[Congressional Record (Bound Edition), Volume 161 (2015), Part 1]
[Senate]
[Pages 793-801]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 57. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EFFECTIVE DATE.

       This Act shall not take effect until the President 
     determines that the Administrator of the Environmental 
     Protection Agency, in consultation with other relevant 
     Federal agencies, has completed a comprehensive study 
     analyzing the human health impacts of the pipeline described 
     in section 2(a), including--
       (1) increased air pollution in communities near refineries 
     that will process the up to 830,000 barrels per day of tar 
     sands crude that will be transported through the pipeline, 
     including assessment of the cumulative air pollution impacts 
     on the communities;
       (2) increased exposure of communities to particulate matter 
     and heavy metals from the disposal, storage, and use of 
     petroleum coke that results from the refining of the tar 
     sands crude that will be transported through the pipeline;
       (3) increased exposures in communities to benzene, volatile 
     organic compounds, hydrogen sulfide, and other toxic 
     substances that may result from spills or the contamination 
     of water supplies from tar sands crude transported through 
     the pipeline; and
       (4) increased cancer rates and exposures to elevated levels 
     of polycyclic aromatic hydrocarbons (``PAHs''), mercury, and 
     other toxic pollutants, where the tar sands crude that will 
     be transported through the pipeline is mined, extracted, 
     upgraded, or refined.
                                 ______
                                 
  SA 58. Mr. SCHATZ submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF CONGRESS.

       (a) Findings.--The environmental analysis contained in the 
     Final Supplemental Environmental Impact Statement referred to 
     in section 2(a) and deemed to satisfy the requirements of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) as described in section 2(a), states that--
       (1) ``[W]arming of the climate system is unequivocal and 
     each of the last [3] decades has been successively warmer at 
     the Earth's surface than any preceding decade since 1850.'';
       (2) ``The [Intergovernmental Panel on Climate Change], in 
     addition to other institutions, such as the National Research 
     Council and the United States (U.S.) Global Change Research 
     Program (USGCRP), have concluded that it is extremely likely 
     that global increases in atmospheric [greenhouse gas] 
     concentrations and global temperatures are caused by human 
     activities.''; and
       (3) ``A warmer planet causes large-scale changes that 
     reverberate throughout the climate system of the Earth, 
     including higher sea levels, changes in precipitation, and 
     altered weather patterns (e.g. an increase in more extreme 
     weather events).''.
       (b) Sense of Congress.--Consistent with the findings under 
     subsection (a), it is the sense of Congress that--
       (1) climate change is real; and

[[Page 794]]

       (2) human activity significantly contributes to climate 
     change.
                                 ______
                                 
  SA 59. Mr. SCHATZ submitted an amendment intended to be proposed by 
him to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. IMPLEMENTATION.

       This Act shall be implemented in a manner that addresses 
     the analysis in the Final Supplemental Environmental Impact 
     Statement referenced in section 2(a) (referred to in this 
     section as the ``FSEIS'') and deemed in section 2(a) as 
     having satisfied the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
     with regard to climate change and the recommendations made in 
     the FSEIS with respect to measures to mitigate greenhouse gas 
     emissions and climate change in section 4.14-16 of the FSEIS.
                                 ______
                                 
  SA 60. Mr. MENENDEZ submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF CONGRESS ON UNITED STATES AND CANADA 
                   EFFORTS TO REDUCE GREENHOUSE GAS EMISSIONS.

       It is the sense of Congress that--
       (1) the Governments of the United States and Canada should 
     continuing working towards their shared goal of reducing 
     emissions approximately 17 percent below 2005 levels, by 
     2020; and
       (2) the Government of Canada should join the United States 
     Government's goal of reducing emissions 26-28 percent below 
     2005 levels, by 2025.
                                 ______
                                 
  SA 61. Mr. MENENDEZ submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF CONGRESS REGARDING FEDERAL TRANSPORTATION 
                   INFRASTRUCTURE INVESTMENT.

       (a) Findings.--Congress finds that--
       (1) the transportation sector accounts for 9 percent of the 
     gross domestic product of the United States;
       (2) in 2012, the transportation infrastructure of the 
     United States supported the shipment of 19,662,000,000 tons 
     of freight valued at $17,352,000,000,000;
       (3) in 2012, 12,547,000 people were employed in 
     transportation-related industries in the United States;
       (4) every dollar invested in the transportation 
     infrastructure of the United States returns $3.54 in economic 
     impact; and
       (5) every $1,000,000,000 in public infrastructure spending 
     creates 21,671 jobs.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) transportation infrastructure is essential to the 
     economy of the United States; and
       (2) increased Federal transportation infrastructure 
     investment could create millions of jobs and help businesses 
     grow.
                                 ______
                                 
  SA 62. Mr. MENENDEZ submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF CONGRESS REGARDING FEDERAL TRANSPORTATION 
                   INFRASTRUCTURE INVESTMENT.

       It is the sense of Congress that increased Federal 
     transportation infrastructure investment will--
       (1) create millions of jobs;
       (2) help businesses grow;
       (3) reduce traffic congestion; and
       (4) save lives.
                                 ______
                                 
  SA 63. Mr. MENENDEZ submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; which was ordered 
to lie on the table; as follows:

       At the end, add the following:

                   TITLE I--CLOSING BIG OIL LOOPHOLES

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Close Big Oil Tax 
     Loopholes Act''.

                Subtitle A--Close Big Oil Tax Loopholes

     SEC. 211. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (within the 
     meaning of section 167(h)(5)) to a foreign country or 
     possession of the United States for any period shall not be 
     considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 212. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (within the meaning of section 167(h)(5)) for the taxable 
     year, the term `domestic production gross receipts' shall not 
     include gross receipts from the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product (within the meaning of subsection (d)(9)) 
     thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 213. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
                   DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED 
                   AMOUNTS.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(c) Intangible Drilling and Development Costs in the Case 
     of Oil and Gas Wells and Geothermal Wells.--
       ``(1) In general.--Notwithstanding subsection (a), and 
     except as provided in subsection (i), regulations shall be 
     prescribed by the Secretary under this subtitle corresponding 
     to the regulations which granted

[[Page 795]]

     the option to deduct as expenses intangible drilling and 
     development costs in the case of oil and gas wells and which 
     were recognized and approved by the Congress in House 
     Concurrent Resolution 50, Seventy-ninth Congress. Such 
     regulations shall also grant the option to deduct as expenses 
     intangible drilling and development costs in the case of 
     wells drilled for any geothermal deposit (as defined in 
     section 613(e)(2)) to the same extent and in the same manner 
     as such expenses are deductible in the case of oil and gas 
     wells. This subsection shall not apply with respect to any 
     costs to which any deduction is allowed under section 59(e) 
     or 291.
       ``(2) Exclusion.--
       ``(A) In general.--This subsection shall not apply to 
     amounts paid or incurred by a taxpayer in any taxable year in 
     which such taxpayer is a major integrated oil company (within 
     the meaning of section 167(h)(5)).
       ``(B) Amortization of amounts not allowable as deductions 
     under subparagraph (a).--The amount not allowable as a 
     deduction for any taxable year by reason of subparagraph (A) 
     shall be allowable as a deduction ratably over the 60-month 
     period beginning with the month in which the costs are paid 
     or incurred. For purposes of section 1254, any deduction 
     under this subparagraph shall be treated as a deduction under 
     this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 214. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR 
                   OIL AND GAS WELLS.

