[Congressional Record (Bound Edition), Volume 158 (2012), Part 3]
[Senate]
[Pages 3243-3256]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1824. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill S. 1813, to reauthorize Federal-aid highway and highway 
safety construction programs, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 792, strike line 20 and all that follows through 
     page 793, line 2, and insert the following:
       ``(2) Clean fuel vehicle.--The term `clean fuel vehicle' 
     means--
       ``(A) a passenger vehicle used to provide public 
     transportation that the Administrator of the Environmental 
     Protection Agency has certified sufficiently reduces energy 
     consumption or reduces harmful emissions, including direct 
     carbon emissions, when compared to a comparable standard 
     vehicle; or
       ``(B) a zero emission bus used to provide public 
     transportation.
       On page 794, between lines 13 and 14, insert the following:
       ``(7) Zero emission bus.--The term `zero emission bus' 
     means a clean fuel vehicle that produces no carbon or 
     particulate matter.
       On page 794, between lines 22 and 23, insert the following:
       ``(3) Combination of funding sources.--
       ``(A) Combination permitted.--A project carried out under 
     this section may receive funding under section 5307, or any 
     other provision of law.
       ``(B) Government share.--Nothing in this paragraph may be 
     construed to alter the Government share required under this 
     section, section 5307, or any other provision of law.
       On page 795, line 10, strike ``(f)'' and insert the 
     following:
       ``(f) Priority Consideration.--In making grants under this 
     section, the Secretary shall give priority to projects 
     relating to clean fuel buses that make greater reductions in 
     energy consumption and harmful emissions, including direct 
     carbon emissions, than comparable standard buses or other 
     clean fuel buses.
       ``(g)
                                 ______
                                 
  SA 1825. Mr. BAUCUS (for himself, Mr. Bingaman, Mr. Wyden, Mr. 
Merkley, Mr. Tester, Mr. Crapo, Mr. Risch, and Ms. Murkowski) submitted 
an amendment intended to be proposed by him to the bill S. 1813, to 
reauthorize Federal-aid highway and highway safety construction 
programs, and for other purposes; as follows:

       At the end of division D, insert the following:

             TITLE IV--REAUTHORIZATION OF CERTAIN PROGRAMS

   Subtitle A--Secure Rural Schools and Community Self-determination 
                                Program

     SEC. 40401. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION PROGRAM.

       (a) Amendments.--The Secure Rural Schools and Community 
     Self-Determination Act of 2000 (16 U.S.C. 7101 et seq.) is 
     amended--
       (1) in section 3(11)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (B) in subparagraph (B)--
       (i) by striking ``fiscal year 2009 and each fiscal year 
     thereafter'' and inserting ``each of fiscal years 2009 
     through 2011''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(C) for fiscal year 2012 and each fiscal year thereafter, 
     the amount that is equal to 95 percent of the full funding 
     amount for the preceding fiscal year.'';
       (2) in sections 101, 102, 203, 207, 208, 304, and 402, by 
     striking ``2011'' each place it appears and inserting 
     ``2012'';
       (3) in section 102--
       (A) by striking ``2008'' each place it appears and 
     inserting ``2012'';
       (B) in subsection (b)(2)(B), by inserting ``in 2012'' 
     before ``, the election''; and
       (C) in subsection (d)--
       (i) in paragraph (1)(A), by striking ``paragraph (3)(B)'' 
     and inserting ``subparagraph (D)''; and
       (ii) in paragraph (3)--

       (I) by striking subparagraph (A) and inserting the 
     following:

       ``(A) Notification.--The Governor of each eligible State 
     shall notify the Secretary concerned of an election by an 
     eligible county under this subsection not later than 
     September 30, 2012, and each September 30 thereafter for each 
     succeeding fiscal year.'';

       (II) by redesignating subparagraph (B) as subparagraph (D) 
     and moving the subparagraph so as to appear at the end of 
     paragraph (1) of subsection (d); and
       (III) by inserting after subparagraph (A) the following:

       ``(B) Failure to elect.--If the Governor of an eligible 
     State fails to notify the Secretary concerned of the election 
     for an eligible county by the date specified in subparagraph 
     (A)--
       ``(i) the eligible county shall be considered to have 
     elected to expend 80 percent of the funds in accordance with 
     paragraph (1)(A); and
       ``(ii) the remainder shall be available to the Secretary 
     concerned to carry out projects in the eligible county to 
     further the purpose described in section 202(b).'';
       (4) in section 103(d)(2), by striking ``fiscal year 2011'' 
     and inserting ``each of fiscal years 2011 and 2012'';
       (5) in section 202, by adding at the end the following:
       ``(c) Administrative Expenses.--A resource advisory 
     committee may, in accordance with section 203, propose to use 
     not more than 10 percent of the project funds of an eligible 
     county for any fiscal year for administrative expenses 
     associated with operating the resource advisory committee 
     under this title.'';
       (6) in section 204(e)(3)(B)(iii), by striking ``and 2011'' 
     and inserting ``through 2012'';
       (7) in section 205(a)(4), by striking ``2006'' each place 
     it appears and inserting ``2011'';
       (8) in section 208(b), by striking ``2012'' and inserting 
     ``2013'';
       (9) in section 302(a)(2)(A), by inserting ``and'' after the 
     semicolon; and
       (10) in section 304(b), by striking ``2012'' and inserting 
     ``2013''.
       (b) Failure to Make Election.--For each county that failed 
     to make an election for fiscal year 2011 in accordance with 
     section 102(d)(3)(A) of the Secure Rural Schools and 
     Community Self-Determination Act of 2000 (16 U.S.C. 
     7112(d)(3)(A)), there shall be available to the Secretary of 
     Agriculture to carry out projects to further the purpose 
     described in section 202(b) of that Act (16 U.S.C. 7122(b)), 
     from amounts in the Treasury not otherwise appropriated, the 
     amount that is equal to 15 percent of the total share of the 
     State payment that otherwise would have been made to the 
     county under that Act for fiscal year 2011.

              Subtitle B--Payment in Lieu of Taxes Program

     SEC. 40411. PAYMENTS IN LIEU OF TAXES.

       Section 6906 of title 31, United States Code, is amended by 
     striking ``2012'' and inserting ``2013''.

                          Subtitle C--Offsets

     SEC. 40421. TAX REPORTING FOR LIFE SETTLEMENT TRANSACTIONS.

       (a) In General.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 6050X. RETURNS RELATING TO CERTAIN LIFE INSURANCE 
                   CONTRACT TRANSACTIONS.

       ``(a) Requirement of Reporting of Certain Payments.--
       ``(1) In general.--Every person who acquires a life 
     insurance contract or any interest in a life insurance 
     contract in a reportable policy sale during any taxable year 
     shall make a return for such taxable year (at such time and 
     in such manner as the Secretary shall prescribe) setting 
     forth--
       ``(A) the name, address, and TIN of such person,
       ``(B) the name, address, and TIN of each recipient of 
     payment in the reportable policy sale,
       ``(C) the date of such sale,
       ``(D) the name of the issuer of the life insurance contract 
     sold and the policy number of such contract, and
       ``(E) the amount of each payment.
       ``(2) Statement to be furnished to persons with respect to 
     whom information is required.--Every person required to make 
     a return under this subsection shall furnish to each person 
     whose name is required to be set forth in such return a 
     written statement showing--
       ``(A) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(B) the information required to be shown on such return 
     with respect to such person, except that in the case of an 
     issuer of a life insurance contract, such statement is not 
     required to include the information specified in paragraph 
     (1)(E).
       ``(b) Requirement of Reporting of Seller's Basis in Life 
     Insurance Contracts.--
       ``(1) In general.--Upon receipt of the statement required 
     under subsection (a)(2) or upon notice of a transfer of a 
     life insurance contract to a foreign person, each issuer of a 
     life insurance contract shall make a return (at such time and 
     in such manner as the Secretary shall prescribe) setting 
     forth--
       ``(A) the name, address, and TIN of the seller who 
     transfers any interest in such contract in such sale,
       ``(B) the investment in the contract (as defined in section 
     72(e)(6)) with respect to such seller, and
       ``(C) the policy number of such contract.
       ``(2) Statement to be furnished to persons with respect to 
     whom information is required.--Every person required to make 
     a return under this subsection shall furnish to each person 
     whose name is required to be set forth in such return a 
     written statement showing--
       ``(A) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(B) the information required to be shown on such return 
     with respect to each seller whose name is required to be set 
     forth in such return.
       ``(c) Requirement of Reporting With Respect to Reportable 
     Death Benefits.--

[[Page 3244]]

       ``(1) In general.--Every person who makes a payment of 
     reportable death benefits during any taxable year shall make 
     a return for such taxable year (at such time and in such 
     manner as the Secretary shall prescribe) setting forth--
       ``(A) the name, address, and TIN of the person making such 
     payment,
       ``(B) the name, address, and TIN of each recipient of such 
     payment,
       ``(C) the date of each such payment, and
       ``(D) the amount of each such payment.
       ``(2) Statement to be furnished to persons with respect to 
     whom information is required.--Every person required to make 
     a return under this subsection shall furnish to each person 
     whose name is required to be set forth in such return a 
     written statement showing--
       ``(A) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(B) the information required to be shown on such return 
     with respect to each recipient of payment whose name is 
     required to be set forth in such return.
       ``(d) Definitions.--For purposes of this section:
       ``(1) Payment.--The term `payment' means the amount of cash 
     and the fair market value of any consideration transferred in 
     a reportable policy sale.
       ``(2) Reportable policy sale.--The term `reportable policy 
     sale' has the meaning given such term in section 
     101(a)(3)(B).
       ``(3) Issuer.--The term `issuer' means any life insurance 
     company that bears the risk with respect to a life insurance 
     contract on the date any return or statement is required to 
     be made under this section.
       ``(4) Reportable death benefits.--The term `reportable 
     death benefits' means amounts paid by reason of the death of 
     the insured under a life insurance contract that has been 
     transferred in a reportable policy sale.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 6050W the following new item:

``Sec. 6050X. Returns relating to certain life insurance contract 
              transactions.''.
       (c) Conforming Amendments.--
       (1) Subsection (d) of section 6724 of the Internal Revenue 
     Code of 1986 is amended--
       (A) by striking ``or'' at the end of clause (xxiv) of 
     paragraph (1)(B), by striking ``and'' at the end of clause 
     (xxv) of such paragraph and inserting ``or'', and by 
     inserting after such clause (xxv) the following new clause:
       ``(xxvi) section 6050X (relating to returns relating to 
     certain life insurance contract transactions), and'', and
       (B) by striking ``or'' at the end of subparagraph (GG) of 
     paragraph (2), by striking the period at the end of 
     subparagraph (HH) of such paragraph and inserting ``, or'', 
     and by inserting after such subparagraph (HH) the following 
     new subparagraph:
       ``(II) subsection (a)(2), (b)(2), or (c)(2) of section 
     6050X (relating to returns relating to certain life insurance 
     contract transactions).''.
       (2) Section 6047 of such Code is amended--
       (A) by redesignating subsection (g) as subsection (h),
       (B) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Information Relating to Life Insurance Contract 
     Transactions.--This section shall not apply to any 
     information which is required to be reported under section 
     6050X.'', and
       (C) by adding at the end of subsection (h), as so 
     redesignated, the following new paragraph:
       ``(4) For provisions requiring reporting of information 
     relating to certain life insurance contract transactions, see 
     section 6050X.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) reportable policy sales after December 31, 2012, and
       (2) reportable death benefits paid after December 31, 2012.

     SEC. 40422. CLARIFICATION OF TAX BASIS OF LIFE INSURANCE 
                   CONTRACTS.

