[Congressional Record (Bound Edition), Volume 162 (2016), Part 3]
[Senate]
[Pages 3844-3869]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3518. Mr. PAUL submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title II, add the following:

                    Subtitle __--Arm All Pilots Act

     SEC. __01. SHORT TITLE.

       This subtitle may be cited as the ``Arm All Pilots Act of 
     2016''.

     SEC. __02. FACILITATION OF AND LIMITATIONS ON TRAINING OF 
                   FEDERAL FLIGHT DECK OFFICERS.

       (a) Improved Access to Training Facilities.--Section 
     44921(c)(2)(C)(ii) is amended--
       (1) by striking ``The training of'' and inserting the 
     following:

       ``(I) In general.--The training of''; and

       (2) by adding at the end the following:

       ``(II) Access to training facilities.--Not later than 180 
     days after the date of the enactment of the Arm All Pilots 
     Act of 2016, the Secretary shall--

       ``(aa) designate 5 additional firearms training facilities 
     located in various regions of the United States for Federal 
     flight deck officers relative to the number of such 
     facilities available on the day before such date of 
     enactment;
       ``(bb) designate firearms training facilities approved 
     before such date of enactment for recurrent training of 
     Federal flight deck officers as facilities approved for 
     initial training and certification of pilots seeking to be 
     deputized as Federal flight deck officers; and
       ``(cc) designate additional firearms training facilities 
     for recurrent training of Federal flight deck officers 
     relative to the number of such facilities available on the 
     day before such date of enactment.''.
       (b) Firearms Requalification for Federal Flight Deck 
     Officers.--Section 44921(c)(2)(C)(iii) is amended--
       (1) by striking ``The Under Secretary shall'' and inserting 
     the following:

       ``(I) In general.--The Secretary shall'';

       (2) in subclause (I), as designated by paragraph (1), by 
     striking ``the Under Secretary'' and inserting ``the 
     Secretary, but not more frequently than once every 6 
     months,''; and
       (3) by adding at the end the following:

       ``(II) Use of facilities for requalification.--The 
     Secretary shall allow a Federal flight deck officer to 
     requalify to carry a firearm under the program through 
     training at a private or government-owned gun range certified 
     to provide firearm requalification training.
       ``(III) Self-reporting.--The Secretary shall determine that 
     a Federal flight deck officer has met the requirements to 
     requalify to carry a firearm under the program if--

       ``(aa) the officer reports to the Secretary that the 
     officer has participated in a sufficient number of hours of 
     training to requalify to carry a firearm under the program; 
     and
       ``(bb) the administrator of the facility at which the 
     officer conducted the requalification training verifies that 
     the officer participated in that number of hours of 
     training.''.
       (c) Limitations on Training.--Section 44921(c)(2) is 
     amended by adding at the end the following:
       ``(D) Limitations on training.--
       ``(i) Initial training.--The Secretary may require--

       ``(I) initial training of not more than 5 days for a pilot 
     to be deputized as a Federal flight deck officer;
       ``(II) the pilot to be physically present at the training 
     facility for not more than 2 days of such training; and
       ``(III) not more than 3 days of such training to be in the 
     form of certified online training administered by the 
     Department of Homeland Security.

       ``(ii) Recurrent training.--The Secretary may require--

       ``(I) recurrent training of not more than 2 days, not more 
     frequently than once every 5 years, for a pilot to maintain 
     deputization as a Federal flight deck officer;
       ``(II) the pilot to be physically present at the training 
     facility for a full-day training session for not more than 
     one day of such training; and
       ``(III) not more than one day of such training to be in the 
     form of certified online training administered by the 
     Department of Homeland Security.''.

       (d) Other Measures to Facilitate Training.--Section 
     44921(e) is amended--
       (1) by striking ``Pilots participating'' and inserting the 
     following:
       ``(1) In general.--Pilots participating''; and
       (2) by adding at the end the following:
       ``(2) Facilitation of training.--
       ``(A) Time off for training.--An air carrier shall permit a 
     Federal flight deck officer or a pilot seeking to be 
     deputized as a Federal flight deck officer to take a 
     reasonable amount of leave from work to participate in 
     initial and recurrent training for the program. An air 
     carrier shall not be obligated to provide such an officer or 
     pilot compensation for such leave.
       ``(B) Practice ammunition.--At the request of a Federal 
     flight deck officer, the Secretary shall provide to the 
     officer sufficient practice ammunition to conduct at least 
     one practice course every month.''.

     SEC. __03. CARRIAGE OF FIREARMS BY FEDERAL FLIGHT DECK 
                   OFFICERS.

       (a) General Authority.--Section 44921(f) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary shall authorize a Federal 
     flight deck officer to carry a firearm while engaged in 
     providing air transportation or intrastate air 
     transportation. The authority provided to a Federal flight 
     deck officer under this paragraph includes the authority to 
     carry a firearm--
       ``(A) on the officer's body, loaded, and holstered;
       ``(B) when traveling to a flight duty assignment, 
     throughout the duty assignment, and when traveling from a 
     flight duty assignment to the officer's home or place where 
     the officer is residing when traveling; and
       ``(C) in the passenger cabin and while traveling in a 
     cockpit jump seat.
       ``(2) Concealed carry.--A Federal flight deck officer shall 
     make reasonable efforts to keep the officer's firearm 
     concealed when in public.
       ``(3) Purchase of firearm by officer.--Notwithstanding 
     subsection (c)(1), a Federal flight deck officer may purchase 
     a firearm and carry that firearm aboard an aircraft of which 
     the officer is the pilot in accordance with this section if 
     the firearm is of a type that may be used under the 
     program.''.
       (b) Carriage of Firearms on International Flights.--
     Paragraph (5) of section 44921(f), as redesignated by 
     subsection (a)(1), is amended to read as follows:
       ``(5) Carrying firearms outside united states.--
       ``(A) In general.--In consultation with the Secretary of 
     State, the Secretary--
       ``(i) may take such action as may be necessary to ensure 
     that a Federal flight deck officer may carry a firearm in a 
     foreign country whenever necessary to participate in the 
     program; and
       ``(ii) shall take such actions as are within the authority 
     of the Secretary to ensure that a Federal flight deck officer 
     may carry a firearm while engaged in providing foreign air 
     transportation.
       ``(B) Consistency with federal air marshal program.--The 
     Secretary shall work to make policies relating to the 
     carriage of firearms on flights in foreign air transportation 
     by Federal flight deck officers consistent with the policies 
     of the Federal air marshal program for carrying firearms on 
     such flights.''.
       (c) Carriage of Firearm in Passenger Cabin.--
       (1) Rule of construction.--Section 44921 is amended by 
     adding at the end the following:
       ``(l) Rule of Construction.--Nothing in this section shall 
     be construed to require a Federal flight deck officer to 
     place a firearm

[[Page 3845]]

     in a locked container, or in any other manner render the 
     firearm unavailable, when the cockpit door is opened.''.
       (2) Conforming repeal.--Section 44921(b)(3) is amended--
       (A) by striking subparagraph (G); and
       (B) by redesignating subparagraphs (H) through (N) as 
     subparagraphs (G) through (M), respectively.
       (d) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Homeland Security 
     shall--
       (1) prescribe regulations on the proper storage of firearms 
     when a Federal flight deck officer is at home or where the 
     officer is residing when traveling; and
       (2) revise the procedural requirements established under 
     section 44921(b)(1) of title 49, United States Code, to 
     implement the amendments made by subsection (c).

     SEC. __04. PHYSICAL STANDARDS FOR FEDERAL FLIGHT DECK 
                   OFFICERS.

       Section 44921(d)(2) is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively, and by moving 
     such clauses, as so redesignated, 2 ems to the right;
       (2) by striking ``A pilot is'' and inserting the following:
       ``(A) In general.--A pilot is''; and
       (3) by adding at the end the following:
       ``(B) Consistency with requirements for certain medical 
     certificates.--In establishing standards under subparagraph 
     (A)(ii), the Secretary may not establish medical or physical 
     standards for a pilot to become a Federal flight deck officer 
     that are inconsistent with or more stringent than the 
     requirements of the Federal Aviation Administration for the 
     issuance of a first- or second-class airman medical 
     certificate under part 67 of title 14, Code of Federal 
     Regulations (or any corresponding similar regulation or 
     ruling).''.

     SEC. __05. TRANSFER OF FEDERAL FLIGHT DECK OFFICERS FROM 
                   INACTIVE TO ACTIVE STATUS.

       Section 44921(d) is amended by adding at the end the 
     following:
       ``(5) Transfer from inactive to active status.--A pilot 
     deputized as a Federal flight deck officer who moves to 
     inactive status may return to active status after completing 
     one program of recurrent training described in subsection 
     (c).''.

     SEC. __06. FACILITATION OF SECURITY SCREENING OF FEDERAL 
                   FLIGHT DECK OFFICERS.

       Section 44921, as amended by section __03(c)(1), is further 
     amended by adding at the end the following:
       ``(m) Facilitation of Security Screening of Federal Flight 
     Deck Officers.--
       ``(1) Eligibility for expedited screening.--The Secretary 
     shall allow a Federal flight deck officer to be screened 
     through the crew member identity verification program of the 
     Transportation Security Administration (commonly known as the 
     `Known Crew Member program') when entering the sterile area 
     of an airport.
       ``(2) Prohibition on paperwork.--The Secretary may not 
     require a Federal flight deck officer to fill out any forms 
     or paperwork when entering the sterile area of an airport.
       ``(3) Sterile area defined.--In this subsection, the term 
     `sterile area' has the meaning given that term in section 
     1540.5 of title 49, Code of Federal Regulations (or any 
     corresponding similar regulation or ruling).''.

     SEC. __07. TECHNICAL CORRECTIONS.

       Section 44921, as amended by this subtitle, is further 
     amended--
       (1) in subsection (a), by striking ``Under Secretary of 
     Transportation for Security'' and inserting ``Secretary of 
     Homeland Security'';
       (2) in subsection (d)(4), by striking ``may,'' and 
     inserting ``may'';
       (3) in subsection (i)(2), by striking ``the Under Secretary 
     may'' and inserting ``may'';
       (4) in subsection (k)--
       (A) by striking paragraphs (2) and (3); and
       (B) by striking ``Applicability'' and all that follows 
     through ``This section'' and inserting ``Applicability.--This 
     section'';
       (5) by adding at the end the following:
       ``(n) Definitions.--In this section:
       ``(1) Pilot.--The term `pilot' means an individual who has 
     final authority and responsibility for the operation and 
     safety of the flight or any other flight deck crew member.
       ``(2) All-cargo air transportation.--The term `air 
     transportation' includes all-cargo air transportation.''; and
       (6) by striking ``Under Secretary'' each place it appears 
     and inserting ``Secretary''.

     SEC. __08. REFUNDS OF CERTAIN SECURITY SERVICE FEES FOR AIR 
                   CARRIERS WITH FEDERAL FLIGHT DECK OFFICERS ON 
                   ALL FLIGHTS.

       Section 44940 is amended by adding at the end the 
     following:
       ``(j) Refund of Fees for Air Carriers With Federal Flight 
     Deck Officers on All Flights.--From fees received in a fiscal 
     year under subsection (a)(1), each air carrier that certifies 
     to the Secretary of Homeland Security that all flights 
     operated by the air carrier have on board a pilot deputized 
     as a Federal flight deck officer under section 44921 shall 
     receive an amount equal to 10 percent of the fees collected 
     under subsection (a)(1) from passengers on flights operated 
     by that air carrier in that fiscal year.''.

     SEC. __09. TREATMENT OF INFORMATION ABOUT FEDERAL FLIGHT DECK 
                   OFFICERS AS SENSITIVE SECURITY INFORMATION.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Homeland Security shall revise 
     section 15.5(b)(11) of title 49, Code of Federal Regulations, 
     to classify information about pilots deputized as Federal 
     flight deck officers under section 44921 of title 49, United 
     States Code, as sensitive security information in a manner 
     consistent with the classification of information about 
     Federal air marshals.

     SEC. __10. REGULATIONS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Homeland Security shall prescribe 
     such regulations as may be necessary to carry out this Act 
     and the amendments made by this Act.
                                 ______
                                 
  SA 3519. Mr. TESTER (for himself and Mr. Daines) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 41, line 25, strike ``Section'' and insert the 
     following:
       (a) In General.--Section
       On page 42, between lines 7 and 8, insert the following:
       (b) Grandfather Rule.--Section 47109(c)(2) is amended by 
     inserting ``or nonprimary commercial service airport that 
     is'' after ``primary non-hub airport''.
                                 ______
                                 
  SA 3520. Mr. TESTER (for himself, Mr. Hoeven, and Ms. Heitkamp) 
submitted an amendment intended to be proposed to amendment SA 3464 
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 201, between lines 9 and 10, insert the following:
       (e) Report on Costs Associated With Air Ambulance 
     Operations and Solutions to Improve Affordability.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study of--
       (A) the costs associated with conducting air ambulance 
     operations;
       (B) prices charged to consumers for air ambulance 
     operations;
       (C) methods for consumers to cover costs of air ambulance 
     operations; and
       (D) solutions to improve the overall affordability of air 
     ambulance operations.
       (2) Considerations.--In conducting the study required under 
     paragraph (1), the Comptroller General shall consider--
       (A) data pertaining to the final cost to the consumer for 
     utilizing air ambulance operations;
       (B) the frequency of inclusion of coverage for air 
     ambulance operations in health insurance plans; and
       (C) any unique qualities of air ambulance operations that 
     would warrant additional Federal or State oversight on 
     prices, routes, and service.
       (3) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit a 
     report containing the results of the study conducted under 
     this subsection and the Comptroller General's findings, 
     conclusions, and recommendations to--
       (A) the Committee on Appropriations of the Senate;
       (B) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (C) the Committee on Health, Education, Labor, and Pensions 
     of the Senate;
       (D) the Committee on Finance of the Senate;
       (E) the Committee on Appropriations of the House of 
     Representatives;
       (F) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       (G) the Committee on Education and the Workforce of the 
     House of Representatives; and
       (H) the Committee on Financial Services of the House of 
     Representatives.
                                 ______
                                 
  SA 3521. Mr. MURPHY submitted an amendment intended to be proposed by 
him to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PERIODIC AUDITS BY INSPECTOR GENERAL OF THE 
                   DEPARTMENT OF TRANSPORTATION OF BUY AMERICAN 
                   ACT CONTRACTING COMPLIANCE.

       (a) Requirement for Periodic Audits of Contracting 
     Compliance.--The Inspector General of the Department of 
     Transportation shall conduct periodic audits of contracting

[[Page 3846]]

     practices and policies related to procurement requirements 
     under chapter 83 of title 41, United States Code.
       (b) Requirement for Additional Information in Semiannual 
     Reports.--The Inspector General of the Department of 
     Transportation shall ensure that findings and other 
     information resulting from audits conducted pursuant to 
     subsection (a) are included in the semiannual report 
     transmitted to congressional committees under section 8(f) of 
     the Inspector General Act of 1978 (5 U.S.C. App).
                                 ______
                                 
  SA 3522. Ms. CANTWELL (for herself, Mrs. Murray, and Mr. Blumenthal) 
submitted an amendment intended to be proposed to amendment SA 3464 
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 189, strike lines 2 through 11, and insert the 
     following:
       (b) Contents.--In revising the regulations under subsection 
     (a), the Administrator shall ensure that a flight attendant 
     scheduled to a duty period of 14 hours or less is given a 
     scheduled rest period of at least 10 consecutive hours and 
     that such rest period is not reduced under any circumstances.
                                 ______
                                 
  SA 3523. Mr. SCOTT (for himself, Mr. Graham, and Mr. Isakson) 
submitted an amendment intended to be proposed to amendment SA 3464 
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. MODIFICATION OF CREDIT FOR PRODUCTION FROM 
                   ADVANCED NUCLEAR POWER FACILITIES.

       (a) Special Rule for Public-private Partnerships.--
       (1) In general.--Section 45J of the Internal Revenue Code 
     of 1986 is amended--
       (A) by redesignating subsection (e) as subsection (f), and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Special Rule for Public-private Partnerships.--
       ``(1) Transfer of credit.--
       ``(A) In general.--In the case of an advanced nuclear power 
     facility which is owned by a public private partnership or 
     co-owned by a qualified public entity and a non-public 
     entity, any qualified public entity which is a member of such 
     partnership or a co-owner of such facility may transfer such 
     entity's allocation of the credit under subsection (a), or 
     any portion thereof, to--
       ``(i) any non-public entity which is a member of such 
     partnership or which is a co-owner of such facility,
       ``(ii) any person responsible for designing the facility, 
     or
       ``(iii) any person responsible for, or participating in, 
     construction of the facility.

     Any amount transferred to another person under this paragraph 
     shall be subject to the limitations under subsections (b) and 
     (c) and section 38.
       ``(B) Special rule for certain taxpayers.--Under 
     regulations promulgated by the Secretary, in the case of any 
     person described in subparagraph (ii) and (iii) of 
     subparagraph (A) to whom a credit is transferred--
       ``(i) such person shall be treated as an owner of the 
     advanced nuclear power facility to which the credit relates, 
     and
       ``(ii) such person shall be treated as the producer and 
     seller of so much of the electricity produced and sold at 
     such facility as bears the same ratio to all such electricity 
     produced and sold as the amount of credit transferred under 
     paragraph (1) bears to the total amount of credit allocated 
     to the qualified public entity.
       ``(2) Qualified public entity.--For purposes of this 
     subsection, the term `qualified public entity' means--
       ``(A) a Federal, State, or local government entity, or any 
     political subdivision, agency, or instrumentality thereof,
       ``(B) a mutual or cooperative electric company described in 
     section 501(c)(12) or section 1381(a)(2), or
       ``(C) a not-for-profit electric utility which has or had 
     received a loan or loan guarantee under the Rural 
     Electrification Act of 1936.
       ``(3) Verification of transfer of allocation.--A qualified 
     public entity that makes a transfer under paragraph (1), and 
     a nonpublic entity that receives an allocation under such a 
     transfer, shall provide verification of such transfer in such 
     manner and at such time as the Secretary shall prescribe.
       ``(4) Treatment of transfer under private use rules.--For 
     purposes of section 141(b)(1), any benefit derived by a non-
     public entity in connection with a transfer under paragraph 
     (1) shall not be taken into account as a private business 
     use.''.
       (2) Coordination with general business credit.--Subsection 
     (c) of section 38 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(7) Special rule for credit for production from advanced 
     nuclear power facilities.--
       ``(A) In general.--In the case of the credit for production 
     from advanced nuclear power facilities determined under 
     section 45J(a), paragraph (1) shall not apply with respect to 
     any qualified public entity (as defined in section 45J(e)(2)) 
     which transfers the entity's allocation of such credit as 
     provided in section 45J(e)(1).
       ``(B) Verification of transfer.--Subparagraph (A) shall not 
     apply to any qualified public entity unless such entity 
     provides verification of a transfer of credit allocation as 
     required under section 45J(e)(3).''.
       (b) Special Rule for Proceeds of Transfers for Mutual or 
     Cooperative Electric Companies.--Section 501(c)(12) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(I) In the case of a mutual or cooperative electric 
     company described in this paragraph or an organization 
     described in section 1381(a)(2), income received or accrued 
     from a transfer described in section 45J(e)(1) shall be 
     treated as an amount collected from members for the sole 
     purpose of meeting losses and expenses.''.
       (c) Permanent Extension for Qualification as Advanced 
     Nuclear Power Facility.--Subparagraph (B) of section 
     45J(d)(1) of the Internal Revenue Code of 1986 is amended by 
     striking ``and before January 1, 2021''.
       (d) Modification of Limitation.--Section 45J(b) of the 
     Internal Revenue Code of 1986 is amended by striking 
     paragraphs (3) and (4) and inserting the following:
       ``(3) Allocation of limitation.--The Secretary shall 
     allocate the national megawatt capacity limitation to each 
     facility in an amount equal to the nameplate capacity of the 
     facility in the order in which the facility was placed in 
     service.''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     electricity produced in taxable years beginning after the 
     date of the enactment of this Act.
       (2) Proceeds of mutual or cooperative electric companies.--
     The amendment made by subsection (b) shall apply to taxable 
     years beginning after the date of the enactment of this Act.
       (3) Allocation of limitation.--The amendment made by 
     subsection (d) shall apply to allocations made after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 3524. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; as follows:

       Strike section 3113 and insert the following:

     SEC. 3113. LASTING IMPROVEMENTS TO FAMILY TRAVEL.

       (a) Short Title.--This section may be cited as the 
     ``Lasting Improvements to Family Travel Act'' or the ``LIFT 
     Act''.
       (b) Accompanying Minors for Security Screening.--The 
     Administrator of the Transportation Security Administration 
     shall formalize security screening procedures that allow for 
     one adult family caregiver to accompany a minor child 
     throughout the entirety of the security screening process.
       (c) Special Accommodations for Pregnant Women.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Secretary of Transportation shall prescribe regulations 
     under section 41705 of title 49, United States Code, that 
     direct all air carriers to include pregnant women in their 
     nondiscrimination policies, including policies with respect 
     to preboarding or advance boarding of aircraft.
       (d) Family Seating.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary shall prescribe 
     regulations directing each air carrier to establish a policy 
     that ensures that, if a family is traveling on a reservation 
     with a child under the age of 13, that child is able to sit 
     in a seat adjacent to the seat of an accompanying family 
     member over the age of 13 at no additional cost.
                                 ______
                                 
  SA 3525. Mr. MANCHIN submitted an amendment intended to be proposed 
to amendment SA 3464 submitted by Mr. Thune (for himself and Mr. 
Nelson) to the bill H.R. 636, to amend the Internal Revenue Code of 
1986 to permanently extend increased expensing limitations, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 121, line 26, strike ``shall'' and insert ``may''.
                                 ______
                                 
  SA 3526. Mr. FLAKE (for himself and Mr. McCain) submitted an 
amendment

[[Page 3847]]

intended to be proposed to amendment SA 3464 submitted by Mr. Thune 
(for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle E of title II, add the following:

     SEC. 2506. AIRSPACE MANAGEMENT ADVISORY COMMITTEE.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Administrator shall establish 
     an advisory committee to carry out the duties described in 
     subsection (b).
       (b) Duties.--The advisory committee shall--
       (1) conduct a review of the practices and procedures of the 
     Federal Aviation Administration for developing proposals with 
     respect to changes in regulations, policies, or guidance of 
     the Federal Aviation Administration relating to airspace that 
     affect airport operations, airport capacity, the environment, 
     or communities in the vicinity of airports, including--
       (A) an assessment of the extent to which there is 
     consultation, or a lack of consultation, with respect to such 
     proposals--
       (i) between and among the affected elements of the Federal 
     Aviation Administration, including the Air Traffic 
     Organization, the Office of Airports, the Flight Standards 
     Service, the Office of NextGen, and the Office of Energy and 
     Environment; and
       (ii) between the Federal Aviation Administration and 
     affected entities, including airports, aircraft operators, 
     communities, and State and local governments;
       (2) recommend revisions to such practices and procedures to 
     improve communications and coordination between and among 
     affected elements of the Federal Aviation Administration and 
     with other affected entities with respect to proposals 
     described in paragraph (1) and the potential effects of such 
     proposals;
       (3) conduct a review of the management by the Federal 
     Aviation Administration of systems and information used to 
     evaluate data relating to obstructions to air navigation or 
     navigational facilities under part 77 of title 14, Code of 
     Federal Regulations; and
       (4) make recommendations to ensure that the data described 
     in paragraph (3) is publicly accessible and streamlined to 
     ensure developers, airport operators, and other interested 
     parties may obtain relevant information concerning potential 
     obstructions when working to preserve and create a safe and 
     efficient navigable airspace.
       (c) Membership.--The membership of the advisory committee 
     established under subsection (a) shall include 
     representatives of--
       (1) air carriers, including passenger and cargo air 
     carriers;
       (2) general aviation, including business aviation and fixed 
     wing aircraft and rotocraft;
       (3) airports of various sizes and types;
       (4) air traffic controllers; and
       (5) State aviation officials.
       (d) Report Required.--Not later than one year after the 
     establishment of the advisory committee under subsection (a), 
     the advisory committee shall submit to Congress a report on 
     the actions taken by the advisory committee to carry out the 
     duties described in subsection (b).
                                 ______
                                 
  SA 3527. Mr. RUBIO (for himself, Mr. Blunt, Mrs. Capito, Mr. Cassidy, 
Mr. Graham, Mr. Manchin, Mr. Risch, Mrs. Shaheen, Mr. Sullivan, and Mr. 
Vitter) submitted an amendment intended to be proposed to amendment SA 
3464 submitted by Mr. Thune (for himself and Mr. Nelson) to the bill 
H.R. 636, to amend the Internal Revenue Code of 1986 to permanently 
extend increased expensing limitations, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

               TITLE __--VESSEL INCIDENTAL DISCHARGE ACT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Vessel Incidental 
     Discharge Act''.

