks in at least the top 25th percentile of the 
     schools in the State, as ranked by the percentage of students 
     in the proficient or advanced level of achievement on the 
     State academic assessments in mathematics and reading or 
     language arts described in section 1111(b)(3); or
       ``(bb) has an average student score on an examination 
     (chosen by the Secretary) that is at least in the 60th 
     percentile in reading and at least in the 75th percentile in 
     mathematics; and
       ``(II) serves a high-need student population and is 
     eligible to participate in a schoolwide

[[Page 9793]]

     program under section 1114, with additional priority given to 
     schools that serve, as compared to other schools that have 
     submitted an application under this subsection--

       ``(aa) a greater percentage of low-income students; and
       ``(bb) a greater percentage of not less than 2 groups of 
     students described in section 1111(b)(2)(C)(v)(II); and
       ``(iii) that meets the criteria described in clause (i) and 
     serves low-income students who have transferred to such 
     school under a cooperative agreement described in section 
     1116(b)(11).
       ``(E) Duration of subgrant.--A subgrant under this 
     subsection shall be awarded for a period of not more than 5 
     years, except that an eligible public charter school 
     receiving a subgrant under this subsection may, at the 
     discretion of the eligible entity, continue to expend 
     subgrant funds after the end of the subgrant period.
       ``(2) Facility financing and revolving loan fund.--An 
     eligible entity may use not more than 25 percent of the 
     amount of the grant funds received under this section to 
     establish a reserve account described in subsection (f) to 
     facilitate public charter school facility acquisition and 
     development by--
       ``(A) conducting credit enhancement initiatives (as 
     referred to in subpart 2) in support of the development of 
     facilities for eligible public charter schools serving 
     students;
       ``(B) establishing a revolving loan fund for use by an 
     eligible public charter school receiving a subgrant under 
     this subsection from the eligible entity under such terms as 
     may be determined by the eligible entity to allow such school 
     to expand to serve additional students;
       ``(C) facilitating, through direct expenditure or 
     financing, the acquisition or development of public charter 
     school buildings by the eligible entity or an eligible public 
     charter school receiving a subgrant under this subsection 
     from the eligible entity, which may be used as both permanent 
     locations for eligible public charter schools or incubators 
     for growing charter schools; or
       ``(D) establishing a partnership with 1 or more community 
     development financial institutions (as defined in section 103 
     of the Community Development Banking and Financial 
     Institutions Act of 1994 (12 U.S.C. 4702)) or other mission-
     based financial institutions to carry out the activities 
     described in subparagraphs (A), (B), and (C).
       ``(3) Administrative tasks, dissemination activities, and 
     outreach.--
       ``(A) In general.--An eligible entity may use not more than 
     7.5 percent of the grant funds awarded under this section to 
     cover administrative tasks, dissemination activities, and 
     outreach.
       ``(B) Nonprofit assistance.--In carrying out the 
     administrative tasks, dissemination activities, and outreach 
     described in subparagraph (A), an eligible entity may 
     contract with an organization described in section 501(c)(3) 
     of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) 
     and exempt from tax under section 501(a) of such Code (26 
     U.S.C. 501(a)).
       ``(f) Reserve Account.--
       ``(1) In general.--To assist eligible entities in the 
     development of new public charter school buildings or 
     facilities for eligible public charter schools, an eligible 
     entity receiving a grant under this section may, in 
     accordance with State and local law, directly or indirectly, 
     alone or in collaboration with others, deposit the amount of 
     funds described in subsection (e)(2) in a reserve account 
     established and maintained by the eligible entity.
       ``(2) Investment.--Funds received under this section and 
     deposited in the reserve account established under this 
     subsection shall be invested in obligations issued or 
     guaranteed by the United States or a State, or in other 
     similarly low-risk securities.
       ``(3) Reinvestment of earnings.--Any earnings on funds 
     received under this subsection shall be deposited in the 
     reserve account established under this section and used in 
     accordance with the purpose described in subsection (a).
       ``(4) Recovery of funds.--
       ``(A) In general.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(i) all funds in a reserve account established by an 
     eligible entity under this subsection if the Secretary 
     determines, not earlier than 2 years after the date the 
     eligible entity first received funds under this section, that 
     the eligible entity has failed to make substantial progress 
     carrying out the purpose described in paragraph (1); or
       ``(ii) all or a portion of the funds in a reserve account 
     established by an eligible entity under this subsection if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of funds in such 
     account to accomplish the purpose described in paragraph (1).
       ``(B) Exercise of authority.--The Secretary shall not 
     exercise the authority provided under subparagraph (A) to 
     collect from any eligible entity any funds that are being 
     properly used to achieve such purpose.
       ``(C) Procedures.--Sections 451, 452, and 458 of the 
     General Education Provisions Act shall apply to the recovery 
     of funds under subparagraph (A).
       ``(D) Construction.--This paragraph shall not be construed 
     to impair or affect the authority of the Secretary to recover 
     funds under part D of the General Education Provisions Act.
       ``(5) Reallocation.--Any funds collected by the Secretary 
     under paragraph (4) shall be awarded to eligible entities 
     receiving grants under this section in the next fiscal year.
       ``(g) Financial Responsibility.--The financial records of 
     each eligible entity and eligible public charter school 
     receiving a grant or subgrant, respectively, under this 
     section shall be maintained in accordance with generally 
     accepted accounting principles and shall be subject to an 
     annual audit by an independent public accountant.
       ``(h) National Evaluation.--
       ``(1) National evaluation.--From the amounts appropriated 
     under section 5200, the Secretary shall conduct an 
     independent, comprehensive, and scientifically sound 
     evaluation, by grant or contract and using the highest 
     quality research design available, of the impact of the 
     activities carried out under this section on--
       ``(A) student achievement; and
       ``(B) other areas, as determined by the Secretary.
       ``(2) Report.--Not later than 4 years after the date of the 
     enactment of the All Students Achieving through Reform Act of 
     2010, and biannually thereafter, the Secretary shall submit 
     to Congress a report on the results of the evaluation 
     described in paragraph (1).
       ``(i) Reports.--Each eligible entity receiving a grant 
     under this section shall prepare and submit to the Secretary 
     the following:
       ``(1) Report.--A report that contains such information as 
     the Secretary may require concerning use of the grant funds 
     by the eligible entity, including the academic achievement of 
     the students attending eligible public charter schools as a 
     result of the grant. Such report shall be submitted before 
     the end of the 4-year period beginning on the date of 
     enactment of the All Students Achieving through Reform Act of 
     2010 and every 2 years thereafter.
       ``(2) Performance information.--Such performance 
     information as the Secretary may require for the national 
     evaluation conducted under subsection (h)(1).
       ``(j) Inapplicability.--The provisions of sections 5201 
     through 5209 shall not apply to the program under this 
     section.
       ``(k) Definitions.--In this section:
       ``(1) Adequate yearly progress.--The term `adequate yearly 
     progress' has the meaning given such term in a State's plan 
     in accordance with section 1111(b)(2)(C).
       ``(2) Administrative tasks, dissemination activities, and 
     outreach.--The term `administrative tasks, dissemination 
     activities, and outreach' includes costs and activities 
     associated with--
       ``(A) recruiting and selecting students to attend eligible 
     public charter schools;
       ``(B) outreach to parents of students enrolled in 
     identified schools or schools with low graduation rates;
       ``(C) providing information to such parents and school 
     officials at such schools regarding eligible public charter 
     schools receiving subgrants under this section;
       ``(D) necessary oversight of the grant program under this 
     section; and
       ``(E) initiatives and activities to disseminate the best 
     practices, programs, or strategies learned in eligible public 
     charter schools to other public schools operating in the 
     State where the eligible entity intends to award subgrants 
     under this section.
       ``(3) Charter school.--The term `charter school' means--
       ``(A) a charter school, as defined in section 5211(1); or
       ``(B) a school that meets the requirements of such section, 
     except for subparagraph (D), and provides prekindergarten or 
     adult education services.
       ``(4) Eligible entity.--The term `eligible entity' means--
       ``(A) a State educational agency;
       ``(B) an authorized public chartering agency;
       ``(C) a local educational agency that has authorized or is 
     planning to authorize a public charter school; or
       ``(D) an organization that has an organizational mission 
     and record of success supporting the replication and 
     expansion of high-quality charter schools and is--
       ``(i) described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 (26 U.S.C. 501(c)(3)); and
       ``(ii) exempt from tax under section 501(a) of such Code 
     (26 U.S.C. 501(a)).
       ``(5) Eligible public charter school.--The term `eligible 
     public charter school' means a charter school, including a 
     public charter school that is being developed by a developer, 
     that--
       ``(A) has made adequate yearly progress for the last 2 
     consecutive school years; and
       ``(B) in the case of a public charter school that is a 
     secondary school, has, for the most recent school year for 
     which data is available, met or exceeded the graduation rate 
     required by the State in order to make adequate yearly 
     progress for such year.
       ``(6) Identified school.--The term `identified school' 
     means a school identified for school improvement, corrective 
     action, or restructuring under paragraph (1), (7), or (8) of 
     section 1116(b).
       ``(7) Local educational agency.--The term `local 
     educational agency' includes any

[[Page 9794]]

     charter school that is a local educational agency, as 
     determined by State law.
       ``(8) Low-income student.--The term `low-income student' 
     means a student eligible for free or reduced price lunches 
     under the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.).
       ``(9) Graduation rate.--The term `graduation rate' has the 
     meaning given the term in section 1111(b)(2)(C)(vi), as 
     clarified in section 200.19(b)(1) of title 34, Code of 
     Federal Regulations.
       ``(10) School year.--The term `school year' has the meaning 
     given such term in section 12(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1760(d)).
       ``(11) Traditional public school.--The term `traditional 
     public school' does not include any charter school, as 
     defined in section 5211.''.
       (b) Authorization of Appropriations.--Part B of title V of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7221 et seq.) is amended--
       (1) by striking section 5231; and
       (2) by inserting before subpart 1 the following:

