[Congressional Record (Bound Edition), Volume 157 (2011), Part 15]
[Senate]
[Pages 21321-21326]
[From the U.S. Government Publishing Office, www.gpo.gov]




          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2011

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Senate will proceed to the consideration of H.R. 3630, which the clerk 
will report by title.
  The legislative clerk read as follows:

       A bill (H.R. 3630) to provide incentives for the creation 
     of jobs, and for other purposes.


                           Amendment No. 1465

  Mr. REID. Mr. President, I have an amendment at the desk.
  The ACTING PRESIDENT pro tempore. The clerk will report the 
amendment.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid], for himself and Mr. 
     McConnell, proposes an amendment numbered 1465.

  The amendment is printed in today's Record under ``Text of 
Amendments.''
  The ACTING PRESIDENT pro tempore. Under the previous order, the 
question is on agreeing to the amendment, which is subject to a 60-vote 
threshold.
  Mr. REID. Mr. President, I ask for the yeas and nays.
  The ACTING PRESIDENT pro tempore. Is there a sufficient second?
  There is a sufficient second.
  The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. KYL. The following Senator is necessarily absent: the Senator 
from Kentucky (Mr. Paul).
  The ACTING PRESIDENT pro tempore. Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 89, nays 10, as follows:

                      [Rollcall Vote No. 232 Leg.]

                                YEAS--89

     Akaka
     Alexander
     Ayotte
     Barrasso
     Baucus
     Begich
     Bennet
     Bingaman
     Blumenthal
     Blunt
     Boozman
     Boxer
     Brown (MA)
     Brown (OH)
     Burr
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Coats
     Coburn
     Cochran
     Collins
     Conrad
     Coons
     Cornyn
     Crapo
     Durbin
     Enzi
     Feinstein
     Franken
     Gillibrand
     Graham
     Grassley
     Hagan
     Harkin
     Hatch
     Heller
     Hoeven
     Hutchison
     Inhofe
     Inouye
     Isakson
     Johanns
     Johnson (SD)
     Kerry
     Klobuchar
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Lee
     Levin
     Lieberman
     Lugar
     McCain
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Portman
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Rockefeller
     Rubio
     Schumer
     Shaheen
     Snowe
     Stabenow
     Tester
     Thune
     Toomey
     Udall (CO)
     Udall (NM)
     Vitter
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--10

     Corker
     DeMint
     Johnson (WI)
     Kirk
     Leahy
     Manchin
     Moran
     Sanders
     Sessions
     Shelby

                             NOT VOTING--1

       
     Paul
       
  The ACTING PRESIDENT pro tempore. On this vote, the yeas are 89, the 
nays are 10. Under the previous order requiring 60 votes for the 
adoption of the amendment, the amendment is agreed to.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The ACTING PRESIDING pro tempore. Under the previous order, H.R. 
3630, as amended, is passed, as follows:

                               H.R. 3630

       Resolved, That the bill from the House of Representatives 
     (H.R. 3630) entitled ``An Act to provide incentives for the 
     creation of jobs, and for other purposes.'', do pass with the 
     following amendments:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Temporary 
     Payroll Tax Cut Continuation Act of 2011''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--TEMPORARY PAYROLL TAX RELIEF

Sec. 101. Extension of payroll tax holiday.

[[Page 21322]]

 TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

Sec. 201. Temporary extension of unemployment compensation provisions.
Sec. 202. Extended unemployment benefits under the Railroad 
              Unemployment Insurance Act.

          TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

Sec. 301. Medicare physician payment update.
Sec. 302. 2-month extension of MMA section 508 reclassifications.
Sec. 303. Extension of Medicare work geographic adjustment floor.
Sec. 304. Extension of exceptions process for Medicare therapy caps.
Sec. 305. Extension of payment for technical component of certain 
              physician pathology services.
Sec. 306. Extension of ambulance add-ons.
Sec. 307. Extension of physician fee schedule mental health add-on 
              payment.
Sec. 308. Extension of outpatient hold harmless provision.
Sec. 309. Extending minimum payment for bone mass measurement.
Sec. 310. Extension of the qualifying individual (QI) program.
Sec. 311. Extension of Transitional Medical Assistance (TMA).
Sec. 312. Extension of the temporary assistance for needy families 
              program.

                  TITLE IV--MORTGAGE FEES AND PREMIUMS

Sec. 401. Guarantee Fees.
Sec. 402. FHA guarantee fees.

                       TITLE V--OTHER PROVISIONS

                    Subtitle A--Keystone XL Pipeline

Sec. 501. Permit for Keystone XL pipeline.

                    Subtitle B--Budgetary Provisions

Sec. 511. Senate point of order against an emergency designation.
Sec. 512. PAYGO scorecard estimates.