       (a) Clarification With Respect to Adjustments.--Paragraph 
     (1) of section 1016(a) of the Internal Revenue Code of 1986 
     is amended by striking subparagraph (A) and all that follows 
     and inserting the following:
       ``(A) for--
       ``(i) taxes or other carrying charges described in section 
     266; or
       ``(ii) expenditures described in section 173 (relating to 
     circulation expenditures),
     for which deductions have been taken by the taxpayer in 
     determining taxable income for the taxable year or prior 
     taxable years; or
       ``(B) for mortality, expense, or other reasonable charges 
     incurred under an annuity or life insurance contract;''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions entered into after August 25, 
     2009.

     SEC. 40423. EXCEPTION TO TRANSFER FOR VALUABLE CONSIDERATION 
                   RULES.

       (a) In General.--Subsection (a) of section 101 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(3) Exception to valuable consideration rules for 
     commercial transfers.--
       ``(A) In general.--The second sentence of paragraph (2) 
     shall not apply in the case of a transfer of a life insurance 
     contract, or any interest therein, which is a reportable 
     policy sale.
       ``(B) Reportable policy sale.--For purposes of this 
     paragraph, the term `reportable policy sale' means the 
     acquisition of an interest in a life insurance contract, 
     directly or indirectly, if the acquirer has no substantial 
     family, business, or financial relationship with the insured 
     apart from the acquirer's interest in such life insurance 
     contract. For purposes of the preceding sentence, the term 
     `indirectly' applies to the acquisition of an interest in a 
     partnership, trust, or other entity that holds an interest in 
     the life insurance contract.''.
       (b) Conforming Amendment.--Paragraph (1) of section 101(a) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transfers after December 31, 2012.

     SEC. 40424. PHASED RETIREMENT AUTHORITY.

       (a) CSRS.--Chapter 83 of title 5, United States Code, is 
     amended--
       (1) in section 8331--
       (A) in paragraph (30) by striking ``and'' at the end;
       (B) in paragraph (31) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(32) `Director' means the Director of the Office of 
     Personnel Management.'';
       (2) by inserting after section 8336 the following:

     ``Sec.  8336a. Phased retirement

       ``(a) For the purposes of this section--
       ``(1) the term `composite retirement annuity' means the 
     annuity computed when a phased retiree attains full 
     retirement status;
       ``(2) the term `full retirement status' means that a phased 
     retiree has ceased employment and is entitled, upon 
     application, to a composite retirement annuity;
       ``(3) the term `phased employment' means the less-than-
     full-time employment of a phased retiree;
       ``(4) the term `phased retiree' means a retirement-eligible 
     employee who--
       ``(A) makes an election under subsection (b); and
       ``(B) has not entered full retirement status;
       ``(5) the term `phased retirement annuity' means the 
     annuity payable under this section before full retirement;
       ``(6) the term `phased retirement percentage' means the 
     percentage which, when added to the working percentage for a 
     phased retiree, produces a sum of 100 percent;
       ``(7) the term `phased retirement period' means the period 
     beginning on the date on which an individual becomes entitled 
     to receive a phased retirement annuity and ending on the date 
     on which the individual dies or separates from phased 
     employment;
       ``(8) the term `phased retirement status' means that a 
     phased retiree is concurrently employed in phased employment 
     and eligible to receive a phased retirement annuity;
       ``(9) the term `retirement-eligible employee'--
       ``(A) means an individual who, if the individual separated 
     from the service, would meet the requirements for retirement 
     under subsection (a) or (b) of section 8336; and
       ``(B) does not include--
       ``(i) an individual who, if the individual separated from 
     the service, would meet the requirements for retirement under 
     subsection (c), (e), (m), or (n) of section 8336; or
       ``(ii) a law enforcement officer, firefighter, nuclear 
     materials courier, air traffic controller, customs and border 
     protection officer, or member of the Capitol Police or 
     Supreme Court Police; and
       ``(10) the term `working percentage' means the percentage 
     of full-time employment equal the quotient obtained by 
     dividing--
       ``(A) the number of hours per pay period to be worked by a 
     phased retiree as scheduled in accordance with subsection 
     (b)(2); by
       ``(B) the number of hours per pay period to be worked by an 
     employee serving in a comparable position on a full-time 
     basis.
       ``(b)(1) With the concurrence of the head of the employing 
     agency, and under regulations promulgated by the Director, a 
     retirement-eligible employee who has been employed on a full 
     time basis for not less than the 3-year period ending on the 
     date on which the retirement-eligible employee makes an 
     election under this subsection may elect to enter phased 
     retirement status.
       ``(2)(A) Subject to subparagraph (B), at the time of 
     entering phased retirement status, a phased retiree shall be 
     appointed to a position for which the working percentage is 
     50 percent.
       ``(B) The Director may, by regulation, provide for working 
     percentages different from the percentage specified under 
     subparagraph (A), which shall be not less than 20 percent and 
     not more than 80 percent.
       ``(C) The working percentage for a phased retiree may not 
     be changed during the phased retiree's phased retirement 
     period.
       ``(D)(i) Not less than 20 percent of the hours to be worked 
     by a phased retiree shall consist of mentoring.
       ``(ii) The Director may, by regulation, provide for 
     exceptions to the requirement under clause (i).

[[Page 3245]]

       ``(3) A phased retiree--
       ``(A) may not be employed in more than one position at any 
     time; and
       ``(B) may transfer to another position in the same or a 
     different agency, if the transfer does not result in a change 
     in the working percentage.
       ``(4) A retirement-eligible employee may make only one 
     election under this subsection during the retirement-eligible 
     employee's lifetime.
       ``(5) A retirement-eligible employee who makes an election 
     under this subsection may not make an election under section 
     8343a.
       ``(c)(1) Except as otherwise provided under this 
     subsection, the phased retirement annuity for a phased 
     retiree is the product obtained by multiplying--
       ``(A) the amount of an annuity computed under section 8339 
     that would have been payable to the phased retiree if, on the 
     date on which the phased retiree enters phased retirement 
     status, the phased retiree had separated from service and 
     retired under section 8336(a) or (b); by
       ``(B) the phased retirement percentage for the phased 
     retiree.
       ``(2) A phased retirement annuity shall be paid in addition 
     to the basic pay for the position to which a phased retiree 
     is appointed during phased employment.
       ``(3) A phased retirement annuity shall be adjusted in 
     accordance with section 8340.
       ``(4)(A) A phased retirement annuity shall not be subject 
     to reduction for any form of survivor annuity, shall not 
     serve as the basis of the computation of any survivor 
     annuity, and shall not be subject to any court order 
     requiring a survivor annuity to be provided to any 
     individual.
       ``(B) A phased retirement annuity shall be subject to a 
     court order providing for division, allotment, assignment, 
     execution, levy, attachment, garnishment, or other legal 
     process on the same basis as other annuities.
       ``(5) Any reduction of a phased retirement annuity based on 
     an election under section 8334(d)(2) shall be applied to the 
     phased retirement annuity after computation under paragraph 
     (1).
       ``(6)(A) Any deposit, or election of an actuarial annuity 
     reduction in lieu of a deposit, for military service or for 
     creditable civilian service for which retirement deductions 
     were not made or refunded shall be made by a retirement-
     eligible employee at or before the time the retirement-
     eligible employee enters phased retirement status. No such 
     deposit may be made, or actuarial adjustment in lieu thereof 
     elected, at the time a phased retiree enters full retirement 
     status.
       ``(B) Notwithstanding subparagraph (A), if a phased retiree 
     does not make such a deposit and dies in service as a phased 
     retiree, a survivor of the phased retiree shall have the same 
     right to make such deposit as would have been available had 
     the employee not entered phased retirement status and died in 
     service.
       ``(C) If a phased retiree makes an election for an 
     actuarial annuity reduction under section 8334(d)(2) and dies 
     in service as a phased retiree, the amount of any deposit 
     upon which such actuarial reduction shall have been based 
     shall be deemed to have been fully paid.
       ``(7) A phased retirement annuity shall commence on the 
     date on which a phased retiree enters phased employment.
       ``(8) No unused sick leave credit may be used in the 
     computation of the phased retirement annuity.
       ``(d) All basic pay not in excess of the full-time rate of 
     pay for the position to which a phased retiree is appointed 
     shall be deemed to be basic pay for purposes of section 8334.
       ``(e) Under such procedures as the Director may prescribe, 
     a phased retiree may elect to enter full retirement status at 
     any time. Upon making such an election, a phased retiree 
     shall be entitled to a composite retirement annuity.
       ``(f)(1) Except as provided otherwise under this 
     subsection, a composite retirement annuity is a single 
     annuity computed under regulations prescribed by the 
     Director, equal to the sum of--
       ``(A) the amount of the phased retirement annuity as of the 
     date of full retirement, before any reduction based on an 
     election under section 8334(d)(2), and including any 
     adjustments made under section 8340; and
       ``(B) the product obtained by multiplying--
       ``(i) the amount of an annuity computed under section 8339 
     that would have been payable at the time of full retirement 
     if the individual had not elected a phased retirement and as 
     if the individual was employed on a full-time basis in the 
     position occupied during the phased retirement period and 
     before any reduction for survivor annuity or reduction based 
     on an election under section 8334(d)(2); by
       ``(ii) the working percentage.
       ``(2) After computing a composite retirement annuity under 
     paragraph (1), the Director shall adjust the amount of the 
     annuity for any applicable reductions for a survivor annuity 
     and any previously elected actuarial reduction under section 
     8334(d)(2).
       ``(3) A composite retirement annuity shall be adjusted in 
     accordance with section 8340, except that subsection (c)(1) 
     of that section shall not apply.
       ``(4) In computing a composite retirement annuity under 
     paragraph (1)(B)(i), the unused sick leave to the credit of a 
     phased retiree at the time of entry into full retirement 
     status shall be adjusted by dividing the number of hours of 
     unused sick leave by the working percentage.
       ``(g)(1) Under such procedures and conditions as the 
     Director may provide, and with the concurrence of the head of 
     the employing agency, a phased retiree may elect to terminate 
     phased retirement status and return to a full-time work 
     schedule.
       ``(2) Upon entering a full-time work schedule based upon an 
     election under paragraph (1), the phased retirement annuity 
     of a phased retiree shall terminate.
       ``(3) After the termination of a phased retirement annuity 
     under this subsection, the individual's rights under this 
     subchapter shall be determined based on the law in effect at 
     the time of any subsequent separation from service. For 
     purposes of this subchapter or chapter 84, at time of the 
     subsequent separation from service, the phased retirement 
     period shall be treated as if it had been a period of part-
     time employment with the work schedule described in 
     subsection (b)(2).
       ``(h) For purposes of section 8341--
       ``(1) the death of a phased retiree shall be deemed to be 
     the death in service of an employee; and
       ``(2) the phased retirement period shall be deemed to have 
     been a period of part-time employment with the work schedule 
     described in subsection (b)(2).
       ``(i) Employment of a phased retiree shall not be deemed to 
     be part-time career employment, as defined in section 
     3401(2).
       ``(j) A phased retiree is not eligible to apply for an 
     annuity under section 8337.
       ``(k) For purposes of section 8341(h)(4), retirement shall 
     be deemed to occur on the date on which a phased retiree 
     enters into full retirement status.
       ``(l) For purposes of sections 8343 and 8351, and 
     subchapter III of chapter 84, a phased retiree shall be 
     deemed to be an employee.
       ``(m) A phased retiree is not subject to section 8344.
       ``(n) For purposes of chapter 87, a phased retiree shall be 
     deemed to be receiving basic pay at the rate of a full-time 
     employee in the position to which the phased retiree is 
     appointed.''; and
       (3) in the table of sections by inserting after the item 
     relating to section 8336 the following:

``8336a. Phased retirement.''.
       (b) FERS.--Chapter 84 of title 5, United States Code, is 
     amended--
       (1) by inserting after section 8412 the following new 
     section:

     ``Sec.  8412a. Phased retirement

       ``(a) For the purposes of this section--
       ``(1) the term `composite retirement annuity' means the 
     annuity computed when a phased retiree attains full 
     retirement status;
       ``(2) the term `full retirement status' means that a phased 
     retiree has ceased employment and is entitled, upon 
     application, to a composite retirement annuity;
       ``(3) the term `phased employment' means the less-than-
     full-time employment of a phased retiree;
       ``(4) the term `phased retiree' means a retirement-eligible 
     employee who--
       ``(A) makes an election under subsection (b); and
       ``(B) has not entered full retirement status;
       ``(5) the term `phased retirement annuity' means the 
     annuity payable under this section before full retirement;
       ``(6) the term `phased retirement percentage' means the 
     percentage which, when added to the working percentage for a 
     phased retiree, produces a sum of 100 percent;
       ``(7) the term `phased retirement period' means the period 
     beginning on the date on which an individual becomes entitled 
     to receive a phased retirement annuity and ending on the date 
     on which the individual dies or separates from phased 
     employment;
       ``(8) the term `phased retirement status' means that a 
     phased retiree is concurrently employed in phased employment 
     and eligible to receive a phased retirement annuity;
       ``(9) the term `retirement-eligible employee'--
       ``(A) means an individual who, if the individual separated 
     from the service, would meet the requirements for retirement 
     under subsection (a) or (b) of section 8412; and
       ``(B) does not include--
       ``(i) an individual who, if the individual separated from 
     the service, would meet the requirements for retirement under 
     subsection (d) or (e) of section 8412; or
       ``(ii) a law enforcement officer, firefighter, nuclear 
     materials courier, air traffic controller, customs and border 
     protection officer, or member of the Capitol Police or 
     Supreme Court Police; and
       ``(10) the term `working percentage' means the percentage 
     of full-time employment equal to the quotient obtained by 
     dividing--
       ``(A) the number of hours per pay period to be worked by a 
     phased retiree as scheduled in accordance with subsection 
     (b)(2); by
       ``(B) the number of hours per pay period to be worked by an 
     employee serving in a comparable position on a full-time 
     basis.
       ``(b)(1) With the concurrence of the head of the employing 
     agency, and under regulations promulgated by the Director, a 
     retirement-eligible employee who has been employed on a full 
     time basis for not less than the 3-year

[[Page 3246]]

     period ending on the date on which the retirement-eligible 
     employee makes an election under this subsection may elect to 
     enter phased retirement status.
       ``(2)(A) Subject to subparagraph (B), at the time of 
     entering phased retirement status, a phased retiree shall be 
     appointed to a position for which the working percentage is 
     50 percent.
       ``(B) The Director may, by regulation, provide for working 
     percentages different from the percentage specified under 
     subparagraph (A), which shall be not less than 20 percent and 
     not more than 80 percent.
       ``(C) The working percentage for a phased retiree may not 
     be changed during the phased retiree's phased retirement 
     period.
       ``(D)(i) Not less than 20 percent of the hours to be worked 
     by a phased retiree shall consist of mentoring.
       ``(ii) The Director may, by regulation, provide for 
     exceptions to the requirement under clause (i).
       ``(3) A phased retiree--
       ``(A) may not be employed in more than one position at any 
     time; and
       ``(B) may transfer to another position in the same or a 
     different agency, if the transfer does not result in a change 
     in the working percentage.
       ``(4) A retirement-eligible employee may make only one 
     election under this subsection during the retirement-eligible 
     employee's lifetime.
       ``(5) A retirement-eligible employee who makes an election 
     under this subsection may not make an election under section 
     8420a.
       ``(c)(1) Except as otherwise provided under this 
     subsection, the phased retirement annuity for a phased 
     retiree is the product obtained by multiplying--
       ``(A) the amount of an annuity computed under section 8415 
     that would have been payable to the phased retiree if, on the 
     date on which the phased retiree enters phased retirement 
     status, the phased retiree had separated from service and 
     retired under section 8412 (a) or (b); by
       ``(B) the phased retirement percentage for the phased 
     retiree.
       ``(2) A phased retirement annuity shall be paid in addition 
     to the basic pay for the position to which a phased retiree 
     is appointed during the phased employment.
       ``(3) A phased retirement annuity shall be adjusted in 
     accordance with section 8462.
       ``(4)(A) A phased retirement annuity shall not be subject 
     to reduction for any form of survivor annuity, shall not 
     serve as the basis of the computation of any survivor 
     annuity, and shall not be subject to any court order 
     requiring a survivor annuity to be provided to any 
     individual.
       ``(B) A phased retirement annuity shall be subject to a 
     court order providing for division, allotment, assignment, 
     execution, levy, attachment, garnishment, or other legal 
     process on the same basis as other annuities.
       ``(5)(A) Any deposit, or election of an actuarial annuity 
     reduction in lieu of a deposit, for military service or for 
     creditable civilian service for which retirement deductions 
     were not made or refunded, shall be made by a retirement-
     eligible employee at or before the time the retirement-
     eligible employee enters phased retirement status. No such 
     deposit may be made, or actuarial adjustment in lieu thereof 
     elected, at the time a phased retiree enters full retirement 
     status.
       ``(B) Notwithstanding subparagraph (A), if a phased retiree 
     does not make such a deposit and dies in service as a phased 
     retiree, a survivor of the phased retiree shall have the same 
     right to make such deposit as would have been available had 
     the employee not entered phased retirement status and died in 
     service.
       ``(6) A phased retirement annuity shall commence on the 
     date on which a phased retiree enters phased employment.
       ``(7) No unused sick leave credit may be used in the 
     computation of the phased retirement annuity.
       ``(d) All basic pay not in excess of the full-time rate of 
     pay for the position to which a phased retiree is appointed 
     shall be deemed to be basic pay for purposes of section 8422 
     and 8423.
       ``(e) Under such procedures as the Director may prescribe, 
     a phased retiree may elect to enter full retirement status at 
     any time. Upon making such an election, a phased retiree 
     shall be entitled to a composite retirement annuity.
       ``(f)(1) Except as provided otherwise under this 
     subsection, a composite retirement annuity is a single 
     annuity computed under regulations prescribed by the 
     Director, equal to the sum of--
       ``(A) the amount of the phased retirement annuity as of the 
     date of full retirement, including any adjustments made under 
     section 8462; and
       ``(B) the product obtained by multiplying--
       ``(i) the amount of an annuity computed under section 8412 
     that would have been payable at the time of full retirement 
     if the individual had not elected a phased retirement and as 
     if the individual was employed on a full-time basis in the 
     position occupied during the phased retirement period and 
     before any adjustment to provide for a survivor annuity; by
       ``(ii) the working percentage;
       ``(2) After computing a composite retirement annuity under 
     paragraph (1), the Director shall adjust the amount of the 
     annuity for any applicable reductions for a survivor annuity.
       ``(3) A composite retirement annuity shall be adjusted in 
     accordance with section 8462, except that subsection (c)(1) 
     of that section shall not apply.
       ``(4) In computing a composite retirement annuity under 
     paragraph (1)(B)(i), the unused sick leave to the credit of a 
     phased retiree at the time of entry into full retirement 
     status shall be adjusted by dividing the number of hours of 
     unused sick leave by the working percentage.
       ``(g)(1) Under such procedures and conditions as the 
     Director may provide, and with the concurrence of the head of 
     employing agency, a phased retiree may elect to terminate 
     phased retirement status and return to a full-time work 
     schedule.
       ``(2) Upon entering a full-time work schedule based on an 
     election under paragraph (1), the phased retirement annuity 
     of a phased retiree shall terminate.
       ``(3) After termination of the phased retirement annuity 
     under this subsection, the individual's rights under this 
     chapter shall be determined based on the law in effect at the 
     time of any subsequent separation from service. For purposes 
     of this chapter, at the time of the subsequent separation 
     from service, the phased retirement period shall be treated 
     as if it had been a period of part-time employment with the 
     work schedule described in subsection (b)(2).
       ``(h) For purposes of subchapter IV--
       ``(1) the death of a phased retiree shall be deemed to be 
     the death in service of an employee;
       ``(2) except for purposes of section 8442(b)(1)(A)(i), the 
     phased retirement period shall be deemed to have been a 
     period of part-time employment with the work schedule 
     described in subsection (b)(2) of this section; and
       ``(3) for purposes of section 8442(b)(1)(A)(i), the phased 
     retiree shall be deemed to have been at the full-time rate of 
     pay for the position occupied.
       ``(i) Employment of a phased retiree shall not be deemed to 
     be part-time career employment, as defined in section 
     3401(2).
       ``(j) A phased retiree is not eligible to receive an 
     annuity supplement under section 8421.
       ``(k) For purposes of subchapter III, a phased retiree 
     shall be deemed to be an employee.
       ``(l) For purposes of section 8445(d), retirement shall be 
     deemed to occur on the date on which a phased retiree enters 
     into full retirement status.
       ``(m) A phased retiree is not eligible to apply for an 
     annuity under subchapter V.
       ``(n) A phased retiree is not subject to section 8468.
       ``(o) For purposes of chapter 87, a phased retiree shall be 
     deemed to be receiving basic pay at the rate of a full-time 
     employee in the position to which the phased retiree is 
     appointed.''; and
       (2) in the table of sections by inserting after the item 
     relating to section 8412 the following:

``8412a. Phased retirement.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on the effective date of the implementing 
     regulations issued by the Director of the Office of Personnel 
     Management.

     SEC. 40425. ROLL-YOUR-OWN CIGARETTE MACHINES.

       (a) In General.--Subsection (d) of section 5702 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new flush sentence:
     ``Such term shall include any person who for commercial 
     purposes makes available for consumer use (including such 
     consumer's personal consumption or use under paragraph (1)) a 
     machine capable of making cigarettes, cigars, or other 
     tobacco products. A person making such a machine available 
     for consumer use shall be deemed the person making the 
     removal as defined by subsection (j) with respect to any 
     tobacco products manufactured by such machine.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to articles removed after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1826. Mr. ROBERTS submitted an amendment intended to be proposed 
by him to the bill S. 1813, to reauthorize Federal-aid highway and 
highway safety construction programs, and for other purposes; as 
follows:

       At the end, insert the following:

            DIVISION E--ENERGY PROVISIONS AND TAX EXTENDERS

                       TITLE I--ENERGY INCENTIVES

                Subtitle A--Keystone XL Pipeline Project

     SEC. 50001. APPROVAL OF KEYSTONE XL PIPELINE PROJECT.