     ``SEC. 5200. AUTHORIZATION OF APPROPRIATIONS FOR SUBPARTS 1 
                   AND 2.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out subparts 1 and 2, $700,000,000 for fiscal year 
     2011 and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(b) Allocation.--In allocating funds appropriated under 
     this section for any fiscal year, the Secretary shall 
     consider--
       ``(1) the relative need among the programs carried out 
     under sections 5202, 5205, 5210, and subpart 2; and
       ``(2) the quality of the applications submitted for such 
     programs.''.
       (c) Conforming Amendments.--The Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
       (1) in section 2102(2) (20 U.S.C. 6602(2)), by striking 
     ``5210'' and inserting ``5211'';
       (2) in section 5204(e) (20 U.S.C. 7221c(e)), by striking 
     ``5210(1)'' and inserting ``5211(1)'';
       (3) in section 5211(1) (as redesignated by subsection 
     (a)(1)) (20 U.S.C. 7221i(1)), by striking ``The term'' and 
     inserting ``Except as otherwise provided, the term'';
       (4) in section 5230(1) (20 U.S.C. 7223i(1)), by striking 
     ``5210'' and inserting ``5211''; and
       (5) in section 5247(1) 20 U.S.C. 7225f(1)), by striking 
     ``5210'' and inserting ``5211''.
       (d) Table of Contents.--The table of contents of the 
     Elementary and Secondary Education Act of 1965 is amended--
       (1) by inserting before the item relating to subpart 1 of 
     part B of title V the following:

``Sec. 5200. Authorization of appropriations for subparts 1 and 2.'';

       (2) by striking the items relating to sections 5210 and 
     5211; and
       (3) by inserting after the item relating to section 5209 
     the following:

``Sec. 5210. Charter school expansion and replication.
``Sec. 5211. Definitions.''.
                                 ______
                                 
  By Ms. SNOWE (for herself, Mr. Cardin, and Ms. Landrieu):
  S. 3444. A bill to require small business training for contracting 
officers; to the Committee on Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, as Ranking Member of the Senate Committee 
on Small Business and Entrepreneurship, I rise today, during National 
Small business Week, along with my colleague Senator Cardin, to 
introduce the Small Business Training in Federal Contracting 
Certification Act. This vital piece of legislation builds upon the 
Small Business Contracting Revitalization Act, S. 2989, which passed 
unanimously out of the Small Business Committee on March 4, and would 
require the development of small business training for contracting 
officials. The bill we introduce today would take an additional step by 
requiring contracting officials to successfully complete small business 
training prior to receiving certification in Federal contracting.
  During these devastating economic times, with small business owners 
struggling to retain jobs, much less create new jobs, it is paramount 
that small businesses have a fair opportunity to contract with Federal 
Agencies, because the Federal Government is the largest buyer of goods 
and services in the world, spending over $500 billion in fiscal year 
2009 alone. I remain frankly dismayed by the myriad ways the Federal 
Government has time and again egregiously failed to meet its statutory, 
government-wide small business ``goaling'' requirements that 23 percent 
of all Federal procurement dollars must be allocated to small 
contracting firms. This legislation would help the Federal Government 
to meet--and even exceed--its 23 percent goal, because it would require 
investing time and training in contracting officials who make the 
ultimate determination on contract awards be trained in small business 
procurement issues.
  Contracting officials have a great deal of responsibility. They 
provide the Federal government with expertise when buying goods and 
services to enable agencies to achieve their mission by fairly and 
reasonably obligating taxpayer dollars while simultaneously addressing 
our Nation's socio-economic needs. I have heard from constituents and 
others in the contracting community that contracting officials do not 
understand their duty to provide opportunities to small businesses to 
the maximum extent practicable. So, it is imperative that we provide 
contracting officials the tools they need to bolster small business 
participation in Federal contracting--to include training on small 
business government contracting set-aside programs, understanding size 
standards and the North American Industry Classification System codes 
and how they apply to the contract award process, conducting market 
research, as well as all of the Small Business Administration's 
resources and programs available to them.
  Small businesses are the engine of our economy and in this time of 
economic hardship, the Federal Government must provide our Nation's 
entrepreneurs with every opportunity to succeed. Federal contracting 
can be an instrumental part of a larger strategy for broadening small 
businesses' customer base and creating jobs. In my leadership capacity 
on the Senate Small Business Committee, I have long been a champion of 
removing barriers to small businesses seeking entry into the Federal 
marketplace. Through the years, I have introduced numerous bills that 
combat contract bundling, mandate recurrent small business size 
standard adjustments, ensure equal opportunity to compete for Federal 
contracts among the various socio-economic small businesses groups, and 
reduce fraud and abuse in SBA's small business contracting programs.
  The Federal Government's inability to consistently meet all of its 
small business contracting goals is unjustifiable. Only one category of 
small business contracting goals--small disadvantaged businesses--has 
been met, while the goals for the three other programs--historically 
underutilized business zones, HUBZone, small businesses, women-owned 
small businesses, and service-disabled veteran-owned small businesses--
has never been achieved. It is inconceivable as to why this remains a 
problem year after year, especially since contracts awarded using 
American Recovery and Reinvestment Act dollars have demonstrated that 
attainment of these goals is possible.
  In conclusion, I believe that requiring certification training for 
Federal contracting officers will help the Government meet the 
statutory small business contracting goals and will increase small 
business access to Federal contracts.
  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. 3444

       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 ``Small Business Training in 
     Federal Contracting Certification Act of 2010''.

     SEC. 2. SMALL BUSINESS TRAINING.

       Section 37(f)(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 433(f)) is amended--
       (1) by striking ``For each career path,'' and inserting the 
     following:
       ``(A) In general.--For each career path,''; and
       (2) by adding at the end the following:
       ``(B) Certification program.--
       ``(i) In general.--The Administrator shall establish a 
     certification program for acquisition personnel. The 
     certification program shall be carried out through the 
     Federal Acquisition Institute.
       ``(ii) Small business training.--The certification program 
     under this subparagraph shall include training regarding--

       ``(I) small business government contracting set-aside 
     programs, including--

       ``(aa) programs for HUBZone small business concerns, small 
     business concerns

[[Page 9795]]

     owned and controlled by service-disabled veterans, and small 
     business concerns owned and controlled by women (as those 
     terms are defined in section 3 of the Small Business Act (15 
     U.S.C. 632));
       ``(bb) programs for socially and economically disadvantaged 
     small business concerns (as defined in section 8(a) of the 
     Small Business Act (15 U.S.C. 637(a))); and
       ``(cc) contracting under the Small Business Innovation 
     Research Program and the Small Business Technology Transfer 
     Program (as those terms are defined in section 9(e) of the 
     Small Business Act (15 U.S.C. 638(e)));

       ``(II) determining small business size standards and using 
     North American Industry Classification System codes in 
     relation to contracting set-aside programs and subcontracting 
     goals; and
       ``(III) any other issue relating to contracting with small 
     business concerns (as defined under section 3 of the Small 
     Business Act (15 U.S.C. 632)) determined appropriate by the 
     Administrator.''.

                                 ______
                                 
      By Mr. HATCH:
  S. 3445. A bill to amend the Internal Revenue Code of 1986 to allow 
an above-the-line deduction for certain professional development and 
other expenses of elementary and secondary school teachers and for 
certain certification expenses of individuals becoming science, 
technology, engineering, or math teachers; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce legislation 
designed to increase tax fairness for America's primary and secondary 
school teachers.
  Our public school teachers are some of the unheralded heroes of our 
society. These women and men dedicate their careers to educating the 
young people of America. School teachers labor in often difficult and 
even dangerous circumstances. In most places, including in my home 
state of Utah, the salary of the average public school teacher is 
significantly below the national average.
  For a variety of economic and organizational reasons, schools across 
the nation are experiencing difficulties in recruiting teachers--
especially in the fields of math and science. There are at least two 
sources to this problem. First, schools are experiencing high levels of 
turnover related to retirement, relocation, and attrition. Second, 
there is an insufficient supply of new qualified math and science 
teachers coming in to the schools to compensate for the turnover.
  As a result of these factors, 31 percent of secondary schools across 
the nation report difficulties in filling math and science faculty 
positions. This teacher recruitment problem is especially troubling 
because it disproportionately affects small schools in urban and rural 
areas, especially those with limited access to funding.
  Unfortunately, the problems of retention and recruitment of public 
school teachers are exacerbated by the unfair tax treatment these 
professionals currently receive under our tax law. Specifically, 
teachers are greatly disadvantaged by the lack of deductibility of the 
total amount of out-of-pocket costs of classroom materials that 
practically all teachers find themselves supplying, as well as by the 
inability to deduct their professional development expenses. Let me 
explain.
  As with many other professionals, most elementary and secondary 
school teachers regularly incur expenses to keep themselves current in 
their fields of knowledge. These include subscriptions to journals and 
other periodicals as well as the cost of courses and seminars designed 
to improve their knowledge or teaching skills. For example, in order to 
be certified by the National Board for Professional Teaching Standards, 
NBPTS, a teacher must pay a fee of $2,500. Expenditures like these are 
necessary to keep our teachers up to date on the latest ideas, 
techniques, and trends so that they can provide our children with the 
best education possible.
  Furthermore, almost all teachers find themselves spending not 
insignificant amounts of money to provide basic classroom materials for 
their students. Because of tight education budgets, most schools do not 
provide 100 percent of the material teachers need to adequately present 
their lessons. New teachers in their first and second years are 
especially susceptible to a large financial burden as they must start 
from scratch in establishing a curriculum and classroom for their 
students.
  I realize that employees in many fields incur expenses for 
professional development and out-of-pocket expenses. In many cases, 
however, these costs are reimbursed by the employer. This is seldom the 
case with school teachers. Other professionals who are self-employed 
are generally able to fully deduct these types of expenses.
  Under the current tax law, unreimbursed expenses for all employees 
are deductible generally, but only as miscellaneous itemized 
deductions. However, there are two practical hurdles that effectively 
make these expenses non-deductible for most teachers. The first hurdle 
is that the total amount of a taxpayer's deductible miscellaneous 
deductions must exceed 2 percent of gross income before they begin to 
be deductible.
  The second hurdle is that the amount in excess of the 2 percent 
floor, if any, combined with all other deductions of the taxpayer, must 
exceed the standard deduction before the teacher can itemize. Only 
about one-third of taxpayers have enough deductions to itemize. The 
unfortunate effect of these two limitations is that, as a practical 
matter, only a small proportion of teachers are able to deduct their 
professional development and out-of-pocket supplies expenses.
  Let me illustrate this unfair situation with an example. Let us 
consider the case of a first-year teacher in Utah, whom we will refer 
to as Michelle. Michelle is newly married. She and her husband together 
expect to earn $48,000 this year. As a brand-new teacher, Michelle has 
none of the classroom decorations, materials, or curriculum aides that 
veteran teachers have accumulated. In an effort to quickly collect some 
necessary items for her classroom, a new teacher like Michelle will 
probably spend close to $1,500 of her own money. She will not be 
reimbursed for any of these expenses by the school district.
  Under current law, Michelle's expenditures are deductible, subject to 
the two limitations I mentioned. The first limitation is that her 
expenses must exceed 2 percent of her and her husband's joint income 
before they begin to be deductible. Two percent of $48,000 is $960. 
Thus, only $540 of her $1,500 total expense is potentially deductible--
that portion that exceeds $960.
  As a married taxpayer, Michelle's standard deduction this year is 
$11,400. Her total itemized deductions, including the $540 in qualified 
miscellaneous deductions for her professional expenses and out-of-
pocket classroom supplies, will fall far short of the standard 
deduction threshold. Therefore, not even the $540 of the original 
$1,500 in out-of-pocket costs is deductible for Michelle. What the 
first limitation did not block, the second one did, and Michelle gets 
no deduction at all for these expenses under the current law.
  The entry-level employees in the teaching field are the first- and 
second-year teachers like Michelle, who receive the lowest relative 
salary and yet often incur the greatest school-related expenses. These 
expenses place a heavy burden on our teachers and can act as a 
significant barrier to entry to the teaching profession. Many of these 
new teachers are renting and fresh out of college, and are thus very 
unlikely to be able to itemize their deductions. Therefore, without the 
ability to itemize, the teachers with the greatest need of tax relief 
are the ones least likely to receive it.
  This problem is not isolated to first-year teachers. Veteran 
educators, like Kristen Adamson, also an elementary school teacher in 
Utah, have also expressed their concerns about this tax inequity. 
Kristen is preparing for a class of 35 fifth-graders next year--the 
most she's ever had. She, like most teachers, feels that it is her duty 
to provide all of her students with the materials they will need to 
successfully complete their school work. There are few careers that I 
know of in which employees take similar initiative.
  This year, due to limited state funding, Kristen will be forced to 
choose between a class set of colored pencils or