       (a) In General.--Section 613A of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Application With Respect to Major Integrated Oil 
     Companies.--In the case of any taxable year in which the 
     taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)), the allowance for percentage 
     depletion shall be zero.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 215. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

       (a) In General.--Section 193 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Application With Respect to Major Integrated Oil 
     Companies.--
       ``(1) In general.--This section shall not apply to amounts 
     paid or incurred by a taxpayer in any taxable year in which 
     such taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)).
       ``(2) Amortization of amounts not allowable as deductions 
     under paragraph (1).--The amount not allowable as a deduction 
     for any taxable year by reason of paragraph (1) shall be 
     allowable as a deduction ratably over the 60-month period 
     beginning with the month in which the costs are paid or 
     incurred.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 216. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL 
                   COMPANY.

       (a) In General.--Paragraph (5) of section 167(h) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Certain successors in interest.--For purposes of this 
     paragraph, the term `major integrated oil company' includes 
     any successor in interest of a company that was described in 
     subparagraph (B) in any taxable year, if such successor 
     controls more than 50 percent of the crude oil production or 
     natural gas production of such company.''.
       (b) Conforming Amendments.--
       (1) In general.--Subparagraph (B) of section 167(h)(5) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``except as provided in subparagraph (C),'' after ``For 
     purposes of this paragraph,''.
       (2) Taxable years tested.--Clause (iii) of section 
     167(h)(5)(B) of such Code is amended--
       (A) by striking ``does not apply by reason of paragraph (4) 
     of section 613A(d)'' and inserting ``did not apply by reason 
     of paragraph (4) of section 613A(d) for any taxable year 
     after 2004'', and
       (B) by striking ``does not apply'' in subclause (II) and 
     inserting ``did not apply for the taxable year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

        Subtitle B--Outer Continental Shelf Oil and Natural Gas

     SEC. 221. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND 
                   DEEP GAS ROYALTY RELIEF.

       (a) In General.--Sections 344 and 345 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
       (b) Administration.--The Secretary of the Interior shall 
     not be required to provide for royalty relief in the lease 
     sale terms beginning with the first lease sale held on or 
     after the date of enactment of this Act for which a final 
     notice of sale has not been published.

                       Subtitle C--Miscellaneous

     SEC. 231. DEFICIT REDUCTION.

       The net amount of any savings realized as a result of the 
     enactment of this title and the amendments made by this title 
     (after any expenditures authorized by this title and the 
     amendments made by this title) shall be deposited in the 
     Treasury and used for Federal budget deficit reduction or, if 
     there is no Federal budget deficit, for reducing the Federal 
     debt in such manner as the Secretary of the Treasury 
     considers appropriate.

     SEC. 232. BUDGETARY EFFECTS.

       The budgetary effects of this title, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this title, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

          Subtitle D--Extension of Certain Energy Tax Benefits

     SEC. 241. PERMANENT EXTENSION OF CREDITS WITH RESPECT TO 
                   FACILITIES PRODUCING ELECTRICITY FROM CERTAIN 
                   RENEWABLE RESOURCES.

       (a) In General.--
       (1) Wind.--Paragraph (1) of section 45(d) of the Internal 
     Revenue Code of 1986 is amended by striking ``, and the 
     construction of which begins before January 1, 2015''.
       (2) Closed-loop biomass.--Paragraph (2) of section 45(d) of 
     such Code is amended--
       (A) by striking ``, and the construction of which begins 
     before January 1, 2015'' in subparagraph (A)(i), and
       (B) by striking ``which before January 1, 2015, is 
     originally placed in service''.
       (3) Open-loop biomass.--Subparagraph (A) of section 
     45(d)(3) of such Code is amended--
       (A) by striking ``any facility owned by the taxpayer 
     which'',
       (B) by inserting ``owned by the taxpayer and'' after 
     ``facility'' in clause (i),
       (C) by striking `` and the construction of which begins 
     before January 1, 2015'' in clause (i)(I), and
       (D) by striking clause (ii) and inserting the following:
       ``(ii) any other facility owned by the taxpayer.''.
       (4) Geothermal energy.--Paragraph (4) of section 45(d) of 
     such Code is amended by striking ``and which'' and all that 
     follows through ``Such term shall not'' and inserting ``and, 
     in the case of a facility using solar energy, which is placed 
     in service before January 1, 2006. Such term shall not''.
       (5) Landfill gas.--Paragraph (6) of section 45(d) of such 
     Code is amended by striking ``and the construction of which 
     begins before January 1, 2015''.
       (6) Trash facilities.--Paragraph (7) of section 45(d) of 
     such Code is amended by striking ``and the construction of 
     which begins before January 1, 2015''.
       (7) Qualified hydropower.--Paragraph (9) of section 45(d) 
     of such Code is amended--
       (A) by striking ``and before January 1, 2015'' in 
     subparagraph (A)(i),
       (B) by striking ``and the construction of which begins 
     before January 1, 2015'' in subparagraph (A)(ii), and
       (C) by striking subparagraph (C).
       (8) Marine and hydrokinetic renewable energy facilities.--
     Paragraph (11)(B) of section 45(d) of such Code is amended by 
     striking ``and the construction of which begins before 
     January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2015.

     SEC. 242. PERMANENT EXTENSION OF ENERGY INVESTMENT CREDIT.

       (a) Extension of Energy Percentage for Certain Solar 
     Property.--Subclause (II) of section 48(a)(2)(A)(i) of the 
     Internal Revenue Code of 1986 is amended by striking ``but 
     only with respect to periods ending before January 1, 2017''.
       (b) Extension of Energy Property.--
       (1) Solar property.--Clause (ii) of section 48(a)(3) of 
     such Code is amended by striking ``but only with respect to 
     periods ending before January 1, 2017''.
       (2) Thermal energy.--Clause (vii) of section 48(a)(3) of 
     such Code is amended by striking ``, but only with respect to 
     periods ending before January 1, 2017''.
       (3) Qualified fuel cell property.--Paragraph (1) of section 
     48(c) of such Code is amended by striking subparagraph (D).
       (4) Qualified microturbine property.--Paragraph (2) of 
     section 48(c) of such Code is amended by striking 
     subparagraph (D).
       (5) Combined heat and power property.--Subparagraph (A) of 
     section 48(c)(3) of such Code is amended by inserting ``and'' 
     at the end of clause (ii)(II), by striking ``, and'' at the 
     end of clause (iii) and inserting a period, and by striking 
     clause (iv).
       (6) Qualified small wind energy property.--Paragraph (4) of 
     section 48(c) of such Code is amended by striking 
     subparagraph (C).
       (c) Election to Treat Qualified Facilities as Energy 
     Property.--Clause (ii) of section 48(a)(5)(C) of such Code is 
     amended by striking ``and the construction of which begins 
     before January 1, 2015''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2015.
                                 ______
                                 
  SA 64. Mr. MENENDEZ submitted an amendment intended to be proposed to

[[Page 796]]

amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; which was ordered 
to lie on the table; as follows:

       At the end, add the following:

                   TITLE I--CLOSING BIG OIL LOOPHOLES

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Close Big Oil Tax 
     Loopholes Act''.