       (a) Approval of Cross-border Facilities.--
       (1) In general.--In accordance with section 8 of article 1 
     of the Constitution (delegating to Congress the power to 
     regulate commerce with foreign nations), TransCanada Keystone 
     Pipeline, L.P. is authorized to construct, connect, operate, 
     and maintain pipeline facilities, subject to subsection (c),

[[Page 3247]]

     for the import of crude oil and other hydrocarbons at the 
     United States-Canada Border at Phillips County, Montana, in 
     accordance with the application filed with the Department of 
     State on September 19, 2008 (as supplemented and amended).
       (2) Permit.--Notwithstanding any other provision of law, no 
     permit pursuant to Executive Order 13337 (3 U.S.C. 301 note) 
     or any other similar Executive Order regulating construction, 
     connection, operation, or maintenance of facilities at the 
     borders of the United States, and no additional environmental 
     impact statement, shall be required for TransCanada Keystone 
     Pipeline, L.P. to construct, connect, operate, and maintain 
     the facilities described in paragraph (1).
       (b) Construction and Operation of Keystone XL Pipeline in 
     United States.--
       (1) In general.--The final environmental impact statement 
     issued by the Department of State on August 26, 2011, shall 
     be considered to satisfy all requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
     any other provision of law that requires Federal agency 
     consultation or review with respect to the cross-border 
     facilities described in subsection (a)(1) and the related 
     facilities in the United States described in the application 
     filed with the Department of State on September 19, 2008 (as 
     supplemented and amended).
       (2) Permits.--Any Federal permit or authorization issued 
     before the date of enactment of this Act for the cross-border 
     facilities described in subsection (a)(1), and the related 
     facilities in the United States described in the application 
     filed with the Department of State on September 19, 2008 (as 
     supplemented and amended), shall remain in effect.
       (c) Conditions.--In constructing, connecting, operating, 
     and maintaining the cross-border facilities described in 
     subsection (a)(1) and related facilities in the United States 
     described in the application filed with the Department of 
     State on September 19, 2008 (as supplemented and amended), 
     TransCanada Keystone Pipeline, L.P. shall comply with the 
     following conditions:
       (1) TransCanada Keystone Pipeline, L.P. 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 
     facilities.
       (2) Except as provided in subsection (a)(2), TransCanada 
     Keystone Pipeline, L.P. shall comply with all requisite 
     permits from Canadian authorities and applicable Federal, 
     State, and local government agencies in the United States.
       (3) TransCanada Keystone Pipeline, L.P. shall take all 
     appropriate measures to prevent or mitigate any adverse 
     environmental impact or disruption of historic properties in 
     connection with the construction, connection, operation, and 
     maintenance of the facilities.
       (4) The construction, connection, operation, and 
     maintenance of the facilities shall be--
       (A) in all material respects, similar to that described 
     in--
       (i) the application filed with the Department of State on 
     September 19, 2008 (as supplemented and amended); and
       (ii) the final environmental impact statement described in 
     subsection (b)(1); and
       (B) carried out in accordance with--
       (i) the construction, mitigation, and reclamation measures 
     agreed to for the project in the construction mitigation and 
     reclamation plan contained in appendix B of the final 
     environmental impact statement described in subsection 
     (b)(1);
       (ii) the special conditions agreed to between the owners 
     and operators of the project and the Administrator of the 
     Pipeline and Hazardous Materials Safety Administration of the 
     Department of Transportation, as contained in appendix U of 
     the final environmental impact statement;
       (iii) the measures identified in appendix H of the final 
     environmental impact statement, if the modified route 
     submitted by the State of Nebraska to the Secretary of State 
     crosses the Sand Hills region; and
       (iv) the stipulations identified in appendix S of the final 
     environmental impact statement.
       (d) Route in Nebraska.--
       (1) In general.--Any route and construction, mitigation, 
     and reclamation measures for the project in the State of 
     Nebraska that is identified by the State of Nebraska and 
     submitted to the Secretary of State under this section is 
     considered sufficient for the purposes of this section.
       (2) Prohibition.--Construction of the facilities in the 
     United States described in the application filed with the 
     Department of State on September 19, 2008 (as supplemented 
     and amended), shall not commence in the State of Nebraska 
     until the date on which the Secretary of State receives a 
     route for the project in the State of Nebraska that is 
     identified by the State of Nebraska.
       (3) Receipt.--On the date of receipt of the route described 
     in paragraph (1) by the Secretary of State, the route for the 
     project within the State of Nebraska under this section shall 
     supersede the route for the project in the State specified in 
     the application filed with the Department of State on 
     September 19, 2008 (including supplements and amendments).
       (4) Cooperation.--Not later than 30 days after the date on 
     which the State of Nebraska submits a request to the 
     Secretary of State or any appropriate Federal official, the 
     Secretary of State or Federal official shall provide 
     assistance that is consistent with the law of the State of 
     Nebraska.
       (e) Administration.--
       (1) In general.--Any action taken to carry out this section 
     (including the modification of any route under subsection 
     (d)) shall not constitute a major Federal action under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       (2) State siting authority.--Nothing in this section alters 
     any provision of State law relating to the siting of 
     pipelines.
       (3) Private property.--Nothing in this section alters any 
     Federal, State, or local process or condition in effect on 
     the date of enactment of this Act that is necessary to secure 
     access from an owner of private property to construct the 
     project.
       (f) Federal Judicial Review.--The cross-border facilities 
     described in subsection (a)(1), and the related facilities in 
     the United States described in the application filed with the 
     Department of State on September 19, 2008 (as supplemented 
     and amended), that are approved by this section, and any 
     permit, right-of-way, or other action taken to construct or 
     complete the project pursuant to Federal law, shall only be 
     subject to judicial review on direct appeal to the United 
     States Court of Appeals for the District of Columbia Circuit.

           Subtitle B--Expanding Offshore Energy Development

     SEC. 50101. OUTER CONTINENTAL SHELF LEASING PROGRAM.

       Section 18(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344(a)) is amended by adding at the end the 
     following:
       ``(5)(A) In each oil and gas leasing program under this 
     section, the Secretary shall make available for leasing and 
     conduct lease sales including--
       ``(i) at least 50 percent of the available unleased acreage 
     within each outer Continental Shelf planning area considered 
     to have the largest undiscovered, technically recoverable oil 
     and gas resources (on a total btu basis) based upon the most 
     recent national geologic assessment of the outer Continental 
     Shelf, with an emphasis on offering the most geologically 
     prospective parts of the planning area; and
       ``(ii) any State subdivision of an outer Continental Shelf 
     planning area that the Governor of the State that represents 
     that subdivision requests be made available for leasing.
       ``(B) In this paragraph the term `available unleased 
     acreage' means that portion of the outer Continental Shelf 
     that is not under lease at the time of a proposed lease sale, 
     and that has not otherwise been made unavailable for leasing 
     by law.
       ``(6)(A) In the 2012-2017 5-year oil and gas leasing 
     program, the Secretary shall make available for leasing any 
     outer Continental Shelf planning areas that--
       ``(i) are estimated to contain more than 2,500,000,000 
     barrels of oil; or
       ``(ii) are estimated to contain more than 7,500,000,000,000 
     cubic feet of natural gas.
       ``(B) To determine the planning areas described in 
     subparagraph (A), the Secretary shall use the document 
     entitled `Minerals Management Service Assessment of 
     Undiscovered Technically Recoverable Oil and Gas Resources of 
     the Nation's Outer Continental Shelf, 2006'.''.

     SEC. 50102. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

       Section 18(b) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344(b)) is amended to read as follows:
       ``(b) Domestic Oil and Natural Gas Production Goal.--
       ``(1) In general.--In developing a 5-year oil and gas 
     leasing program, and subject to paragraph (2), the Secretary 
     shall determine a domestic strategic production goal for the 
     development of oil and natural gas as a result of that 
     program. Such goal shall be--
       ``(A) the best estimate of the possible increase in 
     domestic production of oil and natural gas from the outer 
     Continental Shelf;
       ``(B) focused on meeting domestic demand for oil and 
     natural gas and reducing the dependence of the United States 
     on foreign energy; and
       ``(C) focused on the production increases achieved by the 
     leasing program at the end of the 15-year period beginning on 
     the effective date of the program.
       ``(2) 2012-2017 program goal.--For purposes of the 2012-
     2017 5-year oil and gas leasing program, the production goal 
     referred to in paragraph (1) shall be an increase by 2027 
     of--
       ``(A) no less than 3,000,000 barrels in the amount of oil 
     produced per day; and
       ``(B) no less than 10,000,000,000 cubic feet in the amount 
     of natural gas produced per day.
       ``(3) Reporting.--The Secretary shall report annually, 
     beginning at the end of the 5-year period for which the 
     program applies, to the Committee on Natural Resources of the 
     House of Representatives and the Committee

[[Page 3248]]

     on Energy and Natural Resources of the Senate on the progress 
     of the program in meeting the production goal. The Secretary 
     shall identify in the report projections for production and 
     any problems with leasing, permitting, or production that 
     will prevent meeting the goal.''.

           Subtitle C--Conducting Prompt Offshore Lease Sales

     SEC. 50201. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 216 IN THE CENTRAL GULF OF MEXICO.

       (a) In General.--The Secretary of the Interior shall 
     conduct offshore oil and gas Lease Sale 216 under section 8 
     of the Outer Continental Shelf Lands Act (33 U.S.C. 1337) as 
     soon as practicable, but not later than 4 months after the 
     date of enactment of this Act.
       (b) Environmental Review.--For the purposes of that lease 
     sale, the Environmental Impact Statement for the 2007-2012 5 
     Year OUTER CONTINENTAL SHELF Plan and the Multi-Sale 
     Environmental Impact Statement are deemed to satisfy the 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).

     SEC. 50202. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 220 ON THE OUTER CONTINENTAL SHELF 
                   OFFSHORE VIRGINIA.

       (a) In General.--Notwithstanding the inclusion of Lease 
     Sale 220 in the fiscal years 2012 through fiscal year 2017 5 
     Year Outer Continental Shelf Oil and Gas Leasing Program, the 
     Secretary shall conduct offshore oil and gas Lease Sale 220 
     under section 8 of the Outer Continental Shelf Lands Act (33 
     U.S.C. 1337) as soon as practicable, but not later than one 
     year after the date of enactment of this Act.
       (b) Prohibition on Conflicts With Military Operations.--No 
     person may engage in any exploration, development, or 
     production of oil or natural gas off the coast of Virginia 
     that would conflict with any military operation, as 
     determined in accordance with the Memorandum of Agreement 
     between the Department of Defense and the Department of the 
     Interior on Mutual Concerns on the Outer Continental Shelf 
     signed July 20, 1983, and any revision or replacement for 
     that agreement that is agreed to by the Secretary of Defense 
     and the Secretary of the Interior after that date but before 
     the date of issuance of the lease under which such 
     exploration, development, or production is conducted.

     SEC. 50203. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE 
                   SALE 222 IN THE CENTRAL GULF OF MEXICO.

       (a) In General.--The Secretary shall conduct offshore oil 
     and gas Lease Sale 222 under section 8 of the Outer 
     Continental Shelf Lands Act (33 U.S.C. 1337) as soon as 
     practicable, but not later than September 1, 2012.
       (b) Environmental Review.--For the purposes of that lease 
     sale, the Environmental Impact Statement for the 2007-2012 5 
     Year OUTER CONTINENTAL SHELF Plan and the Multi-Sale 
     Environmental Impact Statement are deemed to satisfy the 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).

     SEC. 50204. ADDITIONAL LEASES.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by adding at the end the following:
       ``(i) Additional Lease Sales.--In addition to lease sales 
     in accordance with a leasing program in effect under this 
     section, the Secretary may hold lease sales for areas 
     identified by the Secretary to have the greatest potential 
     for new oil and gas development as a result of local support, 
     new seismic findings, or nomination by interested persons.''.

     SEC. 50205. DEFINITIONS.

       In this title:
       (1) The term ``Environmental Impact Statement for the 2007-
     2012 5 Year OUTER CONTINENTAL SHELF Plan'' means the Final 
     Environmental Impact Statement for Outer Continental Shelf 
     Oil and Gas Leasing Program: 2007-2012 (April 2007) prepared 
     by the Secretary.
       (2) The term ``Multi-Sale Environmental Impact Statement'' 
     means the Environmental Impact Statement for Proposed Western 
     Gulf of Mexico OUTER CONTINENTAL SHELF Oil and Gas Lease 
     Sales 204, 207, 210, 215, and 218, and Proposed Central Gulf 
     of Mexico OUTER CONTINENTAL SHELF Oil and Gas Lease Sales 
     205, 206, 208, 213, 216, and 222 (September 2008) prepared by 
     the Secretary.
       (3) The term ``Secretary'' means the Secretary of the 
     Interior.

               Subtitle D--Leasing in New Offshore Areas

     SEC. 50301. LEASING IN THE EASTERN GULF OF MEXICO.