[[Page 9796]]

a class set of crayons. Whatever the district does not provide, Kristen 
will be forced to purchase herself. Further, the school district 
provides only one notebook per student, but her pupils require a 
minimum of four each to organize their work. With 35 students, these 
costs can add up very quickly. Kristen typically does not have enough 
deductions to itemize and therefore, like most teachers, will receive 
little or no tax relief.
  As you can see, public school educators are at a marked disadvantage 
under the current tax law, and they deserve better treatment. Not only 
is the situation morally unacceptable, it is aggravating to our teacher 
retention and recruitment problems.
  I have been fighting to pass legislation that will help alleviate 
this long-standing problem for almost a decade. In 2001, I first 
introduced the Tax Equity for School Teachers Act. This legislation 
would have provided an unlimited tax deduction for the out-of-pocket 
expenses school teachers incur to acquire necessary training and 
materials.
  Rather than being available only to those who are able to itemize 
their deductions, this bill would have made these expenses ``above-the-
line'' deductions, meaning they would be deductible whether or not the 
teacher itemized on their tax return.
  Unfortunately, only a part of this bill was enacted. The 2001 tax act 
included an above the-line deduction for $250 for the costs of 
classroom expenses. While this was a step in the right direction, it 
was essentially a symbolic gesture as teachers typically spend far more 
than $250 on school-related expenses. This deduction has expired and 
has been renewed several times, but it expired again at the end of last 
year. It is not clear when Congress is going to extend it.
  The bill I am introducing today would do three things. First, it 
would reinstate the above-the-line deduction for teachers' out-of-
pocket expenses for classroom supplies, make it permanent, and remove 
the $250 cap. Second, it would provide an unlimited deduction for the 
professional development expenses for school teachers. Finally, to 
assist in the recruitment of teachers in the most-needed fields, it 
would provide an unlimited deduction for the cost of professionals in 
the fields of math, science, and technology to certify to become public 
school teachers.
  Under my bill, first-year teacher Michelle would be allowed to deduct 
all $1,500 of her professional development and classroom supplies 
expenses, whether she itemized or not. Similarly, Kristen would be able 
to deduct all of the expenses she incurred to provide materials for her 
students. This would help provide tax equity and a measure of much-
needed tax relief for scores of underpaid professionals. It would also 
help retain current public school teachers and attract new ones to the 
field.
  Some might argue that such a generous deduction would be giving 
teachers preferential treatment. I disagree. Most organizations provide 
training and supplies for their employees that are fully deductible to 
the organization and non-taxable to the employee. Yet, public teachers 
pay for training out of their own pocket, as is the case with NBPTS 
certification.
  Others may question the wisdom of my bill granting an unlimited tax 
deduction. Why not place a limit or cap on the amount that may be 
deducted, some might ask. Again, I respectfully disagree with such 
critics. It is important to keep in mind the difference between a tax 
deduction and a tax credit. My bill calls for tax deductions, which 
essentially act as a cost-sharing arrangement between the teacher and 
the government. Deductions reduce the amount of income that is subject 
to tax. A credit, on the other hand, is a dollar-for-dollar reduction 
in the amount of tax that is due.
  With a tax deduction, a public school teacher is not receiving a cash 
subsidy or reimbursement for his or her expenses. Rather, he or she is 
merely obtaining a reduction in the amount of income that is taxed. 
Thus, the most benefit a teacher would receive under my bill would be a 
35 percent reduction in the cost of professional development, supplies, 
or certification expenses. For the vast majority of teachers, the 
amount would be far less than 35 percent, because they are in lower tax 
brackets. This means that the teacher is still responsible for paying 
for the biggest portion of these costs. In other words, this bill does 
not provide an incentive for teachers to spend unnecessary funds; it 
simply provides a discount for teachers who use their common sense and 
spend their money appropriately. If anything, this deduction is not 
generous enough, but it would go a long way toward providing help for 
these dedicated professionals.
  Support for mathematics and science education at all levels is 
necessary to improve the global competitiveness of the United States in 
science and energy technology. I endorse the efforts of some of my 
colleagues to encourage more of our best and brightest students who 
choose these fields of study. Sup ort for qualified STEM teachers, 
Science, Technology, Engineering, and Mathematics, is equally 
important. If we are successful in increasing the supply of STEM 
students, we will need to take drastic measures to increase the already 
strained supply of STEM teachers. This bill would provide incentives 
for these professionals to enter the teaching profession by allowing 
expenses in connection with teacher licensing and certification to be 
fully deductible, above the line, the same as professional development 
and supplies expenses of teaching professionals.
  This bill would provide modest tax relief for teachers who, for too 
long, have been treated unfairly under our tax laws. It would alleviate 
significant barriers to entry to the teaching profession and would help 
solve some of our teacher recruitment and retention problems. Our 
teachers deserve whatever help we can provide. It is time that Congress 
recognized this unfairness and corrected it. I thank the Senate for the 
opportunity to address this issue today, and I urge my colleagues to 
support this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3445

       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 ``Tax Equity for School 
     Teachers Act of 2010''.

     SEC. 2. DEDUCTION FOR CERTAIN PROFESSIONAL DEVELOPMENT 
                   EXPENSES AND CLASSROOM SUPPLIES OF ELEMENTARY 
                   AND SECONDARY SCHOOL TEACHERS AND FOR CERTAIN 
                   CERTIFICATION EXPENSES OF SCIENCE, TECHNOLOGY, 
                   ENGINEERING, OR MATH TEACHERS.

       (a) Deduction Allowed Whether or Not Taxpayer Itemizes 
     Other Deductions.--Subparagraph (D) of section 62(a)(2) of 
     the Internal Revenue Code of 1986 (relating to certain 
     expenses of elementary and secondary school teachers) is 
     amended to read as follows:
       ``(D) Certain professional development expenses, classroom 
     supplies, and other expenses for elementary and secondary 
     teachers.--The sum of the deductions allowed by section 162 
     with respect to the following expenses:
       ``(i) Expenses paid or incurred by an eligible educator in 
     connection with books, supplies (other than nonathletic 
     supplies for courses of instruction in health or physical 
     education), computer equipment (including related software 
     and services) and other equipment, and supplementary 
     materials used by the eligible educator in the classroom.
       ``(ii) Expenses paid or incurred by an eligible educator 
     which constitute qualified professional development expenses.
       ``(iii) Expenses which are related to the initial 
     certification of an individual (in the individual's State 
     licensing system) as a qualified science, technology, 
     engineering or math teacher.''.
       (b) Definitions and Special Rules.--Section 62(d) of the 
     Internal Revenue Code of 1986 (relating to definitions and 
     special rules is amended by redesignating paragraph (2) as 
     paragraph (5) and by adding after paragraph (1) the following 
     new paragraphs:
       ``(2) Qualified professional development expenses.--For 
     purposes of subsection (a)(2)(D)--
       ``(A) In general.--The term `qualified professional 
     development expenses' means expenses for tuition, fees, 
     books, supplies, equipment, and transportation required for 
     the enrollment or attendance of an individual in a qualified 
     course of instruction.
       ``(B) Qualified course of instruction.--The term `qualified 
     course of instruction' means a course of instruction which--
       ``(i) is--

[[Page 9797]]

       ``(I) directly related to the curriculum and academic 
     subjects in which an eligible educator provides instruction,

       ``(II) designed to enhance the ability of an eligible 
     educator to understand and use State standards for the 
     academic subjects in which such teacher provides instruction, 
     or
       ``(III) designed to enable an eligible educator to meet the 
     highly qualified teacher requirements under the No Child Left 
     Behind Act of 2001,

       ``(ii) may provide instruction to an eligible educator--

       ``(I) in how to teach children with different learning 
     styles, particularly children with disabilities and children 
     with special learning needs (including children who are 
     gifted and talented), or
       ``(II) in how best to discipline children in the classroom 
     and identify early and appropriate interventions to help 
     children described in subclause (I) to learn,