     SEC. _02. FINDINGS; PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Since the enactment of the Act to Prevent Pollution 
     from Ships (22 U.S.C. 1901 et seq.) in 1980, the United 
     States Coast Guard has been the principal Federal authority 
     charged with administering, enforcing, and prescribing 
     regulations relating to the discharge of pollutants from 
     vessels engaged in maritime commerce and transportation.
       (2) The Coast Guard estimates there are approximately 
     21,560,000 State-registered recreational vessels, 75,000 
     commercial fishing vessels, and 33,000 freight and tank 
     barges operating in United States waters.
       (3) From 1973 to 2005, certain discharges incidental to the 
     normal operation of a vessel were exempted by regulation from 
     otherwise applicable permitting requirements.
       (4) During the 32 years during which this regulatory 
     exemption was in effect, Congress enacted several statutes to 
     deal with the regulation of discharges incidental to the 
     normal operation of a vessel, including--
       (A) the Act to Prevent Pollution from Ships (33 U.S.C. 1901 
     et seq.) in 1980;
       (B) the Nonindigenous Aquatic Nuisance Prevention and 
     Control Act of 1990 (16 U.S.C. 4701 et seq.);
       (C) the National Invasive Species Act of 1996 (110 Stat. 
     4073);
       (D) section 415 of the Coast Guard Authorization Act of 
     1998 (112 Stat. 3434) and section 623 of the Coast Guard and 
     Maritime Transportation Act of 2004 (33 U.S.C. 1901 note), 
     which established interim and permanent requirements, 
     respectively, for the regulation of vessel discharges of 
     certain bulk cargo residue;
       (E) title XIV of division B of Appendix D of the 
     Consolidated Appropriations Act, 2001 (114 Stat. 2763), which 
     prohibited or limited certain vessel discharges in certain 
     areas of Alaska;
       (F) section 204 of the Maritime Transportation Security Act 
     of 2002 (33 U.S.C. 1902a), which established requirements for 
     the regulation of vessel discharges of agricultural cargo 
     residue material in the form of hold washings; and
       (G) title X of the Coast Guard Authorization Act of 2010 
     (33 U.S.C. 3801 et seq.), which provided for the 
     implementation of the International Convention on the Control 
     of Harmful Anti-Fouling Systems on Ships, 2001.
       (b) Purpose.--The purpose of this title is to provide for 
     the establishment of nationally uniform and environmentally 
     sound standards and requirements for the management of 
     discharges incidental to the normal operation of a vessel.

     SEC. _03. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Aquatic nuisance species.--The term ``aquatic nuisance 
     species'' means a nonindigenous species (including a 
     pathogen) that threatens the diversity or abundance of native 
     species or the ecological stability of navigable waters or 
     commercial, agricultural, aquacultural, or recreational 
     activities dependent on such waters.
       (3) Ballast water.--
       (A) In general.--The term ``ballast water'' means any water 
     and water-suspended matter taken aboard a vessel--
       (i) to control or maintain trim, list, draught, stability, 
     or stresses of the vessel; or
       (ii) during the cleaning, maintenance, or other operation 
     of a ballast water treatment technology of the vessel.
       (B) Exclusions.--The term ``ballast water'' does not 
     include any substance that is added to water described in 
     subparagraph (A) that is not directly related to the 
     operation of a properly functioning ballast water treatment 
     technology under this title.
       (4) Ballast water discharge standard.--The term ``ballast 
     water discharge standard'' means the numerical ballast water 
     discharge standard set forth in section 151.2030 of title 33, 
     Code of Federal Regulations or section 151.1511 of title 33, 
     Code of Federal Regulations, as applicable, or a revised 
     numerical ballast water discharge standard established under 
     subsection (a)(1)(B), (b), or (c) of section _05.
       (5) Ballast water management system; management system.--
     The terms ``ballast water management system'' and 
     ``management system'' mean any system, including all ballast 
     water treatment equipment and associated control and 
     monitoring equipment, used to process ballast water to kill, 
     remove, render harmless, or avoid the uptake or discharge of 
     organisms.
       (6) Biocide.--The term ``biocide'' means a substance or 
     organism, including a virus or fungus, that is introduced 
     into or produced by a ballast water management system to 
     reduce or eliminate aquatic nuisance species as part of the 
     process used to comply with a ballast water discharge 
     standard under this title.
       (7) Discharge incidental to the normal operation of a 
     vessel.--
       (A) In general.--The term ``discharge incidental to the 
     normal operation of a vessel'' means--
       (i) a discharge into navigable waters from a vessel of--

       (I)(aa) ballast water, graywater, bilge water, cooling 
     water, oil water separator effluent, anti-fouling hull 
     coating leachate, boiler or economizer blowdown, byproducts 
     from cathodic protection, controllable pitch propeller and 
     thruster hydraulic fluid, distillation and reverse osmosis 
     brine, elevator pit effluent, firemain system effluent, 
     freshwater layup effluent, gas turbine wash water, motor 
     gasoline and compensating effluent, refrigeration and air 
     condensate effluent, seawater pumping biofouling prevention 
     substances, boat engine wet exhaust, sonar dome effluent, 
     exhaust gas scrubber washwater, or stern tube packing gland 
     effluent; or
       (bb) any other pollutant associated with the operation of a 
     marine propulsion system, shipboard maneuvering system, 
     habitability system, or installed major equipment, or from a 
     protective, preservative, or absorptive application to the 
     hull of a vessel;
       (II) weather deck runoff, deck wash, aqueous film forming 
     foam effluent, chain locker

[[Page 3848]]

     effluent, non-oily machinery wastewater, underwater ship 
     husbandry effluent, welldeck effluent, or fish hold and fish 
     hold cleaning effluent; or
       (III) any effluent from a properly functioning marine 
     engine; or

       (ii) a discharge of a pollutant into navigable waters in 
     connection with the testing, maintenance, or repair of a 
     system, equipment, or engine described in subclause (I)(bb) 
     or (III) of clause (i) whenever the vessel is waterborne.
       (B) Exclusions.--The term ``discharge incidental to the 
     normal operation of a vessel'' does not include--
       (i) a discharge into navigable waters from a vessel of--

       (I) rubbish, trash, garbage, incinerator ash, or other such 
     material discharged overboard;
       (II) oil or a hazardous substance as those terms are 
     defined in section 311 of the Federal Water Pollution Control 
     Act (33 U.S.C. 1321);
       (III) sewage as defined in section 312(a)(6) of the Federal 
     Water Pollution Control Act (33 U.S.C. 1322(a)(6)); or
       (IV) graywater referred to in section 312(a)(6) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1322(a)(6));

       (ii) an emission of an air pollutant resulting from the 
     operation onboard a vessel of a vessel propulsion system, 
     motor driven equipment, or incinerator; or
       (iii) a discharge into navigable waters from a vessel when 
     the vessel is operating in a capacity other than as a means 
     of transportation on water.
       (8) Geographically limited area.--The term ``geographically 
     limited area'' means an area--
       (A) with a physical limitation, including limitation by 
     physical size and limitation by authorized route such as the 
     Great Lakes and St. Lawrence River, that prevents a vessel 
     from operating outside the area, as determined by the 
     Secretary; or
       (B) that is ecologically homogeneous, as determined by the 
     Secretary, in consultation with the heads of other Federal 
     departments or agencies as the Secretary considers 
     appropriate.
       (9) Manufacturer.--The term ``manufacturer'' means a person 
     engaged in the manufacture, assemblage, or importation of 
     ballast water treatment technology.
       (10) Navigable waters.--The term ``navigable waters'' has 
     the meaning given the term in section 2.36 of title 33, Code 
     of Federal Regulations, as in effect on the date of the 
     enactment of this Act.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of the department in which the Coast Guard is operating.
       (12) Vessel.--The term ``vessel'' means every description 
     of watercraft or other artificial contrivance used, or 
     practically or otherwise capable of being used, as a means of 
     transportation on water.

     SEC. _04. REGULATION AND ENFORCEMENT.

       (a) In General.--
       (1) Establishment.--The Secretary, in consultation with the 
     Administrator, shall establish, implement, and enforce 
     uniform national standards and requirements for the 
     regulation of discharges incidental to the normal operation 
     of a vessel.
       (2) Basis.--Except as provided under paragraph (3), the 
     standards and requirements established under paragraph (1)--
       (A) with respect to ballast water, shall be based upon the 
     best available technology that is economically achievable;
       (B) with respect to discharges incidental to the normal 
     operation of a vessel other than ballast water, shall be 
     based on best management practices; and
       (C) shall supersede any permitting requirement or 
     prohibition on discharges incidental to the normal operation 
     of a vessel under any other provision of law.
       (3) Rule of construction.--The standards and requirements 
     established under paragraph (1) shall not supersede 
     regulations, in place on the date of the enactment of this 
     Act or established by a rulemaking proceeding after such date 
     of enactment, which cover a discharge in a national marine 
     sanctuary or in a marine national monument.
       (b) Administration and Enforcement.--The Secretary shall 
     administer and enforce the uniform national standards and 
     requirements under this title. Each State may enforce the 
     uniform national standards and requirements under this title.
       (c) Sanctions.--
       (1) Civil penalties.--
       (A) Ballast water.--Any person who violates a regulation 
     issued pursuant to this title regarding a discharge 
     incidental to the normal operation of a vessel of ballast 
     water shall be liable for a civil penalty in an amount not to 
     exceed $25,000. Each day of a continuing violation 
     constitutes a separate violation.
       (B) Other discharge.--Any person who violates a regulation 
     issued pursuant to this title regarding a discharge 
     incidental to the normal operation of a vessel other than 
     ballast water shall be liable for a civil penalty in an 
     amount not to exceed $10,000. Each day of a continuing 
     violation constitutes a separate violation.
       (C) In rem liability.--A vessel operated in violation of a 
     regulation issued under this title shall be liable in rem for 
     any civil penalty assessed under this subsection for that 
     violation.
       (2) Criminal penalties.--
       (A) Ballast water.--Any person who knowingly violates a 
     regulation issued pursuant to this title regarding a 
     discharge incidental to the normal operation of a vessel of 
     ballast water shall be punished by a fine of not more than 
     $100,000, imprisonment for not more than 2 years, or both.
       (B) Other discharge.--Any person who knowingly violates a 
     regulation issued pursuant to this title regarding a 
     discharge incidental to the normal operation of a vessel 
     other than ballast water shall be punished by a fine of not 
     more than $50,000, imprisonment for not more than 1 year, or 
     both.
       (3) Revocation of clearance.--The Secretary shall withhold 
     or revoke the clearance of a vessel required under section 
     60105 of title 46, United States Code, if the owner or 
     operator of the vessel is in violation of a regulation issued 
     pursuant to this Act.
       (4) Exception to sanctions.--It shall be an affirmative 
     defense to any charge of a violation of this title that 
     compliance with this title would, because of adverse weather, 
     equipment failure, or any other relevant condition, have 
     threatened the safety or stability of a vessel, its crew, or 
     its passengers.

     SEC. _05. UNIFORM NATIONAL STANDARDS AND REQUIREMENTS FOR THE 
                   REGULATION OF DISCHARGES INCIDENTAL TO THE 
                   NORMAL OPERATION OF A VESSEL.

       (a) Requirements.--
       (1) Ballast water management requirements.--
       (A) In general.--Notwithstanding any other provision of 
     law, the requirements set forth in the final rule, Standards 
     for Living Organisms in Ships' Ballast Water Discharged in 
     U.S. Waters (77 Fed. Reg. 17254 (March 23, 2012), as 
     corrected at 77 Fed. Reg. 33969 (June 8, 2012)), shall be the 
     management requirements for a ballast water discharge 
     incidental to the normal operation of a vessel until the 
     Secretary revises the ballast water discharge standard under 
     subsection (b) or adopts a more stringent State standard 
     under subparagraph (B).
       (B) Adoption of more stringent state standard.--If the 
     Secretary makes a determination in favor of a State petition 
     under section 610, the Secretary shall adopt the more 
     stringent ballast water discharge standard specified in the 
     statute or regulation that is the subject of that State 
     petition instead of the ballast water discharge standard in 
     the final rule described under subparagraph (A).
       (2) Initial management requirements for discharges other 
     than ballast water.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Administrator, shall issue a final rule establishing best 
     management practices for discharges incidental to the normal 
     operation of a vessel other than ballast water.
       (b) Revised Ballast Water Discharge Standard; 8-Year 
     Review.--
       (1) In general.--Subject to the feasibility review under 
     paragraph (2), not later than January 1, 2024, the Secretary, 
     in consultation with the Administrator, shall issue a final 
     rule revising the ballast water discharge standard under 
     subsection (a)(1) so that a ballast water discharge 
     incidental to the normal operation of a vessel will contain--
       (A) less than 1 organism that is living or has not been 
     rendered harmless per 10 cubic meters that is 50 or more 
     micrometers in minimum dimension;
       (B) less than 1 organism that is living or has not been 
     rendered harmless per 10 milliliters that is less than 50 
     micrometers in minimum dimension and more than 10 micrometers 
     in minimum dimension;
       (C) concentrations of indicator microbes that are less 
     than--
       (i) 1 colony-forming unit of toxicogenic Vibrio cholera 
     (serotypes O1 and O139) per 100 milliliters or less than 1 
     colony-forming unit of that microbe per gram of wet weight of 
     zoological samples;
       (ii) 126 colony-forming units of Escherichia coli per 100 
     milliliters; and
       (iii) 33 colony-forming units of intestinal enterococci per 
     100 milliliters; and
       (D) concentrations of such additional indicator microbes 
     and of viruses as may be specified in regulations issued by 
     the Secretary in consultation with the Administrator and such 
     other Federal agencies as the Secretary and the Administrator 
     consider appropriate.
       (2) Feasibility review.--
       (A) In general.--Not less than 2 years before January 1, 
     2024, the Secretary, in consultation with the Administrator, 
     shall complete a review to determine the feasibility of 
     achieving the revised ballast water discharge standard under 
     paragraph (1).
       (B) Criteria for review of ballast water discharge 
     standard.--In conducting a review under subparagraph (A), the 
     Secretary shall consider whether revising the ballast water 
     discharge standard will result in a scientifically 
     demonstrable and substantial reduction in the risk of 
     introduction or establishment of aquatic nuisance species, 
     taking into account--
       (i) improvements in the scientific understanding of 
     biological and ecological processes that lead to the 
     introduction or establishment of aquatic nuisance species;

[[Page 3849]]

       (ii) improvements in ballast water management systems, 
     including--

       (I) the capability of such management systems to achieve a 
     revised ballast water discharge standard;
       (II) the effectiveness and reliability of such management 
     systems in the shipboard environment;
       (III) the compatibility of such management systems with the 
     design and operation of a vessel by class, type, and size;
       (IV) the commercial availability of such management 
     systems; and
       (V) the safety of such management systems;

       (iii) improvements in the capabilities to detect, quantify, 
     and assess the viability of aquatic nuisance species at the 
     concentrations under consideration;
       (iv) the impact of ballast water management systems on 
     water quality; and
       (v) the costs, cost-effectiveness, and impacts of--

       (I) a revised ballast water discharge standard, including 
     the potential impacts on shipping, trade, and other uses of 
     the aquatic environment; and
       (II) maintaining the existing ballast water discharge 
     standard, including the potential impacts on water-related 
     infrastructure, recreation, propagation of native fish, 
     shellfish, and wildlife, and other uses of navigable waters.

       (C) Lower revised discharge standard.--
       (i) In general.--If the Secretary, in consultation with the 
     Administrator, determines on the basis of the feasibility 
     review and after an opportunity for a public hearing that no 
     ballast water management system can be certified under 
     section _06 to comply with the revised ballast water 
     discharge standard under paragraph (1), the Secretary shall 
     require the use of the management system that achieves the 
     performance levels of the best available technology that is 
     economically achievable.
       (ii) Implementation deadline.--If the Secretary, in 
     consultation with the Administrator, determines that the 
     management system under clause (i) cannot be implemented 
     before the implementation deadline under paragraph (3) with 
     respect to a class of vessels, the Secretary shall extend the 
     implementation deadline for that class of vessels for not 
     more than 36 months.
       (iii) Compliance.--If the implementation deadline under 
     paragraph (3) is extended, the Secretary shall recommend 
     action to ensure compliance with the extended implementation 
     deadline under clause (ii).
       (D) Higher revised discharge standard.--
       (i) In general.--If the Secretary, in consultation with the 
     Administrator, determines that a ballast water management 
     system exists that exceeds the revised ballast water 
     discharge standard under paragraph (1) with respect to a 
     class of vessels and is the best available technology that is 
     economically achievable, the Secretary shall revise the 
     ballast water discharge standard for that class of vessels to 
     incorporate the higher discharge standard.
       (ii) Implementation deadline.--If the Secretary, in 
     consultation with the Administrator, determines that the 
     management system under clause (i) can be implemented before 
     the implementation deadline under paragraph (3) with respect 
     to a class of vessels, the Secretary shall accelerate the 
     implementation deadline for that class of vessels. If the 
     implementation deadline under paragraph (3) is accelerated, 
     the Secretary shall provide not less than 24 months notice 
     before the accelerated deadline takes effect.
       (3) Implementation deadline.--The revised ballast water 
     discharge standard under paragraph (1) shall apply to a 
     vessel beginning on the date of the first drydocking of the 
     vessel on or after January 1, 2024, but not later than 
     December 31, 2026.
       (4) Revised discharge standard compliance deadlines.--
       (A) In general.--The Secretary may establish a compliance 
     deadline for compliance by a vessel (or a class, type, or 
     size of vessel) with a revised ballast water discharge 
     standard under this subsection.
       (B) Process for granting extensions.--In issuing 
     regulations under this subsection, the Secretary shall 
     establish a process for an owner or operator to submit a 
     petition to the Secretary for an extension of a compliance 
     deadline with respect to the vessel of the owner or operator.
       (C) Period of extensions.--An extension issued under 
     subparagraph (B) may--
       (i) apply for a period of not to exceed 18 months from the 
     date of the applicable deadline under subparagraph (A); and
       (ii) be renewable for an additional period of not to exceed 
     18 months.
       (D) Factors.--In issuing a compliance deadline or reviewing 
     a petition under this paragraph, the Secretary shall 
     consider, with respect to the ability of an owner or operator 
     to meet a compliance deadline, the following factors:
       (i) Whether the management system to be installed is 
     available in sufficient quantities to meet the compliance 
     deadline.
       (ii) Whether there is sufficient shipyard or other 
     installation facility capacity.
       (iii) Whether there is sufficient availability of 
     engineering and design resources.
       (iv) Vessel characteristics, such as engine room size, 
     layout, or a lack of installed piping.
       (v) Electric power generating capacity aboard the vessel.
       (vi) Safety of the vessel and crew.
       (vii) Any other factors the Secretary considers 
     appropriate, including the availability of a ballast water 
     reception facility or other means of managing ballast water.
       (E) Consideration of petitions.--
       (i) Determinations.--The Secretary shall approve or deny a 
     petition for an extension of a compliance deadline submitted 
     by an owner or operator under this paragraph.
       (ii) Deadline.--If the Secretary does not approve or deny a 
     petition referred to in clause (i) on or before the last day 
     of the 90-day period beginning on the date of submission of 
     the petition, the petition shall be deemed approved.
       (c) Future Revisions of Vessel Incidental Discharge 
     Standards; Decennial Reviews.--
       (1) Revised ballast water discharge standards.--The 
     Secretary, in consultation with the Administrator, shall 
     complete a review, 10 years after the issuance of a final 
     rule under subsection (b) and every 10 years thereafter, to 
     determine whether further revision of the ballast water 
     discharge standard would result in a scientifically 
     demonstrable and substantial reduction in the risk of the 
     introduction or establishment of aquatic nuisance species.
       (2) Revised standards for discharges other than ballast 
     water.--The Secretary, in consultation with the 
     Administrator, may include in a decennial review under this 
     subsection best management practices for discharges covered 
     by subsection (a)(2). The Secretary shall initiate a 
     rulemaking to revise 1 or more best management practices for 
     such discharges after a decennial review if the Secretary, in 
     consultation with the Administrator, determines that revising 
     1 or more of such practices would substantially reduce the 
     impacts on navigable waters of discharges incidental to the 
     normal operation of a vessel other than ballast water.
       (3) Considerations.--In conducting a review under paragraph 
     (1), the Secretary, the Administrator, and the heads of other 
     Federal agencies as the Secretary considers appropriate, 
     shall consider the criteria under section _05(b)(2)(B).
       (4) Revision after decennial review.--The Secretary shall 
     initiate a rulemaking to revise the current ballast water 
     discharge standard after a decennial review if the Secretary, 
     in consultation with the Administrator, determines that 
     revising the current ballast water discharge standard would 
     result in a scientifically demonstrable and substantial 
     reduction in the risk of the introduction or establishment of 
     aquatic nuisance species.
       (d) Alternative Ballast Water Management Requirements.--
     Nothing in this title may be construed to preclude the 
     Secretary from authorizing the use of alternate means or 
     methods of managing ballast water (including flow-through 
     exchange, empty/refill exchange, and transfer to treatment 
     facilities in place of a vessel ballast water management 
     system required under this section) if the Secretary, in 
     consultation with the Administrator, determines that such 
     means or methods would not pose a greater risk of 
     introduction of aquatic nuisance species in navigable waters 
     than the use of a ballast water management system that 
     achieves the applicable ballast water discharge standard.
       (e) Great Lakes Requirements.--In addition to the other 
     standards and requirements imposed by this section, in the 
     case of a vessel that enters the Great Lakes through the St. 
     Lawrence River after operating outside the exclusive economic 
     zone of the United States the Secretary, in consultation with 
     the Administrator, shall establish a requirement that the 
     vessel conduct saltwater flushing of all ballast water tanks 
     onboard prior to entry.

     SEC. _06. TREATMENT TECHNOLOGY CERTIFICATION.