       Section 104 of division C of the Tax Relief and Health Care 
     Act of 2006 (Public Law 109-432; 120 Stat. 3003) is repealed.

     SEC. 50302. LEASING OFFSHORE OF TERRITORIES OF THE UNITED 
                   STATES.

       Section 2(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331) is amended, by inserting after ``control'' the 
     following: ``or lying within the United States' exclusive 
     economic zone and the Continental Shelf adjacent to the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, the Virgin Islands, American Samoa, Guam, or 
     the other territories of the United States''.

          Subtitle E--Outer Continental Shelf Revenue Sharing

     SEC. 50401. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES.

       Section 9 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1338) is amended--
       (1) in the existing text--
       (A) in the first sentence, by striking ``All rentals,'' and 
     inserting the following:
       ``(c) Disposition of Revenue Under Old Leases.--All 
     rentals,''; and
       (B) in subsection (c) (as designated by the amendment made 
     by subparagraph (A) of this paragraph), by striking ``for the 
     period from June 5, 1950, to date, and thereafter'' and 
     inserting ``in the period beginning June 5, 1950, and ending 
     on the date of enactment of the Moving Ahead for Progress in 
     the 21st Century Act'';
       (2) by adding after subsection (c) (as so designated) the 
     following:
       ``(d)  New Leasing Revenues Defined.--In this section the 
     term `new leasing revenues' means amounts received by the 
     United States as bonuses, rents, and royalties under leases 
     for oil and gas, wind, tidal, or other energy exploration, 
     development, and production that are awarded under this Act 
     after the date of enactment of the Moving Ahead for Progress 
     in the 21st Century Act.''; and
       (3) by inserting before subsection (c) (as so designated) 
     the following:
       ``(a) Payment of New Leasing Revenues to Coastal States, 
     Generally.--
       ``(1) In general.--Of the amount of new leasing revenues 
     received by the United States each fiscal year that is 
     described in paragraph (2), 37.5 percent shall be allocated 
     and paid in accordance with subsection (b) to coastal States 
     that are affected States with respect to the leases under 
     which those revenues are received by the United States.
       ``(2) Phase-in.--The amount of new leasing revenues 
     referred to in paragraph (1) is the sum determined by 
     adding--
       ``(A) 35 percent of new leasing revenues received by the 
     United States in the fiscal year under--
       ``(i) leases awarded under the first leasing program under 
     section 18(a) that takes effect after the date of enactment 
     of the Moving Ahead for Progress in the 21st Century Act; and
       ``(ii) other leases issued as a result of the enactment of 
     that Act;
       ``(B) 70 percent of new leasing revenues received by the 
     United States in the fiscal year under leases awarded under 
     the second such leasing program; and
       ``(C) 100 percent of new leasing revenues received by the 
     United States under leases awarded under the third such 
     leasing program or any such leasing program taking effect 
     thereafter.
       ``(b) Allocation of Payments to Coastal States.--
       ``(1) In general.--The amount of new leasing revenues 
     received by the United States with respect to a leased tract 
     that are required to be paid to coastal States in accordance 
     with this subsection each fiscal year shall be allocated 
     among and paid to such States that are within 200 miles of 
     the leased tract, in amounts that are inversely proportional 
     to the respective distances between the point on the 
     coastline of each such State that is closest to the 
     geographic center of the lease tract, as determined by the 
     Secretary.
       ``(2) Minimum and maximum allocation.--The amount allocated 
     to a coastal State under paragraph (1) each fiscal year with 
     respect to a leased tract shall be--
       ``(A) in the case of a coastal State that is the nearest 
     State to the geographic center of the leased tract, not less 
     than 25 percent of the total amounts allocated with respect 
     to the leased tract; and
       ``(B) in the case of any other coastal State, not less than 
     10 percent, and not more than 15 percent, of the total 
     amounts allocated with respect to the leased tract.
       ``(3) Administration.--Amounts allocated to a coastal State 
     under this subsection--
       ``(A) shall be available to the State without further 
     appropriation;
       ``(B) shall remain available until expended; and
       ``(C) shall be in addition to any other amounts available 
     to the State under this Act.
       ``(4) Use of funds.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a coastal State may use funds allocated and paid to it under 
     this subsection for any purpose as determined by State law.
       ``(B) Restriction on use for matching.--Funds allocated and 
     paid to a coastal State under this subsection may not be used 
     as matching funds for any other Federal program.''.

                       Subtitle F--Coastal Plain

     SEC. 50501. DEFINITIONS.

       In this title:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area described in appendix I to part 37 of title 50, Code of 
     Federal Regulations.
       (2) Peer reviewed.--The term ``peer reviewed'' means 
     reviewed--

[[Page 3249]]

       (A) by individuals chosen by the National Academy of 
     Sciences with no contractual relationship with or those who 
     have an application for a grant or other funding pending with 
     the Federal agency with leasing jurisdiction; or
       (B) if individuals described in subparagraph (A) are not 
     available, by the top individuals in the specified biological 
     fields, as determined by the National Academy of Sciences.
       (3) Secretary.--The term ``Secretary'', except as otherwise 
     provided, means the Secretary of the Interior or the 
     Secretary's designee.

     SEC. 50502. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                   PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement, in accordance with this 
     title and acting through the Director of the Bureau of Land 
     Management in consultation with the Director of the United 
     States Fish and Wildlife Service, a competitive oil and gas 
     leasing program that will result in the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) to administer the provisions of this title through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, including, in 
     furtherance of this goal, by requiring the application of the 
     best commercially available technology for oil and gas 
     exploration, development, and production to all exploration, 
     development, and production operations under this title in a 
     manner that ensures the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal of Existing Restriction.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents in section 
     1 of such Act is amended by striking the item relating to 
     section 1003.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
     seq.), the oil and gas leasing program and activities 
     authorized by this section in the Coastal Plain are deemed to 
     be compatible with the purposes for which the Arctic National 
     Wildlife Refuge was established, and no further findings or 
     decisions are required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain prepared pursuant to section 1002 of the 
     Alaska National Interest Lands Conservation Act of 1980 (16 
     U.S.C. 3142) and section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 that apply with respect to 
     prelease activities under this title, including actions 
     authorized to be taken by the Secretary to develop and 
     promulgate the regulations for the establishment of a leasing 
     program authorized by this title before the conduct of the 
     first lease sale.
       (3) Compliance with nepa for other actions.--Before 
     conducting the first lease sale under this title, the 
     Secretary shall prepare an environmental impact statement 
     under the National Environmental Policy Act of 1969 with 
     respect to the actions authorized by this title that are not 
     referred to in paragraph (2). Notwithstanding any other law, 
     the Secretary is not required to identify nonleasing 
     alternative courses of action or to analyze the environmental 
     effects of such courses of action. The Secretary shall only 
     identify a preferred action for such leasing and a single 
     leasing alternative, and analyze the environmental effects 
     and potential mitigation measures for those two alternatives. 
     The identification of the preferred action and related 
     analysis for the first lease sale under this title shall be 
     completed within 18 months after the date of enactment of 
     this Act. The Secretary shall only consider public comments 
     that specifically address the Secretary's preferred action 
     and that are filed within 20 days after publication of an 
     environmental analysis. Notwithstanding any other law, 
     compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this title.
       (d) Relationship to State and Local Authority.--Nothing in 
     this title shall be considered to expand or limit State and 
     local regulatory authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik, and the North Slope 
     Borough, may designate up to a total of 45,000 acres of the 
     Coastal Plain as a Special Area if the Secretary determines 
     that the Special Area is of such unique character and 
     interest so as to require special management and regulatory 
     protection. The Secretary shall designate as such a Special 
     Area the Sadlerochit Spring area, comprising approximately 
     4,000 acres.
       (2) Management.--Each such Special Area shall be managed so 
     as to protect and preserve the area's unique and diverse 
     character including its fish, wildlife, and subsistence 
     resource values.
       (3) Exclusion from leasing or surface occupancy.--The 
     Secretary may exclude any Special Area from leasing. If the 
     Secretary leases a Special Area, or any part thereof, for 
     purposes of oil and gas exploration, development, production, 
     and related activities, there shall be no surface occupancy 
     of the lands comprising the Special Area.
       (4) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases tracts 
     located outside the Special Area.
       (f) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the Coastal Plain to oil and 
     gas leasing and to exploration, development, and production 
     is that set forth in this title.
       (g) Regulations.--
       (1) In general.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this title, 
     including regulations relating to protection of the fish and 
     wildlife, their habitat, subsistence resources, and 
     environment of the Coastal Plain, by no later than 15 months 
     after the date of enactment of this Act.
       (2) Revision of regulations.--The Secretary shall, through 
     a rule making conducted in accordance with section 553 of 
     title 5, United States Code, periodically review and, if 
     appropriate, revise the regulations issued under subsection 
     (a) to reflect a preponderance of the best available 
     scientific evidence that has been peer reviewed and obtained 
     by following appropriate, documented scientific procedures, 
     the results of which can be repeated using those same 
     procedures.

     SEC. 50503. LEASE SALES.

       (a) In General.--Lands may be leased under this title to 
     any person qualified to obtain a lease for deposits of oil 
     and gas under the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.).
       (b) Procedures.--The Secretary shall, by regulation and no 
     later than 180 days after the date of enactment of this 
     title, establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area of the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after such nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Lease sales under this title may be 
     conducted through an Internet leasing program, if the 
     Secretary determines that such a system will result in 
     savings to the taxpayer, an increase in the number of bidders 
     participating, and higher returns than oral bidding or a 
     sealed bidding system.
       (d) Sale Acreages and Schedule.--
       (1) The Secretary shall offer for lease under this title 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1).
       (2) The Secretary shall offer for lease under this title no 
     less than 50,000 acres for lease within 22 months after the 
     date of the enactment of this Act.
       (3) The Secretary shall offer for lease under this title no 
     less than an additional 50,000 acres at 6-, 12-, and 18-month 
     intervals following offering under paragraph (2).
       (4) The Secretary shall conduct four additional sales under 
     the same terms and schedule no later than two years after the 
     date of the last sale under paragraph (3), if sufficient 
     interest in leasing exists to warrant, in the Secretary's 
     judgment, the conduct of such sales.
       (5) The Secretary shall evaluate the bids in each sale and 
     issue leases resulting from such sales, within 90 days after 
     the date of the completion of such sale.

     SEC. 50504. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted under 
     section 55003 any lands to be leased on the Coastal Plain 
     upon payment by the such bidder of such bonus as may be 
     accepted by the Secretary.
       (b) Subsequent Transfers.--No lease issued under this title 
     may be sold, exchanged, assigned, sublet, or otherwise 
     transferred except with the approval of the Secretary. Prior 
     to any such approval the Secretary shall consult with, and 
     give due consideration to the views of, the Attorney General.

     SEC. 50505. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued under this 
     title shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold under the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;

[[Page 3250]]

       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife based on a preponderance 
     of the best available scientific evidence that has been peer 
     reviewed and obtained by following appropriate, documented 
     scientific procedures, the results of which can be repeated 
     using those same procedures;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of lands within the Coastal Plain and any other 
     Federal lands that are adversely affected in connection with 
     exploration, development, production, or transportation 
     activities conducted under the lease and within the Coastal 
     Plain by the lessee or by any of the subcontractors or agents 
     of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this title shall be, as nearly 
     as practicable, a condition capable of supporting the uses 
     which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     certified by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, subsistence resources, and 
     the environment as required pursuant to section 55002(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with this title and 
     the regulations issued under this title.