       ``(iii) is tied to the ability of an eligible educator to 
     enable students to meet challenging State or local content 
     standards and student performance standards,
       ``(iv) is tied to strategies and programs that demonstrate 
     effectiveness in assisting an eligible educator in increasing 
     student academic achievement and student performance, or 
     substantially increasing the knowledge and teaching skills of 
     an eligible educator, and
       ``(v) is part of a program of professional development for 
     eligible educators which is approved and certified by the 
     appropriate local educational agency as furthering the goals 
     of the preceding clauses.
       ``(C) Local educational agency.--The term `local 
     educational agency' has the meaning given such term by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965, as in effect on the date of the enactment of this 
     subsection.
       ``(3) Qualified science, technology, engineering, or math 
     teacher.--For purposes of subsection (a)(2)(D), the term 
     `qualified science, technology, engineering, or math teacher' 
     means, with respect to a taxable year, an individual who--
       ``(A) has a bachelor's degree or other advanced degree in a 
     field related to science, technology, engineering, or math,
       ``(B) was employed as a nonteaching professional in a field 
     related to science, technology, engineering, or math for not 
     less than 3 taxable years during the 10-taxable-year period 
     ending with the taxable year,
       ``(C) is certified as a teacher of science, technology, 
     engineering, or math in the individual's State licensing 
     system for the first time during such taxable year, and
       ``(D) is employed at least part-time as a teacher of 
     science, technology, engineering, or math in an elementary or 
     secondary school during such taxable year.
       ``(4) Exemption from minimum education or new trade or 
     business exception.--For purposes of applying subsection 
     (a)(2)(D) and this subsection, the determination as to 
     whether qualified professional development expenses, or 
     expenses for the initial certification described in 
     subsection (a)(2)(D)(iii), are deductible under section 162 
     shall be made without regard to any disallowance of such a 
     deduction under such section for such expenses because such 
     expenses are necessary to meet the minimum educational 
     requirements for qualification for employment or qualify the 
     individual for a new trade or business.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______
                                 
      By Mr. UDALL of New Mexico:
  S. 3446. A bill to amend the Child Nutrition Act of 1966 to advance 
the health and wellbeing of schoolchildren in the United States through 
technical assistance, training, and support for healthy school foods, 
local wellness policies, and nutrition promotion and education, and for 
other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. UDALL of New Mexico. Mr. President, I rise today to express 
support for S. 3307, the Healthy, Hunger-Free Kids Act of 2010, and to 
introduce two pieces of legislation that I hope will be included in the 
final reauthorization of the Child Nutrition Act that is passed by this 
body.
  I commend Chairman Lincoln and Ranking Member Chambliss for their 
successful efforts to produce a bipartisan and fully paid for Child 
Nutrition Reauthorization bill--a bill that won unanimous support in 
the Agriculture Committee where it passed this past March.
  The Healthy, Hunger-Free Kids Act of 2010 is critically important to 
the health, well-being, and even education of our nation's children. It 
seeks to confront the challenges of hunger and obesity that are 
increasingly pervasive in our youth. Specifically, the act reauthorizes 
our nation's major Federal child nutrition programs administered by the 
U.S. Department of Agriculture, USDA, including the National School 
Lunch and Breakfast Programs, the Special Supplemental Nutrition 
Program for Women, Infants and Children, WIC, the Child and Adult Care 
Food Program and the Summer Food Service Program.
  Totaling $4.5 billion in additional funding over the next 10 years, 
the Healthy, Hunger-Free Kids Act is the largest new investment in 
child nutrition programs since their inception--and it is completely 
paid for by off-sets in other USDA programs. This added funding will 
allow for an increase in reimbursement rates for school meals, which is 
an important provision since current reimbursement rates fall short of 
the funding schools need in order to provide nutritious meals with 
fresh fruits and vegetables to students. The bill also makes mandatory 
the funding authorized in the Child Nutrition Act to help schools 
establish school gardens and source local foods through ``farm to 
cafeteria'' efforts.
  Beyond funding, the Healthy, Hunger-Free Kids Act makes enrollment 
into the free school meals program automatic for foster children and 
for students already enrolled in Medicaid. The bill further promotes 
the establishment of school wellness policies, and allows the USDA to 
set school nutrition standards for all foods, including those sold a la 
carte, in vending machines and during special events such as 
afterschool sports.
  While this bill, combined with the President's request of $10 billion 
for child nutrition programs over the next 10 years, represents a huge 
step toward a healthier population of young people, I believe there is 
room for even more improvement. To this end, I am today introducing the 
Child Nutrition Enhancement Act, and the Ensuring All Students Year-
Round, EASY, Access to Meals and Snacks Act. These two bills will help 
schools ramp up their nutrition and health programs, and ensure that 
kids have access to food, even on weekends and holidays when they 
cannot get meals at school. These bills also enjoy House support, with 
Representatives Polis and Larsen already having introduced companions 
in that chamber.
  The Child Nutrition Enhancement Act would expand the Team Nutrition 
Networks program, a USDA program that provides grants to school 
districts to support State Wellness and Nutrition Networks in schools 
that conduct nutrition education and enhance school wellness. To allow 
this expansion, the bill includes mandatory funding at a level of 1 
cent per reimbursable meal through National School Lunch Program, Child 
and Adult Care Food Program, and Summer Food Service Program, totaling 
approximately $70 million per year. Such funding would be used for 
State staff and programs, formula-based grants and USDA administration.
  The Ensuring All Students Year-round Access to Meals and Snacks Act 
would allow local government agencies and private nonprofit 
organizations to feed children meals and snacks 365 days-a-year through 
the Summer Food Service Program, whether it be after school, on 
weekends and school holidays, or during the summer. School supplemental 
food providers find that children often go hungry on weekends and 
school holidays because their main source of nutrition is the free 
school lunch program. This bill would allow food service programs to 
fill in the gaps on holidays and weekends when kids are likely to miss 
meals, and ease the administrative burden of food service programs by 
allowing year round meals and snacks through the Summer Food Service 
Program, rather the current requirement to switch back and forth 
between the Summer Food Service Program and other child nutrition 
programs such as the Child and Adult Care Food Program.
  With September 30th as the looming deadline for reauthorization of 
the Child Nutrition Act, I call on my colleagues and the leadership in 
the Senate to expedite the debate and passage of the Healthy, Hunger-
Free Kids Act. I look forward to working with the Agriculture Committee 
and the Senate leadership to include the Child Nutrition Enhancement 
Act, and the EASY Access to Meals and Snacks Act in the

[[Page 9798]]

final bill, and to complete the legislative process for this important 
reauthorization.
                                 ______
                                 
      By Mr. AKAKA:
  S. 3447. A bill to amend title 38, United States Code, to improve 
educational assistance for veterans who served in the Armed Forces 
after September 11, 2001, and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. AKAKA. Mr. President, I am introducing today the proposed Post-9/
11 Veterans Educational Assistance Improvements Act of 2010. This 
measure is designed to make a number of modifications to the new 
program of educational assistance which became effective on August 1, 
2009.
  As one of three remaining Senators who benefited from the original GI 
Bill following World War II, I know firsthand the value of an education 
and of the critical role that this important veterans benefit played in 
my life. That was why I was especially pleased to join with the 
distinguished Senator from Virginia, Mr. Webb, in achieving enactment 
of the new Post-9/11 GI Bill in 2008.
  Now, with ten months of experience under the new program, I believe 
it is time to look at what improvements and modifications need to be 
made in order for the program to reach its potential. I note at the 
outset that this will not be a simple process. Nor will it be quickly 
and easily accomplished. There are issues that we can readily see need 
to be addressed. There are others, however, that are only just now 
coming to our attention as the program is implemented and veterans, 
servicemembers, and their families begin to receive benefits under the 
program.
  I will highlight some of the provisions that are contained in the 
bill I am introducing today:
  It would make members of the National Guard and Reserve programs who 
were inadvertently omitted from inclusion fully eligible for benefits.
  It would make all types of training--including vocational programs, 
OJT and apprenticeship training, flight, all types of non-college 
degree training and more--eligible for benefits under the new program. 
By doing this, individuals would not need to make an irreversible 
decision as to whether or not to receive benefits under the old 
Montgomery GI Bill or under the new program.
  It would eliminate the complicated, confusing and, in some cases, 
inequitable calculation of State-by-State tuition and fee caps to 
determine benefits for individuals enrolled in degree programs. 
Basically, it would provide that eligible individuals enrolled in 
degree-granting programs of study at public institutions anywhere in 
the United States would pay little, if any, out of pocket costs for 
their education. For students enrolled in other institutions of higher 
learning, benefits would be paid based on a national average cost of 
education which would be indexed and increased annually.
  It would provide for a modified living allowance to be paid in the 
case of an individual pursuing a program of education solely through 
distance learning. Individuals who currently are studying through a 
combination of distance and classroom training would continue to 
receive benefits as they do now.
  It would make a book allowance award of up to $1,000 available to 
individuals enrolled while on active duty and their spouses.
  It would allow individuals enrolled in VA's program of rehabilitation 
and training under chapter 31 of title 38 who also have eligibility for 
the new chapter 33 program to elect the program from which to receive 
their subsistence allowance. This would mean that a service-connected 
disabled OEF/OIF veteran would not need to elect to training under the 
new GI Bill and forego the valuable counseling and support services 
available under chapter 31 in order to receive an increased living 
allowance.
  It would modify the manner in which the living allowance is 
calculated to reflect the rate at which training is pursued.
  It would ensure that the same period of active duty cannot be used to 
establish eligibility for more than one program of education.
  This is not a complete recitation of all the provisions contained in 
the measure I am introducing today. In addition, I do not expect that 
every provision of the measure will necessarily be supported by all the 
stakeholders involved in this important issue. Indeed, I imagine there 
could be some who will be critical of some provisions in the proposal 
and will come forward to offer improvements and modifications.
  What my measure is intended to do, is to serve as a starting point to 
move forward in this important yet very complicated and complex 
endeavor. I strongly believe that whatever is done in this connection 
must not be done in a piecemeal manner. We need a full and deliberative 
consideration of all the issues in order to craft the best possible 
approach to delivering these important benefits to our Nation's 
veterans and those who are serving in uniform.
  I look forward to working with all our colleagues and others on these 
issues in the days ahead. As I noted, this will not be done quickly or 
easily but this measure will serve as a focus for our discussions and 
decisions.
  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. 3447

       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 ``Post-9/11 Veterans 
     Educational Assistance Improvements Act of 2010''.