       (a) Certification Required.--Beginning on the date that is 
     1 year after the date on which the requirements for testing 
     protocols are issued under subsection (i), no manufacturer of 
     a ballast water management system shall sell, offer for sale, 
     or introduce or deliver for introduction into interstate 
     commerce, or import into the United States for sale or 
     resale, a ballast water management system for a vessel unless 
     it has been certified under this section.
       (b) Certification Process.--
       (1) Evaluation.--Upon application of a manufacturer, the 
     Secretary shall evaluate a ballast water management system 
     with respect to--
       (A) the effectiveness of the management system in achieving 
     the current ballast water discharge standard when installed 
     on a vessel (or a class, type, or size of vessel);
       (B) the compatibility with vessel design and operations;
       (C) the effect of the management system on vessel safety;
       (D) the impact on the environment;
       (E) the cost effectiveness; and
       (F) any other criteria the Secretary considers appropriate.
       (2) Approval.--If after an evaluation under paragraph (1) 
     the Secretary determines that the management system meets the 
     criteria, the Secretary may certify the management

[[Page 3850]]

     system for use on a vessel (or a class, type, or size of 
     vessel).
       (3) Suspension and revocation.--The Secretary shall 
     establish, by regulation, a process to suspend or revoke a 
     certification issued under this section.
       (c) Certification Conditions.--
       (1) Imposition of conditions.--In certifying a ballast 
     water management system under this section, the Secretary, in 
     consultation with the Administrator, may impose any condition 
     on the subsequent installation, use, or maintenance of the 
     management system onboard a vessel as is necessary for--
       (A) the safety of the vessel, the crew of the vessel, and 
     any passengers aboard the vessel;
       (B) the protection of the environment; or
       (C) the effective operation of the management system.
       (2) Failure to comply.--The failure of an owner or operator 
     to comply with a condition imposed under paragraph (1) shall 
     be considered a violation of this section.
       (d) Period for Use of Installed Treatment Equipment.--
     Notwithstanding anything to the contrary in this title or any 
     other provision of law, the Secretary shall allow a vessel on 
     which a management system is installed and operated to meet a 
     ballast water discharge standard under this title to continue 
     to use that system, notwithstanding any revision of a ballast 
     water discharge standard occurring after the management 
     system is ordered or installed until the expiration of the 
     service life of the management system, as determined by the 
     Secretary, if the management system--
       (1) is maintained in proper working condition; and
       (2) is maintained and used in accordance with the 
     manufacturer's specifications and any management system 
     certification conditions imposed by the Secretary under this 
     section.
       (e) Certificates of Type Approval for the Treatment 
     Technology.--
       (1) Issuance.--If the Secretary approves a ballast water 
     management system for certification under subsection (b), the 
     Secretary shall issue a certificate of type approval for the 
     management system to the manufacturer in such form and manner 
     as the Secretary determines appropriate.
       (2) Certification conditions.--A certificate of type 
     approval issued under paragraph (1) shall specify each 
     condition imposed by the Secretary under subsection (c).
       (3) Owners and operators.--A manufacturer that receives a 
     certificate of type approval for the management system under 
     this subsection shall provide a copy of the certificate to 
     each owner and operator of a vessel on which the management 
     system is installed.
       (f) Inspections.--An owner or operator who receives a copy 
     of a certificate under subsection (e)(3) shall retain a copy 
     of the certificate onboard the vessel and make the copy of 
     the certificate available for inspection at all times while 
     the owner or operator is utilizing the management system.
       (g) Biocides.--The Secretary may not approve a ballast 
     water management system under subsection (b) if--
       (1) it uses a biocide or generates a biocide that is a 
     pesticide, as defined in section 2 of the Federal 
     Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136), 
     unless the biocide is registered under that Act or the 
     Secretary, in consultation with Administrator, has approved 
     the use of the biocide in such management system; or
       (2) it uses or generates a biocide the discharge of which 
     causes or contributes to a violation of a water quality 
     standard under section 303 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1313).
       (h) Prohibition.--
       (1) In general.--Except as provided in paragraph (2), the 
     use of a ballast water management system by an owner or 
     operator of a vessel shall not satisfy the requirements of 
     this title unless it has been approved by the Secretary under 
     subsection (b).
       (2) Exceptions.--
       (A) Coast guard shipboard technology evaluation program.--
     An owner or operator may use a ballast water management 
     system that has not been certified by the Secretary to comply 
     with the requirements of this section if the technology is 
     being evaluated under the Coast Guard Shipboard Technology 
     Evaluation Program.
       (B) Ballast water management systems certified by foreign 
     entities.--An owner or operator may use a ballast water 
     management system that has not been certified by the 
     Secretary to comply with the requirements of this section if 
     the management system has been certified by a foreign entity 
     and the certification demonstrates performance and safety of 
     the management system equivalent to the requirements of this 
     section, as determined by the Secretary.
       (i) Testing Protocols.--Not later than 180 days after the 
     date of the enactment of this Act, the Administrator, in 
     consultation with the Secretary, shall issue requirements for 
     land-based and shipboard testing protocols or criteria for--
       (1) certifying the performance of each ballast water 
     management system under this section; and
       (2) certifying laboratories to evaluate such treatment 
     technologies.

     SEC. _07. EXEMPTIONS.

       (a) Incidental Discharges.--Except in a national marine 
     sanctuary or a marine national monument, no permit shall be 
     required or prohibition enforced under any other provision of 
     law for, nor shall any standards regarding a discharge 
     incidental to the normal operation of a vessel under this 
     title apply to--
       (1) a discharge incidental to the normal operation of a 
     vessel if the vessel is less than 79 feet in length and 
     engaged in commercial service (as such terms are defined in 
     section 2101(5) of title 46, United States Code);
       (2) a discharge incidental to the normal operation of a 
     vessel if the vessel is a fishing vessel, including a fish 
     processing vessel and a fish tender vessel, (as defined in 
     section 2101 of title 46, United States Code); or
       (3) a discharge incidental to the normal operation of a 
     vessel if the vessel is a recreational vessel (as defined in 
     section 2101(25) of title 46, United States Code).
       (b) Discharges Into Navigable Waters.--No permit shall be 
     required or prohibition enforced under any other provision of 
     law for, nor shall any standards regarding a discharge 
     incidental to the normal operation of a vessel under this 
     title apply to--
       (1) any discharge into navigable waters from a vessel 
     authorized by an on-scene coordinator in accordance with part 
     300 of title 40, Code of Federal Regulations, or part 153 of 
     title 33, Code of Federal Regulations;
       (2) any discharge into navigable waters from a vessel that 
     is necessary to secure the safety of the vessel or human 
     life, or to suppress a fire onboard the vessel or at a 
     shoreside facility; or
       (3) a vessel of the armed forces of a foreign nation when 
     engaged in noncommercial service.
       (c) Ballast Water Discharges.--No permit shall be required 
     or prohibition enforced under any other provision of law for, 
     nor shall any ballast water discharge standard under this 
     title apply to--
       (1) a ballast water discharge incidental to the normal 
     operation of a vessel determined by the Secretary to--
       (A) operate exclusively within a geographically limited 
     area;
       (B) take up and discharge ballast water exclusively within 
     1 Captain of the Port Zone established by the Coast Guard 
     unless the Secretary determines such discharge poses a 
     substantial risk of introduction or establishment of an 
     aquatic nuisance species;
       (C) operate pursuant to a geographic restriction issued as 
     a condition under section 3309 of title 46, United States 
     Code, or an equivalent restriction issued by the country of 
     registration of the vessel; or
       (D) continuously take on and discharge ballast water in a 
     flow-through system that does not introduce aquatic nuisance 
     species into navigable waters;
       (2) a ballast water discharge incidental to the normal 
     operation of a vessel consisting entirely of water sourced 
     from a United States public water system that meets the 
     requirements under the Safe Drinking Water Act (42 U.S.C. 
     300f et seq.) or from a foreign public water system 
     determined by the Administrator to be suitable for human 
     consumption; or
       (3) a ballast water discharge incidental to the normal 
     operation of a vessel in an alternative compliance program 
     established pursuant to section _08.
       (d) Vessels With Permanent Ballast Water.--No permit shall 
     be required or prohibition enforced regarding a ballast water 
     discharge incidental to the normal operation of a vessel 
     under any other provision of law for, nor shall any ballast 
     water discharge standard under this title apply to, a vessel 
     that carries all of its permanent ballast water in sealed 
     tanks that are not subject to discharge.
       (e) Vessels of the Armed Forces.--Nothing in this title may 
     be construed to apply to--
       (1) a vessel owned or operated by the Department of Defense 
     (other than a time-chartered or voyage-chartered vessel); or
       (2) a vessel of the Coast Guard, as designated by the 
     Secretary of the department in which the Coast Guard is 
     operating.

     SEC. _08. ALTERNATIVE COMPLIANCE PROGRAM.

       (a) In General.--The Secretary, in consultation with the 
     Administrator, may promulgate regulations establishing 1 or 
     more compliance programs as an alternative to ballast water 
     management regulations issued under section _05 for a vessel 
     that--
       (1) has a maximum ballast water capacity of less than 8 
     cubic meters; or
       (2) is less than 3 years from the end of the useful life of 
     the vessel, as determined by the Secretary.
       (b) Rulemaking.--
       (1) Facility standards.--Not later than 1 year after the 
     date of the enactment of this Act, the Administrator, in 
     consultation with the Secretary, shall promulgate standards 
     for--
       (A) the reception of ballast water from a vessel into a 
     reception facility; and
       (B) the disposal or treatment of the ballast water under 
     paragraph (1).
       (2) Transfer standards.--The Secretary, in consultation 
     with the Administrator, is authorized to promulgate standards 
     for the arrangements necessary on a vessel to transfer 
     ballast water to a facility.

     SEC. _09. JUDICIAL REVIEW.

       (a) In General.--An interested person may file a petition 
     for review of a final regulation

[[Page 3851]]

     promulgated under this title in the United States Court of 
     Appeals for the District of Columbia Circuit.
       (b) Deadline.--A petition shall be filed not later than 120 
     days after the date that notice of the promulgation appears 
     in the Federal Register.
       (c) Exception.--Notwithstanding subsection (b), a petition 
     that is based solely on grounds that arise after the deadline 
     to file a petition under subsection (b) has passed may be 
     filed not later than 120 days after the date that the grounds 
     first arise.

     SEC. _10. EFFECT ON STATE AUTHORITY.

       (a) In General.--No State or political subdivision thereof 
     may adopt or enforce any statute or regulation of the State 
     or political subdivision with respect to a discharge 
     incidental to the normal operation of a vessel after the date 
     of enactment of this Act.
       (b) Savings Clause.--Notwithstanding subsection (a), a 
     State or political subdivision thereof may adopt or enforce a 
     statute or regulation of the State or political subdivision 
     with respect to ballast water discharges incidental to the 
     normal operation of a vessel that specifies a ballast water 
     discharge standard that is more stringent than the ballast 
     water discharge standard under section _05(a)(1)(A) if the 
     Secretary, after consultation with the Administrator and any 
     other Federal department or agency the Secretary considers 
     appropriate, makes a determination that--
       (1) compliance with any discharge standard specified in the 
     statute or regulation can in fact be achieved and detected;
       (2) the technology and systems necessary to comply with the 
     statute or regulation are commercially available and 
     economically achievable; and
       (3) the statute or regulation is consistent with 
     obligations under relevant international treaties or 
     agreements to which the United States is a party.
       (c) Petition Process.--
       (1) Submission.--The Governor of a State seeking to adopt 
     or enforce a statute or regulation under subsection (b) shall 
     submit a petition to the Secretary requesting the Secretary 
     to review the statute or regulation.
       (2) Contents; timing.--A petition shall be accompanied by 
     the scientific and technical information on which the 
     petition is based, and may be submitted within 1 year of the 
     date of enactment of this Act and every 10 years thereafter.
       (3) Determinations.--The Secretary shall make a 
     determination on a petition under this subsection not later 
     than 90 days after the date on which the Secretary determines 
     that a complete petition has been received.

     SEC. _11. APPLICATION WITH OTHER STATUTES.

       (a) Exclusive Statutory Authority.--Except as otherwise 
     provided in this section and notwithstanding any other 
     provision of law, this title shall be the exclusive statutory 
     authority for regulation by the Federal Government of 
     discharges incidental to the normal operation of a vessel to 
     which this title applies.
       (b) Effect of Existing Regulations.--Except as provided 
     under section _05(a)(1)(A), any regulation in effect on the 
     date immediately preceding the effective date of this Act 
     relating to any permitting requirement for or prohibition on 
     discharges incidental to the normal operation of a vessel to 
     which this title applies--
       (1) shall be deemed to be a regulation issued pursuant to 
     the authority of this title; and
       (2) shall remain in full force and effect unless or until 
     superseded by new regulations issued under this title.
       (c) Act to Prevent Pollution From Ships.--The Act to 
     Prevent Pollution from Ships (33 U.S.C. 1901 et seq.) shall 
     be the exclusive statutory authority for the regulation by 
     the Federal Government of any discharge or emission that is 
     covered under the International Convention for the Prevention 
     of Pollution from Ships, 1973, as modified by the Protocol of 
     1978, done at London February 17, 1978. Nothing in this title 
     may be construed to alter or amend such Act or any regulation 
     issued pursuant to the authority of such Act.
       (d) Title X of the Coast Guard and Maritime Transportation 
     Act of 2010.--Title X of the Coast Guard and Maritime 
     Transportation Act of 2010 (33 U.S.C. 3801 et seq.) shall be 
     the exclusive statutory authority for the regulation by the 
     Federal Government of any anti-fouling system that is covered 
     under the International Convention on the Control of Harmful 
     Anti-Fouling Systems on Ships, 2001. Nothing in this title 
     may be construed to alter or amend such title X or any 
     regulation issued pursuant to the authority under such title.

     SEC. _12. RELATIONSHIP TO OTHER LAWS.

       Section 1205 of the Nonindigenous Aquatic Nuisance 
     Prevention and Control Act of 1990 (16 U.S.C. 4725) is 
     amended--
       (1) by striking ``All actions'' and inserting the 
     following:
       ``(a) In General.--Except as provided in subsection (b), 
     all actions''; and
       (2) by adding at the end the following:
       ``(b) Vessel Incidental Discharges.--Notwithstanding 
     subsection (a), the Vessel Incidental Discharge Act shall be 
     the exclusive statutory authority for the regulation by the 
     Federal Government of discharges incidental to the normal 
     operation of a vessel.''.

     SEC. _13. SAVINGS PROVISION.

       Any action taken by the Federal Government under this Act 
     shall be in full compliance with its obligations under 
     applicable provisions of international law.
                                 ______
                                 
  SA 3528. Mr. RUBIO (for himself and Mr. Cornyn) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. CUBAN IMMIGRANTS.

       (a) Short Title.--This section may be cited as the ``Cuban 
     Immigrant Work Opportunity Act of 2016''.
       (b) Certain Cubans Ineligible for Refugee Assistance.--
       (1) In general.--Title V of the Refugee Education 
     Assistance Act of 1980 (8 U.S.C. 1522 note) is amended--
       (A) in the title heading, by striking ``CUBAN AND'';
       (B) in section 501--
       (i) by striking ``Cuban and'' each place such phrase 
     appears;
       (ii) in subsection (d), by striking ``Cuban or''; and
       (iii) in subsection (e)--

       (I) in paragraph (1)--

       (aa) by striking ``Cuban/'' and
       (bb) by striking ``Cuba or''; and

       (II) in paragraph (2), by striking ``Cuba or''.

       (2) Conforming amendments.--
       (A) Personal responsibility and work opportunity 
     reconciliation act of 1996.--Section 403(d) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1613(d)) is amended--
       (i) in the subsection heading, by striking ``Cuban and''; 
     and
       (ii) by striking ``1980, for Cuban and Haitian entrants'' 
     and all that follows and inserting ``1980 (8 U.S.C. 1522 
     note), for Haitian entrants (as defined in subsection (e)(2) 
     of such section)''.
       (B) Immigration and nationality act.--Section 245A(h)(2)(A) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1255a(h)(2)(A)) is amended by striking ``Cuban and''.
       (3) Applicability.--The amendments made by this subsection 
     shall only apply to nationals of Cuba who enter the United 
     States on or after the date of the enactment of this Act.
       (c) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Inspector General of the Social 
     Security Administration shall submit a report to Congress 
     that describes the methods by which the provision described 
     in section 416.215 of title 20, Code of Federal Regulations, 
     is being enforced.
                                 ______
                                 
  SA 3529. Mr. REED submitted an amendment intended to be proposed by 
him to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of part II of subtitle A of title II, add the 
     following:

     SEC. 2_____. PROHIBITION ON OPERATION OF UNMANNED AIRCRAFT 
                   CARRYING A FIREARM.

       (a) In General.--Chapter 463 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 46320. Prohibition on operation of unmanned aircraft 
       carrying a firearm

       ``(a) In General.--A person shall not operate an unmanned 
     aircraft with a firearm attached to, installed on, or 
     otherwise carried by the aircraft.
       ``(b) Penalties.--A person who violates subsection (a)--
       ``(1) shall be liable to the United States Government for a 
     civil penalty of not more than $27,500; and
       ``(2) may be fined under title 18, imprisoned for not more 
     than 5 years, or both.
       ``(c) Nonapplication to Public Aircraft.--This section does 
     not apply to public aircraft.
       ``(d) Rule of Construction.--Nothing in this section shall 
     be construed to affect the authority of the Administrator 
     with respect to manned or unmanned aircraft.
       ``(e) Definitions.--In this section:
       ``(1) Firearm.--The term `firearm' has the meaning given 
     that term in section 921 of title 18.
       ``(2) Unmanned aircraft.--The term `unmanned aircraft' has 
     the meaning given that term in section 44801.''.
       (b) Conforming Amendment.--Section 46301(d)(2) of such 
     title is amended, in the first sentence, by inserting 
     ``section 46320,'' before ``or section 47107(b)''.
       (c) Clerical Amendment.--The analysis for chapter 463 of 
     such title is amended by inserting after the item relating to 
     section 46319 the following:

``46320. Prohibition on operation of unmanned aircraft carrying a 
              firearm.''.

[[Page 3852]]


                                 ______
                                 
  SA 3530. Mr. SCHUMER (for himself and Mr. Blumenthal) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. PROHIBITION ON SALE, MANUFACTURE, IMPORT, AND 
                   DISTRIBUTION IN COMMERCE OF LASER POINTERS.

       (a) Authority for Consumer Product Safety Commission to 
     Regulate Laser Pointers.--Section 31(a) of the Consumer 
     Product Safety Act (15 U.S.C. 2080(a)) is amended, in the 
     second sentence, by striking ``The Commission'' and inserting 
     ``Except for a laser pointer (as defined in section 39A of 
     title 18, United States Code), the Commission''.
       (b) Classification of Laser Pointers as Banned Hazardous 
     Products.--
       (1) In general.--Except as provided in paragraph (2), all 
     laser pointers are hereby declared banned hazardous products 
     within the meaning of section 8 of the Consumer Product 
     Safety Act (15 U.S.C. 2057).
       (2) Exceptions.--Paragraph (1) shall not apply to such 
     laser pointers as the Consumer Product Safety Commission 
     determines are for legitimate and professional use.
       (c) Treatment of Classification.--For purposes of the 
     Consumer Product Safety Act (15 U.S.C. 2051 et seq.), 
     subsection (b) of this section shall be treated as if it were 
     a rule promulgated under section 8 of such Act (15 U.S.C. 
     2057).
       (d) Regulations.--
       (1) In general.--The Consumer Product Safety Commission may 
     promulgate such rules as the Commission considers appropriate 
     to carry out this section.
       (2) Manner of promulgation.--Notwithstanding any other 
     provision of law, a rule promulgated under paragraph (1) 
     shall be promulgated in accordance with section 553 of title 
     5, United States Code.
       (e) Laser Pointer Defined.--In this section, the term 
     ``laser pointer'' has the meaning given such term in section 
     39A of title 18, United States Code.
                                 ______
                                 
  SA 3531. Mr. MANCHIN submitted an amendment intended to be proposed 
to amendment SA 3464 submitted by Mr. Thune (for himself and Mr. 
Nelson) to the bill H.R. 636, to amend the Internal Revenue Code of 
1986 to permanently extend increased expensing limitations, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 284, between lines 3 and 4, insert the following:
       (3) choices that consumers have in choosing an air carrier 
     based on change, cancellation, and baggage fees in large, 
     medium, and small markets; and
       (4) the potential effect on availability of air service if 
     change, cancellation, or baggage fees were regulated by the 
     Federal Government.
                                 ______
                                 
  SA 3532. Mr. NELSON (for himself and Mr. Coats) submitted an 
amendment intended to be proposed by him to the bill H.R. 636, to amend 
the Internal Revenue Code of 1986 to permanently extend increased 
expensing limitations, and for other purposes; which was ordered to lie 
on the table; as follows:

       Beginning on page 204, strike line 21 and all that follows 
     through page 206, line 9, and insert the following:
       (a) Restrictions on Transportation of Lithium Batteries on 
     Aircraft.--
       (1) Adoption of icao instructions.--
       (A) In general.--Pursuant to section 828 of the FAA 
     Modernization and Reform Act of 2012 (49 U.S.C. 44701 note), 
     not later than 90 days after the date of enactment of this 
     Act, the Secretary of the Department of Transportation shall 
     conform United States regulations on the air transport of 
     lithium cells and batteries with the lithium cells and 
     battery requirements in the 2015-2016 edition of the 
     International Civil Aviation Organization's (referred to in 
     this subsection as ``ICAO'') Technical Instructions (to 
     include all addenda) including the revised standards adopted 
     by ICAO which became effective on April 1, 2016.
       (B) Further proceedings.--Beginning on the date the revised 
     regulations under subparagraph (A) are published in the 
     Federal Register, any lithium cell and battery rulemaking 
     action or update commenced on or after that date shall 
     continue to comply with the requirements under section 828 of 
     the FAA Modernization and Reform Act of 2012 (49 U.S.C. 44701 
     note).
       (2) Review of other regulations.--Pursuant to section 828 
     of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 
     44701 note), the Secretary of Transportation may initiate a 
     review of other existing regulations regarding the air 
     transportation, including passenger-carrying and cargo 
     aircraft, of lithium batteries and cells.
       (3) Medical device batteries.--
       (A) In general.--For United States applicants, the 
     Secretary of Transportation shall consider and either grant 
     or deny, within 45 days, applications submitted in compliance 
     with part 107 of title 49, Code of Federal Regulations for 
     special permits or approvals for air transportation of 
     lithium cells or batteries specifically used by medical 
     devices. Not later than 30 days after the date of 
     application, the Pipeline and Hazardous Materials Safety 
     Administration shall provide a draft special permit based on 
     the application to the Federal Aviation Administration. The 
     Federal Aviation Administration shall conduct an on-site 
     inspection for issuance of the special permit not later than 
     10 days after the date of receipt of the draft special permit 
     from the Pipeline and Hazardous Materials Safety 
     Administration.
       (B) Definition of medical device.--In this paragraph, the 
     term ``medical device'' has the meaning given the term 
     ``device'' in section 201 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321).
       (4) Savings clause.--Nothing in this section shall be 
     construed as expanding or constricting any other authority 
     the Secretary of Transportation has under section 828 of the 
     FAA Modernization and Reform Act of 2012 (49 U.S.C. 44701 
     note).
                                 ______
                                 
  SA 3533. Mr. BROWN (for himself and Mr. Portman) submitted an 
amendment intended to be proposed by him to the bill H.R. 636, to amend 
the Internal Revenue Code of 1986 to permanently extend increased 
expensing limitations, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. AMOUNTS PAID FOR AIRCRAFT MANAGEMENT SERVICES.