                Subtitle A--Close Big Oil Tax Loopholes

     SEC. 211. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (within the 
     meaning of section 167(h)(5)) to a foreign country or 
     possession of the United States for any period shall not be 
     considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. 212. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (within the meaning of section 167(h)(5)) for the taxable 
     year, the term `domestic production gross receipts' shall not 
     include gross receipts from the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product (within the meaning of subsection (d)(9)) 
     thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 213. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
                   DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED 
                   AMOUNTS.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(c) Intangible Drilling and Development Costs in the Case 
     of Oil and Gas Wells and Geothermal Wells.--
       ``(1) In general.--Notwithstanding subsection (a), and 
     except as provided in subsection (i), regulations shall be 
     prescribed by the Secretary under this subtitle corresponding 
     to the regulations which granted the option to deduct as 
     expenses intangible drilling and development costs in the 
     case of oil and gas wells and which were recognized and 
     approved by the Congress in House Concurrent Resolution 50, 
     Seventy-ninth Congress. Such regulations shall also grant the 
     option to deduct as expenses intangible drilling and 
     development costs in the case of wells drilled for any 
     geothermal deposit (as defined in section 613(e)(2)) to the 
     same extent and in the same manner as such expenses are 
     deductible in the case of oil and gas wells. This subsection 
     shall not apply with respect to any costs to which any 
     deduction is allowed under section 59(e) or 291.
       ``(2) Exclusion.--
       ``(A) In general.--This subsection shall not apply to 
     amounts paid or incurred by a taxpayer in any taxable year in 
     which such taxpayer is a major integrated oil company (within 
     the meaning of section 167(h)(5)).
       ``(B) Amortization of amounts not allowable as deductions 
     under subparagraph (a).--The amount not allowable as a 
     deduction for any taxable year by reason of subparagraph (A) 
     shall be allowable as a deduction ratably over the 60-month 
     period beginning with the month in which the costs are paid 
     or incurred. For purposes of section 1254, any deduction 
     under this subparagraph shall be treated as a deduction under 
     this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 214. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR 
                   OIL AND GAS WELLS.

       (a) In General.--Section 613A of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Application With Respect to Major Integrated Oil 
     Companies.--In the case of any taxable year in which the 
     taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)), the allowance for percentage 
     depletion shall be zero.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 215. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

       (a) In General.--Section 193 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Application With Respect to Major Integrated Oil 
     Companies.--
       ``(1) In general.--This section shall not apply to amounts 
     paid or incurred by a taxpayer in any taxable year in which 
     such taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)).
       ``(2) Amortization of amounts not allowable as deductions 
     under paragraph (1).--The amount not allowable as a deduction 
     for any taxable year by reason of paragraph (1) shall be 
     allowable as a deduction ratably over the 60-month period 
     beginning with the month in which the costs are paid or 
     incurred.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2015.

     SEC. 216. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL 
                   COMPANY.

       (a) In General.--Paragraph (5) of section 167(h) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Certain successors in interest.--For purposes of this 
     paragraph, the term `major integrated oil company' includes 
     any successor in interest of a company that was described in 
     subparagraph (B) in any taxable year, if such successor 
     controls more than 50 percent of the crude oil production or 
     natural gas production of such company.''.
       (b) Conforming Amendments.--
       (1) In general.--Subparagraph (B) of section 167(h)(5) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``except as provided in subparagraph (C),'' after ``For 
     purposes of this paragraph,''.
       (2) Taxable years tested.--Clause (iii) of section 
     167(h)(5)(B) of such Code is amended--
       (A) by striking ``does not apply by reason of paragraph (4) 
     of section 613A(d)'' and inserting ``did not apply by reason 
     of paragraph (4) of section 613A(d) for any taxable year 
     after 2004'', and
       (B) by striking ``does not apply'' in subclause (II) and 
     inserting ``did not apply for the taxable year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

        Subtitle B--Outer Continental Shelf Oil and Natural Gas

     SEC. 221. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND 
                   DEEP GAS ROYALTY RELIEF.

       (a) In General.--Sections 344 and 345 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
       (b) Administration.--The Secretary of the Interior shall 
     not be required to provide for royalty relief in the lease 
     sale terms beginning with the first lease sale held on or 
     after the date of enactment of this Act for which a final 
     notice of sale has not been published.

                       Subtitle C--Miscellaneous

     SEC. 231. DEFICIT REDUCTION.

       The net amount of any savings realized as a result of the 
     enactment of this Act and the

[[Page 797]]

     amendments made by this title (after any expenditures 
     authorized by this title and the amendments made by this 
     title) shall be deposited in the Treasury and used for 
     Federal budget deficit reduction or, if there is no Federal 
     budget deficit, for reducing the Federal debt in such manner 
     as the Secretary of the Treasury considers appropriate.

     SEC. 232. BUDGETARY EFFECTS.

       The budgetary effects of this title, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this title, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 65. Mr. MENENDEZ (for himself and Mrs. Gillibrand) submitted an 
amendment intended to be proposed to amendment SA 2 proposed by Ms. 
Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, 
Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. 
Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve 
the Keystone XL Pipeline; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITS ON LIABILITY FOR OIL SPILLS.

       Section 1004(a) of the Oil Pollution Act of 1990 (33 U.S.C. 
     2704(a)) is amended--
       (1) in paragraph (1), by adding ``and'' after the semicolon 
     at the end;
       (2) in paragraph (2), by striking the semicolon and 
     inserting a period; and
       (3) by striking paragraphs (3) and (4).
                                 ______
                                 
  SA 66. Mr. COATS submitted an amendment intended to be proposed by 
him to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       After section 2, insert the following:

     SEC. _. LIMITATION ON AUTHORITY TO ISSUE REGULATIONS UNDER 
                   THE SURFACE MINING CONTROL AND RECLAMATION ACT 
                   OF 1977.

       The Secretary of the Interior may not, before December 31, 
     2016, issue or approve any proposed or final regulation under 
     the Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1201 et seq.) that would--
       (1) adversely impact employment in coal mines in the United 
     States;
       (2) cause a reduction in revenue received by the Federal 
     Government or any State, tribal, or local government, by 
     reducing through regulation the quantity of coal in the 
     United States that is available for mining;
       (3) reduce the quantity of coal available for domestic 
     consumption or for export;
       (4) designate any area as unsuitable for surface coal 
     mining and reclamation operations; or
       (5) expose the United States to liability for taking the 
     value of privately owned coal through regulation.
                                 ______
                                 
  SA 67. Mr. SULLIVAN submitted an amendment intended to be proposed by 
him to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. POWERS OF ENVIRONMENTAL PROTECTION AGENCY.

       Section 3063(a) of title 18, United States Code, is 
     amended--
       (1) by striking paragraph (1); and
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively.
                                 ______
                                 
  SA 68. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. COMMUNITY RIGHT TO PROTECT LOCAL WATER SUPPLIES.