     SEC. 2. MODIFICATION OF ENTITLEMENT TO EDUCATIONAL 
                   ASSISTANCE.

       (a) Modification of Definitions That Concern Eligibility 
     for Educational Assistance.--
       (1) Modification of definition of active duty with respect 
     to members of reserve components generally.--Paragraph (1)(B) 
     of section 3301 of title 38, United States Code, is amended 
     by striking ``of title 10.'' and inserting the following: 
     ``of title 10--
       ``(i) for the purpose of organizing, administering, 
     recruiting, instructing, or training the reserve components 
     of the Armed Forces; or
       ``(ii) in support of a contingency operation (as defined in 
     section 101(a) of title 10).''.
       (2) Expansion of definition of active duty to include 
     service in national guard for certain purposes.--Paragraph 
     (1) of such section is amended by adding at the end the 
     following new subparagraph:
       ``(C) In the case of a member of the Army National Guard of 
     the United States or Air National Guard of the United States, 
     in addition to service described in subparagraph (B), full-
     time service--
       ``(i) in the National Guard of a State for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the National Guard; and
       ``(ii) in the National Guard under section 502(f) of title 
     32 when authorized by the President or Secretary of Defense 
     for the purpose of responding to a national emergency 
     declared by the President and supported by Federal funds.''; 
     and
       (3) Expansion of definition of entry level and skill 
     training to include one station unit training.--Paragraph 
     (2)(A) of such section is amended by inserting ``or One 
     Station Unit Training'' before the period at the end.
       (b) Clarification of Applicability of Honorable Service 
     Requirement for Certain Discharges and Releases From the 
     Armed Forces as Basis for Entitlement to Educational 
     Assistance.--Section 3311(c)(4) of such title is amended in 
     the matter preceding subparagraph (A) by striking ``A 
     discharge or release from active duty in the Armed Forces'' 
     and inserting ``A discharge or release from active duty in 
     the Armed Forces after service on active duty in the Armed 
     Forces characterized by the Secretary concerned as honorable 
     service''.
       (c) Exclusion of Period of Service on Active Duty of 
     Periods of Service in Connection With Attendance at the Coast 
     Guard Academy.--Section 3311(d)(2) of such title is amended 
     by inserting ``or section 182 of title 14'' before the period 
     at the end.

     SEC. 3. MODIFICATION OF AMOUNT OF ASSISTANCE AND TYPES OF 
                   APPROVED PROGRAMS OF EDUCATION.

       (a) Amount of Educational Assistance for Programs of 
     Education Pursued at Public, Non-public, and Foreign 
     Institutions of Higher Learning.--Section 3313(c) of title 
     38, United States Code, is amended--
       (1) by striking the subsection heading and inserting the 
     following: ``Programs of Education at Institutions of Higher 
     Learning Pursued at More Than Half-time Basis.--'';
       (2) in the matter preceding paragraph (1) by inserting ``at 
     an institution of higher

[[Page 9799]]

     learning (as defined in section 3452(f) of this title)'' 
     after ``program of education''; and
       (3) in paragraph (1), by amending subparagraph (A) to read 
     as follows:
       ``(A) An amount equal to--
       ``(i) in the case that such institution is a public 
     institution of higher learning, the established charges for 
     the program of education; and
       ``(ii) in the case that such institution is a non-public or 
     foreign institution of higher learning, the lesser of--

       ``(I) the established charges for the program of education; 
     or
       ``(II) the amount of the average of the established charges 
     at all institutions of higher learning in the United States 
     for a program of education leading to a baccalaureate degree 
     as determined by the National Center for Education Statistics 
     of the Department of Education for the most recent academic 
     year.''.

       (b) Modification of Amount of Monthly Stipends, Including 
     Stipends for Part-time Study, Distance Learning, and Pursuit 
     of Programs of Education at Foreign Institutions of Higher 
     Learning.--Subparagraph (B) of section 3313(c)(1) of such 
     title is amended--
       (1) by redesignating clause (ii) as clause (iv); and
       (2) by striking clause (i) and inserting the following new 
     clauses:
       ``(i) Except as provided in clauses (ii) and (iii), for 
     each month the individual pursues the program of education, a 
     monthly housing stipend amount equal to the product of--

       ``(I) the monthly amount of the basic allowance for housing 
     payable under section 403 of title 37 for a member with 
     dependents in pay grade E-5 residing in the military housing 
     area that encompasses all or the majority portion of the ZIP 
     code area in which is located the institution of higher 
     learning at which the individual is enrolled, multiplied by
       ``(II) the lesser of one or the quotient of--

       ``(aa) the number of course hours borne by the individual 
     in pursuit of the program of education involved, divided by
       ``(bb) the minimum number of course hours required for 
     full-time pursuit of such program of education.
       ``(ii) In the case of an individual pursuing a program of 
     education at a foreign institution of higher learning, for 
     each month the individual pursues the program of education, a 
     monthly housing stipend amount equal to the product of--

       ``(I) the national average of the monthly amount of the 
     basic allowance for housing payable under section 403 of 
     title 37 for a member with dependents in pay grade E-5, 
     multiplied by
       ``(II) the lesser of one or the quotient of--

       ``(aa) the number of course hours borne by the individual 
     in pursuit of the program of education involved, divided by
       ``(bb) the minimum number of course hours required for 
     full-time pursuit of such program of education.
       ``(iii) In the case of an individual pursuing a program of 
     education through distance learning on more than a half-time 
     basis, a monthly housing stipend amount in an amount equal to 
     50 percent of the amount payable under clause (ii) if the 
     individual were otherwise entitled to a monthly housing 
     stipend under that clause for pursuit of the program of 
     education.''.
       (c) Educational Assistance for Approved Programs of 
     Education at Institutions Other Than Institutions of Higher 
     Learning.--
       (1) Approved programs of education at institutions other 
     than institutions of higher learning.--Subsection (b) of 
     section 3313 of such title is amended by striking ``is 
     offered by an institution of higher learning (as that term is 
     defined in section 3452(f)) and''.
       (2) Assistance for pursuit of programs of education at 
     institutions other than institutions of higher learning.--
     Such section is further amended--
       (A) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (B) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Programs of Education Pursued at Institutions Other 
     Than Institutions of Higher Learning.--
       ``(1) In general.--Educational assistance is payable under 
     this chapter for pursuit of an approved program of education 
     at an institution other than an institution of higher 
     learning.
       ``(2) Amount of assistance.--The amounts of educational 
     assistance payable under this chapter to each individual 
     entitled to educational assistance under this chapter who is 
     pursuing an approved program of education at an institution 
     other than an institution of higher learning (as defined in 
     section 3452(f) of this title) are amounts as follows:
       ``(A) In the case of an individual enrolled in a program of 
     education (other than a program described in subparagraphs 
     (B) through (D)) in pursuit of a certificate or other non-
     college degree, amounts as follows:
       ``(i) The lesser of--

       ``(I) the established charges for the program of education; 
     or
       ``(II) the amount of the average of the established charges 
     at all institutions of higher learning in the United States 
     for a program of education leading to a baccalaureate degree 
     as determined by the National Center for Education Statistics 
     of the Department of Education for the most recent academic 
     year.

       ``(ii) A monthly stipend in an amount equal to the monthly 
     amount of the basic allowance for housing payable under 
     section 403 of title 37 for a member with dependents in pay 
     grade E-5 residing in the military housing area that 
     encompasses all or the majority portion of the ZIP code area 
     in which is located the institution at which the individual 
     is enrolled.
       ``(B) In the case of an individual enrolled in a program of 
     education consisting of on-job training or a program of 
     apprenticeship, amounts as follows:
       ``(i) For each month the individual pursues the program--

       ``(I) in the first six-month period of the program, an 
     amount equal to 75 percent of 1/12 of the amount of the 
     average of the established charges at all institutions of 
     higher learning in the United States for a program of 
     education leading to a baccalaureate degree as determined by 
     the National Center for Education Statistics of the 
     Department of Education for the most recent academic year;
       ``(II) in the second six-month period of the program, an 
     amount equal to 55 percent of 1/12 of the amount of such 
     average; and
       ``(III) in any month after the first 12 months of such 
     program, an amount equal to 35 percent of 1/12 of the amount 
     of such average.

       ``(ii) A monthly stipend in an amount equal to the lesser 
     of--

       ``(I) the monthly amount of the basic allowance for housing 
     payable under section 403 of title 37 for a member with 
     dependents in pay grade E-5 residing in the military housing 
     area that encompasses all or the majority portion of the ZIP 
     code area in which is located the employer at which the 
     individual pursues such program; or
       ``(II) the national average of the monthly amount of the 
     basic allowance for housing payable under section 403 of 
     title 37 for a member with dependents in pay grade E-5.

       ``(C) In the case of an individual enrolled in a program of 
     education consisting of flight training, an amount equal to 
     the lesser of--
       ``(i) the established charges for the program of education; 
     or
       ``(ii) 60 percent of the amount of the average of the 
     established charges at all institutions of higher learning in 
     the United States for a program of education leading to a 
     baccalaureate degree as determined by the National Center for 
     Education Statistics of the Department of Education for the 
     most recent academic year.
       ``(D) In the case of an individual enrolled in a program of 
     education that is pursued exclusively by correspondence, an 
     amount equal to the lesser of--
       ``(i) the established charges for the program of education; 
     or
       ``(ii) 55 percent of the amount of the average of the 
     established charges at all institutions of higher learning in 
     the United States for a program of education leading to a 
     baccalaureate degree as determined by the National Center for 
     Education Statistics of the Department of Education for the 
     most recent academic year.
       ``(3) Charge against entitlement.--The entitlement of an 
     individual to educational assistance under this chapter shall 
     be charged at the rate of one month for each month of 
     assistance provided under this subsection.''.
       (3) Conforming amendment.--Subsection (h) of such section 
     3313, as redesignated by paragraph (2) of this subsection, is 
     amended by striking ``(e)(2), and (f)(2)(A)'' and inserting 
     ``subsections (e)(2) and (f)(2)(A), and subparagraphs (A)(i), 
     (B)(i), (C), and (D) of subsection (g)(2)''.
       (d) Programs of Education Pursued on Active Duty.--
       (1) In general.--Subsection (e)(2) of such section is 
     amended--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) in the matter preceding clause (i), as redesignated by 
     subparagraph (A)--
       (i) by striking ``The amount'' and inserting ``The 
     amounts''; and
       (ii) by striking ``is the lesser of--'' and inserting ``are 
     the amounts as follows:
       ``(A) An amount equal to the lesser of--''; and
       (C) by adding at the end the following new subparagraph 
     (B):
       ``(B) For the first month of each quarter, semester, or 
     term, as applicable, of the program of education pursued by 
     the individual, a lump sum amount for books, supplies, 
     equipment, and other educational costs with respect to such 
     quarter, semester, or term in the amount equal to--
       ``(i) $1,000, multiplied by
       ``(ii) the fraction which is the portion of a complete 
     academic year under the program of education that such 
     quarter, semester, or term constitutes.''.
       (2) Technical amendment.--Clause (ii) of subsection 
     (e)(2)(A) of such section, as redesignated by paragraph 
     (1)(A) of this subsection, is amended by adding a period at 
     the end.