     SEC. 50506. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 55002, administer 
     this title through regulations, lease terms, conditions, 
     restrictions, prohibitions, stipulations, and other 
     provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, and the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 10,000 acres on the 
     Coastal Plain for each 100,000 acres of area leased.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall also require, with respect to any proposed drilling and 
     related activities, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, their habitat, subsistence 
     resources, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this title, 
     the Secretary shall prepare and promulgate regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this title are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this title.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this title shall 
     require compliance with all applicable provisions of Federal 
     and State environmental law, and shall also require the 
     following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration 
     based on a preponderance of the best available scientific 
     evidence that has been peer reviewed and obtained by 
     following appropriate, documented scientific procedures, the 
     results of which can be repeated using those same procedures.
       (3) That exploration activities, except for surface 
     geological studies, be limited to the period between 
     approximately November 1 and May 1 each year and that 
     exploration activities shall be supported, if necessary, by 
     ice roads, winter trails with adequate snow cover, ice pads, 
     ice airstrips, and air transport methods, except that such 
     exploration activities may occur at other times if the 
     Secretary finds that such exploration will have no 
     significant adverse effect on the fish and wildlife, their 
     habitat, and the environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that--
       (A) minimize, to the maximum extent possible, adverse 
     effects upon the passage of migratory species such as 
     caribou; and
       (B) minimize adverse effects upon the flow of surface water 
     by requiring the use of culverts, bridges, and other 
     structural devices.
       (5) Prohibitions on general public access and use on all 
     pipeline access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this title, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.
       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river systems; the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats; and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or minimization of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law.
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions deemed necessary by the 
     Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider the following:
       (1) The stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement.
       (2) The environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations.
       (3) The land use stipulations for exploratory drilling on 
     the KIC-ASRC private lands that are set forth in appendix 2 
     of the August 9, 1983, agreement between Arctic Slope 
     Regional Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:

[[Page 3251]]

       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, their 
     habitat, and the environment.
       (D) Utilizing existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.
       (g) Access to Public Lands.--The Secretary shall--
       (1) manage public lands in the Coastal Plain subject to of 
     section 811 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3121); and
       (2) ensure that local residents shall have reasonable 
     access to public lands in the Coastal Plain for traditional 
     uses.

     SEC. 50507. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaint.--
       (1) Deadline.--Subject to paragraph (2), any complaint 
     seeking judicial review--
       (A) of any provision of this title shall be filed by not 
     later than 1 year after the date of enactment of this Act; or
       (B) of any action of the Secretary under this title shall 
     be filed--
       (i) except as provided in clause (ii), within the 90-day 
     period beginning on the date of the action being challenged; 
     or
       (ii) in the case of a complaint based solely on grounds 
     arising after such period, within 90 days after the 
     complainant knew or reasonably should have known of the 
     grounds for the complaint.
       (2) Venue.--Any complaint seeking judicial review of any 
     provision of this title or any action of the Secretary under 
     this title may be filed only in the United States Court of 
     Appeals for the District of Columbia.
       (3) Limitation on scope of certain review.--Judicial review 
     of a Secretarial decision to conduct a lease sale under this 
     title, including the environmental analysis thereof, shall be 
     limited to whether the Secretary has complied with this title 
     and shall be based upon the administrative record of that 
     decision. The Secretary's identification of a preferred 
     course of action to enable leasing to proceed and the 
     Secretary's analysis of environmental effects under this 
     title shall be presumed to be correct unless shown otherwise 
     by clear and convincing evidence to the contrary.
       (b) Limitation on Other Review.--Actions of the Secretary 
     with respect to which review could have been obtained under 
     this section shall not be subject to judicial review in any 
     civil or criminal proceeding for enforcement.
       (c) Limitation on Attorneys' Fees and Court Costs.--No 
     person seeking judicial review of any action under this title 
     shall receive payment from the Federal Government for their 
     attorneys' fees and other court costs, including under any 
     provision of law enacted by the Equal Access to Justice Act 
     (5 U.S.C. 504 note).

     SEC. 50508. TREATMENT OF REVENUES.

       Notwithstanding any other provision of law, 50 percent of 
     the amount of bonus, rental, and royalty revenues from 
     Federal oil and gas leasing and operations authorized under 
     this title shall be deposited in the Treasury.

     SEC. 50509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) In General.--The Secretary shall issue rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas produced under leases under this title--
       (1) except as provided in paragraph (2), under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
     title XI of the Alaska National Interest Lands Conservation 
     Act (16 U.S.C. 3161 et seq.); and
       (2) under title XI of the Alaska National Interest Lands 
     Conservation Act (30 U.S.C. 3161 et seq.), for access 
     authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
     3170 and 3171).
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement issued under subsection (a) such 
     terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the Coastal Plain, including requirements that facilities be 
     sited or designed so as to avoid unnecessary duplication of 
     roads and pipelines.
       (c) Regulations.--The Secretary shall include in 
     regulations under section 55002(g) provisions granting 
     rights-of-way and easements described in subsection (a) of 
     this section.

     SEC. 50510. CONVEYANCE.

       In order to maximize Federal revenues by removing clouds on 
     title to lands and clarifying land ownership patterns within 
     the Coastal Plain, the Secretary, notwithstanding section 
     1302(h)(2) of the Alaska National Interest Lands Conservation 
     Act (16 U.S.C. 3192(h)(2)), shall convey--
       (1) to the Kaktovik Inupiat Corporation the surface estate 
     of the lands described in paragraph 1 of Public Land Order 
     6959, to the extent necessary to fulfill the Corporation's 
     entitlement under sections 12 and 14 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance 
     with the terms and conditions of the Agreement between the 
     Department of the Interior, the United States Fish and 
     Wildlife Service, the Bureau of Land Management, and the 
     Kaktovik Inupiat Corporation dated January 22, 1993; and
       (2) to the Arctic Slope Regional Corporation the remaining 
     subsurface estate to which it is entitled pursuant to the 
     August 9, 1983, agreement between the Arctic Slope Regional 
     Corporation and the United States of America.

              Subtitle G--Oil Shale and Tar Sands Leasing

     SEC. 50601. EFFECTIVENESS OF OIL SHALE REGULATIONS, 
                   AMENDMENTS TO RESOURCE MANAGEMENT PLANS, AND 
                   RECORD OF DECISION.

       (a) Regulations.--Notwithstanding any other law or 
     regulation to the contrary, the final regulations regarding 
     oil shale management published by the Bureau of Land 
     Management on November 18, 2008 (73 Fed. Reg. 69,414) are 
     deemed to satisfy all legal and procedural requirements under 
     any law, including the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1701 et seq.), the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.), the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), and the Energy 
     Policy Act of 2005 (Public Law 109-58), and the Secretary of 
     the Interior shall implement those regulations, including the 
     oil shale and tar sands leasing program authorized by the 
     regulations, without any other administrative action 
     necessary.
       (b) Amendments to Resource Management Plans and Record of 
     Decision.--Notwithstanding any other law or regulation to the 
     contrary, the November 17, 2008 U.S. Bureau of Land 
     Management Approved Resource Management Plan Amendments/
     Record of Decision for Oil Shale and Tar Sands Resources to 
     Address Land Use Allocations in Colorado, Utah, and Wyoming 
     and Final Programmatic Environmental Impact Statement are 
     deemed to satisfy all legal and procedural requirements under 
     any law, including the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1701 et seq.), the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.), the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), and the Energy 
     Policy Act of 2005 (Public Law 109-58), and the Secretary of 
     the Interior shall implement the oil shale and tar sands 
     leasing program authorized by the regulations referred to in 
     subsection (a) in those areas covered by the resource 
     management plans amended by such amendments, and covered by 
     such record of decision, without any other administrative 
     action necessary.

     SEC. 50602. OIL SHALE AND TAR SANDS LEASING.

       (a) Additional Research and Development Lease Sales.--The 
     Secretary of the Interior shall hold a lease sale within 180 
     days after the date of enactment of this Act offering an 
     additional 10 parcels for lease for research, development, 
     and demonstration of oil shale or tar sands resources, under 
     the terms offered in the solicitation of bids for such leases 
     published on January 15, 2009 (74 Fed. Reg. 10).
       (b) Commercial Lease Sales.--No later than January 1, 2016, 
     the Secretary of the Interior shall hold no less than 5 
     separate commercial lease sales in areas considered to have 
     the most potential for oil shale or tar sands development, as 
     determined by the Secretary, in areas nominated through 
     public comment. Each lease sale shall be for an area of not 
     less than 25,000 acres, and in multiple lease blocs.
       (c) Reduced Payments To Ensure Production.--The Secretary 
     of the Interior may temporarily reduce royalties, fees, 
     rentals, bonus, or other payments for leases of Federal lands 
     for the development and production of oil shale resources as 
     necessary to incentivize and encourage development of such 
     resources, if the Secretary determines that the royalties, 
     fees, rentals, bonus bids, and other payments otherwise 
     authorized by law are hindering production of such resources.

                    TITLE II--ENERGY TAX INCENTIVES

     SEC. 51001. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING 
                   HOMES.

       (a) In General.--Paragraph (2) of section 25C(g) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``December 31, 2011'' and inserting ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 51002. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) Extension.--Paragraph (2) of section 30C(g) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``December 31, 2011.'' and inserting ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 51003. EXTENSION OF 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, 2011'' and 
     inserting ``December 31, 2012''.
       (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

[[Page 3252]]

     striking ``December 31, 2011'' and inserting ``December 31, 
     2012''.
       (2) Subparagraph (B) of section 6427(e)(6) of such Code is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2011.

     SEC. 51004. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
                   APPLIANCES.

       (a) In General.--Section 45M(b) of the Internal Revenue 
     Code of 1986 is amended by striking ``2011'' each place it 
     appears other than in the provisions specified in subsection 
     (b), and inserting ``2011 or 2012''.
       (b) Provisions Specified.--The provisions of section 45M(b) 
     of the Internal Revenue Code of 1986 specified in this 
     subsection are subparagraph (C) of paragraph (1) and 
     subparagraph (E) of paragraph (2).
       (c) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2011.

     SEC. 51005. EXTENSION OF SPECIAL RULE FOR SALES OR 
                   DISPOSITIONS TO IMPLEMENT FERC OR STATE 
                   ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED 
                   ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2012'' and inserting ``January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to dispositions after December 31, 2011.

     SEC. 51006. EXTENSION OF SUSPENSION OF LIMITATION ON 
                   PERCENTAGE DEPLETION FOR OIL AND GAS FROM 
                   MARGINAL WELLS.

       (a) In General.--Clause (ii) of section 613A(c)(6)(H) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2012'' and inserting ``January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 51007. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX 
                   CREDITS.

       (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 
     6427(e)(6)(C) of the Internal Revenue Code of 1986 are each 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2011.

                   TITLE III--TAX EXTENDER PROVISIONS

     SEC. 52000. AMENDMENTS TO 1986 CODE.

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

                   Subtitle A--Individual Tax Relief

     SEC. 52001. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
                   ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2011'' and inserting ``2011, or 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52002. EXTENSION OF DEDUCTION OF STATE AND LOCAL SALES 
                   TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52003. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF 
                   CAPITAL GAIN REAL PROPERTY MADE FOR 
                   CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2011'' and inserting ``December 31, 
     2012''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 52004. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 
                   QUALIFIED TUITION AND RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52005. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM 
                   INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE 
                   PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 52006. EXTENSION OF LOOK-THRU OF CERTAIN REGULATED 
                   INVESTMENT COMPANY STOCK IN DETERMINING GROSS 
                   ESTATE OF NONRESIDENTS.

       (a) In General.--Paragraph (3) of section 2105(d) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after December 31, 
     2011.

     SEC. 52007. EXTENSION OF EXPANSION OF ADOPTION CREDIT AND 
                   ADOPTION ASSISTANCE PROGRAMS.