       (a) Findings.--Congress finds that--
       (1) there are 2,537 wells within 1 mile of the proposed 
     Keystone XL pipeline, including 39 public water supply wells 
     and 20 private wells within 100 feet of the pipeline right of 
     way;
       (2) 254 miles of the proposed Keystone XL pipeline would 
     traverse over the shallow Ogallala Aquifer, the largest 
     underground fresh water source in the United States, 
     underlying 8 States and 2,000,000 people, including 10.5 
     miles where the groundwater lies at depths between 5 and 10 
     feet and another 12.4 miles where the water table is at a 
     depth of 10 to 15 feet;
       (3) on July 26, 2010, a pipeline ruptured near Marshall, 
     Michigan, releasing 843,000 gallons of tar sands diluted 
     bitumen into Talmadge Creek, flowing into the Kalamazoo 
     River;
       (4) the Talmadge Creek tar sands spill is the costliest 
     inland oil spill cleanup in United States history, and the 
     Kalamazoo River continues to be contaminated from the spill;
       (5) on March 29, 2013, the first pipeline of the United 
     States to transport Canadian tar sands to the Gulf Coast, the 
     ExxonMobil Pegasus Pipeline, ruptured, spilling 210,000 
     gallons of tar sands diluted bitumen in Mayflower, Arkansas; 
     and
       (6) following the Pegasus Pipeline tar sands spill, 
     individuals in the Mayflower community experienced severe 
     headaches, nausea, and respiratory infections.
       (b) Petition to Protect Local Water Supplies.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act and prior to construction of the 
     pipeline described in section 2(a), the President, or the 
     designee of the President, shall provide to each municipality 
     or county that relies on drinking water from a source that 
     may be affected by a tar sands spill from the pipeline an 
     analysis of the potential risks to public health and the 
     environment from a leak or rupture of that pipeline.
       (2) Notification to governors.--The President shall provide 
     a copy of the analysis described in paragraph (1) to the 
     Governor of each State in which an affected municipality or 
     county is located.
       (3) Effect on construction.--Construction of the pipeline 
     described in section 2(a) may not begin if the Governor of a 
     State with an affected municipality or county submits, not 
     later than 30 days after receiving an analysis under 
     paragraph (2), a petition to the President requesting that 
     the pipeline not be located in the affected municipality or 
     county.
       (4) Withdrawal.--A Governor may withdraw a petition 
     submitted under paragraph (3) at any time.
       (5) Right of action.--A property owner with a private water 
     well drilled into any portion of an aquifer that is below the 
     proposed pipeline described in section 2(a) may sue the owner 
     of the pipeline for damages if--
       (A) the well water of the property owner becomes 
     contaminated; and
       (B) the property owner demonstrates that the well water was 
     safe prior to construction and operation of the pipeline.
                                 ______
                                 
  SA 69. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, Mr. 
Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, Mr. 
Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) to 
the bill S. 1, to approve the Keystone XL Pipeline; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REGULATION OF TRANSPORTATION AND STORAGE OF 
                   PETROLEUM COKE.

       This Act shall not take effect prior to the date that--
       (1) the Administrator of the Environmental Protection 
     Agency, in consultation with the Secretary of Transportation, 
     promulgates rules concerning the storage and transportation 
     of petroleum coke that ensure the protection of public and 
     ecological health; and
       (2) petroleum coke is no longer exempt from regulation 
     under section 101(14) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(14)), which may be established either by an Act of 
     Congress or any regulations, rules, or guidance issued by the 
     Administrator of the Environmental Protection Agency.
                                 ______
                                 
  SA 70. Mr. PETERS (for himself and Ms. Stabenow) submitted an 
amendment intended to be proposed to amendment SA 2 proposed by Ms. 
Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, 
Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. 
Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve 
the Keystone XL Pipeline; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PHMSA GREAT LAKES RESOURCES AND STUDY.

       The pipeline described in section 2(a) shall not be 
     constructed, connected, operated, or maintained until the 
     Administrator of the Pipeline and Hazardous Materials Safety 
     Administration--
       (1) certifies to Congress that the Pipeline and Hazardous 
     Materials Safety Administration has sufficient resources to 
     carry out the duties of the Pipeline and Hazardous Materials 
     Safety Administration for pipelines in the Great Lakes; and
       (2) submits to Congress the results of a study on 
     recommendations for special conditions on pipelines in the 
     Great Lakes, similar to the recommendations in Appendix B of 
     the environmental impact statement described in section 2(b).
                                 ______
                                 
  SA 71. Mr. LEE submitted an amendment intended to be proposed by him 
to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:


[[Page 798]]

       At the appropriate place, insert the following:

     SEC. ___. APPLICATIONS FOR PERMITS TO DRILL REFORM AND 
                   PROCESS.

       Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) 
     is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Applications for permits to drill reform and 
     process.--
       ``(A) Timeline.--
       ``(i) In general.--The Secretary shall decide whether to 
     issue a permit to drill not later than 30 days after 
     receiving an application for the permit.
       ``(ii) Extension.--The Secretary may extend the period in 
     clause (i) for up to 2 periods of 15 days each, if the 
     Secretary has given written notice of the delay to the 
     applicant.
       ``(iii) Notice requirements.--Written notice under clause 
     (ii) shall--

       ``(I) be in the form of a letter from the Secretary or a 
     designee of the Secretary; and
       ``(II) include the names and titles of the persons 
     processing the application, the specific reasons for the 
     delay, and a specific date a final decision on the 
     application is expected.

       ``(B) Notice of reasons for denial.--If the application is 
     denied, the Secretary shall provide the applicant--
       ``(i) in writing, clear and comprehensive reasons why the 
     application was not accepted and detailed information 
     concerning any deficiencies; and
       ``(ii) an opportunity to remedy any deficiencies.
       ``(C) Application considered approved.--
       ``(i) In general.--If the Secretary has not made a decision 
     on the application by the end of the 60-day period beginning 
     on the date the application is received by the Secretary, the 
     application is considered approved, except in cases in which 
     existing reviews under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) or the Endangered Species 
     Act of 1973 (16 U.S.C. 1531 et seq.) are incomplete.
       ``(ii) Environmental reviews.--Existing reviews under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 
     et seq.) shall be completed not later than 180 days after 
     receiving an application for the permit.
       ``(iii) Failure to complete.--If all existing reviews are 
     not completed during the 180-day period described in clause 
     (ii), the project subject to the application shall be 
     considered to have no significant impact in accordance with 
     section 102(2)(C) of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4332(2)(C)) and section 7(a)(2) of the 
     Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)) and 
     that classification shall be considered to be a final agency 
     action.
       ``(D) Denial of permit.--If the Secretary decides not to 
     issue a permit to drill in accordance with subparagraph (A), 
     the Secretary shall--
       ``(i) provide to the applicant a description of the reasons 
     for the denial of the permit;
       ``(ii) allow the applicant to resubmit an application for a 
     permit to drill during the 10-day period beginning on the 
     date the applicant receives the description of the denial 
     from the Secretary; and
       ``(iii) issue or deny any resubmitted application not later 
     than 10 days after the date the application is submitted to 
     the Secretary.
       ``(E) Judicial review.--Actions of the Secretary carried 
     out in accordance with this paragraph shall not be subject to 
     judicial review.''.
                                 ______
                                 
  SA 72. Mr. MENENDEZ (for himself and Ms. Cantwell) submitted an 
amendment intended to be proposed to amendment SA 2 proposed by Ms. 
Murkowski (for herself, Mr. Hoeven, Mr. Barrasso, Mr. Risch, Mr. Lee, 
Mr. Flake, Mr. Daines, Mr. Manchin, Mr. Cassidy, Mr. Gardner, Mr. 
Portman, Mr. Alexander, and Mrs. Capito) to the bill S. 1, to approve 
the Keystone XL Pipeline; which was ordered to lie on the table; as 
follows:

       In section 2 of the amendment, strike subsection (e) and 
     insert the following:
       (e) Private Property Protection.--Land or an interest in 
     land for the pipeline and cross-border facilities described 
     in subsection (a) may only be acquired from willing sellers.
                                 ______
                                 
  SA 73. Mr. MORAN (for himself and Mr. Cruz) submitted an amendment 
intended to be proposed by him to the bill S. 1, to approve the 
Keystone XL Pipeline; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

     SEC. ___. DELISTING OF LESSER PRAIRIE-CHICKEN AS THREATENED 
                   SPECIES.