       (a) In General.--Subsection (e) of section 4261 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Amounts paid for aircraft management services.--
       ``(A) In general.--No tax shall be imposed by this section 
     or section 4271 on any amounts paid by an aircraft owner for 
     aircraft management services related to--
       ``(i) maintenance and support of the aircraft owner's 
     aircraft; or
       ``(ii) flights on the aircraft owner's aircraft.
       ``(B) Aircraft management services.--For purposes of 
     subparagraph (A), the term `aircraft management services' 
     includes assisting an aircraft owner with administrative and 
     support services, such as scheduling, flight planning, and 
     weather forecasting; obtaining insurance; maintenance, 
     storage and fueling of aircraft; hiring, training, and 
     provision of pilots and crew; establishing and complying with 
     safety standards; or such other services necessary to support 
     flights operated by an aircraft owner.
       ``(C) Lessee treated as aircraft owner.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `aircraft owner' includes a person who leases the aircraft 
     other than under a disqualified lease.
       ``(ii) Disqualified lease.--For purposes of clause (i), the 
     term `disqualified lease' means a lease from a person 
     providing aircraft management services with respect to such 
     aircraft (or a related person (within the meaning of section 
     465(b)(3)(C)) to the person providing such services), if such 
     lease is for a term of 31 days or less.
       ``(D) Pro rata allocation.--If any amount paid to a person 
     represents in part an amount paid for services not described 
     in subparagraph (A), the tax imposed by subsection (a), if 
     applicable to such amount, shall be applied to such payment 
     on a pro rata basis.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3534. Ms. CANTWELL (for herself and Mr. Thune) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. NATIONAL MULTIMODAL FREIGHT ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary of Transportation shall 
     establish a national multimodal freight advisory committee 
     (referred to in this section as the ``Committee'') in the 
     Department of Transportation, which shall consist of a 
     balanced cross-section of public and private freight 
     stakeholders representative of all freight transportation 
     modes, including--
       (1) airports, highways, ports and waterways, rail, and 
     pipelines;

[[Page 3853]]

       (2) shippers;
       (3) carriers;
       (4) freight-related associations;
       (5) the freight industry workforce;
       (6) State departments of transportation;
       (7) local governments;
       (8) metropolitan planning organizations;
       (9) regional or local transportation authorities, such as 
     port authorities;
       (10) freight safety organizations; and
       (11) university research centers.
       (b) Purpose.--The purpose of the Committee shall be to 
     promote a safe, economically efficient, and environmentally 
     sustainable national freight system.
       (c) Duties.--The Committee, in consultation with State 
     departments of transportation and metropolitan planning 
     organizations, shall provide advice and recommendations to 
     the Secretary of Transportation on matters related to freight 
     transportation in the United States, including--
       (1) the implementation of freight transportation 
     requirements;
       (2) the establishment of a National Multimodal Freight 
     Network under section 70103 of title 49, United States Code;
       (3) the development of the national freight strategic plan 
     under section 70102 of such title;
       (4) the development of measures of conditions and 
     performance in freight transportation;
       (5) the development of freight transportation investment, 
     data, and planning tools; and
       (6) recommendations for Federal legislation.
       (d) Qualifications.--Each member of the Committee shall be 
     sufficiently qualified to represent the interests of the 
     member's specific stakeholder group, such as--
       (1) general business and financial experience;
       (2) experience or qualifications in the areas of freight 
     transportation and logistics;
       (3) experience in transportation planning, safety, 
     technology, or workforce issues;
       (4) experience representing employees of the freight 
     industry;
       (5) experience representing State or local governments or 
     metropolitan planning organizations in transportation-related 
     issues; or
       (6) experience in trade economics relating to freight 
     flows.
       (e) Support Staff, Information, and Services.--The 
     Secretary of Transportation shall provide support staff for 
     the Committee. Upon the request of the Committee, the 
     Secretary shall provide such information, administrative 
     services, and supplies as the Secretary considers necessary 
     for the Committee to carry out its duties under this section.
                                 ______
                                 
  SA 3535. Mr. COTTON submitted an amendment intended to be proposed by 
him to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 46, line 15, insert after ``National Guard'' the 
     following: ``, without regard to whether that component 
     operates aircraft at the airport''.
                                 ______
                                 
  SA 3536. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 93, between lines 4 and 5, insert the following:
       (d) Federal Agency Coordination to Enhance the Public 
     Health and Safety Capabilities of Public Unmanned Aircraft 
     Systems.--The Administrator shall assist and enable, without 
     undue interference, Federal civilian government agencies that 
     operate unmanned aircraft systems within civil-controlled 
     airspace, in operationally deploying and integrating sense 
     and avoid capabilities, as necessary to operate unmanned 
     aircraft systems safely and effectively within the National 
     Air Space.
                                 ______
                                 
  SA 3537. Mr. PAUL (for himself and Mr. Markey) submitted an amendment 
intended to be proposed to amendment SA 3464 submitted by Mr. Thune 
(for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. UNWARRANTED SURVEILLANCE.

       (a) Definitions.--In this section--
       (1) the term ``law enforcement party'' means a person or 
     entity authorized by law, or funded by the Government of the 
     United States or by a political subdivision of a State, to 
     investigate or prosecute offenses against the United States 
     or to make arrests; and
       (2) the term ``unmanned aircraft system'' has the meaning 
     given the term in section 44801 of title 49, United States 
     Code, as added by section 2121(a) of this Act.
       (b) Prohibited Use of Unmanned Aircraft Systems.--Except as 
     provided in subsection (c), a person or entity acting under 
     the authority, or funded in whole or in part by, the 
     Government of the United States or by a political subdivision 
     of a State shall not use an unmanned aircraft system to 
     gather evidence or other information pertaining to criminal 
     conduct or conduct in violation of a statute or regulation or 
     for intelligence purposes except to the extent authorized in 
     a warrant that satisfies the requirements of the Federal 
     Rules of Procedure and the Constitution of the United States.
       (c) Exceptions.--This section does not prohibit any of the 
     following:
       (1) Patrol of borders.--The use of an unmanned aircraft 
     system to patrol national borders to prevent or deter illegal 
     entry of any persons or illegal substances within 3 miles of 
     the physical border.
       (2) Exigent circumstances.--The use of an unmanned aircraft 
     system by a law enforcement party when exigent circumstances 
     exist. For the purposes of this paragraph, exigent 
     circumstances exist when the law enforcement party possesses 
     reasonable suspicion that under particular circumstances, 
     swift action to prevent imminent danger to life is necessary.
       (3) High risk.--The use of an unmanned aircraft system to 
     counter a high risk of an imminent terrorist attack by a 
     specific individual or organization, when the Secretary of 
     Homeland Security determines credible intelligence indicates 
     there is such a risk.
       (4) Information or data unrelated to exigent 
     circumstances.--A person operating an unmanned aircraft 
     system under the exception set forth in paragraph (2) shall 
     minimize the collection by the unmanned aircraft system of 
     information and data that is unrelated to the exigent 
     circumstances. If the unmanned aircraft system incidentally 
     collects any such unrelated information or data while being 
     operated under such exception, the person operating the 
     unmanned aircraft system shall destroy such unrelated 
     information and data.
       (5) Prohibition on information sharing.--A person may not 
     intentionally divulge information collected in accordance 
     with this section with any other person, except as authorized 
     by law.
       (d) Remedies for Violation.--Any aggrieved party may in a 
     civil action obtain all appropriate relief to prevent or 
     remedy a violation of this section.
       (e) Prohibition on Use of Evidence.--No evidence obtained 
     or collected in violation of this section may be admissible 
     as evidence in a criminal prosecution in any court of law in 
     the United States.
                                 ______
                                 
  SA 3538. Mr. HOEVEN submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of part II of subtitle A of title II, add the 
     following:

     SEC. 2143. EXEMPTION FOR THE OPERATION OF CERTAIN UNMANNED 
                   AIRCRAFT AT TEST SITES.

       (a) In General.--Not later than 30 days after the date of 
     the enactment of this Act, and without the opportunity for 
     prior public notice and comment, the Administrator shall 
     grant an exemption for the operation of unmanned aircraft 
     systems for any non-hobby or non-recreational purpose under 
     the oversight of an unmanned aircraft system test site to all 
     persons that meet the terms, conditions, and limitations 
     described in subsection (b) for the exemption. All such 
     operations of unmanned aircraft systems shall be conducted in 
     accordance with a certificate of waiver or authorization 
     issued to the unmanned aircraft system test site by the 
     Administrator.
       (b) Terms, Conditions, and Limitations.--
       (1) In general.--The exemption granted under subsection (a) 
     or any amendment to that exemption--
       (A) shall, at a minimum, exempt the operator of an unmanned 
     aircraft system from the provisions of parts 21, 43, 61, and 
     91 of title 14, Code of Federal Regulations, that are 
     applicable only to civil aircraft or civil aircraft 
     operations;
       (B) may contain such other terms, conditions, and 
     limitations as the Administrator may deem necessary in the 
     interest of aviation safety or the efficiency of the national 
     airspace system; and
       (C) shall require a person, before initiating an operation 
     under the exemption, to provide written notice to the 
     unmanned aircraft system test site overseeing the operation, 
     in a form and manner specified by the Administrator, that 
     states, at a minimum, that the person has read, understands, 
     and will comply with all terms, conditions, and limitations 
     of the exemption and applicable certificates of waiver or 
     authorization.

[[Page 3854]]

       (2) Transmission to federal aviation administration.--The 
     unmanned aircraft system test site overseeing an operation 
     shall transmit to the Federal Aviation Administration copies 
     of all notices under paragraph (1)(C) relating to the 
     operation in a form and manner specified by the 
     Administrator.
       (c) No Airworthiness or Airman Certificate Required.--
     Notwithstanding paragraph (1), (2)(A), or (3) of section 
     44711(a) of title 49, United States Code, a person may 
     operate, or employ an airman who operates, an unmanned 
     aircraft system for any non-hobby or non-recreational purpose 
     under the oversight of an unmanned aircraft system test site 
     without an airman certificate and without an airworthiness 
     certificate for the aircraft if the operations of the 
     unmanned aircraft system meet all terms, limitations, and 
     conditions of an exemption issued under subsection (a) and of 
     a certificate of waiver or authorization issued to the 
     unmanned aircraft system test site by the Administrator.
       (d) Data Available for Certificate of Airworthiness.--The 
     Administrator shall accept data collected or developed as a 
     result of an operation of an unmanned aircraft system 
     conducted under the oversight of an unmanned aircraft system 
     test site pursuant to an exemption issued under subsection 
     (a) for consideration in an application for an airworthiness 
     certificate for the unmanned aircraft system.
       (e) Sunset.--The exemption issued under subsection (a), and 
     any amendment to that exemption, shall cease to be valid on 
     the date of the termination of the unmanned aircraft system 
     test site program under section 332(c) of the FAA 
     Modernization and Reform Act of 2012 (Public Law 112-95; 49 
     U.S.C. 40101 note).
       (f) Rules of Construction and Procedure.--
       (1) In general.--The issuance of an exemption under 
     subsection (a), the issuance of a certificate of waiver or 
     authorization (including the issuance of a certificate of 
     waiver or authorization to an unmanned aircraft test site), 
     the amendment of such an exemption or certificate, the 
     imposition of a term, condition, or limitation on such an 
     exemption or certificate, and any other activity carried out 
     by the Federal Aviation Administration under this section 
     shall be made without regard to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code; and
       (B) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (2) Savings provisions.--Nothing in this section shall be 
     construed to--
       (A) affect the issuance of a rule by or any other activity 
     of the Secretary of Transportation or the Administrator under 
     any other provision of law; or
       (B) invalidate an exemption granted or certificate of 
     waiver or authorization issued by the Administrator before 
     the date of the enactment of this Act.
       (g) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (2) Airman certificate.--The term ``airman certificate'' 
     means an airman certificate issued under section 44703 of 
     title 49, United States Code.
       (3) Certificate of waiver or authorization.--The term 
     ``certificate of waiver or authorization'' means an 
     authorization issued by the Federal Aviation Administration 
     for the operation of aircraft in deviation from a rule or 
     regulation and includes the terms, conditions, and 
     limitations of the authorization.
       (4) Unmanned aircraft; unmanned aircraft system.--The terms 
     ``unmanned aircraft'' and ``unmanned aircraft system'' have 
     the meanings given those terms in section 44801 of title 49, 
     United States Code, as added by section 2121.
       (5) Unmanned aircraft system test site.--The term 
     ``unmanned aircraft system test site'' means an entity 
     designated under section 332(c) of the FAA Modernization and 
     Reform Act of 2012 (Public Law 112-95; 49 U.S.C. 40101 note) 
     to operate a test range under that section.
                                 ______
                                 
  SA 3539. Mr. BLUNT (for himself, Mr. Wyden, Mr. Bennet, Mr. Portman, 
Ms. Baldwin, Mr. Vitter, Ms. Murkowski, Mrs. Murray, Mr. Burr, Ms. 
Ayotte, Mr. Carper, and Mr. Moran) submitted an amendment intended to 
be proposed to amendment SA 3464 submitted by Mr. Thune (for himself 
and Mr. Nelson) to the bill H.R. 636, to amend the Internal Revenue 
Code of 1986 to permanently extend increased expensing limitations, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, insert the following:

         TITLE VI--CRAFT BEVERAGE MODERNIZATION AND TAX REFORM

     SEC. 6001. SHORT TITLE; RULE OF CONSTRUCTION.

       (a) Short Title.--This title may be cited as the ``Craft 
     Beverage Modernization and Tax Reform Act of 2016''.
       (b) Rule of Construction.--Nothing in this title, the 
     amendments made by this title, or any regulation promulgated 
     under this title or the amendments made by this title, shall 
     be construed to preempt, supersede, or otherwise limit or 
     restrict any State, local, or tribal law that prohibits or 
     regulates the production or sale of distilled spirits, wine, 
     or malt beverages.

                     Subtitle A--Production Period

     SEC. 6011. PRODUCTION PERIOD FOR BEER, WINE, AND DISTILLED 
                   SPIRITS.

       (a) In General.--Section 263A(f) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by redesignating paragraph (4) as paragraph (5), and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Exemption for aging process of beer, wine, and 
     distilled spirits.--For purposes of this subsection, the 
     production period shall not include the aging period for--
       ``(A) beer (as defined in section 5052(a)),
       ``(B) wine (as described in section 5041(a)), or
       ``(C) distilled spirits (as defined in section 5002(a)(8)), 
     except such spirits that are unfit for use for beverage 
     purposes.''.
       (b) Conforming Amendment.--Paragraph (5)(B)(ii) of section 
     263A(f) of the Internal Revenue Code of 1986, as redesignated 
     by this section, is amended by inserting ``except as provided 
     in paragraph (4),'' before ``ending on the date''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to interest costs paid or incurred in taxable 
     years ending on or after December 31, 2017.

                            Subtitle B--Beer

     SEC. 6021. REDUCED RATE OF EXCISE TAX ON BEER.

       (a) In General.--Paragraph (1) of section 5051(a) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) In general.--
       ``(A) Imposition of tax.--A tax is hereby imposed on all 
     beer brewed or produced, and removed for consumption or sale, 
     within the United States, or imported into the United States. 
     Except as provided in paragraph (2), the rate of such tax 
     shall be--
       ``(i) $16 on the first 6,000,000 barrels of beer brewed by 
     the brewer or imported by the importer which are removed 
     during the calendar year for consumption or sale by such 
     brewer or imported into the United States in such year by 
     such importer, and
       ``(ii) $18 on any barrels of beer to which clause (i) does 
     not apply.
       ``(B) Barrel.--For purposes of this section, a barrel shall 
     contain not more than 31 gallons of beer, and any tax imposed 
     under this section shall be applied at a like rate for any 
     other quantity or for fractional parts of a barrel.''.
       (b) Reduced Rate for Certain Domestic Production.--
     Subparagraph (A) of section 5051(a)(2) of the Internal 
     Revenue Code of 1986 is amended--
       (1) in the heading, by striking ``$7'' and inserting 
     ``$3.50'', and
       (2) by striking ``$7'' and inserting ``$3.50''.
       (c) Application of Reduced Tax Rate for Foreign 
     Manufacturers and Importers.--Subsection (a) of section 5051 
     of the Internal Revenue Code of 1986 is amended--
       (1) in subparagraph (A)(i) of paragraph (1), as amended by 
     subsection (a) of this section, by inserting ``and assigned 
     to such electing importer pursuant to paragraph (4)'' after 
     ``by such importer'', and
       (2) by adding at the end the following new paragraph:
       ``(4) Reduced tax rate for foreign manufacturers and 
     importers.--
       ``(A) In general.--In the case of any barrels of beer which 
     have been brewed or produced outside of the United States and 
     imported into the United States, the rate of tax applicable 
     under clause (i) of paragraph (1)(A) (referred to in this 
     paragraph as the `reduced tax rate') may be assigned by the 
     brewer (provided that the brewer makes an election described 
     in subparagraph (B)(ii)) to any electing importer of such 
     barrels pursuant to the requirements established by the 
     Secretary of the Treasury under subparagraph (B).
       ``(B) Assignment.--The Secretary of the Treasury, in 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of the Department of Homeland Security, 
     shall, through such rules, regulations, and procedures as are 
     determined appropriate, establish procedures for assignment 
     of the reduced tax rate provided under this paragraph, which 
     shall include--
       ``(i) a limitation to ensure that the number of barrels of 
     beer for which the reduced tax rate has been assigned by a 
     brewer to any importer does not exceed the number of barrels 
     of beer brewed or produced by such brewer during the calendar 
     year which were imported into the United States by such 
     importer,
       ``(ii) procedures that allow the election of a brewer to 
     assign and an importer to receive the reduced tax rate 
     provided under this paragraph,
       ``(iii) requirements that the brewer provide any 
     information as the Secretary determines necessary and 
     appropriate for purposes of carrying out this paragraph, and
       ``(iv) procedures that allow for revocation of eligibility 
     of the brewer and the importer for the reduced tax rate 
     provided under this paragraph in the case of any erroneous or 
     fraudulent information provided under

[[Page 3855]]

     clause (iii) which the Secretary deems to be material to 
     qualifying for such reduced rate.
       ``(C) Controlled group.--For purposes of this section, any 
     importer making an election described in subparagraph (B)(ii) 
     shall be deemed to be a member of the controlled group of the 
     brewer, as described under paragraph (5).''.
       (d) Controlled Group and Single Taxpayer Rules.--Subsection 
     (a) of section 5051 of the Internal Revenue Code of 1986, as 
     amended by this section, is amended--
       (1) in paragraph (2)--
       (A) by striking subparagraph (B), and
       (B) by redesignating subparagraph (C) as subparagraph (B), 
     and
       (2) by adding at the end the following new paragraph:
       ``(5) Controlled group and single taxpayer rules.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in the case of a controlled group, the 6,000,000 barrel 
     quantity specified in paragraph (1)(A)(i) and the 2,000,000 
     barrel quantity specified in paragraph (2)(A) shall be 
     applied to the controlled group, and the 6,000,000 barrel 
     quantity specified in paragraph (1)(A)(i) and the 60,000 
     barrel quantity specified in paragraph (2)(A) shall be 
     apportioned among the brewers who are component members of 
     such group in such manner as the Secretary or his delegate 
     shall by regulations prescribe. For purposes of the preceding 
     sentence, the term `controlled group' has the meaning 
     assigned to it by subsection (a) of section 1563, except that 
     for such purposes the phrase `more than 50 percent' shall be 
     substituted for the phrase `at least 80 percent' in each 
     place it appears in such subsection. Under regulations 
     prescribed by the Secretary or his delegate, principles 
     similar to the principles of the preceding two sentences 
     shall be applied to a group of brewers under common control 
     where one or more of the brewers is not a corporation.
       ``(B) Foreign manufacturers and importers.--For purposes of 
     paragraph (4), in the case of a controlled group, the 
     6,000,000 barrel quantity specified in paragraph (1)(A)(i) 
     shall be applied to the controlled group and apportioned 
     among the members of such group in such manner as the 
     Secretary or his delegate shall by regulations prescribe. For 
     purposes of the preceding sentence, the term `controlled 
     group' has the meaning given such term under subparagraph 
     (A). Under regulations prescribed by the Secretary or his 
     delegate, principles similar to the principles of the 
     preceding two sentences shall be applied to a group of 
     brewers under common control where one or more of the brewers 
     is not a corporation.
       ``(C) Single taxpayer.--Pursuant to rules issued by the 
     Secretary, 2 or more entities (whether or not under common 
     control) that produce beer marketed under a similar brand, 
     license, franchise, or other arrangement shall be treated as 
     a single taxpayer for purposes of the application of this 
     subsection.''.
       (e) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall apply to beer removed after 
     September 30, 2018.
       (2) Proration.--For purposes of the fourth calendar quarter 
     of 2018, the Secretary of the Treasury (or the Secretary's 
     delegate) shall issue such guidance, rules, or regulations as 
     are deemed appropriate to provide that the amendments made by 
     this section are applied on a prorated basis for purposes of 
     beer removed during such quarter.

     SEC. 6022. USE OF WHOLESOME PRODUCTS SUITABLE FOR HUMAN FOOD 
                   CONSUMPTION IN THE PRODUCTION OF FERMENTED 
                   BEVERAGES.

       (a) In General.--Not later than the date that is 1 year 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury or the Secretary of the Treasury's delegate 
     shall amend subpart F of part 25 of subchapter A of chapter I 
     of title 27, Code of Federal Regulations to ensure that, for 
     purposes of such part, wholesome fruits, vegetables, and 
     spices suitable for human food consumption that are generally 
     recognized as safe for use in an alcoholic beverage and that 
     do not contain alcohol are generally recognized as a 
     traditional ingredient in the production of fermented 
     beverages.
       (b) Definition.--For purposes of this section, the term 
     ``fruit'' means whole fruit, fruit juices, fruit puree, fruit 
     extract, or fruit concentrate.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to revoke, prescribe, or limit any other exemptions 
     from the formula requirements under subpart F of part 25 of 
     subchapter A of chapter I of title 27, Code of Federal 
     Regulations for any ingredient that has been recognized 
     before, on, or after the date of the enactment of this Act as 
     a traditional ingredient in the production of fermented 
     beverages.

     SEC. 6023. SIMPLIFICATION OF RULES REGARDING RECORDS, 
                   STATEMENTS, AND RETURNS.

       (a) In General.--Subsection (a) of section 5555 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following: ``The Secretary shall permit a person to 
     employ a unified system for any records, statements, and 
     returns required to be kept, rendered, or made under this 
     section for any beer produced in the brewery for which the 
     tax imposed by section 5051 has been determined, including 
     any beer which has been removed for consumption on the 
     premises of the brewery.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to any calendar quarters beginning more than 1 
     year after the date of the enactment of this Act.

     SEC. 6024. TRANSFER OF BEER BETWEEN BONDED FACILITIES.

       (a) In General.--Section 5414 of the Internal Revenue Code 
     of 1986 is amended to read as follows:

     ``SEC. 5414. TRANSFER OF BEER BETWEEN BONDED FACILITIES.

       ``(a) In General.--Beer may be removed from one brewery to 
     another bonded brewery, without payment of tax, and may be 
     mingled with beer at the receiving brewery, subject to such 
     conditions, including payment of the tax, and in such 
     containers, as the Secretary by regulations shall prescribe, 
     which shall include--
       ``(1) any removal from one brewery to another brewery 
     belonging to the same brewer,
       ``(2) any removal from a brewery owned by one corporation 
     to a brewery owned by another corporation when--
       ``(A) one such corporation owns the controlling interest in 
     the other such corporation, or
       ``(B) the controlling interest in each such corporation is 
     owned by the same person or persons, and
       ``(3) any removal from one brewery to another brewery 
     when--
       ``(A) the proprietors of transferring and receiving 
     premises are independent of each other and neither has a 
     proprietary interest, directly or indirectly, in the business 
     of the other, and
       ``(B) the transferor has divested itself of all interest in 
     the beer so transferred and the transferee has accepted 
     responsibility for payment of the tax.
       ``(b) Transfer of Liability for Tax.--For purposes of 
     subsection (a)(3), such relief from liability shall be 
     effective from the time of removal from the transferor's 
     bonded premises, or from the time of divestment of interest, 
     whichever is later.''.
       (b) Removal From Brewery by Pipeline.--Section 5412 of the 
     Internal Revenue Code of 1986 is amended by inserting 
     ``pursuant to section 5414 or'' before ``by pipeline''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any calendar quarters beginning more than 1 
     year after the date of the enactment of this Act.