                 TITLE I--TEMPORARY PAYROLL TAX RELIEF

     SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY.

       (a) In General.--Subsection (c) of section 601 of the Tax 
     Relief, Unemployment Insurance Reauthorization, and Job 
     Creation Act of 2010 (26 U.S.C. 1401 note) is amended to read 
     as follows:
       ``(c) Payroll Tax Holiday Period.--The term `payroll tax 
     holiday period' means--
       ``(1) in the case of the tax described in subsection 
     (a)(1), calendar years 2011 and 2012, and
       ``(2) in the case of the taxes described in subsection 
     (a)(2), the period beginning January 1, 2011, and ending 
     February 29, 2012.''.
       (b) Special Rules for 2012.--Section 601 of such Act (26 
     U.S.C. 1401 note) is amended by adding at the end the 
     following new subsection:
       ``(f)  Special Rules for 2012.--
       ``(1) Limitation on wages and self-employment income.--In 
     the case of--
       ``(A) any taxable year beginning in 2012, subsection (a)(1) 
     shall only apply with respect to so much of the taxpayer's 
     self-employment income (as defined in section 1402(b) of the 
     Internal Revenue Code of 1986) as does not exceed the excess 
     (if any) of--
       ``(i) $18,350, over
       ``(ii) the amount of wages and compensation taken into 
     account under subparagraph (B), and
       ``(B) any remuneration received during the portion of the 
     payroll tax holiday period occurring during 2012, subsection 
     (a)(2) shall only apply to so much of the sum of the 
     taxpayer's wages (as defined in section 3121(a) of such Code) 
     and compensation (as defined section 3231(e) of such Code) as 
     does not exceed $18,350.
       ``(2) Coordination with deduction for employment taxes.--In 
     the case of a taxable year beginning in 2012, subparagraph 
     (A) of subsection (b)(2) shall be applied as if it read as 
     follows:
       ```(A) the sum of--
       ```(i) 59.6 percent of the portion of such taxes 
     attributable to the tax imposed by section 1401(a) of such 
     Code (determined after the application of this section) on so 
     much of self-employment income (as defined in section 1402(b) 
     of such Code) as does not exceed the amount of self-
     employment income described in paragraph (1)(A), plus
       ```(ii) one-half of the portion of such taxes attributable 
     to the tax imposed by section 1401(a) of such Code 
     (determined without regard to this section) on self-
     employment income (as so defined) in excess of such amount, 
     plus'.''
       (c) Technical Amendments.--Paragraph (2) of section 601(b) 
     of such Act (26 U.S.C. 1401 note) is amended--
       (1) by inserting ``of such Code'' after ``164(f)'',
       (2) by inserting ``of such Code'' after ``1401(a)'' in 
     subparagraph (A), and
       (3) by inserting ``of such Code'' after ``1401(b)'' in 
     subparagraph (B).
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to remuneration 
     received, and taxable years beginning, after December 31, 
     2011.
       (2) Technical amendments.--The amendments made by 
     subsection (c) shall take effect as if included in the 
     enactment of section 601 of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010.

 TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

     SEC. 201. TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION 
                   PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``January 3, 2012'' each place it appears 
     and inserting ``March 6, 2012'';
       (B) in the heading for subsection (b)(2), by striking 
     ``january 3, 2012'' and inserting ``march 6, 2012''; and
       (C) in subsection (b)(3), by striking ``June 9, 2012'' and 
     inserting ``August 15, 2012''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``January 4, 2012'' each place it appears 
     and inserting ``March 7, 2012''; and
       (B) in subsection (c), by striking ``June 11, 2012'' and 
     inserting ``August 15, 2012''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``June 10, 2012'' and inserting ``August 
     15, 2012''.
       (4) Section 203 of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
       (A) in subsection (d), in the second sentence of the flush 
     matter following paragraph (2), by striking ``December 31, 
     2011'' and inserting ``February 29, 2012''; and
       (B) in subsection (f)(2), by striking ``December 31, 2011'' 
     and inserting ``February 29, 2012''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (G) the following:
       ``(H) the amendments made by section 201(a)(1) of the 
     Temporary Payroll Tax Cut Continuation Act of 2011; and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the Tax 
     Relief, Unemployment Insurance Reauthorization, and Job 
     Creation Act of 2010 (Public Law 111-312).

     SEC. 202. EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
                   UNEMPLOYMENT INSURANCE ACT.