       Notwithstanding the final rule of the United States Fish 
     and Wildlife Service entitled ``Endangered and Threatened 
     Wildlife and Plants; Determination of Threatened Status for 
     the Lesser Prairie-Chicken'' (79 Fed. Reg. 19974 (April 10, 
     2014)), the lesser prairie-chicken (Tympanuchus 
     pallidicinctus) shall not be listed as a threatened species 
     under the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.).
                                 ______
                                 
  SA 74. Mr. REED (for himself, Ms. Collins, Mr. Sanders, Mr. 
Whitehouse, Mr. Casey, Mr. Coons, and Mr. Schumer) submitted an 
amendment intended to be proposed by him to the bill S. 1, to approve 
the Keystone XL Pipeline; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. FINDINGS AND SENSE OF THE SENATE.

       (a) Findings.--The Senate finds the following:
       (1) The Low-Income Home Energy Assistance Program (referred 
     to in this section as ``LIHEAP'') is the main Federal program 
     that helps low-income households and senior citizens with 
     their energy bills, providing vital assistance during both 
     the cold winter and hot summer months.
       (2) Recipients of LIHEAP assistance are among the most 
     vulnerable individuals in the country, with more than 90 
     percent of LIHEAP households having at least one member who 
     is a child, a senior citizen, or disabled, and 20 percent of 
     LIHEAP households including at least one veteran.
       (3) The number of households eligible for LIHEAP assistance 
     continues to exceed available funding, with current funding 
     reaching just 20 percent of the eligible population.
       (4) The average LIHEAP grant covers just a fraction of home 
     energy costs, leaving many low-income families and senior 
     citizens struggling to pay their energy bills and with fewer 
     resources available to meet other essential needs.
       (5) Access to affordable home energy is a matter of health 
     and safety for many low-income households, children, senior 
     citizens, and veterans.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that LIHEAP should be funded at not less than $4,700,000,000 
     annually, to ensure that more low-income households and 
     children, senior citizens, individuals with disabilities, and 
     veterans can meet basic home energy needs.
                                 ______
                                 
  SA 75. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. COMMUNITY RIGHT TO PROTECT LOCAL WATER SUPPLIES.

       (a) Findings.--Congress finds that--
       (1) there are 2,537 wells within 1 mile of the proposed 
     Keystone XL pipeline, including 39 public water supply wells 
     and 20 private wells within 100 feet of the pipeline right of 
     way;
       (2) 254 miles of the proposed Keystone XL pipeline would 
     traverse over the shallow Ogallala Aquifer, the largest 
     underground fresh water source in the United States, 
     underlying 8 States and 2,000,000 people, including 10.5 
     miles where the groundwater lies at depths between 5 and 10 
     feet and another 12.4 miles where the water table is at a 
     depth of 10 to 15 feet;
       (3) on July 26, 2010, a pipeline ruptured near Marshall, 
     Michigan, releasing 843,000 gallons of tar sands diluted 
     bitumen into Talmadge Creek, flowing into the Kalamazoo 
     River;
       (4) the Talmadge Creek tar sands spill is the costliest 
     inland oil spill cleanup in United States history, and the 
     Kalamazoo River continues to be contaminated from the spill;
       (5) on March 29, 2013, the first pipeline of the United 
     States to transport Canadian tar sands to the Gulf Coast, the 
     ExxonMobil Pegasus Pipeline, ruptured, spilling 210,000 
     gallons of tar sands diluted bitumen in Mayflower, Arkansas; 
     and
       (6) following the Pegasus Pipeline tar sands spill, 
     individuals in the Mayflower community experienced severe 
     headaches, nausea, and respiratory infections.
       (b) Petition to Protect Local Water Supplies.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act and prior to construction of the 
     pipeline described in section 2(a), the President, or the 
     designee of the President, shall provide to each municipality 
     or county that relies on drinking water from a source that 
     may be affected by a tar sands spill from the pipeline an 
     analysis of the potential risks to public health and the 
     environment from a leak or rupture of that pipeline.
       (2) Notification to governors.--The President shall provide 
     a copy of the analysis described in paragraph (1) to the 
     Governor of each State in which an affected municipality or 
     county is located.
       (3) Effect on construction.--Construction of the pipeline 
     described in section 2(a) may not begin if the Governor of a 
     State with an affected municipality or county submits, not 
     later than 30 days after receiving an analysis under 
     paragraph (2), a petition to the President requesting that 
     the pipeline not be located in the affected municipality or 
     county.
       (4) Withdrawal.--A Governor may withdraw a petition 
     submitted under paragraph (3) at any time.

[[Page 799]]

       (5) Right of action.--A property owner with a private water 
     well drilled into any portion of an aquifer that is below the 
     proposed pipeline described in section 2(a) may sue the owner 
     of the pipeline for damages if--
       (A) the well water of the property owner becomes 
     contaminated as a result of--
       (i) construction activities associated with the pipeline; 
     or
       (ii) a rupture in the pipeline; and
       (B) the property owner demonstrates that the well water was 
     safe prior to construction and operation of the pipeline.
                                 ______
                                 
  SA 76. Mrs. GILLIBRAND submitted an amendment intended to be proposed 
to amendment SA 2 proposed by Ms. Murkowski (for herself, Mr. Hoeven, 
Mr. Barrasso, Mr. Risch, Mr. Lee, Mr. Flake, Mr. Daines, Mr. Manchin, 
Mr. Cassidy, Mr. Gardner, Mr. Portman, Mr. Alexander, and Mrs. Capito) 
to the bill S. 1, to approve the Keystone XL Pipeline; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SECTION __. USE OF FEDERAL DISASTER RELIEF AND EMERGENCY 
                   ASSISTANCE FOR ENERGY-EFFICIENT PRODUCTS AND 
                   STRUCTURES.

       (a) In General.--Title III of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5141 
     et seq.) is amended by adding at the end the following:

     ``SEC. 327. USE OF ASSISTANCE FOR ENERGY-
                   EFFICIENT PRODUCTS AND STRUCTURES.