                            Subtitle C--Wine

     SEC. 6031. REDUCED RATE OF EXCISE TAX ON CERTAIN WINE.

       (a) In General.--Section 5041(c) of the Internal Revenue 
     Code of 1986 is amended--
       (1) in the heading, by striking ``for Small Domestic 
     Producers'',
       (2) by amending paragraph (1) to read as follows:
       ``(1) Allowance of credit.--
       ``(A) In general.--There shall be allowed as a credit 
     against any tax imposed by this title (other than chapters 2, 
     21, and 22) an amount equal to the sum of--
       ``(i) $1 per wine gallon on the first 30,000 wine gallons 
     of wine, plus
       ``(ii) 90 cents per wine gallon on the first 100,000 wine 
     gallons of wine to which clause (i) does not apply, plus
       ``(iii) 53.5 cents per wine gallon on the first 620,000 
     wine gallons of wine to which clauses (i) and (ii) do not 
     apply,

     on wine gallons produced by the producer or imported by the 
     importer which are removed during the calendar year for 
     consumption or sale by such producer or imported into the 
     United States in such year by such importer.
       ``(B) Adjustment of credit for hard cider.--In the case of 
     wine described in subsection (b)(6), subparagraph (A) of this 
     paragraph shall be applied--
       ``(i) in clause (i) of such subparagraph, by substituting 
     `6.2 cents' for `$1',
       ``(ii) in clause (ii) of such subparagraph, by substituting 
     `5.6 cents' for `90 cents', and
       ``(iii) in clause (iii) of such subparagraph, by 
     substituting `3.3 cents' for `53.5 cents'.'',
       (3) by striking paragraph (2),
       (4) by redesignating paragraphs (3) through (7) as 
     paragraphs (2) through (6), respectively, and
       (5) by amending paragraph (6), as redesignated by paragraph 
     (4) of this subsection, to read as follows:
       ``(6) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection, including regulations to ensure proper 
     calculation of the credit provided in this subsection.''.
       (b) Controlled Group and Single Taxpayer Rules.--Paragraph 
     (3) of section 5041(c), as redesignated by subsection (a)(4), 
     is amended by striking ``section 5051(a)(2)(B)'' and 
     inserting ``section 5051(a)(5)''.
       (c) Allowance of Credit for Foreign Manufacturers and 
     Importers.--Subsection (c) of section 5041 of the Internal 
     Revenue Code of 1986, as amended by subsection (a), is 
     amended--
       (1) in subparagraph (A) of paragraph (1), by inserting 
     ``and assigned to such electing importer pursuant to 
     paragraph (6)'' after ``by such importer'',
       (2) by redesignating paragraph (6) as paragraph (7), and
       (3) by inserting after paragraph (5) the following new 
     paragraph:

[[Page 3856]]

       ``(6) Allowance of credit for foreign manufacturers and 
     importers.--
       ``(A) In general.--In the case of any wine gallons of wine 
     which have been produced outside of the United States and 
     imported into the United States, the credit allowable under 
     paragraph (1) (referred to in this paragraph as the `tax 
     credit') may be assigned by the person who produced such wine 
     (referred to in this paragraph as the `foreign producer'), 
     provided that such person makes an election described in 
     subparagraph (B)(ii), to any electing importer of such wine 
     gallons pursuant to the requirements established by the 
     Secretary of the Treasury under subparagraph (B).
       ``(B) Assignment.--The Secretary of the Treasury, in 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of the Department of Homeland Security, 
     shall, through such rules, regulations, and procedures as are 
     determined appropriate, establish procedures for assignment 
     of the tax credit provided under this paragraph, which shall 
     include--
       ``(i) a limitation to ensure that the number of wine 
     gallons of wine for which the tax credit has been assigned by 
     a foreign producer to any importer does not exceed the number 
     of wine gallons of wine produced by such foreign producer 
     during the calendar year which were imported into the United 
     States by such importer,
       ``(ii) procedures that allow the election of a foreign 
     producer to assign and an importer to receive the tax credit 
     provided under this paragraph,
       ``(iii) requirements that the foreign producer provide any 
     information as the Secretary determines necessary and 
     appropriate for purposes of carrying out this paragraph, and
       ``(iv) procedures that allow for revocation of eligibility 
     of the foreign producer and the importer for the tax credit 
     provided under this paragraph in the case of any erroneous or 
     fraudulent information provided under clause (iii) which the 
     Secretary deems to be material to qualifying for such credit.
       ``(C) Controlled group.--For purposes of this section, any 
     importer making an election described in subparagraph (B)(ii) 
     shall be deemed to be a member of the controlled group of the 
     foreign producer, as described under paragraph (3).''.
       (d) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall apply to wine removed after 
     September 30, 2018.
       (2) Proration.--For purposes of the fourth calendar quarter 
     of 2018, the Secretary of the Treasury (or the Secretary's 
     delegate) shall issue such guidance, rules, or regulations as 
     are deemed appropriate to provide that the amendments made by 
     this section are applied on a prorated basis for purposes of 
     wine removed during such quarter.

     SEC. 6032. ADJUSTMENT OF ALCOHOL CONTENT LEVEL FOR 
                   APPLICATION OF EXCISE TAX RATES.

       (a) In General.--Paragraphs (1) and (2) of section 5041(b) 
     of the Internal Revenue Code of 1986 are amended by striking 
     ``14 percent'' each place it appears and inserting ``16 
     percent''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to wine removed during calendar years beginning 
     after December 31, 2017.

     SEC. 6033. DEFINITION OF MEAD AND LOW ALCOHOL BY VOLUME WINE.

       (a) In General.--Section 5041 of the Internal Revenue Code 
     of 1986, as amended by section 335 of the Protecting 
     Americans from Tax Hikes Act of 2015, is amended--
       (1) in subsection (a), by striking ``Still wines'' and 
     inserting ``Subject to subsection (h), still wines'', and
       (2) by adding at the end the following new subsection:
       ``(h) Mead and Low Alcohol by Volume Wine.--
       ``(1) In general.--For purposes of subsections (a) and 
     (b)(1), mead and low alcohol by volume wine shall be deemed 
     to be still wines containing not more than 16 percent of 
     alcohol by volume.
       ``(2) Definitions.--
       ``(A) Mead.--For purposes of this section, the term `mead' 
     means a wine--
       ``(i) containing not more than 0.64 gram of carbon dioxide 
     per hundred milliliters of wine, except that the Secretary 
     may by regulations prescribe such tolerances to this 
     limitation as may be reasonably necessary in good commercial 
     practice,
       ``(ii) which is derived solely from honey and water,
       ``(iii) which contains no fruit product or fruit flavoring, 
     and
       ``(iv) which contains less than 8.5 percent alcohol by 
     volume.
       ``(B) Low alcohol by volume wine.--For purposes of this 
     section, the term `low alcohol by volume wine' means a wine--
       ``(i) containing not more than 0.64 gram of carbon dioxide 
     per hundred milliliters of wine, except that the Secretary 
     may by regulations prescribe such tolerances to this 
     limitation as may be reasonably necessary in good commercial 
     practice,
       ``(ii) which is derived--

       ``(I) primarily from grapes, or
       ``(II) from grape juice concentrate and water,

       ``(iii) which contains no fruit product or fruit flavoring 
     other than grape, and
       ``(iv) which contains less than 8.5 percent alcohol by 
     volume.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to wine removed during calendar years beginning 
     after December 31, 2017.

                     Subtitle D--Distilled Spirits

     SEC. 6041. REDUCED RATE OF EXCISE TAX ON CERTAIN DISTILLED 
                   SPIRITS.

       (a) In General.--Section 5001 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (c) as 
     subsection (d) and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Reduced Rate.--
       ``(1) In general.--In the case of a distilled spirits 
     operation, the otherwise applicable tax rate under subsection 
     (a)(1) shall be--
       ``(A) $2.70 per proof gallon on the first 100,000 proof 
     gallons of distilled spirits, and
       ``(B) $13.34 per proof gallon on the first 22,130,000 of 
     proof gallons of distilled spirits to which subparagraph (A) 
     does not apply,

     on proof gallons which have been distilled or processed by 
     such operation or imported by the importer which are removed 
     during the calendar year for consumption or sale by such 
     operation or imported into the United States in such year by 
     such importer.
       ``(2) Controlled groups.--
       ``(A) In general.--In the case of a controlled group, the 
     proof gallon quantities specified under subparagraphs (A) and 
     (B) of paragraph (1) shall be applied to such group and 
     apportioned among the members of such group in such manner as 
     the Secretary or his delegate shall by regulations prescribe.
       ``(B) Definition.--For purposes of subparagraph (A), the 
     term `controlled group' shall have the meaning given such 
     term by subsection (a) of section 1563, except that `more 
     than 50 percent' shall be substituted for `at least 80 
     percent' each place it appears in such subsection.
       ``(C) Rules for non-corporations.--Under regulations 
     prescribed by the Secretary, principles similar to the 
     principles of subparagraphs (A) and (B) shall be applied to a 
     group under common control where one or more of the persons 
     is not a corporation.
       ``(D) Single taxpayer.--Pursuant to rules issued by the 
     Secretary, 2 or more entities (whether or not under common 
     control) that produce distilled spirits marketed under a 
     similar brand, license, franchise, or other arrangement shall 
     be treated as a single taxpayer for purposes of the 
     application of this subsection.''.
       (b) Conforming Amendment.--Section 7652(f)(2) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``section 5001(a)'' and inserting ``subsection (a)(1) of 
     section 5001, determined as if subsection (c)(1) of such 
     section did not apply''.
       (c) Application of Reduced Tax Rate for Foreign 
     Manufacturers and Importers.--Subsection (c) of section 5001 
     of the Internal Revenue Code of 1986, as added by subsection 
     (a), is amended--
       (1) in paragraph (1), by inserting ``and assigned to such 
     electing importer pursuant to paragraph (3)'' after ``by such 
     importer'', and
       (2) by adding at the end the following new paragraph:
       ``(3) Reduced tax rate for foreign manufacturers and 
     importers.--
       ``(A) In general.--In the case of any proof gallons of 
     distilled spirits which have been produced outside of the 
     United States and imported into the United States, the rate 
     of tax applicable under paragraph (1) (referred to in this 
     paragraph as the `reduced tax rate') may be assigned by the 
     distilled sprits operation (provided that such operation 
     makes an election described in subparagraph (B)(ii)) to any 
     electing importer of such proof gallons pursuant to the 
     requirements established by the Secretary of the Treasury 
     under subparagraph (B).
       ``(B) Assignment.--The Secretary of the Treasury, in 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of the Department of Homeland Security, 
     shall, through such rules, regulations, and procedures as are 
     determined appropriate, establish procedures for assignment 
     of the reduced tax rate provided under this paragraph, which 
     shall include--
       ``(i) a limitation to ensure that the number of proof 
     gallons of distilled spirits for which the reduced tax rate 
     has been assigned by a distilled spirits operation to any 
     importer does not exceed the number of proof gallons produced 
     by such operation during the calendar year which were 
     imported into the United States by such importer,
       ``(ii) procedures that allow the election of a distilled 
     spirits operation to assign and an importer to receive the 
     reduced tax rate provided under this paragraph,
       ``(iii) requirements that the distilled spirits operation 
     provide any information as the Secretary determines necessary 
     and appropriate for purposes of carrying out this paragraph, 
     and
       ``(iv) procedures that allow for revocation of eligibility 
     of the distilled spirits operation and the importer for the 
     reduced tax rate provided under this paragraph in the case of 
     any erroneous or fraudulent information provided under clause 
     (iii) which the Secretary deems to be material to qualifying 
     for such reduced rate.

[[Page 3857]]

       ``(C) Controlled group.--For purposes of this section, any 
     importer making an election described in subparagraph (B)(ii) 
     shall be deemed to be a member of the controlled group of the 
     distilled spirits operation, as described under paragraph 
     (2).''.
       (d) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall apply to distilled spirits removed 
     after September 30, 2018.
       (2) Proration.--For purposes of the fourth calendar quarter 
     of 2018, the Secretary of the Treasury (or the Secretary's 
     delegate) shall issue such guidance, rules, or regulations as 
     are deemed appropriate to provide that the amendments made by 
     this section are applied on a prorated basis for purposes of 
     distilled spirits removed during such quarter.

     SEC. 6042. BULK DISTILLED SPIRITS.

       (a) In General.--Section 5212 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by striking ``Bulk distilled spirits on which'' and 
     inserting ``Distilled spirits on which'', and
       (2) by striking ``bulk'' each place it appears.
       (b) Effective Date.--The amendments made by this section 
     shall apply distilled spirits transferred in bond in any 
     calendar quarters beginning more than 1 year after the date 
     of the enactment of this Act.

                 Subtitle E--Excise Tax Administration

     SEC. 6051. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE 
                   TAXES.

       (a) In General.--Section 6103(o) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(3) Taxes imposed by section 4481.--Returns and return 
     information with respect to taxes imposed by section 4481 
     shall be open to inspection by or disclosure to officers and 
     employees of United States Customs and Border Protection of 
     the Department of Homeland Security whose official duties 
     require such inspection or disclosure for purposes of 
     administering such section.''.
       (b) Conforming Amendments.--Paragraph (4) of section 
     6103(p) of the Internal Revenue Code of 1986 is amended by 
     striking ``or (o)(1)(A)'' each place it appears and inserting 
     ``, (o)(1)(A) or (o)(3)''.
                                 ______
                                 
  SA 3540. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. STUDY ON THE EFFECT OF NEXT GENERATION AIR 
                   TRANSPORTATION SYSTEM ON THE HUMAN ENVIRONMENT.

       (a) Study.--
       (1) In general.--Not later than 270 days after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall, in consultation with State and local 
     governments and where applicable local resident advisory 
     committees, conduct a study of the effect of the Next 
     Generation Air Transportation System of the Federal Aviation 
     Administration on the human environment in the vicinity of 
     large hub airports and selected medium hub airports located 
     in densely populated areas.
       (2) Contents.--The study required by subsection (a) shall 
     include the following:
       (A) An analysis regarding the increase in noise related 
     complaints in communities located near large hub airports and 
     selected medium hub airports located in densely populated 
     areas since the implementation of the Next Generation Air 
     Transportation System.
       (B) A review and evaluation of the Administration's current 
     policies and abilities to respond and address these concerns.
       (C) An evaluation of the human environment and health 
     effects of increased flight traffic in these communities, 
     including concerns regarding aircraft noise, pollution, and 
     safety.
       (D) An analysis of how Next Generation Air Transportation 
     System flight paths could be altered to better distribute the 
     noise caused by these flights.
       (E) Recommendations on the best and most cost-effective 
     approaches to address increased noise complaints associated 
     with the Next Generation Air Transportation System.
       (F) Such other maters relating to the Next Generation Air 
     Transportation System as the Comptroller General considers 
     appropriate.
       (b) Report.--Not later than 270 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the results of the study conducted 
     under subsection (a), including the Comptroller General's 
     findings, conclusions, and recommendations with respect to 
     the study.
                                 ______
                                 
  SA 3541. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title IV, add the following:

                Subtitle C--Accountability to Community

     SEC. 4301. SHORT TITLE.

       This subtitle may be cited as the ``FAA Community 
     Accountability Act of 2016''.

     SEC. 4302. FLIGHT PATHS AND PROCEDURES.

       Notwithstanding any other provision of law, in considering 
     new or revised flight paths or procedures as part of the 
     implementation of the Next Generation Air Transportation 
     System, the Administrator of the Federal Aviation 
     Administration--
       (1) shall take actions to limit negative impacts on the 
     human environment in the vicinity of an affected airport; and
       (2) may give preference to overlays of existing flight 
     paths or procedures to ensure compatibility with land use in 
     the vicinity of an affected airport.

     SEC. 4303. FEDERAL AVIATION ADMINISTRATION COMMUNITY 
                   OMBUDSMAN.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Administrator of the Federal 
     Aviation Administration shall appoint a Federal Aviation 
     Administration Community Ombudsman for each region of the 
     Federal Aviation Administration.
       (b) Duties.--The Ombudsmen appointed in accordance with 
     subsection (a) shall--
       (1) act as a liaison between affected communities and the 
     Administrator with respect to problems related to the impact 
     of commercial aviation on the human environment, including 
     concerns regarding aircraft noise, pollution, and safety;
       (2) monitor the impact of the implementation of the Next 
     Generation Air Transportation System on communities in the 
     vicinity of affected airports;
       (3) make recommendations to the Administrator--
       (A) to address concerns raised by communities; and
       (B) to improve the use of community comments in 
     Administration decisionmaking processes; and
       (4) report to Congress periodically on issues related to 
     the impact of commercial aviation on the human environment 
     and on Administration responsiveness to concerns raised by 
     affected communities.

     SEC. 4304. COMMUNITY ENGAGEMENT.

       (a) In General.--Notwithstanding any other provision of 
     law, in implementing the Next Generation Air Transportation 
     System, the Administrator of the Federal Aviation 
     Administration may not treat the establishment or revision of 
     a flight path or procedure as covered by a categorical 
     exclusion (as defined in section 1508.4 of title 40, Code of 
     Federal Regulations) if an Federal Aviation Administration 
     Community Ombudsman or the operator of an airport affected by 
     such establishment or revision submits written notification 
     to the Administrator that--
       (1) extraordinary circumstances exist; or
       (2) the establishment or revision will have a significant 
     adverse impact on the human environment in the vicinity of 
     such airport.
       (b) Notifications.--At least 30 days before treating the 
     establishment or revision of a flight path or procedure as 
     covered by a categorical exclusion, the Administrator shall 
     provide notice and an opportunity for comment to persons 
     affected by such establishment or revision, including the 
     operator of any affected airport.

     SEC. 4305. RECONSIDERATION OF CERTAIN FLIGHT PATHS AND 
                   PROCEDURES.

       (a) In General.--Notwithstanding any other provision of 
     law, the Administrator of the Federal Aviation Administration 
     shall reconsider a flight path or procedure established or 
     revised after February 14, 2012, as part of the 
     implementation of the Next Generation Air Transportation 
     System if a Federal Aviation Administration Community 
     Ombudsman or the operator of an airport affected by such 
     establishment or revision submits written notification to the 
     Administrator that the establishment or revision is resulting 
     in a significant adverse impact on the human environment in 
     the vicinity of such airport.
       (b) Process.--In reconsidering a flight path or procedure 
     under subsection (a), the Administrator shall--
       (1) provide notice of the reconsideration and an 
     opportunity for public comment;
       (2) assess the impacts on the human environment of such 
     flight path or procedure; and
       (3) not later than 180 days after the date on which the 
     relevant notification was received, submit to Congress and 
     make available to the public a report that--
       (A) addresses comments received pursuant to paragraph (1);
       (B) describes the results of the assessment carried out 
     under paragraph (2); and
       (C) describes any changes to be made to such flight path or 
     procedure or the justification for not making any change.
                                 ______
                                 
  SA 3542. Mr. HOEVEN (for himself and Mr. Tester) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to

[[Page 3858]]

the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. STATE REGULATION OF AIR AMBULANCE SERVICE PROVIDERS.

       Notwithstanding any other provision of law or regulation, 
     including section 41713 of title 49, United States Code, a 
     State may enact or enforce a law, regulation, or other 
     provision having the force and effect of law that regulates 
     the price or service of an air carrier that provides air 
     ambulance service in that State.
                                 ______
                                 
  SA 3543. Mr. HOEVEN (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 117, line 17, insert after ``subsection (a).'' the 
     following: ``In developing and carrying out the pilot program 
     under this subsection, the Administrator shall, to the 
     maximum extent practicable, leverage the capabilities of and 
     utilize the Center of Excellence for Unmanned Aircraft 
     Systems and the test sites established under section 332(c) 
     of the FAA Modernization and Reform Act of 2012 (Public Law 
     112-95; 49 U.S.C. 40101 note).''.
                                 ______
                                 
  SA 3544. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 636, to amend the Internal Revenue 
Code of 1986 to permanently extend increased expensing limitations, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end of subsection (a) of section 3114 add the 
     following:
       (5) by adding after subsection (d), as redesignated, the 
     following:
       ``(e) Reporting Requirement.--Upon receipt of any 
     complaint, an air carrier shall send the content of the 
     complaint to the Aviation Consumer Protection Division of the 
     Department of Transportation.''.
                                 ______
                                 
  SA 3545. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed to amendment SA 3464 submitted by Mr. Thune (for himself and 
Mr. Nelson) to the bill H.R. 636, to amend the Internal Revenue Code of 
1986 to permanently extend increased expensing limitations, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title III, add the following:

     SEC. 3124. IMPROVING AIRLINE COMPETITIVENESS.