       (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
     Unemployment Insurance Act, as added by section 2006 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) and as amended by section 9 of the Worker, 
     Homeownership, and Business Assistance Act of 2009 (Public 
     Law 111-92) and section 505 of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010 
     (Public Law 111-312), is amended--
       (1) by striking ``June 30, 2011'' and inserting ``August 
     31, 2011''; and
       (2) by striking ``December 31, 2011'' and inserting 
     ``February 29, 2012''.
       (b) Clarification on Authority to Use Funds.--Funds 
     appropriated under either the first or second sentence of 
     clause (iv) of section 2(c)(2)(D) of the Railroad 
     Unemployment Insurance Act shall be available to cover the 
     cost of additional extended unemployment benefits provided 
     under such section 2(c)(2)(D) by reason of the amendments 
     made by subsection (a) as well as to cover the cost of such 
     benefits provided under such section 2(c)(2)(D), as in effect 
     on the day before the date of the enactment of this Act.

          TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

     SEC. 301. MEDICARE PHYSICIAN PAYMENT UPDATE.

       Section 1848(d) of the Social Security Act (42 U.S.C. 
     1395w-4(d)) is amended by adding at the end the following new 
     paragraph:
       ``(13) Update for first two months of 2012.--
       ``(A) In general.--Subject to paragraphs (7)(B), (8)(B), 
     (9)(B), (10)(B), (11)(B), and (12)(B), in lieu of the update 
     to the single conversion factor established in paragraph 
     (1)(C) that would otherwise apply for the period beginning on 
     January 1, 2012, and ending on February 29, 2012, the update 
     to the single conversion factor shall be zero percent.
       ``(B) No effect on computation of conversion factor for 
     remaining portion of 2012 and subsequent years.--The 
     conversion factor under this subsection shall be computed 
     under paragraph (1)(A) for the period beginning on March 1, 
     2012, and ending on December 31, 2012, and for 2013 and 
     subsequent years as if subparagraph (A) had never applied.''.

     SEC. 302. 2-MONTH EXTENSION OF MMA SECTION 508 
                   RECLASSIFICATIONS.

       (a) In General.--Section 106(a) of division B of the Tax 
     Relief and Health Care Act of 2006 (42 U.S.C. 1395 note), as 
     amended by section 117 of the Medicare, Medicaid, and SCHIP 
     Extension Act of 2007 (Public Law 110-173), section 124 of 
     the Medicare Improvements for Patients and Providers Act of 
     2008 (Public Law 110-275), sections 3137(a) and 10317 of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148), and section 102(a) of the Medicare and Medicaid 
     Extenders Act of 2010 (Public Law 111-309), is amended by 
     striking ``September 30, 2011'' and inserting ``November 30, 
     2011''.
       (b) Special Rule for October and November 2011.--
       (1) In general.--Subject to paragraph (2), for purposes of 
     implementation of the amendment made by subsection (a), 
     including for purposes of the implementation of paragraph (2) 
     of section 117(a) of the Medicare, Medicaid, and SCHIP 
     Extension Act of 2007 (Public Law 110-173), for the period 
     beginning on October 1, 2011, and ending on November 30, 
     2011, the Secretary of Health and Human Services shall use 
     the hospital wage index that was promulgated by the

[[Page 21323]]

     Secretary of Health and Human Services in the Federal 
     Register on August 18, 2011 (76 Fed. Reg. 51476), and any 
     subsequent corrections.
       (2) Exception.--In determining the wage index applicable to 
     hospitals that qualify for wage index reclassification, the 
     Secretary shall, for the period beginning on October 1, 2011, 
     and ending on November 30, 2011, include the average hourly 
     wage data of hospitals whose reclassification was extended 
     pursuant to the amendment made by subsection (a) only if 
     including such data results in a higher applicable 
     reclassified wage index. Any revision to hospital wage 
     indexes made as a result of this paragraph shall not be 
     effected in a budget neutral manner.
       (c) Timeframe for Payments.--The Secretary shall make 
     payments required under subsections (a) and (b) by not later 
     than December 31, 2012.

     SEC. 303. EXTENSION OF MEDICARE WORK GEOGRAPHIC ADJUSTMENT 
                   FLOOR.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2012'' and inserting ``before March 1, 2012''.

     SEC. 304. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE 
                   THERAPY CAPS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``December 31, 2011'' and 
     inserting ``February 29, 2012''.

     SEC. 305. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF 
                   CERTAIN PHYSICIAN PATHOLOGY SERVICES.

       Section 542(c) of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (as enacted 
     into law by section 1(a)(6) of Public Law 106-554), as 
     amended by section 732 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395w-4 
     note), section 104 of division B of the Tax Relief and Health 
     Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173), section 136 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), 
     section 3104 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148), and section 105 of the Medicare and 
     Medicaid Extenders Act of 2010 (Public Law 111-309), is 
     amended by striking ``and 2011'' and inserting ``2011, and 
     the first two months of 2012''.

     SEC. 306. EXTENSION OF AMBULANCE ADD-ONS.