       ``(a) Definitions.--In this section--
       ``(1) the term `energy-efficient product' means a product 
     that--
       ``(A) meets or exceeds the requirements for designation 
     under an Energy Star program established under section 324A 
     of the of the Energy Policy and Conservation Act of 1975 (42 
     U.S.C. 6294a); or
       ``(B) meets or exceeds the requirements for designation as 
     being among the highest 25 percent of equivalent products for 
     energy efficiency under the Federal Energy Management 
     Program; and
       ``(2) the term `energy-efficient structure' means a 
     residential structure, a public facility, or a private 
     nonprofit facility that meets or exceeds the requirements of 
     American Society of Heating, Refrigerating and Air-
     Conditioning Engineers Standard 90.1-2010 or the 2013 
     International Energy Conservation Code, or any successor 
     thereto.
       ``(b) Use of Assistance.--A recipient of assistance 
     relating to a major disaster or emergency may use the 
     assistance to replace or repair a damaged product or 
     structure with an energy-efficient product or energy-
     efficient structure.''.
       (b) Applicability.--The amendment made by this section 
     shall apply to assistance made available under the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.) before, on, or after the date of 
     enactment of this Act that is expended on or after the date 
     of enactment of this Act.
                                 ______
                                 
  SA 77. Mr. UDALL (for himself, Mr. Markey, and Mr. Bennet) submitted 
an amendment intended to be proposed by him to the bill S. 1, to 
approve the Keystone XL Pipeline; which was ordered to lie on the 
table; as follows:

       After section 2, insert the following:

     SEC. ____. RENEWABLE ELECTRICITY STANDARD.

       (a) In General.--Title VI of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 610. RENEWABLE ELECTRICITY STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Base quantity of electricity.--
       ``(A) In general.--The term `base quantity of electricity' 
     means the total quantity of electric energy sold by a retail 
     electric supplier, expressed in terms of kilowatt hours, to 
     electric customers for purposes other than resale during the 
     most recent calendar year for which information is available.
       ``(B) Exclusions.--The term `base quantity of electricity' 
     does not include--
       ``(i) electric energy that is not incremental hydropower 
     generated by a hydroelectric facility; and
       ``(ii) electricity generated through the incineration of 
     municipal solid waste.
       ``(2) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) cellulosic (plant fiber) organic materials from a 
     plant that is planted for the purpose of being used to 
     produce energy;
       ``(ii) nonhazardous plant or algal matter that is derived 
     from--

       ``(I) an agricultural crop, crop byproduct, or residue 
     resource; or
       ``(II) waste, such as landscape or right-of-way trimmings 
     (but not including municipal solid waste, recyclable 
     postconsumer waste paper, painted, treated, or pressurized 
     wood, wood contaminated with plastic, or metals);

       ``(iii) animal waste or animal byproducts; and
       ``(iv) landfill methane.
       ``(B) National forest land and certain other public land.--
     In the case of organic material removed from National Forest 
     System land or from public land administered by the Secretary 
     of the Interior, the term `biomass' means only organic 
     material from--
       ``(i) ecological forest restoration;
       ``(ii) precommercial thinnings;
       ``(iii) brush;
       ``(iv) mill residues; or
       ``(v) slash.
       ``(C) Exclusion of certain federal land.--Notwithstanding 
     subparagraph (B), the term `biomass' does not include 
     material or matter that would otherwise qualify as biomass if 
     the material or matter is located on the following Federal 
     land:
       ``(i) Federal land containing old growth forest or late 
     successional forest unless the Secretary of the Interior or 
     the Secretary of Agriculture determines that the removal of 
     organic material from the land--

       ``(I) is appropriate for the applicable forest type; and
       ``(II) maximizes the retention of--

       ``(aa) late-successional and large and old growth trees;
       ``(bb) late-successional and old growth forest structure; 
     and
       ``(cc) late-successional and old growth forest composition.
       ``(ii) Federal land on which the removal of vegetation is 
     prohibited, including components of the National Wilderness 
     Preservation System.
       ``(iii) Wilderness study areas.
       ``(iv) Inventoried roadless areas.
       ``(v) Components of the National Landscape Conservation 
     System.
       ``(vi) National Monuments.
       ``(3) Existing facility.--The term `existing facility' 
     means a facility for the generation of electric energy from a 
     renewable energy resource that is not an eligible facility.
       ``(4) Incremental hydropower.--The term `incremental 
     hydropower' means additional generation that is achieved from 
     increased efficiency or additions of capacity made on or 
     after--
       ``(A) the date of enactment of this section; or
       ``(B) the effective date of an existing applicable State 
     renewable portfolio standard program at a hydroelectric 
     facility that was placed in service before that date.
       ``(5) Indian land.--The term `Indian land' means--
       ``(A) any land within the limits of any Indian reservation, 
     pueblo, or rancheria;
       ``(B) any land not within the limits of any Indian 
     reservation, pueblo, or rancheria title to which on the date 
     of enactment of this section was held by--
       ``(i) the United States for the benefit of any Indian tribe 
     or individual; or
       ``(ii) any Indian tribe or individual subject to 
     restriction by the United States against alienation;
       ``(C) any dependent Indian community; or
       ``(D) any land conveyed to any Alaska Native corporation 
     under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 
     et seq.).
       ``(6) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Alaskan Native village or regional 
     or village corporation as defined in or established pursuant 
     to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), that is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.
       ``(7) Renewable energy.--The term `renewable energy' means 
     electric energy generated by a renewable energy resource.
       ``(8) Renewable energy resource.--The term `renewable 
     energy resource' means solar, wind, ocean, tidal, geothermal 
     energy, biomass, landfill gas, incremental hydropower, or 
     hydrokinetic energy.
       ``(9) Repowering or cofiring increment.--The term 
     `repowering or cofiring increment' means--
       ``(A) the additional generation from a modification that is 
     placed in service on or after the date of enactment of this 
     section, to expand electricity production at a facility used 
     to generate electric energy from a renewable energy resource;
       ``(B) the additional generation above the average 
     generation during the 3-year period ending on the date of 
     enactment of this section at a facility used to generate 
     electric energy from a renewable energy resource or to cofire 
     biomass that was placed in service before the date of 
     enactment of this section; or
       ``(C) the portion of the electric generation from a 
     facility placed in service on or after the date of enactment 
     of this section, or a modification to a facility placed in 
     service before the date of enactment of this section made on 
     or after January 1, 2001, associated with cofiring biomass.
       ``(10) Retail electric supplier.--
       ``(A) In general.--The term `retail electric supplier' 
     means a person that sells electric energy to electric 
     consumers that sold not less than 1,000,000 megawatt hours of 
     electric energy to electric consumers for purposes other than 
     resale during the preceding calendar year.
       ``(B) Inclusion.--The term `retail electric supplier' 
     includes a person that sells electric

[[Page 800]]

     energy to electric consumers that, in combination with the 
     sales of any affiliate organized after the date of enactment 
     of this section, sells not less than 1,000,000 megawatt hours 
     of electric energy to consumers for purposes other than 
     resale.
       ``(C) Sales to parent companies or affiliates.--For 
     purposes of this paragraph, sales by any person to a parent 
     company or to other affiliates of the person shall not be 
     treated as sales to electric consumers.
       ``(D) Governmental agencies.--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `retail electric supplier' does not include--

       ``(I) the United States, a State, any political subdivision 
     of a State, or any agency, authority, or instrumentality of 
     the United States, State, or political subdivision; or
       ``(II) a rural electric cooperative.