       (a) Findings.--Congress makes the following findings:
       (1) The people of the United States and the United States 
     economy depend on a strong and competitive passenger air 
     transportation industry to move people and goods in the 
     fastest, most efficient manner.
       (2) In a global economy, air carriers connect the people of 
     the United States with the rest of the world. A strong air 
     transportation industry is essential to the ability of the 
     United States to compete in the international marketplace.
       (3) A strong air transportation industry depends on 
     competition between a number of air carriers servicing a 
     variety of routes for domestic and international travelers, 
     at both the national and local levels.
       (4) Important stakeholders contribute to, and are dependent 
     on, a robust air transportation industry, including--
       (A) business and leisure travelers;
       (B) the tourism sector;
       (C) shippers;
       (D) State and local governments and port authorities;
       (E) aircraft manufacturers; and
       (F) domestic and foreign air carriers.
       (5) As a result of the consolidation of United States air 
     carriers, there has been a precipitous decline in the number 
     of major passenger air carriers in the United States.
       (6) In the past few years, the air transportation industry 
     has become increasingly concentrated. In 2015, the top 4 
     major air carriers accounted for 80 percent of passenger air 
     traffic in the United States.
       (7) The continued success of a deregulated air carrier 
     system requires actual competition to encourage all 
     participants in the industry to provide high quality service 
     at competitive fares.
       (8) Further consolidation among air carriers threatens to 
     leave the industry without sufficient competition to ensure 
     that the people of the United States share in the benefits of 
     a well-functioning air transportation industry.
       (b) Establishment of National Commission to Ensure All 
     Americans Have Access to and Benefit From a Strong and 
     Competitive Air Transportation Industry.--There is 
     established a Commission, which shall be known as the 
     ``National Commission to Ensure All Americans Have Access to 
     and Benefit from a Strong and Competitive Air Transportation 
     Industry'' (referred to in this section as the 
     ``Commission'').
       (c) Functions.--
       (1) Study.--The Commission shall conduct a study of the 
     passenger air transportation industry, with priority given to 
     issues specified in subsection (d).
       (2) Policy recommendations.--Based on the results of the 
     study conducted under paragraph (1), the Commission shall 
     recommend to the President and to Congress the adoption of 
     policies that will--
       (A) achieve the national goal of a strong and competitive 
     air carrier system and facilitate the ability of the United 
     States to compete in the global economy;
       (B) provide robust levels of competition and air 
     transportation at reasonable fares in cities of all sizes;
       (C) provide a stable work environment for employees of air 
     carriers;
       (D) account for the interests of different stakeholders 
     that contribute to, and are dependent on, the air 
     transportation industry; and
       (E) provide appropriate levels of protection for consumers, 
     including access to information to enable consumer choice.
       (d) Specific Issues to Be Addressed.--In conducting the 
     study under subsection (c)(1), the Commission shall 
     investigate--
       (1) the current state of competition in the air 
     transportation industry, how the structure of that 
     competition is likely to change during the 5-year period 
     beginning on the date of the enactment of this Act, whether 
     that expected level of competition will be sufficient to 
     secure the consumer benefits of air carrier deregulation, and 
     the effects of--
       (A) air carrier consolidation and practices on consumers, 
     including the competitiveness of fares and services and the 
     ability of consumers to engage in comparison shopping for air 
     carrier fees;
       (B) airfare pricing policies, including whether reduced 
     competition artificially inflates ticket prices;
       (C) the level of competition as of the date of the 
     enactment of this Act on the travel distribution sector, 
     including online and traditional travel agencies and 
     intermediaries;
       (D) economic and other effects on domestic air 
     transportation markets in which 1 or 2 air carriers control 
     the majority of available seat miles;
       (E) the tactics used by incumbent air carriers to compete 
     against smaller, regional carriers, or inhibit new or 
     potential new entrant air carriers into a particular market; 
     and
       (F) the ability of new entrant air carriers to provide new 
     service to underserved markets;
       (2) the legislative and administrative actions that the 
     Federal Government should take to enhance air carrier 
     competition, including changes that are needed in the legal 
     and administrative policies that govern--
       (A) the initial award and the transfer of international 
     routes;
       (B) the allocation of gates and landing rights, 
     particularly at airports dominated by 1 air carrier or a 
     limited number of air carriers;
       (C) frequent flier programs;
       (D) the rights of foreign investors to invest in the 
     domestic air transportation marketplace;
       (E) the access of foreign air carriers to the domestic air 
     transportation marketplace;
       (F) the taxes and user fees imposed on air carriers;
       (G) the responsibilities imposed on air carriers;
       (H) the bankruptcy laws of the United States and related 
     rules administered by the Department of Transportation as 
     such laws and rules apply to air carriers;
       (I) the obligations of failing air carriers to meet pension 
     obligations;
       (J) antitrust immunity for international air carrier 
     alliances and the process for approving such alliances and 
     awarding that immunity;
       (K) competition of air carrier codeshare partnerships and 
     joint ventures; and
       (L) constraints on new entry into the domestic air 
     transportation marketplace;
       (3) whether the policies and strategies of the United 
     States in international air transportation are promoting the 
     ability of United States air carriers to achieve long-term 
     competitive success in international air transportation 
     markets, and to secure the benefits of robust competition, 
     including--
       (A) the general negotiating policy of the United States 
     with respect to international air transportation;
       (B) the desirability of multilateral rather than bilateral 
     negotiations with respect to international air 
     transportation;
       (C) whether foreign countries have developed the necessary 
     infrastructure of airports and airways to enable United 
     States air carriers to provide the service needed to meet the 
     demand for air transportation between the United States and 
     those countries;

[[Page 3859]]

       (D) the desirability of liberalization of United States 
     domestic air transportation markets; and
       (E) the impediments to access by foreign air carriers to 
     routes to and from the United States;
       (4) the effect that air carrier consolidation has had on 
     business and leisure travelers, and travel and tourism more 
     broadly; and
       (5) the effect that air carrier consolidation has had on--
       (A) employment and economic development opportunities of 
     localities, particularly small and mid-size localities; and
       (B) former hub airports, including the positive and 
     negative consequences of routing air traffic through hub 
     airports.
       (e) Membership.--
       (1) Appointment.--The Commission shall be composed of 21 
     members, of whom--
       (A) 7 shall be appointed by the President;
       (B) 4 shall be appointed by the Speaker of the House of 
     Representatives;
       (C) 3 shall be appointed by the minority leader of the 
     House of Representatives;
       (D) 4 shall be appointed by the majority leader of the 
     Senate; and
       (E) 3 shall be appointed by the minority leader of the 
     Senate.
       (2) Qualifications.--
       (A) In general.--Members appointed pursuant to paragraph 
     (1) shall be appointed from among United States citizens who 
     bring knowledge of, and informed insights into, aviation, 
     transportation, travel, and tourism policy.
       (B) Representation.--Members appointed pursuant to 
     paragraph (1) shall be appointed in a manner so that at least 
     1 member of the Commission represents the interests of each 
     of the following:
       (i) The Department of Transportation.
       (ii) The Department of Justice.
       (iii) Legacy, networked air carriers.
       (iv) Non-legacy air carriers.
       (v) Air carrier employees.
       (vi) Large aircraft manufacturers.
       (vii) Ticket agents not part of an Internet-based travel 
     company.
       (viii) Large airports.
       (ix) Small or mid-size airports with commercial service.
       (x) Shippers.
       (xi) Consumers.
       (xii) General aviation.
       (xiii) Local governments or port authorities that operate 
     commercial airports.
       (xiv) Internet-based travel companies.
       (xv) The travel and tourism industry.
       (xvi) Global distribution systems.
       (xvii) Corporate business travelers.
       (3) Terms.--Members shall be appointed for the life of the 
     Commission.
       (4) Chairman.--The Chairman of the Commission shall be 
     elected by the members of the Commission.
       (5) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (6) Travel expenses.--Members shall serve without pay, but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (f) Staff.--The Commission may appoint and fix the pay of 
     such personnel as the Commission considers appropriate.
       (g) Staff of Federal Agencies.--Upon the request of the 
     Commission, the head of any Federal agency may detail, on a 
     reimbursable basis, any of the personnel of that agency to 
     the Commission to assist the Commission in carrying out its 
     duties under this section.
       (h) Administrative Support Services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, the 
     administrative support services necessary for the Commission 
     to carry out its responsibilities under this section.
       (i) Obtaining Official Data.--The Commission may secure 
     directly from any Federal agency information (other than 
     information required by any provision of law to be kept 
     confidential by that agency) that is necessary for the 
     Commission to carry out its duties under this section. Upon 
     the request of the Commission, the head of such agency shall 
     furnish such nonconfidential information to the Commission.
       (j) Report.--Not later than 180 days after the date on 
     which initial appointments of members to the Commission are 
     made under subsection (e)(1), and after a public comment 
     period of not less than 30 days, the Commission shall submit 
     a report to the President and Congress that--
       (1) describes the activities of the Commission;
       (2) includes recommendations made by the Commission under 
     subsection (c)(2); and
       (3) contains a summary of the comments received during the 
     public comment period.
       (k) Termination.--The Commission shall terminate on the 
     date that is 180 days after the date of the submission of the 
     report under subsection (j). Upon the submission of such 
     report, the Commission shall deliver all records and papers 
     of the Commission to the Administrator of General Services 
     for deposit in the National Archives.
                                 ______
                                 
  SA 3546. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 636, to amend the Internal Revenue 
Code of 1986 to permanently extend increased expensing limitations, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title III, add the following:

     SEC. 3214. MODIFICATION OF DEFINITION OF DISABILITY FOR 
                   DISCRIMINATION CLAIMS AGAINST AIR CARRIERS.

       Section 41705(a) is amended to read as follows:
       ``(a) In General.--In providing air transportation, an air 
     carrier, including (subject to section 40105(b)) any foreign 
     air carrier, may not discriminate against an individual on 
     the basis of disability, as defined in section 3 of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12102).''.
                                 ______
                                 
  SA 3547. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed to amendment SA 3464 submitted by Mr. Thune (for himself and 
Mr. Nelson) to the bill H.R. 636, to amend the Internal Revenue Code of 
1986 to permanently extend increased expensing limitations, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of title V, add the following:

     SEC. 5032. REGULATIONS RELATING TO E-CIGARETTES.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Administrator of the Pipeline 
     and Hazardous Materials Safety Administration shall, in 
     coordination and consultation with the Administrator of the 
     Federal Aviation Administration--
       (1) finalize the interim final rule of the Pipeline and 
     Hazardous Materials Safety Administration issued October 30, 
     2015, pertaining to e-cigarettes; and
       (2) expand that rule to prohibit the carrying of battery-
     powered portable electronic smoking devices in checked 
     baggage and in carry-on baggage.
       (b) Definition.--In this section, the term ``battery-
     powered portable electronic smoking devices'' means e-
     cigarettes, e-cigs, e-cigars, e-pipes, e-hookahs, personal 
     vaporizers, and electronic nicotine delivery systems.
                                 ______
                                 
  SA 3548. Mr. BLUMENTHAL (for himself, Mr. Markey, and Ms. Baldwin) 
submitted an amendment intended to be proposed by him to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle A of title III, add the following:

     SEC. 3124. PRIVATE RIGHT OF ACTION FOR DISCRIMINATION CLAIMS 
                   AGAINST AIR CARRIERS.

       Section 41705 is amended--
       ``(d) Civil Action.--
       ``(1) In general.--Any person aggrieved by a violation by 
     an air carrier of this section or a regulation prescribed 
     under this section may, not later than 2 years after the date 
     of the violation, bring a civil action in the district court 
     of the United States in the district in which the person 
     resides, in the district in which the principal place of 
     business of the air carrier is located, or in the district in 
     which the violation occurred.
       ``(2) Relief.--In a civil action brought under paragraph 
     (1) in which the plaintiff prevails--
       ``(A) the plaintiff may obtain equitable and legal relief, 
     including compensatory and punitive damages; and
       ``(B) the court shall award reasonable attorney's fees, 
     reasonable expert fees, and the costs of the action to the 
     plaintiff.
       ``(3) No requirement for exhaustion of remedies.--Any 
     person aggrieved by a violation by an air carrier of this 
     section or a regulation prescribed under this section is not 
     required to exhaust administrative complaint procedures 
     before filing a civil action under paragraph (1).
       ``(4) Rule of construction.--Nothing in this subsection 
     shall be construed to invalidate or limit other Federal or 
     State laws affording to people with disabilities greater 
     legal rights or protections than those granted in this 
     section.''.
                                 ______
                                 
  SA 3549. Mr. MARKEY (for himself and Mr. Whitehouse) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND 
                   FACILITIES.

       (a) In General.--Section 48 of the Internal Revenue Code is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(A)(i)--

[[Page 3860]]

       (i) in subclause (III), by striking ``and'' at the end, and
       (ii) by adding at the end the following new subclause:

       ``(V) qualified offshore wind property, and'', and

       (B) in paragraph (3)(A)--
       (i) in clause (vi), by striking ``or'' at the end,
       (ii) in clause (vii), by adding ``or'' at the end, and
       (iii) by adding at the end the following new clause:
       ``(viii) qualified offshore wind property, but only with 
     respect to periods ending before January 1, 2026,''.
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(5) Qualified offshore wind property.--
       ``(A) In general.--The term `qualified offshore wind 
     property' means an offshore facility using wind to produce 
     electricity.
       ``(B) Offshore facility.--The term `offshore facility' 
     means any facility located in the inland navigable waters of 
     the United States, including the Great Lakes, or in the 
     coastal waters of the United States, including the 
     territorial seas of the United States, the exclusive economic 
     zone of United States, and the outer Continental Shelf of the 
     United States.
       ``(C) Exception for qualified small wind energy property.--
     The term `qualified offshore wind property' shall not include 
     any property described in paragraph (4).''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3550. Mr. PORTMAN (for himself and Mr. Burr) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN 
                   CRITICAL AND DECLINING STATUS.

       (a) ERISA Amendments.--Section 305(e)(9)(H) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 
     1085(e)(9)(H)) is amended--
       (1) in clause (ii)--
       (A) by striking ``Except as provided in clause (v), the'' 
     and inserting ``The''; and
       (B) by striking ``a majority of all participants and 
     beneficiaries of the plan'' and inserting ``, of the 
     participants and beneficiaries of the plan who cast a vote, a 
     majority'';
       (2) by striking clause (v);
       (3) by redesignating clause (vi) as clause (v); and
       (4) in clause (v), as so redesignated--
       (A) by striking ``(or following a determination under 
     clause (v) that the plan is a systemically important plan)''; 
     and
       (B) by striking ``(or, in the case of a suspension that 
     goes into effect under clause (v), at a time sufficient to 
     allow the implementation of the suspension prior to the end 
     of the 90-day period described in clause (v)(I))''.
       (b) IRC Amendments.--Section 432(e)(9)(H) of the Internal 
     Revenue Code of 1986 is amended--
       (1) in clause (ii)--
       (A) by striking ``Except as provided in clause (v), the'' 
     and inserting ``The''; and
       (B) by striking ``a majority of all participants and 
     beneficiaries of the plan'' and inserting ``, of the 
     participants and beneficiaries of the plan who cast a vote, a 
     majority'';
       (2) by striking clause (v);
       (3) by redesignating clause (vi) as clause (v); and
       (4) in clause (v), as so redesignated--
       (A) by striking ``(or following a determination under 
     clause (v) that the plan is a systemically important plan)''; 
     and
       (B) by striking ``(or, in the case of a suspension that 
     goes into effect under clause (v), at a time sufficient to 
     allow the implementation of the suspension prior to the end 
     of the 90-day period described in clause (v)(I))''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to any vote on the suspension of benefits 
     under section 305(e)(9)(H) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1085(e)(9)(H)) and section 
     432(e)(9)(H) of the Internal Revenue Code of 1986 that occurs 
     after the date of enactment of this Act.
                                 ______
                                 
  SA 3551. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title II, add the following:

          PART IV--SAFE OPERATION OF UNMANNED AIRCRAFT SYSTEMS

     SEC. 2161. SHORT TITLE.

       This part may be cited as the ``Safety for Airports and 
     Firefighters by Ensuring Drones Refrain from Obstructing 
     Necessary Equipment Act of 2016'' or the ``SAFE DRONE Act of 
     2016''.

     SEC. 2162. CRIMINAL PENALTY FOR OPERATING DRONES IN CERTAIN 
                   LOCATIONS.

       (a) In General.--Chapter 2 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 40A. Operating drones in certain locations

       ``(a) Offense.--It shall be unlawful for a person to 
     knowingly operate a drone in a restricted area without proper 
     authorization from the Federal Aviation Administration.
       ``(b) Exception.--Subsection (a) shall not apply to 
     operations conducted for purposes of firefighting or 
     emergency response by a Federal, State, or local unit of 
     government (including any individual conducting such 
     operations pursuant to a contract or other agreement entered 
     into with the unit).
       ``(c) Regulations.--Not later than 90 days after the date 
     of the enactment of this section, the Attorney General shall, 
     by regulation, establish penalties for a violation of this 
     section that the Attorney General determines are reasonably 
     calculated to provide a deterrent to operating drones in 
     restricted areas, which may include a term of imprisonment.
       ``(d) Definitions.--In this section--
       ``(1) the term `drone' has the meaning given the term 
     `unmanned aircraft' in section 44801 of title 49;
       ``(2) the terms `large hub airport', `medium hub airport', 
     and `small hub airport' have the meanings given those terms 
     in section 47102 of title 49; and
       ``(3) the term `restricted area' means--
       ``(A) within a 2-mile radius of a small hub airport, medium 
     hub airport, or large hub airport;
       ``(B) within 2 miles of the outermost perimeter of an 
     ongoing firefighting operation involving the Department of 
     Agriculture or the Department of the Interior; or
       ``(C) in an area that is subject to a temporary flight 
     restriction issued by the Administrator of the Federal 
     Aviation Administration.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 2 of title 18, United States Code, is 
     amended by adding at the end the following new item:

``40A. Operating drones in certain locations.''.
                                 ______
                                 
  SA 3552. Mrs. FEINSTEIN (for herself, Mr. Bennet, and Mrs. Boxer) 
submitted an amendment intended to be proposed to amendment SA 3464 
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. MODIFICATIONS TO INCOME EXCLUSION FOR CONSERVATION 
                   SUBSIDIES.

       (a) In General.--Subsection (a) of section 136 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``any subsidy provided'' and inserting 
     ``any subsidy--
       ``(1) provided'',
       (2) by striking the period at the end and inserting a 
     comma, and
       (3) by adding at the end the following new paragraphs:
       ``(2) provided (directly or indirectly) by a public utility 
     to a customer, or by a State or local government to a 
     resident of such State or locality, for the purchase or 
     installation of any water conservation measure, or
       ``(3) provided (directly or indirectly) by a storm water 
     management provider to a customer, or by a State or local 
     government to a resident of such State or locality, for the 
     purchase or installation of any storm water management 
     measure.''.
       (b) Conforming Amendments.--
       (1) Definition of water conservation measure and storm 
     water management measure.--Section 136(c) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by striking ``Energy Conservation Measure'' in the 
     heading thereof and inserting ``Definitions'',
       (B) by striking ``In general'' in the heading of paragraph 
     (1) and inserting ``Energy conservation measure'', and
       (C) by redesignating paragraph (2) as paragraph (4) and by 
     inserting after paragraph (1) the following:
       ``(2) Water conservation measure.--For purposes of this 
     section, the term `water conservation measure' means any 
     installation or modification primarily designed to reduce 
     consumption of water or to improve the management of water 
     demand with respect to a dwelling unit.
       ``(3) Storm water management measure.--For purposes of this 
     section, the term `storm water management measure' means any 
     installation or modification of property primarily designed 
     to reduce or manage

[[Page 3861]]

     amounts of storm water with respect to a dwelling unit.''.
       (2) Definition of public utility.--Section 136(c)(4) of 
     such Code (as redesignated by paragraph (1)(C)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) Public utility.--The term `public utility' means a 
     person engaged in the sale of electricity, natural gas, or 
     water to residential, commercial, or industrial customers for 
     use by such customers.
       ``(C) Storm water management provider.--The term `storm 
     water management provider' means a person engaged in the 
     provision of storm water management measures to the public.
       ``(D) Person.--For purposes of subparagraphs (B) and (C), 
     the term `person' includes the Federal Government, a State or 
     local government or any political subdivision thereof, or any 
     instrumentality of any of the foregoing.''.
       (3) Clerical amendments.--
       (A) The heading of section 136 of such Code is amended--
       (i) by inserting ``and water'' after ``energy'', and
       (ii) by striking ``provided by public utilities''.
       (B) The item relating to section 136 in the table of 
     sections of part III of subchapter B of chapter 1 of such 
     Code is amended--
       (i) by inserting ``and water'' after ``energy'', and
       (ii) by striking ``provided by public utilities''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after January 1, 2015.
       (d) No Inference.--Nothing in this Act or the amendments 
     made by this Act shall be construed to create any inference 
     with respect to the proper tax treatment of any subsidy 
     received directly or indirectly from a public utility, a 
     storm water management provider, or a State or local 
     government for any water conservation measure or storm water 
     management measure before January 1, 2015.
                                 ______
                                 
  SA 3553. Mr. DAINES submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 270, strike lines 2 through 11 and insert the 
     following:
       (a) Rulemaking.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     issue final regulations to require a covered air carrier to 
     promptly provide an automatic refund or other compensation to 
     a passenger if the covered air carrier--
       (A) has charged the passenger an ancillary fee for checked 
     baggage; and
       (B) fails to deliver the checked baggage to the passenger 
     not later than 6 hours after the arrival of a domestic flight 
     or 12 hours after the arrival of an international flight.
       (2) Choice of comparable compensation.--The final 
     regulations issued under paragraph (1) shall not prescribe 
     specific compensation, but shall permit covered air carriers 
     to provide the passenger with a choice of comparable 
     compensation so long as a full refund of the ancillary fee is 
     one of the choices simultaneously offered by the covered air 
     carrier.
                                 ______
                                 
  SA 3554. Mrs. GILLIBRAND (for herself and Mr. Schumer) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title V, add the following:

     SEC. 5023. MINIMUM ALTITUDES FOR HELICOPTERS OVER POPULATED 
                   AREAS.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Administrator shall establish 
     a process for evaluating--
       (1) whether minimum altitude requirements for helicopter 
     routes over populated areas can be safely set for the purpose 
     of reducing noise effects on the surrounding community; and
       (2) in the case of routes for which minimum altitudes 
     cannot be safely set, whether those routes should be 
     otherwise modified, restricted, or eliminated due to 
     excessive noise effects.
       (b) Public Engagement.--In establishing the process 
     required by subsection (a), the Administrator shall--
       (1) review and respond to requests made by States, 
     political subdivisions of States, other elected officials, 
     and community organizations to evaluate specific helicopter 
     routes to reduce noise; and
       (2) provide a means for the public to participate in the 
     process.
                                 ______
                                 
  SA 3555. Mr. FLAKE submitted an amendment intended to be proposed by 
him to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PRIVATE PILOT PRIVILEGES AND LIMITATIONS.

       (a) In General.--Not later than 60 days after the date of 
     the enactment of this Act, the Administrator of the Federal 
     Aviation Administration shall issue or revise regulations to 
     ensure that a person who holds a private pilot certificate 
     may communicate with the public, in any manner the person 
     determines appropriate, to facilitate a covered flight.
       (b) Covered Flight Defined.--In this section, the term 
     ``covered flight'' means an aircraft flight for which the 
     pilot and passengers share operating expenses in accordance 
     with section 61.113(c) of title 14, Code of Federal 
     Regulations, or successor regulation.
                                 ______
                                 
  SA 3556. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ELIMINATION OF EXCLUSION OF CERTAIN DUAL NATIONALS 
                   FROM PARTICIPATION IN THE VISA WAIVER PROGRAM.

       Section 217(a)(12) of the Immigration and Nationality Act 
     (8 U.S.C. 1187(a)(12)) is amended--
       (1) in subparagraph (A)--
       (A) by striking clause (ii);
       (B) by striking ``(C)--'' and all that follows through 
     ``the alien has not been present'' and inserting ``(C), the 
     alien has not been present''; and
       (C) by redesignating subclauses (I), (II), and (III) as 
     clauses (i), (ii), and (iii), respectively, and realigning 
     the margin of each such clause two ems to the left; and
       (2) in subparagraph (B), in the matter preceding clause 
     (i), by striking ``(A)(i)'' and inserting ``(A)''.
                                 ______
                                 
  SA 3557. Mr. FLAKE (for himself, Mr. Leahy, Mr. Durbin, Mr. Enzi, Ms. 
Collins, Mr. Heller, and Mr. Whitehouse) submitted an amendment 
intended to be proposed by him to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. TRAVEL TO CUBA.

       (a) In General.--Notwithstanding any other provision of 
     law, except as provided in subsections (b) and (c)--
       (1) the President may not prohibit or otherwise restrict, 
     directly or indirectly, travel to or from Cuba by United 
     States citizens or legal residents, or any of the 
     transactions incident to such travel, including banking 
     transactions; and
       (2) any regulation in effect on such date of enactment that 
     prohibits or otherwise restricts travel to or from Cuba by 
     United States citizens or legal residents, or any of the 
     transactions incident to such travel, including banking 
     transactions, shall cease to have any force or effect.
       (b) Savings Provision.--Nothing in this section may be 
     construed to limit the authority of the President to restrict 
     travel described in subsection (a), or any transaction 
     incident to such travel, on a case-by-case basis, if such 
     restriction--
       (1) is important to the national security of the United 
     States; or
       (2) is designed to protect the health or safety of United 
     States citizens or legal residents resulting from traveling 
     to or from Cuba.
       (c) Applicability.--This section shall apply to actions 
     taken by the President--
       (1) before the date of the enactment of this Act, which are 
     in effect on such date of enactment; or
       (2) on or after such date of enactment.
                                 ______
                                 
  SA 3558. Mrs. FEINSTEIN (for herself, Mr. Tillis, and Mr. Blumenthal) 
submitted an amendment intended to be proposed to amendment SA 3464 
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R. 
636, to amend the Internal Revenue Code of 1986 to permanently extend 
increased expensing limitations, and for other purposes; which was 
ordered to lie on the table; as follows:


[[Page 3862]]

       Strike section 2152 and insert the following:

     SEC. 2152. EFFECT ON OTHER LAWS.