       (a) In General.--Subsection (c) of section 10909 of the 
     Patient Protection and Affordable Care Act, as amended by the 
     Tax Relief, Unemployment Insurance Reauthorization, and Job 
     Creation Act of 2010, is amended by striking ``December 31, 
     2011'' and inserting ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

                    Subtitle B--Business Tax Relief

     SEC. 52101. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

       (a) Simplified Credit for Qualified Research Expenses.--
     Subsection (a) of section 41 is amended to read as follows:
       ``(a) General Rule.--For purposes of section 38, the 
     research credit determined under this section for the taxable 
     year shall be an amount equal to 20 percent of so much of the 
     qualified research expenses for the taxable year as exceeds 
     50 percent of the average qualified research expenses for the 
     3 taxable years preceding the taxable year for which the 
     credit is being determined.''.
       (b) Special Rules and Termination of Base Amount 
     Calculation.--
       (1) In general.--Subsection (c) of section 41 is amended to 
     read as follows:
       ``(c) Special Rule in Case of No Qualified Research 
     Expenses in Any of 3 Preceding Taxable Years.--
       ``(1) Taxpayers to which subsection applies.--The credit 
     under this section shall be determined under this subsection, 
     and not under subsection (a), if, in any one of the 3 taxable 
     years preceding the taxable year for which the credit is 
     being determined, the taxpayer has no qualified research 
     expenses.
       ``(2) Credit rate.--The credit determined under this 
     subsection shall be equal to 10 percent of the qualified 
     research expenses for the taxable year.''.
       (2) Consistent treatment of expenses.--Subsection (b) of 
     section 41 is amended by adding at the end the following new 
     paragraph:
       ``(5) Consistent treatment of expenses required.--
       ``(A) In general.--Notwithstanding whether the period for 
     filing a claim for credit or refund has expired for any 
     taxable year in the 3-taxable-year period taken into account 
     under subsection (a), the qualified research expenses taken 
     into account for such year shall be determined on a basis 
     consistent with the determination of qualified research 
     expenses for the credit year.
       ``(B) Prevention of distortions.--The Secretary may 
     prescribe regulations to prevent distortions in calculating a 
     taxpayer's qualified research expenses caused by a change in 
     accounting methods used by such taxpayer between the credit 
     year and a year in such 3-taxable-year period.''.
       (c) Inclusion of Qualified Research Expenses of an Acquired 
     Person.--
       (1) Partial inclusion of pre-acquisition qualified research 
     expenses.--Subparagraph (A) of section 41(f)(3) is amended to 
     read as follows:
       ``(A) Acquisitions.--
       ``(i) In general.--If a person acquires the major portion 
     of a trade or business of another person (hereinafter in this 
     paragraph referred to as the `predecessor') or the major 
     portion of a separate unit of a trade or business of a 
     predecessor, then the amount of qualified research expenses 
     paid or incurred by the acquiring person during the 3 taxable 
     years preceding the taxable year in which the credit under 
     this section is determined shall be increased by--

       ``(I) for purposes of applying this section for the taxable 
     year in which such acquisition is made, the amount determined 
     under clause (ii), and
       ``(II) for purposes of applying this section for any 
     taxable year after the taxable year in which such acquisition 
     is made, so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the portion of the measurement 
     period that is part of the 3-taxable-year period preceding 
     the taxable year for which the credit is determined as is 
     attributable to the portion of such trade or business or 
     separate unit acquired by such person.

       ``(ii) Amount determined.--The amount determined under this 
     clause is the amount equal to the product of--

       ``(I) so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the 3 taxable years before the 
     taxable year in which the acquisition is made as is 
     attributable to the portion of such trade or business or 
     separate unit acquired by the acquiring person, and
       ``(II) the number of months in the period beginning on the 
     date of the acquisition and ending on the last day of the 
     taxable year in which the acquisition is made,

     divided by 12.
       ``(iii) Special rules for coordinating taxable years.--In 
     the case of an acquiring person and a predecessor whose 
     taxable years do not begin on the same date--

[[Page 3253]]

       ``(I) each reference to a taxable year in clauses (i) and 
     (ii) shall refer to the appropriate taxable year of the 
     acquiring person,
       ``(II) the qualified research expenses paid or incurred by 
     the predecessor during each taxable year of the predecessor 
     any portion of which is part of the measurement period shall 
     be allocated equally among the months of such taxable year, 
     and
       ``(III) the amount of such qualified research expenses 
     taken into account under clauses (i) and (ii) with respect to 
     a taxable year of the acquiring person shall be equal to the 
     total of the expenses attributable under subclause (II) to 
     the months occurring during such taxable year.

       ``(iv) Measurement period.--For purposes of this 
     subparagraph, the term `measurement period' means the taxable 
     year of the acquiring person in which the acquisition is made 
     and the 3 taxable years of the acquiring person preceding 
     such taxable year.''.
       (2) Expenses of a disposing person.--Subparagraph (B) of 
     section 41(f)(3) is amended to read as follows:
       ``(B) Dispositions.--If a person disposes of the major 
     portion of any trade or business or the major portion of a 
     separate unit of a trade or business in a transaction to 
     which subparagraph (A) applies, and the disposing person 
     furnished to the acquiring person such information as is 
     necessary for the application of subparagraph (A), then, for 
     purposes of applying this section for any taxable year ending 
     after such disposition, the amount of qualified research 
     expenses paid or incurred by the disposing person during the 
     3 taxable years preceding such taxable year shall be 
     decreased by the amount of the increase determined under 
     subparagraph (A) with respect to the acquiring person for 
     such taxable year.''.
       (d) Aggregation of Expenditures.--Paragraph (1) of section 
     41(f) is amended--
       (1) by striking ``shall be its proportionate shares of the 
     qualified research expenses, basic research payments, and 
     amounts paid or incurred to energy research consortiums, 
     giving rise to the credit'' in subparagraph (A)(ii) and 
     inserting ``shall be determined on a proportionate basis to 
     its share of the aggregate qualified research expenses taken 
     into account by such controlled group for purposes of this 
     section'', and
       (2) by striking ``shall be its proportionate shares of the 
     qualified research expenses, basic research payments, and 
     amounts paid or incurred to energy research consortiums, 
     giving rise to the credit'' in subparagraph (B)(ii) and 
     inserting ``shall be determined on a proportionate basis to 
     its share of the aggregate qualified research expenses taken 
     into account by all such persons under common control for 
     purposes of this section''.
       (e) Extension.--
       (1) Subsection (h) of section 41 is amended--
       (A) by striking paragraph (2) (relating to termination of 
     alternative incremental credit), and
       (B) by striking ``paid or incurred'' and all that follows 
     in paragraph (1) and inserting ``paid or incurred after 
     December 31, 2012.''.
       (2) Subparagraph (D) of section 45C(b)(1) is amended by 
     striking ``June 30, 1995'' and all that follows and inserting 
     ``December 31, 2012.''.
       (f) Conforming Amendments.--
       (1) Termination of basic research payment calculation.--
     Section 41 is amended--
       (A) by striking subsection (e),
       (B) by redesignating subsection (g) as subsection (e), and
       (C) by relocating subsection (e), as so redesignated, 
     immediately after subsection (d).
       (2) Special rules.--
       (A) Paragraph (4) of section 41(f) is amended by striking 
     ``and gross receipts''.
       (B) Subsection (f) of section 41 is amended by striking 
     paragraph (6).
       (3) Cross-references.--
       (A) Paragraph (2) of section 45C(c) is amended by striking 
     ``base period research expenses'' and inserting ``average 
     qualified research expenses''.
       (B) Subparagraph (A) of section 54(l)(3) is amended by 
     striking ``section 41(g)'' and inserting ``section 41(e)''.
       (C) Clause (i) of section 170(e)(4)(B) is amended to read 
     as follows:
       ``(i) the contribution is to a qualified organization,''.
       (D) Paragraph (4) of section 170(e) is amended by adding at 
     the end the following new subparagraph:
       ``(E) Qualified organization.--For purposes of this 
     paragraph, the term `qualified organization' means--
       ``(i) any educational organization which--

       ``(I) is an institution of higher education (within the 
     meaning of section 3304(f)), and
       ``(II) is described in subsection (b)(1)(A)(ii), or

       ``(ii) any organization not described in clause (i) which--

       ``(I) is described in section 501(c)(3) and is exempt from 
     tax under section 501(a),
       ``(II) is organized and operated primarily to conduct 
     scientific research, and
       ``(III) is not a private foundation.''.

       (E) Section 280C is amended--
       (i) by striking ``or basic research expenses (as defined in 
     section 41(e)(2))'' in subsection (c)(1),
       (ii) by striking ``section 41(a)(1)'' in subsection 
     (c)(2)(A) and inserting ``section 41(a)'', and
       (iii) by striking ``or basic research expenses'' in 
     subsection (c)(2)(B).
       (F) Clause (i) of section 1400N(l)(7)(B) is amended by 
     striking ``section 41(g)'' and inserting ``section 41(e)''.
       (g) Technical Corrections.--Section 409 is amended--
       (1) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (b)(1)(A),
       (2) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984'' after ``relating to the employee 
     stock ownership credit'' in subsection (b)(4),
       (3) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (i)(1)(A),
       (4) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (m),
       (5) by inserting ``(as so in effect)'' after ``section 
     48(n)(1)'' in subsection (m),
       (6) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 48(n)'' in 
     subsection (q)(1), and
       (7) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41'' in 
     subsection (q)(3).
       (h) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     taxable years beginning after December 31, 2011.
       (2) Extension.--The amendments made by subsection (e) shall 
     apply to amounts paid or incurred after December 31, 2011.
       (3) Technical corrections.--The amendments made by 
     subsection (g) shall take effect on the date of the enactment 
     of this Act.

     SEC. 52102. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52103. EXTENSION OF NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (G) of section 45D(f)(1) is 
     amended by striking ``2010 and 2011'' and inserting ``2010, 
     2011, and 2012''.
       (b) Carryover of Unused Limitation.--Paragraph (3) of 
     section 45D(f) is amended by striking ``2016'' and inserting 
     ``2017''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2011.

     SEC. 52104. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2012'' and inserting ``January 1, 
     2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2011.

     SEC. 52105. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52106. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES 
                   WHO ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED 
                   SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2011.

     SEC. 52107. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4), as 
     amended by the VOW to Hire Heroes Act of 2011, is amended by 
     striking ``after'' and all that follows and inserting ``after 
     December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2011.

     SEC. 52108. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Paragraph (1) of section 54E(c) is amended 
     by inserting ``and 2012'' after ``for 2011''.
       (b) Repeal of Refundable Credit for QZABs.--Clause (iii) of 
     section 6431(f)(3)(A) is amended by inserting ``or 2012'' 
     after ``for 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2011.

     SEC. 52109. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY 
                   FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED 
                   RESTAURANT BUILDINGS AND IMPROVEMENTS, AND 
                   QUALIFIED RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2012'' 
     and inserting ``January 1, 2013''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2011.

[[Page 3254]]



     SEC. 52110. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 
                   MOTORSPORTS ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 52111. EXTENSION OF ACCELERATED DEPRECIATION FOR 
                   BUSINESS PROPERTY ON AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 52112. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CONTRIBUTIONS OF FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2011.

     SEC. 52113. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CONTRIBUTIONS OF BOOK INVENTORIES TO PUBLIC 
                   SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2011.

     SEC. 52114. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CORPORATE CONTRIBUTIONS OF COMPUTER INVENTORY 
                   FOR EDUCATIONAL PURPOSES.

       (a) In General.--Subparagraph (G) of section 170(e)(6) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 52115. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND 
                   TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 
                   179 PROPERTY.