       ``(ii) Inclusion.--The term `retail electric supplier' 
     includes an entity that is a political subdivision of   a 
     State, or an agency, authority, or instrumentality of the 
     United States, a State, a political subdivision of a State, a 
     rural electric cooperative that sells electric energy to 
     electric consumers, or any other entity that sells electric 
     energy to electric consumers that would not otherwise qualify 
     as a retail electric supplier if the entity notifies the 
     Secretary that the entity voluntarily agrees to participate 
     in the Federal renewable electricity standard program.
       ``(b) Compliance.--For calendar year 2015 and each calendar 
     year thereafter, each retail electric supplier shall meet the 
     requirements of subsection (c) by submitting to the 
     Secretary, not later than April 1 of the following calendar 
     year, 1 or more of the following:
       ``(1) Federal renewable energy credits issued under 
     subsection (e).
       ``(2) Certification of the renewable energy generated and 
     electricity savings pursuant to the funds associated with 
     State compliance payments as specified in subsection 
     (e)(4)(G).
       ``(3) Alternative compliance payments pursuant to 
     subsection (h).
       ``(c) Required Annual Percentage.--For each of calendar 
     years 2015 through 2039, the required annual percentage of 
     the base quantity of electricity of a retail electric 
     supplier that shall be generated from renewable energy 
     resources, or otherwise credited towards the percentage 
     requirement pursuant to subsection (d), shall be the 
     applicable percentage specified in the following table:

                                                        Required Amount
``Calendar Years                                             percentage
  2015.............................................................8.5 
  2016.............................................................9.5 
  2017............................................................11.0 
  2018............................................................12.5 
  2019............................................................14.0 
  2020............................................................15.5 
  2021............................................................17.0 
  2022............................................................19.0 
  2023............................................................21.0 
  2024............................................................23.0 
  2025 and thereafter through 2039................................25.0.
       ``(d) Renewable Energy Credits.--
       ``(1) In general.--A retail electric supplier may satisfy 
     the requirements of subsection (b)(1) through the submission 
     of Federal renewable energy credits--
       ``(A) issued to the retail electric supplier under 
     subsection (e);
       ``(B) obtained by purchase or exchange under subsection 
     (f); or
       ``(C) borrowed under subsection (g).
       ``(2) Federal renewable energy credits.--A Federal 
     renewable energy credit may be counted toward compliance with 
     subsection (b)(1) only once.
       ``(e) Issuance of Federal Renewable Energy Credits.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall establish by 
     rule a program--
       ``(A) to verify and issue Federal renewable energy credits 
     to generators of renewable energy;
       ``(B) to track the sale, exchange, and retirement of the 
     credits; and
       ``(C) to enforce the requirements of this section.
       ``(2) Existing non-federal tracking systems.--To the 
     maximum extent practicable, in establishing the program, the 
     Secretary shall rely on existing and emerging State or 
     regional tracking systems that issue and track non-Federal 
     renewable energy credits.
       ``(3) Application.--
       ``(A) In general.--An entity that generates electric energy 
     through the use of a renewable energy resource may apply to 
     the Secretary for the issuance of renewable energy credits.
       ``(B) Eligibility.--To be eligible for the issuance of the 
     credits, the applicant shall demonstrate to the Secretary 
     that--
       ``(i) the electric energy will be transmitted onto the 
     grid; or
       ``(ii) in the case of a generation offset, the electric 
     energy offset would have otherwise been consumed onsite.
       ``(C) Contents.--The application shall indicate--
       ``(i) the type of renewable energy resource that is used to 
     produce the electricity;
       ``(ii) the location at which the electric energy will be 
     produced; and
       ``(iii) any other information the Secretary determines 
     appropriate.
       ``(4) Quantity of federal renewable energy credits.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the Secretary shall issue to a generator of 
     electric energy 1 Federal renewable energy credit for each 
     kilowatt hour of electric energy generated by the use of a 
     renewable energy resource at an eligible facility.
       ``(B) Incremental hydropower.--
       ``(i) In general.--For purpose of compliance with this 
     section, Federal renewable energy credits for incremental 
     hydropower shall be based on the increase in average annual 
     generation resulting from the efficiency improvements or 
     capacity additions.
       ``(ii) Water flow information.--The incremental generation 
     shall be calculated using the same water flow information 
     that is--

       ``(I) used to determine a historic average annual 
     generation baseline for the hydroelectric facility; and
       ``(II) certified by the Secretary or the Federal Energy 
     Regulatory Commission.

       ``(iii) Operational changes.--The calculation of the 
     Federal renewable energy credits for incremental hydropower 
     shall not be based on any operational changes at the 
     hydroelectric facility that is not directly associated with 
     the efficiency improvements or capacity additions.
       ``(C) Indian land.--
       ``(i) In general.--The Secretary shall issue 2 renewable 
     energy credits for each kilowatt hour of electric energy 
     generated and supplied to the grid in a calendar year through 
     the use of a renewable energy resource at an eligible 
     facility located on Indian land.
       ``(ii) Biomass.--For purposes of this paragraph, renewable 
     energy generated by biomass cofired with other fuels is 
     eligible for 2 credits only if the biomass was grown on the 
     land.
       ``(D) On-site eligible facilities.--
       ``(i) In general.--In the case of electric energy generated 
     by a renewable energy resource at an on-site eligible 
     facility that is not larger than 1 megawatt in capacity and 
     is used to offset all or part of the requirements of a 
     customer for electric energy, the Secretary shall issue 3 
     renewable energy credits to the customer for each kilowatt 
     hour generated.
       ``(ii) Indian land.--In the case of an on-site eligible 
     facility on Indian land, the Secretary shall issue not more 
     than 3 credits per kilowatt hour.
       ``(E) Combination of renewable and nonrenewable energy 
     resources.--If both a renewable energy resource and a 
     nonrenewable energy resource are used to generate the 
     electric energy, the Secretary shall issue the Federal 
     renewable energy credits based on the proportion of the 
     renewable energy resources used.
       ``(F) Retail electric suppliers.--If a generator has sold 
     electric energy generated through the use of a renewable 
     energy resource to a retail electric supplier under a 
     contract for power from an existing facility and the contract 
     has not determined ownership of the Federal renewable energy 
     credits associated with the generation, the Secretary shall 
     issue the Federal renewable energy credits to the retail 
     electric supplier for the duration of the contract.
       ``(G) Compliance with state renewable portfolio standard 
     programs.--Payments made by a retail electricity supplier, 
     directly or indirectly, to a State for compliance with a 
     State renewable portfolio standard program, or for an 
     alternative compliance mechanism, shall be valued at 1 credit 
     per kilowatt hour for the purpose of subsection (b)(2) based 
     on the quantity of electric energy generation from renewable 
     resources that results from the payments.
       ``(f) Renewable Energy Credit Trading.--
       ``(1) In general.--A Federal renewable energy credit may be 
     sold, transferred, or exchanged by the entity to whom the 
     credit is issued or by any other entity that acquires the 
     Federal renewable energy credit, other than renewable energy 
     credits from existing facilities.
       ``(2) Carryover.--A Federal renewable energy credit for any 
     year that is not submitted to satisfy the minimum renewable 
     generation requirement of subsection (c) for that year may be 
     carried forward for use pursuant to subsection (b)(1) within 
     the next 3 years.
       ``(3) Delegation.--The Secretary may delegate to an 
     appropriate market-making entity the administration of a 
     national tradeable renewable energy credit market for 
     purposes of creating a transparent national market for the 
     sale or trade of renewable energy credits.
       ``(g) Renewable Energy Credit Borrowing.--
       ``(1) In general.--Not later than December 31, 2015, a 
     retail electric supplier that has reason to believe the 
     retail electric supplier will not be able to fully comply 
     with subsection (b) may--
       ``(A) submit a plan to the Secretary demonstrating that the 
     retail electric supplier will earn sufficient Federal 
     renewable energy credits within the next 3 calendar years 
     that, when taken into account, will enable the retail 
     electric supplier to meet the requirements of subsection (b) 
     for calendar year 2015 and the subsequent calendar years 
     involved; and
       ``(B) on the approval of the plan by the Secretary, apply 
     Federal renewable energy