[[Page 9800]]



     SEC. 4. MODIFICATION OF ASSISTANCE FOR LICENSURE AND 
                   CERTIFICATION TESTS.

       (a) Repeal of Limitation on Number of Reimbursable Tests.--
     Subsection (a) of section 3315 of title 38, United States 
     Code, is amended by striking ``one licensing or certification 
     test'' and inserting ``licensing or certification tests''.
       (b) Charge of Entitlement for Receipt of Assistance.--Such 
     section is further amended by striking subsection (c) and 
     inserting the following new subsection (c):
       ``(c) Charge Against Entitlement.--The charge against 
     entitlement of an individual under this chapter for payment 
     for a licensing or certification test under subsection (a) 
     shall be charged at the rate of one month for each amount 
     equal to 1/12 of the amount of the average of the established 
     charges at all institutions of higher learning in the United 
     States for a program of education leading to a baccalaureate 
     degree as determined by the National Center for Education 
     Statistics of the Department of Education for the most recent 
     academic year.''.

     SEC. 5. TRANSFER OF ENTITLEMENT TO SUPPLEMENTAL EDUCATIONAL 
                   ASSISTANCE TO POST-9/11 EDUCATIONAL ASSISTANCE.

       (a) In General.--Section 3316 of title 38, United States 
     Code, is amended--
       (1) by redesignating subsection (c) as subsection (e); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Transfer of Supplemental Educational Assistance.--
       ``(1) In general.--An individual entitled to supplemental 
     educational assistance under subchapter III of chapter 30 of 
     this title may transfer such entitlement to entitlement for 
     supplemental educational assistance under this section. Such 
     individual shall receive entitlement to one month of 
     supplemental educational assistance under this section for 
     each month of entitlement to supplemental educational 
     assistance so transferred.
       ``(2) Rate.--The monthly rate of supplemental educational 
     assistance payable to an individual who transfers entitlement 
     under paragraph (1) shall be payable at the same rate as such 
     entitlement would otherwise be payable to such individual 
     under subchapter III of chapter 30 of this title.
       ``(3) Nature of transferred entitlement.--An amount of 
     supplemental educational assistance transferred under 
     paragraph (1) shall be payable as an increase in the monthly 
     amount of educational assistance otherwise payable to the 
     individual under paragraph (1)(B) of section 3313(c) of this 
     title, or under paragraphs (2) through (7) of such section 
     3313(c) (as applicable).''.
       (b) Clarification on Reimbursement of Increased or 
     Supplemental Assistance.--Such section is further amended by 
     inserting after subsection (c), as added by subsection (a)(2) 
     of this section, the following new subsection (d):
       ``(d) Reimbursement.--Any expense incurred by the Secretary 
     for the provision of increased assistance or supplemental 
     assistance to an individual under this section shall be 
     reimbursed by the Secretary concerned.''.

     SEC. 6. TRANSFER OF UNUSED EDUCATION BENEFITS TO FAMILY 
                   MEMBERS.

       (a) Administration of Transfers of Entitlement by 
     Individuals No Longer Members of the Armed Forces.--Section 
     3319(h) of title 38, United States Code, is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6) the following new 
     paragraph (7):
       ``(7) Administration for individuals no longer members of 
     the armed forces.--The Secretary of Defense shall administer 
     the provisions of this section with respect to individuals 
     who are discharged or released from the Armed Forces, 
     including the making of any determinations of eligibility of 
     such individuals for transfers of entitlement under this 
     section and the processing of applications to transfer, 
     modify, or revoke entitlement under this section.''.
       (b) Applicability of Entitlement Authority to Members of 
     Public Health Service and National Oceanic and Atmospheric 
     Administration.--Section 3319 of such title is amended by 
     striking subsection (k).
       (c) Reimbursement of Expenses of Secretary of Veterans 
     Affairs by Secretary Concerned.--Such section is further 
     amended by adding at the end the following new subsection 
     (k):
       ``(k) Reimbursement of Expenses of Secretary of Veterans 
     Affairs by Secretary Concerned.--Any expense incurred by the 
     Secretary for the provision of educational assistance under 
     subsection (a) to a dependent described in such subsection 
     shall be reimbursed by the Secretary concerned.''.
       (d) Technical Correction.--Subsection (b)(2) of such 
     section is amended by striking ``to section (k)'' and 
     inserting ``to subsection (j)''.

     SEC. 7. LIMITATIONS ON RECEIPT OF EDUCATIONAL ASSISTANCE 
                   UNDER NATIONAL CALL TO SERVICE AND OTHER 
                   PROGRAMS OF EDUCATIONAL ASSISTANCE.

       (a) Bar to Duplication of Educational Assistance 
     Benefits.--Section 3322(a) of title 38, United States Code, 
     is amended by inserting ``or section 510'' after ``or 1607''.
       (b) Limitation on Concurrent Receipt of Educational 
     Assistance.--Section 3681(b)(2) of such title is amended by 
     inserting ``and section 510'' after ``and 107''.

     SEC. 8. APPROVAL OF PROGRAMS OF EDUCATION CONSISTING OF 
                   DISTANCE LEARNING.

       (a) Nonaccredited Courses Pursued by Distance Learning.--
     Section 3676(e) of title 38, United States Code, is amended 
     by inserting ``or distance learning'' after ``independent 
     study''.
       (b) Disapproval of Enrollment in Nonaccredited Courses of 
     Distance Learning.--Section 3680A(a)(4) of such title is 
     amended by inserting ``or distance learning'' after 
     ``independent study'' each place it appears.
       (c) Rulemaking.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall prescribe regulations under section 3323(c) of such 
     title for the administration and approval of programs of 
     education that consist of distance learning.
       (d) Distance Learning Defined.--In this section, the term 
     ``distance learning'' has the meaning given the term 
     ``distance education'' in section 103 of the Higher Education 
     Act of 1965 (20 U.S.C. 1003).

     SEC. 9. INCREASE IN AMOUNT OF REPORTING FEE.

       Section 3684(c) of title 38, United States Code, is 
     amended--
       (1) by striking ``multiplying $7'' and inserting 
     ``multiplying $12''; and
       (2) by striking ``or $11'' and inserting ``or $15''.

     SEC. 10. AMOUNT OF SUBSISTENCE ALLOWANCE FOR VETERANS WITH 
                   SERVICE-CONNECTED DISABILITIES.

       Section 3108(b) of title 38, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) A veteran entitled to subsistence allowance under 
     this chapter may elect to receive payment from the Secretary, 
     in lieu of an amount otherwise determined by the Secretary 
     under this subsection, an amount equal to the national 
     average of the monthly amount of basic allowance for housing 
     payable under section 403 of title 37 for a member with 
     dependents in pay grade E-5.''.

     SEC. 11. REPEAL OF AUTHORITY TO MAKE CERTAIN INTERVAL 
                   PAYMENTS.

       Section 3680(a) of title 38, United States Code, is amended 
     after the flush matter--
       (1) in subparagraph (A), by adding ``or'' at the end;
       (2) in subparagraph (B), by striking ``; or'' and inserting 
     a period; and
       (3) by striking subparagraph (C).
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Mr. Byrd):
  S. 3450. A bill to require publicly traded coal companies to include 
certain safety records in their reports to the Commission, and for 
other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. ROCKEFELLER. Mr. President, it is time to take mining companies' 
safety records out of the darkness and bring some much-needed 
transparency and accountability to the industry.
  Today, I am introducing legislation that would require any publicly-
traded mining company to include critical mine safety information in 
its annual and quarterly filings with the Securities and Exchange 
Commission, SEC.
  Shareholders have a direct interest in the safety record of any 
company they invest in--because safety has as much of an impact on a 
company's long-term financial health as its mining production.
  But today, this safety information is not uniformly reported across 
the industry. My bill fixes this inconsistency and gives investors the 
information they need to hold corporate management responsible for the 
safety record of a company.
  That is what my bill is all about: providing shareholders with 
standard information that can be used to measure and compare safety 
records across the industry. Specifically, my legislation would require 
any publicly-traded mine company to report the following information in 
their annual and quarterly filings with the SEC:
  The total number of significant and substantial violations of 
mandatory health or safety standards;
  The total number of failure to abate orders issued under section 
104(b) of the Mine Act;
  The total number of citations and orders for unwarrantable failure of 
the mine operator to comply with mandatory health or safety standards 
under section 104(d) of the Mine Act;
  The total number of flagrant violations under section 110 of the Mine 
Act;
  The total number of imminent danger orders issued under section 
107(a) of the Mine Act;
  The total dollar value of Mine Safety and Health Administration, 
MSHA, proposed penalties and fines;

[[Page 9801]]