       (a) Federal Preemption Relating to Manufacture and Design 
     of Civil Unmanned Aircraft Systems.--Subject to the 
     limitations in subsection (c), no State or political 
     subdivision of a State may enact or enforce any law, 
     regulation, or other provision having the force and effect of 
     law relating to the design, manufacture, testing, 
     certification, or maintenance of a civil unmanned aircraft 
     system, including equipment or technology requirements.
       (b) Limited Preemption Relating to Operations of Civil 
     Unmanned Aircraft Systems.--
       (1) Limitations.--Nothing in this title, any amendment made 
     by this title, or any standard, rule, requirement, standard 
     of performance, safety determination, or certification 
     implemented pursuant to this title or any amendment made by 
     this title, shall be construed to preempt any State or local 
     law, regulation, or other provision having the force and 
     effect of law relating to the operation of a civil unmanned 
     aircraft system in the national airspace system, unless the 
     Secretary of Transportation has issued a regulation governing 
     such operation, and only to the extent that the State or 
     local law, regulation, or other provision presents an 
     obstacle to that regulation.
       (2) Protection of state and local interests.--Any Federal 
     regulation relating to the operation of civil unmanned 
     aircraft systems shall preserve, to the greatest extent 
     practicable, legitimate State and local interests in 
     protecting--
       (A) public safety;
       (B) personal privacy;
       (C) private property and land use;
       (D) nuisance and noise pollution;
       (E) public buildings, such as police departments, 
     courthouses, and prisons;
       (F) schools, including institutions of primary, secondary, 
     and higher education;
       (G) stadiums, parks, amusement parks, and beaches;
       (H) power plants, electrical infrastructure, highways, 
     bridges, roads, and other infrastructure; and
       (I) special events, including sporting events, parades, and 
     festivals.
       (c) Additional Limits on Preemption.--Nothing in this 
     title, any amendment made by this title, or any standard, 
     rule, regulation, requirement, standard of performance, 
     safety determination, or certification implemented pursuant 
     to this title or any amendment made by this title, shall be 
     construed to limit, preempt, preclude, displace, or supplant 
     any of the following, whether created before, on, or after 
     the date of the enactment of this Act:
       (1) Any cause of action for personal injury, wrongful 
     death, property damage, or other injury based on negligence, 
     strict liability, products liability, failure to warn, or any 
     other legal theory of liability under any State law, maritime 
     law, or State or Federal common law or statutory theory.
       (2) Any State, local, or Federal statute, policy, or rule 
     creating a remedy for civil relief (including those for civil 
     damage), a penalty for criminal conduct, or another other 
     lawfully imposed penalty, including laws (and the enforcement 
     thereof) relating to trespass, nuisance, voyeurism, privacy, 
     data security, harassment, reckless endangerment, wrongful 
     death, personal injury, property damage, speed limits, land 
     use or other illegal acts arising from the use of unmanned 
     aircraft systems.
       (3) Any right to the exclusive control of the immediate 
     reaches of the airspace above property, as described by the 
     Supreme Court of the United States in United States v. 
     Causby, 328 U.S. 256 (1946).
       (d) Concurrent Enforcement.--
       (1) State and local enforcement authorized.--In any case in 
     which the attorney general of a State, or an official or 
     agency of a State or political subdivision of a State, has 
     reason to believe that an interest of the residents of that 
     State or political subdivision has been or is threatened or 
     adversely affected by any operator of a civil unmanned 
     aircraft who violates any rule, regulation, or standard 
     promulgated under this Act or other provision of Federal law 
     related to the operation of civil unmanned aircraft, the 
     attorney general of the State or official or agency of the 
     State or political subdivision, is authorized to take 
     enforcement action under this subsection.
       (2) Authorized actions.--Enforcement actions authorized 
     under this subsection include--
       (A) a civil action on behalf of the residents of a State or 
     political subdivision of a State in State court or in a 
     district court of the United States of appropriate 
     jurisdiction to enjoin further violation of Federal law;
       (B) appropriate monetary penalties as may be authorized 
     under the laws and procedures of the State or political 
     subdivision; and
       (C) an order to produce the proof of passage of the 
     aeronautical knowledge and safety test described in section 
     44808(a)(7) of title 49, United States Code.
       (3) Guidance.--The Administrator of the Federal Aviation 
     Administration shall issue guidance to State and local 
     governments with respect to enforcement under this subsection 
     that clearly and concisely describes the requirements of 
     Federal law and regulations as applicable to operators of 
     civil unmanned aircraft to enable enforcement as described in 
     paragraph (2).
                                 ______
                                 
  SA 3559. Mr. WARNER submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 23, strike line 17 and all that follows 
     through page 24, line 6, and insert the following:
       (A) in consultation with airport operators, general 
     aviation users, and the exclusive representative certified to 
     represent air traffic controllers under section 7111 of title 
     5, United States Code, a pilot program at public-use airports 
     to construct and operate remote towers; and
       (B) a selection process for participation in the pilot 
     program.
       (2) Safety considerations.--In establishing the pilot 
     program, the Administrator shall consult with operators of 
     remote towers in foreign countries to design the pilot 
     program in a manner that leverages as many safety and 
     airspace efficiency benefits as possible.
       (3) Requirements.--In selecting the airports for 
     participation in the pilot program, the Administrator shall--
       (A) complete a Safety Risk Management Panel (SRM-P) for the 
     pilot program at the current pilot program location;
                                 ______
                                 
  SA 3560. Mr. WARNER (for himself and Mr. Hoeven) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 73, strike line 24 and all that follows 
     through page 74, line 12, and insert the following:
       (a) Research Plan.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Transportation 
     and the United States Unmanned Aircraft System Executive 
     Committee shall, in coordination with industry, users, the 
     Center of Excellence for Unmanned Aircraft Systems, and test 
     site operators, jointly develop a research plan to identify 
     ongoing research into the broad range of technical, 
     procedural, and policy concerns arising from the integration 
     of unmanned aircraft systems into the national airspace 
     system, and research needs regarding those concerns.
       (2) Milestones and goals.--
       (A) In general.--The plan required by paragraph (1) shall 
     include--
       (i) milestones with specific dates; and
       (ii) near-term goals and specific goals after 5 years, 
     after 10 years, and for the period beyond 10 years.
       (B) Integration of larger unmanned aircraft systems.--Goals 
     required by subparagraph (A)(ii) shall include goals relating 
     to integration into the national airspace system of unmanned 
     aircraft systems that are heavier than 55 pounds and fly 
     higher than 500 feet above ground level.
       (3) Integration with next generation air transportation 
     system.--The plan required by paragraph (1) shall specify 
     where and how integration of unmanned aircraft systems into 
     the national airspace system fits within ongoing programs and 
     research relating to the Next Generation Air Transportation 
     System
       (4) Specification of funds required.--The plan required by 
     paragraph (1) shall specify the amount of funds necessary to 
     achieve the integration of unmanned aircraft systems, of all 
     sizes and at all altitudes, into the national airspace 
     system.
       (5) Engagement with appropriate entities.--In developing 
     the plan, the Administrator shall determine and engage the 
     appropriate entities to meet the research needs identified in 
     the plan.
                                 ______
                                 
  SA 3561. Mr. WARNER submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 119, line 18, insert ``, or certified commercial 
     operators operating under contract with a public entity,'' 
     after ``operators''.
                                 ______
                                 
  SA 3562. Mr. WARNER (for himself and Mr. Blunt) submitted an 
amendment intended to be proposed by him

[[Page 3863]]

to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

                         DIVISION B--BRIDGE ACT

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Building and Renewing Infrastructure for Development and 
     Growth in Employment Act'' or the ``BRIDGE Act''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.

              TITLE I--INFRASTRUCTURE FINANCING AUTHORITY

Sec. 101. Establishment and general authority of IFA.
Sec. 102. Voting members of the Board of Directors.
Sec. 103. Chief executive officer of IFA.
Sec. 104. Powers and duties of the Board of Directors.
Sec. 105. Senior management.
Sec. 106. Office of Technical and Rural Assistance.
Sec. 107. Special Inspector General for IFA.
Sec. 108. Other personnel.
Sec. 109. Compliance.

  TITLE II--TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN GUARANTEES

Sec. 201. Eligibility criteria for assistance from IFA and terms and 
              limitations of loans.
Sec. 202. Loan terms and repayment.
Sec. 203. Environmental permitting process improvements.
Sec. 204. Compliance and enforcement.
Sec. 205. Audits; reports to the President and Congress.
Sec. 206. Effect on other laws.

                       TITLE III--FUNDING OF IFA

Sec. 301. Fees.
Sec. 302. Self-sufficiency of IFA.
Sec. 303. Funding.
Sec. 304. Contract authority.
Sec. 305. Limitation on authority.

     TITLE IV--TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS

Sec. 401. National limitation on amount of tax-exempt financing for 
              facilities.

                       TITLE V--BUDGETARY EFFECTS

Sec. 501. Budgetary effects.

     SEC. 2. PURPOSE.

       The purpose of this division is to facilitate investment 
     in, and the long-term financing of, economically viable 
     eligible infrastructure projects of regional or national 
     significance that are in the public interest in a manner that 
     complements existing Federal, State, local, and private 
     funding sources for these projects and introduces a merit-
     based system for financing those projects, in order to 
     mobilize significant private sector investment, create long-
     term jobs, and ensure United States competitiveness through a 
     self-sustaining institution that limits the need for ongoing 
     Federal funding.

     SEC. 3. DEFINITIONS.

       In this division:
       (1) Blind trust.--The term ``blind trust'' means a trust in 
     which the beneficiary has no knowledge of the specific 
     holdings and no rights over how those holdings are managed by 
     the fiduciary of the trust prior to the dissolution of the 
     trust.
       (2) Board of directors.--The term ``Board of Directors'' 
     means the Board of Directors of IFA.
       (3) Chairperson.--The term ``Chairperson'' means the 
     Chairperson of the Board of Directors of IFA.
       (4) Chief executive officer.--The term ``Chief Executive 
     Officer'' means the chief executive officer of IFA, appointed 
     under section 103.
       (5) Cost.--The term ``cost'' has the meaning given the term 
     in section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a).
       (6) Direct loan.--The term ``direct loan'' has the meaning 
     given the term in section 502 of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a).
       (7) Eligible entity.--The term ``eligible entity'' means--
       (A) an individual;
       (B) a corporation;
       (C) a partnership, including a public-private partnership;
       (D) a joint venture;
       (E) a trust;
       (F) a State or any other governmental entity, including a 
     political subdivision or any other instrumentality of a 
     State; or
       (G) a revolving fund.
       (8) Eligible infrastructure project.--
       (A) In general.--The term ``eligible infrastructure 
     project'' means the construction, consolidation, alteration, 
     or repair of the following sectors:
       (i) Intercity passenger or freight rail lines, intercity 
     passenger rail facilities or equipment, and intercity freight 
     rail facilities or equipment.
       (ii) Intercity passenger bus facilities or equipment.
       (iii) Public transportation facilities or equipment.
       (iv) Highway facilities, including bridges and tunnels.
       (v) Airports and air traffic control systems.
       (vi) Port or marine terminal facilities, including 
     approaches to marine terminal facilities or inland port 
     facilities, and port or marine equipment, including fixed 
     equipment to serve approaches to marine terminals or inland 
     ports.
       (vii) Transmission or distribution pipelines.
       (viii) Inland waterways.
       (ix) Intermodal facilities or equipment related to 2 or 
     more of the sectors described in clauses (i) through (viii).
       (x) Water treatment and solid waste disposal facilities.
       (xi) Storm water management systems.
       (xii) Dams and levees.
       (xiii) Facilities or equipment for energy transmission, 
     distribution or storage.
       (B) Authority of the board of directors to modify 
     sectors.--The Board of Directors may make modifications, at 
     the discretion of the Board, to any of the sectors described 
     in subparagraph (A) by a vote of not fewer than 5 of the 
     voting members of the Board of Directors.
       (9) IFA.--The term ``IFA'' means the Infrastructure 
     Financing Authority established under section 101.
       (10) Investment-grade rating.--The term ``investment-grade 
     rating'' means a rating of BBB minus, Baa3, or higher 
     assigned to an eligible infrastructure project by a ratings 
     agency.
       (11) Loan guarantee.--The term ``loan guarantee'' has the 
     meaning given the term in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a).
       (12) OTRA.--The term ``OTRA'' means the Office of Technical 
     and Rural Assistance created pursuant to section 106.
       (13) Public-private partnership.--The term ``public-private 
     partnership'' means any eligible entity--
       (A)(i) that is undertaking the development of all or part 
     of an eligible infrastructure project that will have a 
     measurable public benefit, pursuant to requirements 
     established in 1 or more contracts between the entity and a 
     State or an instrumentality of a State; or
       (ii) the activities of which, with respect to such an 
     eligible infrastructure project, are subject to regulation by 
     a State or any instrumentality of a State;
       (B) that owns, leases, or operates or will own, lease, or 
     operate, the project in whole or in part; and
       (C) the participants in which include not fewer than 1 
     nongovernmental entity with significant investment and some 
     control over the project or entity sponsoring the project 
     vehicle.
       (14) Rating agency.--The term ``rating agency'' means a 
     credit rating agency registered with the Securities and 
     Exchange Commission as a nationally recognized statistical 
     rating organization (as defined in section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
       (15) Regional infrastructure accelerator.--The term 
     ``regional infrastructure accelerator'' means an organization 
     created by public sector agencies through a multi-
     jurisdictional or multi-state agreement to provide technical 
     assistance to local jurisdictions that will facilitate the 
     implementation of innovative financing and procurement models 
     to public infrastructure projects.
       (16) Rural infrastructure project.--The term ``rural 
     infrastructure project''--
       (A) has the same meaning given the term in section 601(15) 
     of title 23, United States Code; and
       (B) includes any eligible infrastructure project sector 
     described in clauses (i) through (xvii) of paragraph (8)(A) 
     located in any area other than a city with a population of 
     more than 250,000 inhabitants within the city limits.
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the designee of the Secretary of the 
     Treasury.
       (18) Senior management.--The term ``senior management'' 
     means the chief financial officer, chief risk officer, chief 
     compliance officer, general counsel, chief lending officer, 
     and chief operations officer of IFA, and such other officers 
     as the Board of Directors may, by majority vote, add to 
     senior management.
       (19) State.--The term ``State'' means--
       (A) each of the several States of the United States; and
       (B) the District of Columbia.

              TITLE I--INFRASTRUCTURE FINANCING AUTHORITY

     SEC. 101. ESTABLISHMENT AND GENERAL AUTHORITY OF IFA.

       (a) Establishment of IFA.--The Infrastructure Financing 
     Authority is established as a wholly owned Government 
     corporation.
       (b) General Authority of IFA.--IFA shall--
       (1) provide direct loans and loan guarantees to facilitate 
     eligible infrastructure projects that are economically 
     viable, in the public interest, and of regional or national 
     significance; and
       (2) carry out any other activities and duties authorized 
     under this division.
       (c) Incorporation.--

[[Page 3864]]

       (1) In general.--The Board of Directors first appointed 
     shall be deemed the incorporator of IFA, and the 
     incorporation shall be held to have been effected from the 
     date of the first meeting of the Board of Directors.
       (2) Corporate office.--IFA shall--
       (A) maintain an office in Washington, DC; and
       (B) for purposes of venue in civil actions, be considered 
     to be a resident of Washington, DC.
       (d) Responsibility of the Secretary.--The Secretary shall 
     take such action as may be necessary to assist in 
     implementing IFA and in carrying out the purpose of this 
     division.
       (e) Rule of Construction.--Chapter 91 of title 31, United 
     States Code, does not apply to IFA, unless otherwise 
     specifically provided in this division.

     SEC. 102. VOTING MEMBERS OF THE BOARD OF DIRECTORS.

       (a) Voting Membership of the Board of Directors.--
       (1) In general.--IFA shall have a Board of Directors 
     consisting of 7 voting members appointed by the President, by 
     and with the advice and consent of the Senate, not more than 
     4 of whom shall be from the same political party.
       (2) Chairperson.--One of the voting members of the Board of 
     Directors shall be designated by the President, by and with 
     the advice and consent of the Senate, to serve as Chairperson 
     of the Board of Directors.
       (3) Congressional recommendations.--Not later than 30 days 
     after the date of enactment of this division, the majority 
     leader of the Senate, the minority leader of the Senate, the 
     Speaker of the House of Representatives, and the minority 
     leader of the House of Representatives shall each submit a 
     recommendation to the President for appointment of a member 
     of the Board of Directors, after consultation with the 
     appropriate committees of Congress.
       (4) Special consideration of rural interests and geographic 
     diversity.--In making an appointment under this subsection, 
     the President shall give consideration to the geographic 
     areas of the United States in which the members of the Board 
     of Directors live and work, particularly to ensure that the 
     infrastructure priorities and concerns of each region of the 
     country, including rural areas and small communities, are 
     represented on the Board of Directors.
       (b) Voting Rights.--Each voting member of the Board of 
     Directors shall have an equal vote in all decisions of the 
     Board of Directors.
       (c) Qualifications of Voting Members.--Each voting member 
     of the Board of Directors shall--
       (1) be a citizen of the United States; and
       (2) have significant demonstrated expertise in--
       (A) the management and administration of a financial 
     institution relevant to the operation of IFA; or
       (B) the financing, development, or operation of 
     infrastructure projects, including in the evaluation and 
     selection of eligible infrastructure projects based on the 
     purposes, goals, and objectives of this division.
       (d) Terms.--
       (1) In general.--Except as otherwise provided in this 
     division, each voting member of the Board of Directors shall 
     be appointed for a term of 5 years.
       (2) Initial staggered terms.--Of the voting members first 
     appointed to the Board of Directors--
       (A) the initial Chairperson and 3 of the other voting 
     members shall each be appointed for a term of 5 years; and
       (B) the remaining 3 voting members shall each be appointed 
     for a term of 2 years.
       (3) Date of initial nominations.--The initial nominations 
     for the appointment of all voting members of the Board of 
     Directors shall be made not later than 60 days after the date 
     of enactment of this division.
       (4) Beginning of term.--The term of each of the initial 
     voting members appointed under this section shall commence 
     immediately upon the date of appointment, except that, for 
     purposes of calculating the term limits specified in this 
     subsection, the initial terms shall each be construed as 
     beginning on January 22 of the year following the date of the 
     initial appointment.
       (5) Vacancies.--
       (A) In general.--A vacancy in the position of a voting 
     member of the Board of Directors shall be filled by the 
     President, by and with the advice and consent of the Senate.
       (B) Term.--A member appointed to fill a vacancy on the 
     Board of Directors occurring before the expiration of the 
     term for which the predecessor was appointed shall be 
     appointed only for the remainder of that term.
       (e) Meetings.--
       (1) Open to the public; notice.--Except as provided in 
     paragraph (3), all meetings of the Board of Directors shall 
     be--
       (A) open to the public; and
       (B) preceded by reasonable public notice.
       (2) Frequency.--The Board of Directors shall meet--
       (A) not later than 60 days after the date on which all 
     members of the Board of Directors are first appointed;
       (B) at least quarterly after the date described in 
     subparagraph (A); and
       (C) at the call of the Chairperson or 3 voting members of 
     the Board of Directors.
       (3) Exception for closed meetings.--
       (A) In general.--The voting members of the Board of 
     Directors may, by majority vote, close a meeting to the 
     public if, during the meeting to be closed, there is likely 
     to be disclosed proprietary or sensitive information 
     regarding an eligible infrastructure project under 
     consideration for assistance under this division.
       (B) Availability of minutes.--The Board of Directors shall 
     prepare minutes of any meeting that is closed to the public, 
     which minutes shall be made available as soon as practicable, 
     but not later than 1 year after the date of the closed 
     meeting, with any necessary redactions to protect any 
     proprietary or sensitive information.
       (4) Quorum.--For purposes of meetings of the Board of 
     Directors, 5 voting members of the Board of Directors shall 
     constitute a quorum.
       (f) Compensation of Members.--Each voting member of the 
     Board of Directors shall be compensated at a rate equal to 
     the daily equivalent of the annual rate of basic pay 
     prescribed for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code, for each day 
     (including travel time) during which the member is engaged in 
     the performance of the duties of the Board of Directors.
       (g) Conflicts of Interest.--A voting member of the Board of 
     Directors may not participate in any review or decision 
     affecting an eligible infrastructure project under 
     consideration for assistance under this division, if the 
     member has or is affiliated with an entity who has a 
     financial interest in that project.

     SEC. 103. CHIEF EXECUTIVE OFFICER.

       (a) In General.--The Chief Executive Officer shall--
       (1) be a nonvoting member of the Board of Directors;
       (2) be responsible for all activities of IFA; and
       (3) support the Board of Directors in accordance with this 
     division and as the Board of Directors determines to be 
     necessary.
       (b) Appointment and Tenure of the Chief Executive 
     Officer.--
       (1) In general.--The President shall appoint the Chief 
     Executive Officer, by and with the advice and consent of the 
     Senate.
       (2) Term.--The Chief Executive Officer shall be appointed 
     for a term of 6 years.
       (3) Vacancies.--
       (A) In general.--Any vacancy in the office of the Chief 
     Executive Officer shall be filled by the President, by and 
     with the advice and consent of the Senate.
       (B) Term.--The person appointed to fill a vacancy in the 
     Chief Executive Officer position that occurs before the 
     expiration of the term for which the predecessor was 
     appointed shall be appointed only for the remainder of that 
     term.
       (c) Qualifications.--The Chief Executive Officer--
       (1) shall have significant expertise in management and 
     administration of a financial institution, or significant 
     expertise in the financing and development of infrastructure 
     projects; and
       (2) may not--
       (A) hold any other public office;
       (B) have any financial interest in an eligible 
     infrastructure project then being considered by the Board of 
     Directors, unless that interest is placed in a blind trust; 
     or
       (C) have any financial interest in an investment 
     institution or its affiliates or any other entity seeking or 
     likely to seek financial assistance for any eligible 
     infrastructure project from IFA, unless any such interest is 
     placed in a blind trust for the tenure of the service of the 
     Chief Executive Officer plus 2 additional years.
       (d) Responsibilities.--The Chief Executive Officer shall 
     have such executive functions, powers, and duties as may be 
     prescribed by this division, the bylaws of IFA, or the Board 
     of Directors, including--
       (1) responsibility for the development and implementation 
     of the strategy of IFA, including--
       (A) the development and submission to the Board of 
     Directors of the annual business plans and budget;
       (B) the development and submission to the Board of 
     Directors of a long-term strategic plan; and
       (C) the development, revision, and submission to the Board 
     of Directors of internal policies; and
       (2) responsibility for the management and oversight of the 
     daily activities, decisions, operations, and personnel of 
     IFA.
       (e) Compensation.--
       (1) In general.--Any compensation assessment or 
     recommendation by the Chief Executive Officer under this 
     section shall be without regard to the provisions of chapter 
     51 or subchapter III of chapter 53 of title 5, United States 
     Code.
       (2) Considerations.--The compensation assessment or 
     recommendation required under this subsection shall take into 
     account merit principles, where applicable, as well as the 
     education, experience, level of responsibility, geographic 
     differences, and retention and recruitment needs in 
     determining compensation of personnel.

[[Page 3865]]



     SEC. 104. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.