       (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social 
     Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``January 1, 2012'' and inserting ``March 1, 2012''; and
       (2) in each of clauses (i) and (ii), by striking ``January 
     1, 2012'' and inserting ``March 1, 2012'' each place it 
     appears.
       (b) Air Ambulance.--Section 146(b)(1) of the Medicare 
     Improvements for Patients and Providers Act of 2008 (Public 
     Law 110-275), as amended by sections 3105(b) and 10311(b) of 
     Public Law 111-148 and section 106(b) of the Medicare and 
     Medicaid Extenders Act of 2010 (Public Law 111-309), is 
     amended by striking ``December 31, 2011'' and inserting 
     ``February 29, 2012''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by 
     striking ``January 1, 2012'' and inserting ``March 1, 2012''.

     SEC. 307. EXTENSION OF PHYSICIAN FEE SCHEDULE MENTAL HEALTH 
                   ADD-ON PAYMENT.

       Section 138(a)(1) of the Medicare Improvements for Patients 
     and Providers Act of 2008 (Public Law 110-275), as amended by 
     section 3107 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148) and section 107 of the Medicare and 
     Medicaid Extenders Act of 2010 (Public Law 111-309), is 
     amended by striking ``December 31, 2011'' and inserting 
     ``February 29, 2012''.

     SEC. 308. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

       Section 1833(t)(7)(D)(i) of the Social Security Act (42 
     U.S.C. 1395l(t)(7)(D)(i)), as amended by section 3121(a) of 
     the Patient Protection and Affordable Care Act (Public Law 
     111-148) and section 108 of the Medicare and Medicaid 
     Extenders Act of 2010 (Public Law 111-309), is amended--
       (1) in subclause (II)--
       (A) in the first sentence, by striking ``January 1, 2012'' 
     and inserting ``March 1, 2012''; and
       (B) in the second sentence, by striking ``or 2011'' and 
     inserting ``2011, or the first two months of 2012''; and
       (2) in subclause (III)--
       (A) in the first sentence, by striking ``2009, and'' and 
     all that follows through ``for which'' and inserting ``2009, 
     and before March 1, 2012, for which''; and
       (B) in the second sentence, by striking ``2010, and'' and 
     all that follows through ``the preceding'' and inserting 
     ``2010, and before March 1, 2012, the preceding''.

     SEC. 309. EXTENDING MINIMUM PAYMENT FOR BONE MASS 
                   MEASUREMENT.

       Section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     is amended--
       (1) in subsection (b)--
       (A) in paragraph (4)(B), by striking ``and 2011'' and 
     inserting ``, 2011, and the first 2 months of 2012''; and
       (B) in paragraph (6)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``and 2011'' and inserting ``, 2011, and the first 2 months 
     of 2012''; and
       (ii) in subparagraph (C), by striking ``and 2011'' and 
     inserting ``, 2011, and the first 2 months of 2012''; and
       (2) in subsection (c)(2)(B)(iv)(IV), by striking ``or 
     2011'' and inserting ``, 2011, or the first 2 months of 
     2012''.

     SEC. 310. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 
                   PROGRAM.

       (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by 
     striking ``December 2011'' and inserting ``February 2012''.
       (b) Extending Total Amount Available for Allocation.--
     Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is 
     amended--
       (1) in paragraph (2)--
       (A) by striking ``and'' at the end of subparagraph (O);
       (B) in subparagraph (P), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraphs:
       ``(Q) for the period that begins on January 1, 2012, and 
     ends on February 29, 2012, the total allocation amount is 
     $150,000,000.''.

     SEC. 311. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

       Sections 1902(e)(1)(B) and 1925(f) of the Social Security 
     Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended 
     by striking ``December 31, 2011'' and inserting ``February 
     29, 2012''.

     SEC. 312. EXTENSION OF THE TEMPORARY ASSISTANCE FOR NEEDY 
                   FAMILIES PROGRAM.

       Activities authorized by part A of title IV and section 
     1108(b) of the Social Security Act (other than under 
     subsections (a)(3) and (b) of section 403 of such Act) shall 
     continue through February 29, 2012, in the manner authorized 
     for fiscal year 2011, and out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     hereby appropriated such sums as may be necessary for such 
     purpose. Grants and payments may be made pursuant to this 
     authority through the applicable portion of the second 
     quarter of fiscal year 2012 at the pro rata portion of the 
     level provided for such activities through the second quarter 
     of fiscal year 2011.

                  TITLE IV--MORTGAGE FEES AND PREMIUMS

     SEC. 401. GUARANTEE FEES.

       Subpart A of part 2 of subtitle A of title XIII of the 
     Housing and Community Development Act of 1992 is amended by 
     adding after section 1326 (12 U.S.C. 4546) the following new 
     section:

     ``SEC. 1327. ENTERPRISE GUARANTEE FEES.