  A list of the regulated worksites that have been notified by MSHA of 
a Pattern of Violation or a Potential to have a Pattern of Violations 
under section 104(e) of the Mine Act;
  Any pending legal action before the Federal Mine Safety and Health 
Review Commission.
  Any mining related fatalities.
  In addition, any publicly-traded mining company must immediately 
disclose to the SEC if it receives a shutdown order under section 
107(a) of the Mine Act, imminent danger, or receives notice that a mine 
site has a potential or actual pattern of violations.
  I have always said that, first and foremost, this is about a company 
doing the right thing to develop a true culture of safety. That 
includes everyone, from the miner at the coal face to the Chairman of 
the Board.
  If we are serious about making that culture a reality, shareholders 
need to be informed about safety too.
                                 ______
                                 
      By Mr. BINGAMAN (for himself and Mr. Udall of New Mexico):
  S. 3452. A bill to designate the Valles Caldera National Preserve as 
a unit of the National Park System, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I rise today to introduce legislation 
that would transfer administrative jurisdiction of the Valles Caldera 
National Preserve from the Valles Caldera Trust to the National Park 
Service. I am pleased that my colleague from New Mexico, Tom Udall, is 
cosponsoring the bill.
  Between the New Mexico communities of Jemez Springs and Los Alamos, 
lies the Valle Grande, a magnificent valley surrounded by foothills and 
forested mountains. When standing in this valley, visitors begin to 
realize they are actually inside a larger bowl-shaped formation. This 
is the Valles Caldera--one of only three supervolcanoes in the United 
States. The oldest of the three--having formed 1.25 million years ago--
the Valles Caldera is also the smallest. Yet the caldera rim spans more 
than 100,000 acres in area whose violent eruption created a volcanic 
ash plume that stretched from northern Utah to central Kansas. Because 
of its relatively small size as compared to the two other 
supervolcanoes in the U.S.--Yellowstone, WY, and Long Valley, CA, the 
Valles Caldera provides visitors with excellent opportunities to learn 
about large volcanic eruptions and their impacts on surrounding 
landscapes while they stand in a single space to experience one of the 
world's best examples of an intact resurgent caldera. In 1975, the 
Valles Caldera received formal recognition as an outstanding and 
nationally significant geologic resource when it was designated a 
National Natural Landmark.
  As is the case in many parts of New Mexico, the geologic history of 
the Valles Caldera is inextricably linked to our State's cultural 
history. For example, the people of Jemez Pueblo chose the area as the 
best site to establish their community. The Valles Caldera and the 
adjacent Jemez Mountains provided the Pueblo with an ample food and 
water supply, natural defenses, and weapon-making materials present in 
the many obsidian quarries found in the area. In fact, the obsidian was 
of such high quality that spearheads made from these quarries have been 
discovered as far away as eastern Mississippi and northern Mexico. 
Needless to say, the Valles Caldera and the peaks that formed within it 
are sacred and highly revered by Jemez Pueblo and many other nearby 
tribes and pueblos.
  The volcanic ash dispersed by the volcano's eruption also had a 
lasting impact on the history of migration and settlement by Ancestral 
Puebloan people in the region. As the ash and pumice settled, it formed 
layers of sediment, and over time, rivers helped to carve these layers 
into deep canyons. Archeologists have found evidence of nomadic tribes 
following large mammals into the region, and Ancestral Puebloans built 
homes alongside and into the soft canyon walls. Many of these awe-
inspiring settlements are protected in Bandelier National Monument, 
where the National Park Service educates visitors about how the unique 
volcanic history of the Valles Caldera made these settlements possible.
  There is no question that this area is worthy of Federal protection, 
and efforts to preserve this area were proposed as early as 1899. 
However, it was only ten years ago that the Federal government was 
finally able to acquire this property for the American people. At that 
time, Senator Domenici and I were successful in passing the Valles 
Caldera Preservation Act which authorized the acquisition of the 
property and established an experimental framework for the management 
of the Preserve for a period of 20 years. The legislation established 
the Valles Caldera Trust, composed of a nine-member board of trustees, 
whose members are appointed by the President and have particular 
expertise in fields important to the management of the Preserve. The 
bill also directed the Trust to manage the Preserve in a manner that 
would achieve financial self-sustainability after fifteen years. Five 
years thereafter, the Trust would be Although the individual members 
have done their best to fulfill the original legislative directives, 
time has shown in my opinion that this management framework is not the 
best suited for the long-term management of the Preserve.
  Part of the experimental management framework was a requirement that 
the Valles Caldera Trust manage the Preserve in a manner that would 
achieve financial self-sustainability while providing for public access 
and protection of the Preserve's natural and cultural resources. This 
has proved to be a virtually impossible mandate to satisfy. Since its 
inception, the Preserve has not received adequate funding under the 
current arrangement and is unlikely to in the foreseeable future. In 
addition, most members of the board and outside observers believe the 
Trust will be unable to achieve the financial self-sustainability 
requirements called for by the original Act. The Trust has also 
indicated an infusion of approximately $15 million may be necessary to 
complete construction and deferred maintenance costs on the Preserve. I 
do not believe this funding will be forthcoming under the current 
management and budgetary framework. Moreover, much of the funding 
responsibility has been laid on the shoulders of Congress to provide 
the necessary annual funding that is not included in the President's 
annual budget. This arrangement is not sustainable in my opinion, and 
the existing statutory termination of the trust is looming.
  With that said, the trust and its executive staff have made valuable 
progress in various areas of management. One prime example is the 
science and education program established by the Trust. Through the 
scientific activities on the preserve, the trust has been able to adapt 
its management based on the ecological demands of the caldera. The 
trust has promoted the scientific research of flora and fauna on the 
preserve and the impacts of climate change in the Jemez Mountains to 
cite a few of their ongoing activities. It is my belief that the 
transition in management should allow for the retention of the best 
management practices that the Trust has achieved.
  Many New Mexicans have told me that they would like the preserve to 
be managed by an agency that will expand visitation and recreational 
opportunities while also ensuring the protection of the preserve's 
unique resources. Simply put, while my constituents eagerly want more 
access, they have stated clearly and directly--``Don't overrun it.''
  I believe the National Park Service is best suited to manage the 
preserve while ensuring its long-term conservation.
  The National Park Service's mission supports the activities called 
for most by my constituents, including expanded recreational 
opportunities, scientific study, and the interpretation of the natural 
and cultural resources in the preserve. As I discussed earlier, the 
Preserve provides a world-class opportunity for the interpretation of 
the geologic history of this unique area and of the fascinating 
geologic and cultural history that binds the Valles Caldera and 
Bandelier National Monument.

[[Page 9802]]

  Under our proposed legislation, management of the Valles Caldera 
National Preserve will be transferred to the National Park Service to 
be administered as a unit of the National Park System. The bill directs 
the Park Service to manage the Preserve to protect and preserve its 
natural and cultural resources, including its nationally significant 
geologic resources. Hunting and fishing would continue to be allowed, 
and grazing would also continue to be permitted. The National Park 
Service would also be directed to establish a science and education 
program utilizing the best practices created by the trust, as I 
discussed earlier.
  The legislation would maintain the existing character of the preserve 
while strengthening protections for tribal, cultural, and religious 
sites and providing access by pueblos to the preserve. In addition, in 
consultation with the surrounding pueblos, restrictions will be put in 
place on the development and motorized vehicle use on the sacred 
volcanic domes within the preserve, similar to the current restrictions 
on Redondo Peak, the highest peak within the preserve.
  I would like to emphasize that in no way is this legislation a 
criticism of the good work and valuable accomplishments made by the 
Board Members of the Valles Caldera Trust and the preserve staff. 
However, I believe having the preserve managed by the National Park 
Service--an agency with a mission protecting natural, historic, and 
cultural resources while also providing for public enjoyment of those 
resources--is more appropriate for the long-term future of the Valles 
Caldera. In my view, the desire for increased public access, balanced 
with the need to protect and interpret the Preserve's unique cultural 
and natural resources, would be best served by National Park Service 
management of the preserve.
  It is my strong belief that transferring management of the Valles 
Caldera National Preserve to the National Park Service will be the best 
way to ensure the protection and enjoyment of the preserve over the 
long term. I urge my colleagues to support the bill as it is considered 
in the Senate.
  The Los Alamos County Council and Los Alamos Chamber of Commerce have 
submitted resolutions in support of National Park Service management of 
the preserve. Mr. President, I ask unanimous consent that these 
resolutions be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