       (a) In General.--Section 179(b) is amended--
       (1) by striking ``2010 or 2011'' each place it appears in 
     paragraph (1)(B) and (2)(B) and inserting ``2010, 2011, or 
     2012'',
       (2) by striking ``2012'' each place it appears in paragraph 
     (1)(C) and (2)(C) and inserting ``2013'', and
       (3) by striking ``2012'' each place it appears in paragraph 
     (1)(D) and (2)(D) and inserting ``2013''.
       (b) Inflation Adjustment.--Subparagraph (A) of section 
     179(b)(6) is amended by striking ``2012'' and inserting 
     ``2013''.
       (c) Computer Software.--Section 179(d)(1)(A)(ii) is amended 
     by striking ``2013'' and inserting ``2014''.
       (d) Election.--Section 179(c)(2) is amended by striking 
     ``2013'' and inserting ``2014''.
       (e) Special Rules for Treatment of Qualified Real 
     Property.--Section 179(f)(1) is amended by striking ``2010 or 
     2011'' and inserting ``2010, 2011, or 2012''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52116. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY 
                   EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 52117. EXTENSION OF EXPENSING OF BROWNFIELDS 
                   ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2011.

     SEC. 52118. EXTENSION OF MODIFICATION OF TAX TREATMENT OF 
                   CERTAIN PAYMENTS TO CONTROLLING EXEMPT 
                   ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2011.

     SEC. 52119. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C) and (2)(C) of section 
     871(k) are each amended by striking ``December 31, 2011'' and 
     inserting ``December 31, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 52120. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY 
                   TREATMENT UNDER FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2012. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2011, and 
     before the date of the enactment of this Act; and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,
     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 52121. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE 
                   FINANCING INCOME.

       (a) Exempt Insurance Income.--Paragraph (10) of section 
     953(e) is amended--
       (1) by striking ``January 1, 2012'' and inserting ``January 
     1, 2013'', and
       (2) by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012'',
       (b) Special Rule for Income Derived in the Active Conduct 
     of Banking, Financing, or Similar Businesses.--Paragraph (9) 
     of section 954(h) is amended by striking ``January 1, 2012'' 
     and inserting ``January 1, 2013''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2011, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 52122. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS 
                   BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS 
                   UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2011, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 52123. EXTENSION OF 100 PERCENT EXCLUSION FOR QUALIFIED 
                   SMALL BUSINESS STOCK.

       (a)  In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2012'' and inserting ``January 
     1, 2013'', and
       (2) by striking ``2010 and 2011'' in the heading and 
     inserting ``2010, 2011, and 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2011.

     SEC. 52124. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPS 
                   MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 52125. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER 
                   OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                   VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2011.

                           TITLE IV--OFFSETS

     SEC. 53001. DEFICIT REDUCTION TRUST FUND.

       (a) In General.--Subchapter I of chapter 31 of title 31, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec.  3114. Trust fund to reduce public debt

       ``(a) There is established in the Treasury of the United 
     States a trust fund to be known as the `Deficit Reduction 
     Trust Fund' (in this section referred to as the `Trust 
     Fund').
       ``(b) There is appropriated to the Trust Fund the following 
     amounts:
       ``(1) Amounts equivalent to the net increase in amounts 
     received in the Treasury attributable to the provisions of, 
     and the amendments made by, subtitles B, C, D, E, F, and G of 
     title I of division E of the Moving Ahead for Progress in the 
     21st Century Act.
       ``(2) The net increase in taxes received in the Treasury 
     attributable to the amendments made by section 53002 of the 
     Moving Ahead for Progress in the 21st Century Act.
       ``(3) Amounts equivalent to the reduction in spending 
     attributable to the amendment made by section 53003 of the 
     Moving Ahead for Progress in the 21st Century Act.
       ``(c) The Secretary of the Treasury shall use the moneys in 
     the Trust Fund solely to pay at maturity, or to redeem or buy 
     before maturity, an obligation of the Government included in 
     the public debt.
       ``(d) Any obligation of the Government which is paid, 
     redeemed, or bought with money from the Trust Fund shall be 
     canceled and retired and may not be reissued.''.

[[Page 3255]]

       (b) Conforming Amendment.--The table of sections for 
     subchapter I of chapter 31 of title 31, United States Code, 
     is amended by adding at the end the following new item:

``3114. Trust fund to reduce public debt.''.

     SEC. 53002. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE 
                   REFUNDABLE PORTION OF THE CHILD TAX CREDIT.

       (a) In General.--Subsection (d) of section 24 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Identification requirement with respect to 
     taxpayer.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     taxpayer for any taxable year unless the taxpayer includes 
     the taxpayer's Social Security number on the return of tax 
     for such taxable year.
       ``(B) Joint returns.--In the case of a joint return, the 
     requirement of subparagraph (A) shall be treated as met if 
     the Social Security number of either spouse is included on 
     such return.''.
       (b) Omission Treated as Mathematical or Clerical Error.--
     Subparagraph (I) of section 6213(g)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(I) an omission of a correct Social Security number 
     required under section 24(d)(5) (relating to refundable 
     portion of child tax credit), or a correct TIN under section 
     24(e) (relating to child tax credit), to be included on a 
     return,''.
       (c) Conforming Amendment.--Subsection (e) of section 24 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``With Respect to Qualifying Children'' after 
     ``Identification Requirement'' in the heading thereof.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 53003. EXTENSION OF PAY LIMITATION FOR FEDERAL 
                   EMPLOYEES.

       (a) Extension.--
       (1) In general.--Section 147 of the Continuing 
     Appropriations Act, 2011 (Public Law 111-242; 5 U.S.C. 5303 
     note) is amended--
       (A) in subsection (b)(1), by striking ``December 31, 2012'' 
     and inserting ``December 31, 2013''; and
       (B) in subsection (c), by striking ``December 31, 2012'' 
     and inserting ``December 31, 2013''.
       (2) Application to legislative branch.--
       (A) Members of congress.--The extension of the pay limit 
     for Federal employees through December 31, 2013, as 
     established pursuant to the amendments made by paragraph (1), 
     shall apply to Members of Congress in accordance with section 
     601(a) of the Legislative Reorganization Act of 1946 (2 
     U.S.C. 31).
       (B) Other legislative branch employees.--
       (i) Limit in pay.--Notwithstanding any other provision of 
     law, no cost of living adjustment required by statute with 
     respect to a legislative branch employee which (but for this 
     clause) would otherwise take effect during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2013, shall be made.
       (ii) Definition.--In this subparagraph, the term 
     ``legislative branch employee'' means--

       (I) an employee of the Federal Government whose pay is 
     disbursed by the Secretary of the Senate or the Chief 
     Administrative Officer of the House of Representatives; and
       (II) an employee of any office of the legislative branch 
     who is not described in subclause (I).

       (b) Reduction of Revised Discretionary Spending Limits to 
     Achieve Savings From Federal Employee Provisions.--Paragraph 
     (2) of section 251A of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended to read as follows:
       ``(2) Revised discretionary spending limits.--The 
     discretionary spending limits for fiscal years 2013 through 
     2021 under section 251(c) shall be replaced with the 
     following:
       ``(A) For fiscal year 2013--
       ``(i) for the revised security category, $546,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $499,000,000,000 in budget authority.
       ``(B) For fiscal year 2014--
       ``(i) for the revised security category, $556,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $507,000,000,000 in budget authority.
       ``(C) For fiscal year 2015--
       ``(i) for the revised security category, $566,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $517,000,000,000 in budget authority.
       ``(D) For fiscal year 2016--
       ``(i) for the revised security category, $577,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $527,000,000,000 in budget authority.
       ``(E) For fiscal year 2017--
       ``(i) for the revised security category, $590,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $538,000,000,000 in budget authority.
       ``(F) For fiscal year 2018--
       ``(i) for the revised security category, $603,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $550,000,000,000 in budget authority.
       ``(G) For fiscal year 2019--
       ``(i) for the revised security category, $616,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $562,000,000,000 in budget authority.
       ``(H) For fiscal year 2020--
       ``(i) for the revised security category, $630,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $574,000,000,000 in budget authority.
       ``(I) For fiscal year 2021--
       ``(i) for the revised security category, $644,000,000,000 
     in budget authority; and
       ``(ii) for the revised nonsecurity category, 
     $586,000,000,000 in budget authority.''.
                                 ______
                                 
  SA 1827. Ms. MURKOWSKI submitted an amendment intended to be proposed 
by her to the bill S. 1813, to reauthorize Federal-aid highway and 
highway safety construction programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of division B, add the following:

     SEC. __. ATTRIBUTION OF FIXED GUIDEWAY VEHICLE REVENUE MILES 
                   AND FIXED GUIDEWAY DIRECTIONAL ROUTE MILES.

       (a) Definition.--In this section the term ``covered miles 
     of a recipient'' means the fixed guideway vehicle revenue 
     miles or fixed guideway directional route miles in the public 
     transportation system for which the recipient receives funds.
       (b) Attribution.--For purposes of section 5336(b)(2)(A) and 
     section 5337(c)(3) of title 49, United States Code, as 
     amended by this Act, the Secretary shall deem to be 
     attributable to an urbanized area not less than 50 percent of 
     the covered miles of a recipient that are located outside the 
     urbanized area for which the recipient receives funds, in 
     addition to the covered miles of the recipient that are 
     located inside the urbanized area.
                                 ______
                                 
  SA 1828. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill S. 1813, to reauthorize Federal-aid highway and 
highway safety construction programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 469, after line 22, add the following:

     SEC. 1521. TRUCKING WEIGHT LIMITATIONS.

       Section 127(a) of title 23, United States Code, is amended 
     by adding at the end the following:
       ``(13) Heavy truck pilot program.--
       ``(A) In general.--The Secretary may carry out a pilot 
     program under which the Secretary may authorize up to 3 
     States to allow, by special permit, the operation of vehicles 
     with a gross vehicle weight of up to 126,000 pounds on 
     segments on the Interstate System in the State.
       ``(B) Requirements.--A State authorized under the pilot 
     program under subparagraph (A) shall--
       ``(i) identify, and submit to the Secretary for approval--

       ``(I) the segments on the Interstate System that will be 
     subject to the pilot program; and
       ``(II) the configurations of vehicles to be allowed to 
     operate under a special permit;

       ``(ii) allow vehicles subject to the program to operate on 
     not more than 3 segments, which may be contiguous, of up to 
     25 miles each;
       ``(iii) require the loads of vehicles operating under a 
     special permit to conform to such single axle, tandem axle, 
     tridem axle, and bridge formula limits applicable in the 
     State; and
       ``(iv) establish and collect a fee for vehicles operating 
     under a special permit.
       ``(C) Prohibitions.--The Secretary may prohibit the 
     operation of a vehicle under a special permit if the 
     Secretary determines that the operation poses an unreasonable 
     safety risk based on an analysis of engineering data, safety 
     data, or other applicable data.
       ``(D) Duration.--The Secretary may authorize a State to 
     participate in the pilot program under this paragraph for a 
     period not to exceed 4 years.''.
                                 ______
                                 
  SA 1829. Mr. JOHANNS submitted an amendment intended to be proposed 
by him to the bill S. 1813, to reauthorize Federal-aid highway and 
highway safety construction programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EXCEPTION TO GENERAL PROPERTY-CARRYING UNIT 
                   LIMITATION.

       Section 31112(d)(4) of title 49, United States Code, is 
     amended to read as follows:
       ``(4) Subject to an appropriate permit from each State in 
     which they will be operated, property-carrying units that 
     were not in actual operation on June 1, 1991, may be operated 
     within 1 or more adjacent States to transport sugar beets 
     from the field where such sugar beets are harvested to 
     storage, market, factory, or stockpile or from stockpile to 
     storage, market, or factory if such vehicles--
       ``(A) are not more than 25 percent longer or 15 percent 
     heavier than the maximum length and weight, respectively, 
     otherwise permitted for similar property-carrying units;
       ``(B) are operated not more than 200 days per year; and

[[Page 3256]]

       ``(C) are operated within a range of not more than 90 
     aeronautical miles.''.

                          ____________________