[[Page 801]]

     credits that the plan demonstrates will be earned within the 
     next 3 calendar years to meet the requirements of subsection 
     (b) for each calendar year involved.
       ``(2) Repayment.--The retail electric supplier shall repay 
     all of the borrowed Federal renewable energy credits by 
     submitting an equivalent number of Federal renewable energy 
     credits, in addition to the credits otherwise required under 
     subsection (b), by calendar year 2023 or any earlier 
     deadlines specified in the approved plan.
       ``(h) Alternative Compliance Payments.--As a means of 
     compliance under subsection (b)(4), the Secretary shall 
     accept payment equal to the lesser of--
       ``(1) 200 percent of the average market value of Federal 
     renewable energy credits and Federal energy efficiency 
     credits for the applicable compliance period; or
       ``(2) 3 cents per kilowatt hour (as adjusted on January 1 
     of each year following calendar year 2006 based on the 
     implicit price deflator for the gross national product).
       ``(i) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1)(A) the annual renewable energy generation of any 
     retail electric supplier; and
       ``(B) Federal renewable energy credits submitted by a 
     retail electric supplier pursuant to subsection (b)(1);
       ``(2) the validity of Federal renewable energy credits 
     submitted for compliance by a retail electric supplier to the 
     Secretary; and
       ``(3) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(j) Environmental Savings Clause.--Incremental hydropower 
     shall be subject to all applicable environmental laws and 
     licensing and regulatory requirements.
       ``(k) State Programs.--
       ``(1) In general.--Nothing in this section diminishes any 
     authority of a State or political subdivision of a State--
       ``(A) to adopt or enforce any law (including regulations) 
     respecting renewable energy, including programs that exceed 
     the required quantity of renewable energy under this section; 
     or
       ``(B) to regulate the acquisition and disposition of 
     Federal renewable energy credits by retail electric 
     suppliers.
       ``(2) Compliance with section.--No law or regulation 
     referred to in paragraph (1)(A) shall relieve any person of 
     any requirement otherwise applicable under this section.
       ``(3) Coordination with state program.--The Secretary, in 
     consultation with States that have in effect renewable energy 
     programs, shall--
       ``(A) preserve the integrity of the State programs, 
     including programs that exceed the required quantity of 
     renewable energy under this section; and
       ``(B) facilitate coordination between the Federal program 
     and State programs.
       ``(4) Existing renewable energy programs.--In the 
     regulations establishing the program under this section, the 
     Secretary shall incorporate common elements of existing 
     renewable energy programs, including State programs, to 
     ensure administrative ease, market transparency and effective 
     enforcement.
       ``(5) Minimization of administrative burdens and costs.--In 
     carrying out this section, the Secretary shall work with the 
     States to minimize administrative burdens and costs to retail 
     electric suppliers.
       ``(l) Recovery of Costs.--An electric utility that has 
     sales of electric energy that are subject to rate regulation 
     (including any utility with rates that are regulated by the 
     Commission and any State regulated electric utility) shall 
     not be denied the opportunity to recover the full amount of 
     the prudently incurred incremental cost of renewable energy 
     obtained to comply with the requirements of subsection (b).
       ``(m) Program Review.--
       ``(1) In general.--The Secretary shall enter into an 
     arrangement with the National Academy of Sciences under which 
     the Academy shall conduct a comprehensive evaluation of all 
     aspects of the program established under this section.
       ``(2) Evaluation.--The study shall include an evaluation 
     of--
       ``(A) the effectiveness of the program in increasing the 
     market penetration and lowering the cost of the eligible 
     renewable energy technologies;
       ``(B) the opportunities for any additional technologies and 
     sources of renewable energy emerging since the date of 
     enactment of this section;
       ``(C) the impact on the regional diversity and reliability 
     of supply sources, including the power quality benefits of 
     distributed generation;
       ``(D) the regional resource development relative to 
     renewable potential and reasons for any investment in 
     renewable resources; and
       ``(E) the net cost/benefit of the renewable electricity 
     standard to the national and State economies, including--
       ``(i) retail power costs;
       ``(ii) the economic development benefits of investment;
       ``(iii) avoided costs related to environmental and 
     congestion mitigation investments that would otherwise have 
     been required;
       ``(iv) the impact on natural gas demand and price; and
       ``(v) the effectiveness of green marketing programs at 
     reducing the cost of renewable resources.
       ``(3) Report.--Not later than January 1, 2019, the 
     Secretary shall transmit to Congress a report describing the 
     results of the evaluation and any recommendations for 
     modifications and improvements to the program.
       ``(n) State Renewable Energy Account.--
       ``(1) In general.--There is established in the Treasury a 
     State renewable energy account.
       ``(2) Deposits.--All money collected by the Secretary from 
     the alternative compliance payments under subsection (h) 
     shall be deposited into the State renewable energy account 
     established under paragraph (1).
       ``(3) Grants.--
       ``(A) In general.--Proceeds deposited in the State 
     renewable energy account shall be used by the Secretary, 
     subject to annual appropriations, for a program to provide 
     grants--
       ``(i) to the State agency responsible for administering a 
     fund to promote renewable energy generation for customers of 
     the State or an alternative agency designated by the State; 
     or
       ``(ii) if no agency described in clause (i), to the State 
     agency developing State energy conservation plans under 
     section 362 of the Energy Policy and Conservation Act (42 
     U.S.C. 6322).
       ``(B) Use.--The grants shall be used for the purpose of--
       ``(i) promoting renewable energy production; and
       ``(ii) providing energy assistance and weatherization 
     services to low-income consumers.
       ``(C) Criteria.--The Secretary may issue guidelines and 
     criteria for grants awarded under this paragraph.
       ``(D) State-approved funding mechanisms.--At least 75 
     percent of the funds provided to each State for each fiscal 
     year shall be used to promote renewable energy production 
     through grants, production incentives, or other State-
     approved funding mechanisms.
       ``(E) Allocation.--The funds shall be allocated to the 
     States on the basis of retail electric sales subject to the 
     renewable electricity standard under this section or through 
     voluntary participation.
       ``(F) Records.--State agencies receiving grants under this 
     paragraph shall maintain such records and evidence of 
     compliance as the Secretary may require.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     prec. 2601) is amended by adding at the end of the items 
     relating to title VI the following:

``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Renewable electricity standard.''.

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