       ``(a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Guarantee fee.--The term `guarantee fee'--
       ``(A) means a fee described in subsection (b); and
       ``(B) includes--
       ``(i) the guaranty fee charged by the Federal National 
     Mortgage Association with respect to mortgage-backed 
     securities; and
       ``(ii) the management and guarantee fee charged by the 
     Federal Home Loan Mortgage Corporation with respect to 
     participation certificates.
       ``(2) Average fees.--The term `average fees' means the 
     average contractual fee rate of single-family guaranty 
     arrangements by an enterprise entered into during 2011, plus 
     the recognition of any up-front cash payments over an 
     estimated average life, expressed in terms of basis points. 
     Such definition shall be interpreted in a manner consistent 
     with the annual report on guarantee fees by the Federal 
     Housing Finance Agency.
       ``(b) Increase.--
       ``(1) In general.--
       ``(A) Phased increase required.--Subject to subsection (c), 
     the Director shall require each enterprise to charge a 
     guarantee fee in connection with any guarantee of the timely 
     payment of principal and interest on securities, notes, and 
     other obligations based on or backed by mortgages on 
     residential real properties designed principally for 
     occupancy of from 1 to 4 families, consummated after the date 
     of enactment of this section.
       ``(B) Amount.--The amount of the increase required under 
     this section shall be determined by the Director to 
     appropriately reflect the risk of loss, as well the cost of 
     capital allocated to similar assets held by other fully 
     private regulated financial institutions, but such amount 
     shall be not less than an average increase of 10 basis points 
     for each origination year or book year above the average fees 
     imposed in 2011 for such guarantees. The Director shall 
     prohibit an enterprise from offsetting the cost of the fee to 
     mortgage originators, borrowers, and investors by decreasing 
     other charges, fees, or premiums, or in any other manner.
       ``(2) Authority to limit offer of guarantee.--The Director 
     shall prohibit an enterprise from consummating any offer for 
     a guarantee to a lender for mortgage-backed securities, if--
       ``(A) the guarantee is inconsistent with the requirements 
     of this section; or
       ``(B) the risk of loss is allowed to increase, through 
     lowering of the underwriting standards or other means, for 
     the primary purpose of meeting the requirements of this 
     section.
       ``(3) Deposit in treasury.--Amounts received from fee 
     increases imposed under this section shall be deposited 
     directly into the United States Treasury, and shall be 
     available only to the extent provided in subsequent 
     appropriations Acts. The fees charged pursuant to this 
     section shall not be considered a reimbursement to the 
     Federal Government for the costs or subsidy provided to an 
     enterprise.
       ``(c) Phase-in.--

[[Page 21324]]

       ``(1) In general.--The Director may provide for compliance 
     with subsection (b) by allowing each enterprise to increase 
     the guarantee fee charged by the enterprise gradually over 
     the 2-year period beginning on the date of enactment of this 
     section, in a manner sufficient to comply with this section. 
     In determining a schedule for such increases, the Director 
     shall--
       ``(A) provide for uniform pricing among lenders;
       ``(B) provide for adjustments in pricing based on risk 
     levels; and
       ``(C) take into consideration conditions in financial 
     markets.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be interpreted to undermine the minimum increase 
     required by subsection (b).
       ``(d) Information Collection and Annual Analysis.--The 
     Director shall require each enterprise to provide to the 
     Director, as part of its annual report submitted to 
     Congress--
       ``(1) a description of--
       ``(A) changes made to up-front fees and annual fees as part 
     of the guarantee fees negotiated with lenders;
       ``(B) changes to the riskiness of the new borrowers 
     compared to previous origination years or book years; and
       ``(C) any adjustments required to improve for future 
     origination years or book years, in order to be in complete 
     compliance with subsection (b); and
       ``(2) an assessment of how the changes in the guarantee 
     fees described in paragraph (1) met the requirements of 
     subsection (b).
       ``(e) Enforcement.--
       ``(1) Required adjustments.--Based on the information from 
     subsection (d) and any other information the Director deems 
     necessary, the Director shall require an enterprise to make 
     adjustments in its guarantee fee in order to be in compliance 
     with subsection (b).
       ``(2) Noncompliance penalty.--An enterprise that has been 
     found to be out of compliance with subsection (b) for any 2 
     consecutive years shall be precluded from providing any 
     guarantee for a period, determined by rule of the Director, 
     but in no case less than 1 year.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be interpreted as preventing the Director from 
     initiating and implementing an enforcement action against an 
     enterprise, at a time the Director deems necessary, under 
     other existing enforcement authority.
       ``(f) Expiration.--The provisions of this section shall 
     expire on October 1, 2021.''.