         Incorporated County of Los Alamos Resolution No. 10-05

       A resolution supporting congressional actions to facilitate 
     the transfer of management of the Valles Caldera National 
     Preserve from the Valles Caldera Trust to the National Park 
     Service under the U.S. Department of the Interior to be 
     managed as a preserve, per the findings of the December 2009 
     updated report on the NPS 1979 new area, study that confirmed 
     the Valles Caldera National Preserve's ability to meet the 
     feasibility requirements of the National Park System.
       Whereas, the enabling legislation PL106-248 created the 
     Valles Caldera National Preserve (VCNP) from a unique parcel 
     of land in north-central New Mexico, and by creating the 
     Valles Calderas Trust as a wholly-owned government 
     corporation to manage the preserve, the Valles Caldera 
     Preservation Act of 2000 established a 20-year public-private 
     experiment to operate the preserve without continued federal 
     funding; and
       Whereas, the Trust is charged with protecting and 
     preserving the scientific, scenic, geologic, watershed, fish, 
     wildlife, historic, cultural, and recreational values of the 
     Preserve and achieving financial self-sufficiency by 2015, 
     while operating the Preserve as a ``working ranch;'' and
       Whereas, the GAO analyzed documents and financial records, 
     and interviewed staff and stakeholders to determine the 
     Trust's progress since 2000, the extent to which the Trust 
     has fulfilled its obligations as a government corporation, 
     and the challenges the Trust faces to achieve the 
     Preservation Act goals, the results of which are published in 
     an October 2009 Report to Congressional Committees, 
     concluding that ``The Trust Has Made Progress but Faces 
     Significant Challenges to Achieve Goals of the Preservation 
     Act;'' and
       Whereas, the national significance of the geological 
     resources of the Valles Caldera was formally recognized in 
     1975 when the area was designated a National Natural 
     Landmark; and
       Whereas, the National Park Service (NPS) has existed since 
     1916 and has a proven record for successfully managing 89 
     million acres of sensitive and historically important public 
     lands in America; and
       Whereas, Senator Jeff Bingaman and Senator Tom Udall, on 
     June 24, 2009 requested that the NPS undertake a 
     reconnaissance study of the Valles Caldera National Preserve 
     to assess its potential for inclusion in the NPS as a 
     National Preserve; and
       Whereas, the NPS completed ``An Updated Report on the NPS 
     1979 New Area Study'' published on December 15, 2009 which 
     includes the following conclusion based on the findings: ``. 
     . . the feasibility of the Valles Caldera for inclusion in 
     the national park system has been enhanced since 1979. The 
     national significance and suitability of the site for 
     inclusion in the system is confirmed;'' and
       Whereas, the report concludes that ``current uses within 
     the VCNP are generally compatible with those in other 
     preserves or parks in the national park system, and there is 
     untapped potential for enhancing public enjoyment;'' and
       Whereas, the report further concludes that ``a single 
     management entity for Valles Caldera and Bandelier would 
     enhance communication, and integration of management programs 
     that require a regional approach, such as fire management, 
     law enforcement, and emergency response would facilitate 
     comprehensive management of resource issues that affect both 
     the Preserve and Bandelier National Monument;'' and
       Whereas, the report states that ``the national information 
     system and audience for sites within the National Park System 
     would [result in] increases in regional and national public 
     use of the area . . . [and] result in increased retail sales 
     for recreation and convenience goods locally, as well as 
     increased volume of recreational, tourist, and other 
     services; and
       Whereas, the VCNP adjoins Los Alamos County lands and is 
     treasured by residents and visitors as a valuable natural, 
     historical, recreational and educational resource; and
       Whereas, Los Alamos County is recognized and marketed as 
     the primary gateway to the VCNP, providing support services 
     such as lodging, restaurants, shopping and additional 
     cultural and recreational experiences to tourists from around 
     the world who seek out this unique, north-central New Mexico 
     attraction; and
       Whereas, management of this resource directly affects Los 
     Alamos County's economic development initiatives, 
     particularly in the area of tourism marketing; and
       Whereas, the majority of the members of public who 
     submitted comment via meeting and e-mail expressed their 
     desire for the National Park Service to assume land 
     management and operations for the Valles Caldera National 
     Preserve; and
       Whereas, the National Park Service policies require a 
     general management plan process that engages the public in a 
     collaborative effort to identify preferred uses, restrictions 
     and management practices, while allowing temporary public 
     access to the Valles Caldera National Preserve; and
       Whereas, the County respectfully requests that the enabling 
     legislation include language to expedite the management plan 
     process, where possible, in order to move from planning and 
     temporary access to implementation. Now, therefore, be it
       Resolved, by the Council of the Incorporated County of Los 
     Alamos, That the County of Los Alamos supports the transfer 
     of the Valles Caldera National Preserve to the U.S. 
     Department of the Interior's National Park Service to be 
     managed as a preserve. Los Alamos County requests to be 
     notified and involved in the process at every opportunity; be 
     it further
       Resolved, That if legislation to transfer the Preserve is 
     not enacted in 2010 Congress consider action to modify the 
     year 2000 enabling legislation to remove obstacles 
     restricting the Valles Caldera Trust's ability to effectively 
     manage the Preserve to meet the public's access priorities
                                  ____

                                             Los Alamos Commerce &


                                            Development Corp.,

                                   Los Alamos, NM, April 27, 2010.

     Subject: Comment Concerning Future Management of Valles 
         Caldera.

     Senator Jeff Bingaman,
     Senate Office Building, Washington, DC.
       Dear Senator Bingaman: Please accept our organization's 
     comment on the question of the future management of the 
     Valles Caldera property. Our organization operates several 
     programs having strong interest in this matter. The Los 
     Alamos Chamber of Commerce is an association of about 300 
     businesses, organizations, and individuals interested in 
     positive community and economic development and our Los 
     Alamos Meeting and Visitor Bureau program operates visitor 
     centers in Los Alamos and White Rock and is an important 
     resource for understanding visitation and tourism in our 
     area.
       We believe that the most desirable management option 
     coinciding with the interests of the Los Alamos community is 
     for the Valles Caldera to become a National Park managed by 
     the National Park Service. This option presents several 
     advantages:
       The National Park Service option is by far the best from 
     the standpoint of promoting visitation and tourism to the 
     area. The NPS

[[Page 9803]]

     ``arrowhead'' is a powerful brand that far exceeds those of 
     forest service and the Valles Caldera Trust in terms of 
     attracting interest and visitation.
       The NPS mission of ``safeguarding America's special 
     places'' stands in contrast with the role of the Forest 
     Service in consumptive use of resources. In contrast with the 
     VCNP Trust, the NPS works with small businesses to provide 
     concession opportunities whereas the VCNP is motivated to 
     develop captive services that do not provide such 
     opportunities. These attributes of the NPS are best aligned 
     among the three management options with our community's 
     interests in realizing economic benefit from visitation and 
     tourism.
       In our experience in Los Alamos County, the involvement of 
     the NPS in our community has far exceeded that of the other 
     proposed management entities. Based on this experience, we 
     believe that it is more likely that the NPS would be 
     interested in working closely with our community for mutual 
     benefit.
       Please note that we do not expect the Valles Caldera to 
     become ``Los Alamos-centric'' in any of the scenarios. We 
     think that Los Alamos is a natural eastern gateway to the 
     Valles and the Jemez Mountains just as we recognize that 
     Jemez Pueblo and Jemez Springs are natural western gateway 
     communities. We understand that it will be important for 
     whatever management entity that is selected to reach out in 
     both of these directions. We encourage that as general input 
     regardless of the choice that is made.
       We think that there is an opportunity to collaborate with 
     the selected entity on a joint visitor center (or centers) in 
     Los Alamos County. Such a facility would be a natural first 
     stop for visitors to Los Alamos and would feature not only 
     the Valles Caldera, but also Bandelier National Monument, the 
     Bradbury Science Museum, the Los Alamos Historical Museum, 
     the Pajarito Environmental Education Center, area Pueblos, 
     and area recreational attractions. We are currently the 
     operator of the visitor center here and we would welcome the 
     opportunity to collaborate on a joint visitor center. We 
     believe that this would enhance the visitor experience as 
     well as enable economies of operation.
       Thank you for listening to and accepting our input. Our 
     organization stands ready to assist the selected management 
     entity for the Valles Caldera.
           Sincerely,
                                                  Kevin Holsapple,
                                               Executive Director.
       On behalf of the Board of Directors of LACDC.

  Mr. UDALL of New Mexico. Mr. President, today I join Senator Bingaman 
in introducing a bill to designate the Valles Caldera National Preserve 
as a unit of the National Park System. Known as the Valle Grande, this 
icon of the Jemez Mountains is one of the largest volcanic calderas in 
the world. The vast grass-filled valleys, forested hillsides, and 
numerous volcanic peaks make the Valles Caldera a treasure to New 
Mexico, and a landscape of national significance millions of years in 
the making.
  Volcanic activity began in the Jemez Mountains about 10 million years 
ago. This activity reached a climax about 1.5 million years ago with a 
series of explosive rhyolitic eruptions that dropped hundreds of meters 
of volcanic ash for miles surrounding the caldera, and gave the 
surrounding area its distinctive landscapes of pink and white tuff 
overlaying the black basalts of the Rio Grande Rift. In the millennia 
following the Caldera's explosive creation, natural processes of 
erosion and weathering carved vibrant canyons and left pinion topped 
mesa stretching like fingers away from the massive caldera. As the 
great valley was drained of magma, and later a caldera lake, it filled 
with the diversity of plants and wildlife that makes the area so 
valuable to biologists and ecologists today. With such resources and 
natural beauty, it is no wonder that for millennia people have also 
been an integral part Valle Grande.
  For generations innumerable, the Valles Caldera has been a part of 
life for the Pueblo Tribes of northern New Mexico. Today, the caldera 
continues to have important cultural and religious significance, 
something that must and will be respected and protected as the preserve 
moves into the management of the National Park Service.
  In recent centuries, the Valles Caldera has been often in private 
ownership beginning with Spanish settlers who introduced livestock to 
the grassy valleys that continue to fatten elk and cattle in the summer 
months. Recognizing the unique national significance of the caldera, 
the Federal Government finally purchased the area in 2000 through the 
Valles Caldera Preservation Act, which I was proud to help shepherd 
through Congress with Senator Bingaman and then-Senator Domenici. The 
subsequent creation of the Valles Caldera National Preserve included 
the creation of a board of directors and the Valles Caldera Trust to 
manage the area. The legislation also included mandates for stakeholder 
involvement and eventual financial self-sufficiency of the preserve.
  As Senator Bingaman and I take steps today to begin a transition of 
the Valles Caldera into the National Park System, I want to applaud the 
decade of work that both the Board of Trustees and the Valles Caldera 
Trust have dedicated to the preserve. I especially want to highlight 
the contributions of individual employees who have been on the ground 
in the caldera, day after day, developing research programs that 
utilize the unmatched natural resources of the caldera, managing cattle 
grazing and expanding the livestock program to include cutting edge 
scientific research, and extending educational opportunities in the 
caldera to students from across state and the country.
  With the heavy mandate of self-sufficiency looming and the annual 
struggle to get sufficient funding for the caldera, Senator Bingaman 
and I are proposing a new direction forward. As a new unit of the 
National Park Service, the National Preserve will have a sustainable 
future with greater access to the public.
  Since 1939, the National Park Service has conducted numerous studies 
of the Valles Caldera. In each, the Park Service consistently deemed 
the area of significant national value because of its unique and 
unaltered geology, and its singular setting, which are conducive to 
public recreation, reflection, education, and research. With this 
legislation the Secretary of Interior is directed to continue the 
longstanding grazing, education, and hunting programs that so many New 
Mexicans value as a once-ina-lifetime opportunity. By utilizing the 
resources and skills within the National Park Service, I believe the 
Valles Caldera National Preserve will continue to prosper as a natural 
wonder full of significant geology, ecology, history, and culture.
  The Valle Grande is truly that: a great valley that so very many New 
Mexicans value and feel connected to. The future of the preserve is of 
utmost importance to us in New Mexico, and also has significance 
nationally. I look forward to working with Senator Bingaman and all of 
the stakeholders who care about the future of this preserve to ensure 
that this legislation emerges from the legislative process with 
improvements that are supported by my colleagues in the Senate and--
most importantly--by the people of New Mexico.

                          ____________________