     SEC. 402. FHA GUARANTEE FEES.

       (a) Amendment.--Section 203(c)(2) of the National Housing 
     Act (12 U.S.C. 1709(c)(2)) is amended by adding at the end 
     the following:
       ``(C)(i) In addition to the premiums under subparagraphs 
     (A) and (B), the Secretary shall establish and collect annual 
     premium payments for any mortgage for which the Secretary 
     collects an annual premium payment under subparagraph (B), in 
     an amount described in clause (ii).
       ``(ii)(I) Subject to subclause (II), with respect to a 
     mortgage, the amount described in this clause is 10 basis 
     points of the remaining insured principal balance (excluding 
     the portion of the remaining balance attributable to the 
     premium collected under subparagraph (A) and without taking 
     into account delinquent payments or prepayments).
       ``(II) During the 2-year period beginning on the date of 
     enactment of this subparagraph, the Secretary shall increase 
     the number of basis points of the annual premium payment 
     collected under this subparagraph incrementally, as 
     determined appropriate by the Secretary, until the number of 
     basis points of the annual premium payment collected under 
     this subparagraph is equal to the number described in 
     subclause (I).''.
       (b) Prospective Repeal.--Section 203(c)(2) of the National 
     Housing Act (12 U.S.C. 1709(c)(2)) is amended by striking 
     subparagraph (C), as added by subsection (a), effective on 
     October 1, 2021.
       (c) Report Required.--Not later than 30 days before the 
     date on which the Secretary of Housing and Urban Development 
     makes a determination under subsection (b)(2), the Secretary 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (1) explains the basis for the determination; and
       (2) identifies the date on which the Secretary plans to 
     make the determination.

                       TITLE V--OTHER PROVISIONS

                    Subtitle A--Keystone XL Pipeline

     SEC. 501. PERMIT FOR KEYSTONE XL PIPELINE.

       (a) In General.--Except as provided in subsection (b), not 
     later than 60 days after the date of enactment of this Act, 
     the President, acting through the Secretary of State, shall 
     grant a permit under Executive Order 13337 (3 U.S.C. 301 
     note; relating to issuance of permits with respect to certain 
     energy-related facilities and land transportation crossings 
     on the international boundaries of the United States) for the 
     Keystone XL pipeline project application filed on September 
     19, 2008 (including amendments).
       (b) Exception.--
       (1) In general.--The President shall not be required to 
     grant the permit under subsection (a) if the President 
     determines that the Keystone XL pipeline would not serve the 
     national interest.
       (2) Report.--If the President determines that the Keystone 
     XL pipeline is not in the national interest under paragraph 
     (1), the President shall, not later than 15 days after the 
     date of the determination, submit to the Committee on Foreign 
     Relations of the Senate, the Committee on Foreign Affairs of 
     the House of Representatives, the majority leader of the 
     Senate, the minority leader of the Senate, the Speaker of the 
     House of Representatives, and the minority leader of the 
     House of Representatives a report that provides a 
     justification for determination, including consideration of 
     economic, employment, energy security, foreign policy, trade, 
     and environmental factors.
       (3) Effect of no finding or action.--If a determination is 
     not made under paragraph (1) and no action is taken by the 
     President under subsection (a) not later than 60 days after 
     the date of enactment of this Act, the permit for the 
     Keystone XL pipeline described in subsection (a) that meets 
     the requirements of subsections (c) and (d) shall be in 
     effect by operation of law.
       (c) Requirements.--The permit granted under subsection (a) 
     shall require the following:
       (1) The permittee shall comply with all applicable Federal 
     and State laws (including regulations) and all applicable 
     industrial codes regarding the construction, connection, 
     operation, and maintenance of the United States facilities.
       (2) The permittee shall obtain all requisite permits from 
     Canadian authorities and relevant Federal, State, and local 
     governmental agencies.
       (3) The permittee shall take all appropriate measures to 
     prevent or mitigate any adverse environmental impact or 
     disruption of historic properties in connection with the 
     construction, operation, and maintenance of the United States 
     facilities.
       (4) For the purpose of the permit issued under subsection 
     (a) (regardless of any modifications under subsection (d))--
       (A) the final environmental impact statement issued by the 
     Secretary of State on August 26, 2011, satisfies all 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) and section 106 of the National 
     Historic Preservation Act (16 U.S.C. 470f);
       (B) any modification required by the Secretary of State to 
     the Plan described in paragraph (5)(A) shall not require 
     supplementation of the final environmental impact statement 
     described in that paragraph; and
       (C) no further Federal environmental review shall be 
     required.
       (5) The construction, operation, and maintenance of the 
     facilities shall be in all material respects similar to that 
     described in the application described in subsection (a) and 
     in accordance with--
       (A) the construction, mitigation, and reclamation measures 
     agreed to by the permittee in the Construction Mitigation and 
     Reclamation Plan found in appendix B of the final 
     environmental impact statement issued by the Secretary of 
     State on August 26, 2011, subject to the modification 
     described in subsection (d);
       (B) the special conditions agreed to between the permittee 
     and the Administrator of the Pipeline Hazardous Materials 
     Safety Administration of the Department of Transportation 
     found in appendix U of the final environmental impact 
     statement described in subparagraph (A);
       (C) if the modified route submitted by the Governor of 
     Nebraska under subsection (d)(3)(B) crosses the Sand Hills 
     region, the measures agreed to by the permittee for the Sand 
     Hills region found in appendix H of the final environmental 
     impact statement described in subparagraph (A); and
       (D) the stipulations identified in appendix S of the final 
     environmental impact statement described in subparagraph (A).
       (6) Other requirements that are standard industry practice 
     or commonly included in Federal permits that are similar to a 
     permit issued under subsection (a).
       (d) Modification.--The permit issued under subsection (a) 
     shall require--
       (1) the reconsideration of routing of the Keystone XL 
     pipeline within the State of Nebraska;
       (2) a review period during which routing within the State 
     of Nebraska may be reconsidered and the route of the Keystone 
     XL pipeline through the State altered with any accompanying 
     modification to the Plan described in subsection (c)(5)(A); 
     and
       (3) the President--
       (A) to coordinate review with the State of Nebraska and 
     provide any necessary data and reasonable technical 
     assistance material to the review process required under this 
     subsection; and
       (B) to approve the route within the State of Nebraska that 
     has been submitted to the Secretary of State by the Governor 
     of Nebraska.
       (e) Effect of No Approval.--If the President does not 
     approve the route within the State of Nebraska submitted by 
     the Governor of Nebraska under subsection (d)(3)(B) not later 
     than 10 days after the date of submission, the route 
     submitted by the Governor of Nebraska under subsection 
     (d)(3)(B) shall be considered approved, pursuant to the terms 
     of the permit described in subsection (a) that meets the 
     requirements of subsection (c) and this subsection, by 
     operation of law.
       (f) Private Property Savings Clause.--Nothing in this 
     section alters the Federal, State, or local processes or 
     conditions in effect on the date of enactment of this Act 
     that are necessary to secure access from private property 
     owners to construct the Keystone XL pipeline.

                    Subtitle B--Budgetary Provisions

     SEC. 511. SENATE POINT OF ORDER AGAINST AN EMERGENCY 
                   DESIGNATION.

       Section 314 of the Congressional Budget Act of 1974 is 
     amended by--
       (1) redesignating subsection (e) as subsection (f); and
       (2) inserting after subsection (d) the following:
       ``(e) Senate Point of Order Against an Emergency 
     Designation.--

[[Page 21325]]

       ``(1) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, amendment between the Houses, 
     or conference report, if a point of order is made by a 
     Senator against an emergency designation in that measure, 
     that provision making such a designation shall be stricken 
     from the measure and may not be offered as an amendment from 
     the floor.
       ``(2) Supermajority waiver and appeals.--
       ``(A) Waiver.--Paragraph (1) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       ``(B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       ``(3) Definition of an emergency designation.--For purposes 
     of paragraph (1), a provision shall be considered an 
     emergency designation if it designates any item pursuant to 
     section 251(b)(2)(A)(i) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.
       ``(4) Form of the point of order.--A point of order under 
     paragraph (1) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       ``(5) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.''.

     SEC. 512. PAYGO SCORECARD ESTIMATES.

       The budgetary effects of this Act shall not be entered on 
     either PAYGO scorecard maintained pursuant to section 4(d) of 
     the Statutory Pay-As-You-Go Act of 2010.
       Amend the title so as to read: ``An Act A bill to extend 
     the payroll tax holiday, unemployment compensation, Medicare 
     physician payment, provide for the consideration of the 
     Keystone XL pipeline, and for other purposes''.

  The ACTING PRESIDENT pro tempore. The majority leader.


                           Amendment No. 1466

  Mr. REID. Mr. President, I have an amendment to the title that is at 
the desk, and I ask unanimous consent that it be agreed to.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The amendment (No. 1466) was agreed to, as follows:

       To amend the title so as to read:
       A bill to extend the payroll tax holiday, unemployment 
     compensation, Medicare physician payment, provide for the 
     consideration of the Keystone XL pipleline, and for other 
     purposes.

  Mr. REED. Mr. President, today I voted to prevent a tax increase on 
the middle class and to continue jobless benefits for millions of 
Americans and thousands of Rhode Islanders. Unfortunately, despite my 
and many of my colleagues' best efforts, this bill is deeply flawed. It 
doesn't provide needed certainty to Americans or to our economy because 
it does not provide a year-long extension of the payroll tax cut and 
jobless benefits, nor does it include needed reforms, like work 
sharing, which will help prevent layoffs in our still fragile economy. 
By insisting that jobless benefits be paid for, we are undermining the 
countercyclical nature of the program and blunting its purpose to 
stabilize our economy. But worst of all, it fails to address a 
provision of the unemployment insurance law that is absolutely 
necessary given our current employment crisis.
  As a result, this bill effectively cuts 20 weeks of unemployment 
benefits. This means Rhode Islanders who have exhausted their normal UI 
benefits and extended--EUC08--benefits in February will not be eligible 
to receive the same help that was given to an unemployed person in the 
same situation back in the middle of 2011.
  There is no reason to cut back on jobless benefits now. Over 13 
million Americans are out of work, and our Nation is still grappling 
with the worst case of chronic long-term unemployment since the Great 
Depression. Unemployment benefits are a lifeline to millions of 
families and are our most effective tool in battling economic decline. 
Without these benefits unemployed Americans who are looking for a job 
wouldn't be able to pay for absolute necessities--their rent, mortgage, 
groceries, or for transportation as they hit the streets looking for 
work.
  This reduction in coverage that my Republican colleagues have 
insisted upon is deeply damaging to American households and the broad 
economy. We should not be engaged in these short-term extensions of the 
payroll tax cut and jobless benefits--and then cut those jobless 
benefits as we go along.
  In addition to cutting jobless benefits that help a broad swath of 
Americans, Republicans refuse to ask the wealthiest Americans to 
contribute to offsetting these policies. The payroll tax and jobless 
benefits could have been paid for by asking the wealthiest one-tenth of 
1 percent to share in the sacrifice that middle-class America has made, 
but Republicans have voted time and again in favor of millionaire and 
billionaires and against tax cuts for the middle class.
  I will continue to fight for maintaining jobless benefits and 
extending the payroll tax cut through 2012. I will continue to oppose 
efforts that would cut benefits and that would pay for continuing 
benefits by hurting the middle class.
  As today's bill shows, though, my Republican colleagues are not 
interested in helping middle-class Americans and instead insist on 
tacking on controversial environmental riders and including offsets 
that hit the middle class.
  Indeed, this bill includes a provision that would require the 
President to make a decision on the Keystone XL Pipeline within 60 
days. This timeframe would dramatically shorten the important 
environmental review of the project, which includes assessing its 
potential impacts on critical water resources in the Ogallala aquifer, 
as well as increased carbon pollution.
  I have been working to support and urge serious steps to reduce our 
dependence on oil, such as increasing the fuel efficiency of our 
vehicles and developing advanced biofuels. Even if Canadian oil 
displaces the importation of oil from other countries, the price of oil 
is determined by the global market, and the best way to decrease our 
exposure to the rising price of oil is to decrease our demand.
  In addition, since America has recently become a net exporter of 
petroleum products, I am concerned that the proposed pipeline would 
merely allow big oil companies to import the oil from Canada, transport 
it by a pipeline--and with it, the risks of leaking into a critical 
aquifer--down to Texas refineries, where it would be refined into 
petroleum products that, in part, would be exported to foreign markets.
  It is for those reasons that I have opposed the proposed Keystone XL 
Pipeline and urge the President to reject it.
  As I have stated previously, I would have preferred to pay for this 
legislation by asking the wealthiest one-tenth of 1 percent of 
Americans to share in the sacrifices that all other Americans have made 
in working to right our economic ship. However, in the search for pay-
fors, the House of Representatives added language that would increase 
the guarantee-fees--g-fees--the government-sponsored enterprises charge 
over the next 10 years, diverting funds away from shoring up the GSEs 
to fund a benefit that is unrelated to our housing markets. If there is 
any capacity to increase the g-fees, those resources should be directed 
to our housing markets, which still remain too fragile.
  I find it incredibly ironic that my Republican colleagues, many of 
whom say they believe the mortgage securitization market should be 
completely privatized, have suggested an offset that uses a 10-year 
revenue stream from the enterprises' business operations as a piggy 
bank for governmental purposes. This seems like inconsistent policy at 
best.
  This bill is deeply flawed, but I could not in good conscience vote 
against

[[Page 21326]]

providing a tax cut to the middle class and providing desperately 
needed relief to nearly 10,000 Rhode Islanders who would have lost 
jobless benefits through the month of January.
  I will not stop fighting for the middle class, to continue jobless 
benefits and working to improve our economy and create jobs. I will 
work tirelessly to continue the payroll tax cut and jobless benefits 
through the rest of the year and to fix this egregious reduction in 
benefits.

                          ____________________