       The Board of Directors shall--
       (1) as soon as practicable after the date on which all 
     members are appointed, approve or disapprove senior 
     management appointed by the Chief Executive Officer;
       (2) not later than 180 days after the date on which all 
     members are appointed--
       (A) develop and approve the bylaws of IFA, including bylaws 
     for the regulation of the affairs and conduct of the business 
     of IFA, consistent with the purpose, goals, objectives, and 
     policies set forth in this division;
       (B) establish subcommittees, including an audit committee 
     that is composed solely of members of the Board of Directors, 
     other than the Chief Executive Officer;
       (C) develop and approve, in consultation with senior 
     management, a conflict-of-interest policy for the Board of 
     Directors and for senior management;
       (D) approve or disapprove internal policies that the Chief 
     Executive Officer shall submit to the Board of Directors, 
     including--
       (i) policies regarding the loan application and approval 
     process, including application procedures and project 
     approval processes; and
       (ii) operational guidelines; and
       (E) approve or disapprove a 1-year business plan and budget 
     for IFA;
       (3) ensure that IFA is at all times operated in a manner 
     that is consistent with this division, by--
       (A) monitoring and assessing the effectiveness of IFA in 
     achieving its strategic goals;
       (B) reviewing and approving internal policies, annual 
     business plans, annual budgets, and long-term strategies 
     submitted by the Chief Executive Officer;
       (C) reviewing and approving annual reports submitted by the 
     Chief Executive Officer;
       (D) engaging 1 or more external auditors, as set forth in 
     this division; and
       (E) reviewing and approving all changes to the organization 
     of senior management;
       (4) appoint and fix, by a vote of not less than 5 of the 7 
     voting members of the Board of Directors, and without regard 
     to the provisions of chapter 51 or subchapter III of chapter 
     53 of title 5, United States Code, the compensation and 
     adjustments to compensation of all IFA personnel, provided 
     that in appointing and fixing any compensation or adjustments 
     to compensation under this paragraph, the Board shall--
       (A) consult with, and seek to maintain comparability with, 
     other comparable Federal personnel, as the Board of Directors 
     may determine to be appropriate;
       (B) consult with the Office of Personnel Management; and
       (C) carry out those duties consistent with merit 
     principles, where applicable, as well as the education, 
     experience, level of responsibility, geographic differences, 
     comparability to private sector positions, and retention and 
     recruitment needs in determining compensation of personnel;
       (5) serve as the primary liaison for IFA in interactions 
     with Congress, the Secretary of Transportation and other 
     executive branch officials, and State and local governments, 
     and to represent the interests of IFA in those interactions 
     and others;
       (6) approve by a vote of not less than 5 of the 7 voting 
     members of the Board of Directors any changes to the bylaws 
     or internal policies of IFA;
       (7) have the authority and responsibility--
       (A) to oversee entering into and carrying out such 
     contracts, leases, cooperative agreements, or other 
     transactions as are necessary to carry out this division;
       (B) to approve of the acquisition, lease, pledge, exchange, 
     and disposal of real and personal property by IFA and 
     otherwise approve the exercise by IFA of all of the usual 
     incidents of ownership of property, to the extent that the 
     exercise of those powers is appropriate to and consistent 
     with the purposes of IFA;
       (C) to determine the character of, and the necessity for, 
     the obligations and expenditures of IFA, and the manner in 
     which the obligations and expenditures will be incurred, 
     allowed, and paid, subject to this division and other Federal 
     law specifically applicable to wholly owned Federal 
     corporations;
       (D) to execute, in accordance with applicable bylaws and 
     regulations, appropriate instruments;
       (E) to approve other forms of credit enhancement that IFA 
     may provide to eligible projects, as long as the forms of 
     credit enhancements are consistent with the purposes of this 
     division and terms set forth in title II;
       (F) to exercise all other lawful powers which are necessary 
     or appropriate to carry out, and are consistent with, the 
     purposes of IFA;
       (G) to sue or be sued in the corporate capacity of IFA in 
     any court of competent jurisdiction;
       (H) to indemnify the members of the Board of Directors and 
     officers of IFA for any liabilities arising out of the 
     actions of the members and officers in that capacity, in 
     accordance with, and subject to the limitations contained in 
     this division;
       (I) to review all financial assistance packages to all 
     eligible infrastructure projects, as submitted by the Chief 
     Executive Officer and to approve, postpone, or deny the same 
     by majority vote;
       (J) to review all restructuring proposals submitted by the 
     Chief Executive Officer, including assignation, pledging, or 
     disposal of the interest of IFA in a project, including 
     payment or income from any interest owned or held by IFA, and 
     to approve, postpone, or deny the same by majority vote;
       (K) to enter into binding commitments, as specified in 
     approved financial assistance packages;
       (L) to determine whether--
       (i) to obtain a lien on the assets of an eligible entity 
     that receives assistance under this division; and
       (ii) to subordinate a lien under clause (i) to any other 
     lien securing project obligations; and
       (M) to ensure a measurable public benefit in the selection 
     of eligible infrastructure projects and to provide for 
     reasonable public input in the selection of such projects;
       (8) delegate to the Chief Executive Officer those duties 
     that the Board of Directors determines to be appropriate, to 
     better carry out the powers and purposes of the Board of 
     Directors under this section; and
       (9) to approve a maximum aggregate amount of principal 
     exposure of IFA at any given time.

     SEC. 105. SENIOR MANAGEMENT.

       (a) In General.--Senior management shall support the Chief 
     Executive Officer in the discharge of the responsibilities of 
     the Chief Executive Officer.
       (b) Appointment of Senior Management.--The Chief Executive 
     Officer shall appoint such senior managers as are necessary 
     to carry out the purposes of IFA, as approved by a majority 
     vote of the voting members of the Board of Directors, 
     including a chief compliance officer, general counsel, chief 
     operating officer, chief lending officer, and other positions 
     as determined to be appropriate by the Chief Executive 
     Officer and the Board of Directors.
       (c) Term.--Each member of senior management shall serve at 
     the pleasure of the Chief Executive Officer and the Board of 
     Directors.
       (d) Removal of Senior Management.--Any member of senior 
     management may be removed--
       (1) by a majority of the voting members of the Board of 
     Directors at the request of the Chief Executive Officer; or
       (2) by a vote of not fewer than 5 voting members of the 
     Board of Directors.
       (e) Senior Management.--
       (1) In general.--Each member of senior management shall 
     report directly to the Chief Executive Officer, other than 
     the chief risk officer, who shall report directly to the 
     Board of Directors.
       (2) Chief risk officer.--The chief risk officer shall be 
     responsible for all functions of IFA relating to--
       (A) the creation of financial, credit, and operational risk 
     management guidelines and policies;
       (B) the establishment of guidelines to ensure 
     diversification of lending activities by region, 
     infrastructure project type, and project size;
       (C) the creation of conforming standards for infrastructure 
     finance agreements;
       (D) the monitoring of the financial, credit, and 
     operational exposure of IFA; and
       (E) risk management and mitigation actions, including by 
     reporting those actions, or recommendations of actions to be 
     taken, directly to the Board of Directors.
       (f) Conflicts of Interest.--No individual appointed to 
     senior management may--
       (1) hold any other public office;
       (2) have any financial interest in an eligible 
     infrastructure project then being considered by the Board of 
     Directors, unless that interest is placed in a blind trust; 
     or
       (3) have any financial interest in an investment 
     institution or its affiliates, IFA or its affiliates, or 
     other entity then seeking or likely to seek financial 
     assistance for any eligible infrastructure project from IFA, 
     unless any such interest is placed in a blind trust during 
     the term of service of that individual in a senior management 
     position, and for a period of 2 years thereafter.

     SEC. 106. OFFICE OF TECHNICAL AND RURAL ASSISTANCE.

       (a) In General.--The Chief Executive Officer shall create 
     and manage, within IFA, the ``Office of Technical and Rural 
     Assistance''.
       (b) Duties.--The OTRA shall--
       (1) in consultation with the Secretary of Transportation 
     and the heads of other relevant Federal agencies, as 
     determined by the Chief Executive Officer, provide technical 
     assistance to State and local governments and parties in 
     public-private partnerships in the development and financing 
     of eligible infrastructure projects, including rural 
     infrastructure projects;
       (2) assist the entities described in paragraph (1) with 
     coordinating loan and loan guarantee programs available 
     through Federal agencies, including the Department of 
     Transportation and other Federal agencies, as appropriate;
       (3) work with the entities described in paragraph (1) to 
     identify and develop a pipeline of projects suitable for 
     financing through innovative project financing and 
     performance based project delivery, including those projects 
     with the potential for financing through IFA; and
       (4) establish a regional infrastructure accelerator 
     demonstration program to assist

[[Page 3866]]

     the entities described in paragraph (1) in developing 
     improved infrastructure priorities and financing strategies, 
     for the accelerated development of covered infrastructure 
     projects, including those projects with the potential for 
     financing through IFA.
       (c) Designation of Regional Infrastructure Accelerators.--
     In carrying out the program established pursuant to 
     subsection (b)(3), the OTRA is authorized to designate 
     regional infrastructure accelerators that will--
       (1) serve a defined geographic area; and
       (2) act as a resource in such area to entities described in 
     subsection (b)(1), in accordance with this subsection.
       (d) Application Process.--To be eligible for a designation 
     under subsection (c), regional infrastructure accelerators 
     shall submit a proposal to the OTRA at such time, in such 
     form, and containing such information as the OTRA determines 
     is appropriate.
       (e) Considerations.--In evaluating proposals submitted 
     pursuant to subsection (d), the OTRA shall consider--
       (1) the need for geographic diversity among regional 
     infrastructure accelerators; and
       (2) promoting investment in covered infrastructure 
     projects, which shall include a plan--
       (A) to evaluate and promote innovative financing methods 
     for local projects, including the use of IFA;
       (B) to build capacity of governments to evaluate and 
     structure projects involving the investment of private 
     capital;
       (C) to provide technical assistance and information on best 
     practices with respect to financing such projects;
       (D) to increase transparency with respect to infrastructure 
     project analysis and utilizing innovative financing for 
     public infrastructure projects;
       (E) to deploy predevelopment capital programs designed to 
     facilitate the creation of a pipeline of infrastructure 
     projects available for investment;
       (F) to bundle smaller-scale and rural projects into larger 
     proposals that may be more attractive for investment; and
       (G) to reduce transaction costs for public project 
     sponsors.
       (f) Annual Report.--The OTRA shall submit an annual report 
     to Congress that describes the findings and effectiveness of 
     the infrastructure accelerator demonstration program.

     SEC. 107. SPECIAL INSPECTOR GENERAL FOR IFA.

       (a) In General.--
       (1) Initial period.--During the 5-year period beginning on 
     the date of enactment of this division, the Inspector General 
     of the Department of the Treasury shall serve as the Special 
     Inspector General for IFA in addition to the existing duties 
     of the Inspector General of the Department of the Treasury.
       (2) Office of the special inspector general.--Beginning on 
     the day that is 5 years after the date of enactment of this 
     division, there is established the Office of the Special 
     Inspector General for IFA.
       (b) Appointment of Inspector General; Removal.--
       (1) Head of office.--The head of the Office of the Special 
     Inspector General for IFA shall be the Special Inspector 
     General for IFA (referred to in this division as the 
     ``Special Inspector General''), who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (2) Basis of appointment.--The appointment of the Special 
     Inspector General shall be made on the basis of integrity and 
     demonstrated ability in accounting, auditing, financial 
     analysis, law, management analysis, public administration, or 
     investigations.
       (3) Timing of nomination.--The nomination of an individual 
     as Special Inspector General shall be made as soon as 
     practicable after the date of enactment of this division.
       (4) Removal.--The Special Inspector General shall be 
     removable from office in accordance with the provisions of 
     section 3(b) of the Inspector General Act of 1978 (5 U.S.C. 
     App.).
       (5) Rule of construction.--For purposes of section 7324 of 
     title 5, United States Code, the Special Inspector General 
     shall not be considered an employee who determines policies 
     to be pursued by the United States in the nationwide 
     administration of Federal law.
       (6) Rate of pay.--The annual rate of basic pay of the 
     Special Inspector General shall be the annual rate of basic 
     pay for an Inspector General under section 3(e) of the 
     Inspector General Act of 1978 (5 U.S.C. App.).
       (c) Duties.--The Special Inspector General shall--
       (1) conduct, supervise, and coordinate audits and 
     investigations of the business activities of IFA;
       (2) establish, maintain, and oversee such systems, 
     procedures, and controls as the Special Inspector General 
     considers appropriate to discharge the duty under paragraph 
     (1); and
       (3) carry out any other duties and responsibilities of 
     inspectors general under the Inspector General Act of 1978 (5 
     U.S.C. App.).
       (d) Powers and Authorities.--
       (1) In general.--In carrying out the duties specified in 
     subsection (c), the Special Inspector General shall have the 
     authorities provided in section 6 of the Inspector General 
     Act of 1978 (5 U.S.C. App.).
       (2) Additional authority.--The Special Inspector General 
     shall carry out the duties specified in subsection (c)(1) in 
     accordance with section 4(b)(1) of the Inspector General Act 
     of 1978 (5 U.S.C. App.).
       (e) Personnel, Facilities, and Other Resources.--
       (1) Additional officers.--
       (A) In general.--The Special Inspector General may select, 
     appoint, and employ such officers and employees as may be 
     necessary for carrying out the duties of the Special 
     Inspector General, subject to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and the provisions of chapter 51 and subchapter III 
     of chapter 53 of such title, relating to classification and 
     General Schedule pay rates.
       (B) Employment and compensation.--The Special Inspector 
     General may exercise the authorities of subsections (b) 
     through (i) of section 3161 of title 5, United States Code 
     (without regard to subsection (a) of that section).
       (2) Retention of services.--The Special Inspector General 
     may obtain services as authorized by section 3109 of title 5, 
     United States Code, at daily rates not to exceed the 
     equivalent rate prescribed for grade GS-15 of the General 
     Schedule by section 5332 of such title.
       (3) Ability to contract for audits, studies, and other 
     services.--The Special Inspector General may enter into 
     contracts and other arrangements for audits, studies, 
     analyses, and other services with public agencies and with 
     private persons, and make such payments as may be necessary 
     to carry out the duties of the Special Inspector General.
       (4) Request for information.--
       (A) In general.--Upon request of the Special Inspector 
     General for information or assistance from any department, 
     agency, or other entity of the Federal Government, the head 
     of that entity shall, insofar as is practicable and not in 
     contravention of any existing law, furnish the information or 
     assistance to the Special Inspector General or an authorized 
     designee.
       (B) Refusal to comply.--If information or assistance 
     requested by the Special Inspector General is, in the 
     judgment of the Special Inspector General, unreasonably 
     refused or not provided, the Special Inspector General shall 
     report the circumstances to the Secretary, without delay.
       (f) Reports.--
       (1) Annual report.--Not later than 1 year after the date on 
     which the Special Inspector General is confirmed, and every 
     calendar year thereafter, the Special Inspector General shall 
     submit to the President and appropriate committees of 
     Congress a report summarizing the activities of the Special 
     Inspector General during the previous 1-year period ending on 
     the date of that report.
       (2) Public disclosures.--Nothing in this subsection 
     authorizes the public disclosure of information that is--
       (A) specifically prohibited from disclosure by any other 
     provision of law;
       (B) specifically required by Executive order to be 
     protected from disclosure in the interest of national defense 
     or national security or in the conduct of foreign affairs; or
       (C) a part of an ongoing criminal investigation.

     SEC. 108. OTHER PERSONNEL.

       (a) Appointment, Removal, and Definition of Duties.--Except 
     as otherwise provided in the bylaws of IFA, the Chief 
     Executive Officer, in consultation with the Board of 
     Directors, shall appoint, remove, and define the duties of 
     such qualified personnel as are necessary to carry out the 
     powers, duties, and purpose of IFA, other than senior 
     management, who shall be appointed in accordance with section 
     105.
       (b) Coordination in Identifying Qualifications and 
     Expertise.--In appointing qualified personnel pursuant to 
     subsection (a), the Chief Executive Officer shall coordinate 
     with, and seek assistance from, the Secretary of 
     Transportation in identifying the appropriate qualifications 
     and expertise in infrastructure project finance.

     SEC. 109. COMPLIANCE.

       The provision of assistance by IFA pursuant to this 
     division does not supersede any provision of State law or 
     regulation otherwise applicable to an eligible infrastructure 
     project.

  TITLE II--TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN GUARANTEES

     SEC. 201. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM IFA AND 
                   TERMS AND LIMITATIONS OF LOANS.

       (a) Public Benefit; Financeability.--A project is not be 
     eligible for financial assistance from IFA under this 
     division if--
       (1) the use or purpose of such project is private or such 
     project does not create a public benefit, as determined by 
     the Board of Directors; or
       (2) the applicant is unable to demonstrate, to the 
     satisfaction of the Board of Directors, a sufficient revenue 
     stream to finance the loan that will be used to pay for such 
     project.
       (b) Financial Criteria.--If the project meets the 
     requirements under subsection (a), an applicant for financial 
     assistance under this division shall demonstrate, to the 
     satisfaction of the Board of Directors, that--

[[Page 3867]]

       (1) for public-private partnerships, the project has 
     received contributed capital or commitments for contributed 
     capital equal to not less than 10 percent of the total cost 
     of the eligible infrastructure project for which assistance 
     is being sought if such contributed capital includes--
       (A) equity;
       (B) deeply subordinate loans or other credit and debt 
     instruments, which shall be junior to any IFA assistance 
     provided for the project;
       (C) appropriated funds or grants from governmental sources 
     other than the Federal Government; or
       (D) irrevocable private contributions of funds, grants, 
     property (including rights-of-way), and other assets that 
     directly reduce or offset project costs; and
       (2) the eligible infrastructure project for which 
     assistance is being sought--
       (A) is not for the refinancing of an existing 
     infrastructure project; and
       (B) meets--
       (i) any pertinent requirements set forth in this division;
       (ii) any criteria established by the Board of Directors 
     under subsection (c) or by the Chief Executive Officer in 
     accordance with this division; and
       (iii) the definition of an eligible infrastructure project.
       (c) Considerations.--The criteria established by the Board 
     of Directors under this subsection shall provide adequate 
     consideration of--
       (1) the economic, financial, technical, environmental, and 
     public benefits and costs of each eligible infrastructure 
     project under consideration for financial assistance under 
     this division, prioritizing eligible infrastructure projects 
     that--
       (A) demonstrate a clear and measurable public benefit;
       (B) offer value for money to taxpayers;
       (C) contribute to regional or national economic growth;
       (D) lead to long-term job creation; and
       (E) mitigate environmental concerns;
       (2) the means by which development of the eligible 
     infrastructure project under consideration is being financed, 
     including--
       (A) the terms, conditions, and structure of the proposed 
     financing;
       (B) the creditworthiness and standing of the project 
     sponsors, providers of equity, and cofinanciers;
       (C) the financial assumptions and projections on which the 
     eligible infrastructure project is based; and
       (D) whether there is sufficient State or municipal 
     political support for the successful completion of the 
     eligible infrastructure project;
       (3) the likelihood that the provision of assistance by IFA 
     will cause the development to proceed more promptly and with 
     lower costs for financing than would be the case without IFA 
     assistance;
       (4) the extent to which the provision of assistance by IFA 
     maximizes the level of private investment in the eligible 
     infrastructure project or supports a public-private 
     partnership, while providing a significant public benefit;
       (5) the extent to which the provision of assistance by IFA 
     can mobilize the participation of other financing partners in 
     the eligible infrastructure project;
       (6) the technical and operational viability of the eligible 
     infrastructure project;
       (7) the proportion of financial assistance from IFA;
       (8) the geographical location of the project, prioritizing 
     geographical diversity of projects funded by IFA;
       (9) the size of the project and the impact of the project 
     on the resources of IFA; and
       (10) the infrastructure sector of the project, prioritizing 
     projects from more than 1 sector funded by IFA.
       (d) Application.--
       (1) In general.--Any eligible entity seeking assistance 
     from IFA under this division for an eligible infrastructure 
     project shall submit an application to IFA at such time, in 
     such manner, and containing such information as the Board of 
     Directors or the Chief Executive Officer may require.
       (2) Review of applications.--
       (A) In general.--IFA shall review applications for 
     assistance under this division on an ongoing basis.
       (B) Preparation.--The Chief Executive Officer, in 
     cooperation with the senior management, shall prepare 
     eligible infrastructure projects for review and approval by 
     the Board of Directors.
       (3) Dedicated revenue sources.--The Federal credit 
     instrument shall be repayable, in whole or in part, from 
     tolls, user fees, or other dedicated revenue sources derived 
     from users or beneficiaries that also secure the eligible 
     infrastructure project obligations.
       (e) Eligible Infrastructure Project Costs.--
       (1) In general.--Except as provided in paragraph (2), to be 
     eligible for assistance under this division, an eligible 
     infrastructure project shall have project costs that are 
     reasonably anticipated to equal or exceed $50,000,000.
       (2) Rural infrastructure projects.--To be eligible for 
     assistance under this division a rural infrastructure project 
     shall have project costs that are reasonably anticipated to 
     equal or exceed $10,000,000.
       (f) Loan Eligibility and Maximum Amounts.--
       (1) In general.--The amount of a direct loan or loan 
     guarantee under this division shall not exceed the lesser 
     of--
       (A) 49 percent of the reasonably anticipated eligible 
     infrastructure project costs; and
       (B) the amount of the senior project obligations, if the 
     direct loan or loan guarantee does not receive an investment 
     grade rating.
       (2) Maximum annual loan and loan guarantee volume.--The 
     aggregate amount of direct loans and loan guarantees made by 
     IFA shall not exceed--
       (A) during the first 2 fiscal years of the operations of 
     IFA, $10,000,000,000 per year;
       (B) during fiscal years 3 through 9 of the operations of 
     IFA, $20,000,000,000 per year; and
       (C) during any fiscal year thereafter, $50,000,000,000.

     SEC. 202. LOAN TERMS AND REPAYMENT.

       (a) In General.--A direct loan or loan guarantee under this 
     division with respect to an eligible infrastructure project 
     shall be on such terms, subject to such conditions, and 
     contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the Chief 
     Executive Officer determines appropriate.
       (b) Terms.--A direct loan or loan guarantee under this 
     division--
       (1) shall--
       (A) be payable, in whole or in part, from tolls, user fees, 
     or other dedicated revenue sources derived from users or 
     beneficiaries; and
       (B) include a rate covenant, coverage requirement, or 
     similar security feature supporting the project obligations; 
     and
       (2) may be secured by a lien--
       (A) on the assets of the obligor, including revenues 
     described in paragraph (1); and
       (B) which may be subordinated to any other lien securing 
     project obligations.
       (c) Base Interest Rate.--The base interest rate on a direct 
     loan under this division shall be not less than the yield on 
     Treasury obligations of a similar maturity to the maturity of 
     the direct loan on the date of execution of the loan 
     agreement.
       (d) Risk Assessment.--Before entering into an agreement for 
     assistance under this division, the Chief Executive Officer, 
     in consultation with the Director of the Office of Management 
     and Budget and each rating agency providing a preliminary 
     rating opinion letter under this section, shall determine an 
     appropriate Federal credit subsidy amount for each direct 
     loan and loan guarantee, taking into account that preliminary 
     rating opinion letter, as well as any comparable market rates 
     available for such a loan or loan guarantee, should any 
     exist.
       (e) Credit Fee.--
       (1) In general.--With respect to each agreement for 
     assistance under this division, the Chief Executive Officer 
     shall charge a credit fee to the recipient of that assistance 
     to pay for, over time, all or a portion of the Federal credit 
     subsidy determined under subsection (d), with the remainder 
     paid by the account established for IFA.
       (2) Direct loans.--In the case of a direct loan, the credit 
     fee described in paragraph (1) shall be in addition to the 
     base interest rate established under subsection (c).
       (f) Maturity Date.--The final maturity date of a direct 
     loan or loan guaranteed by IFA under this division shall be 
     not later than 35 years after the date of substantial 
     completion of the eligible infrastructure project, as 
     determined by the Chief Executive Officer.
       (g) Preliminary Rating Opinion Letter.--
       (1) In general.--The Chief Executive Officer shall require 
     each applicant for assistance under this division to provide 
     a preliminary rating opinion letter from at least 1 rating 
     agency, indicating that the senior obligations of the 
     eligible infrastructure project, which may be the Federal 
     credit instrument, have the potential to achieve an 
     investment-grade rating.
       (2) Rural infrastructure projects.--With respect to a rural 
     infrastructure project, a rating agency opinion letter 
     described in paragraph (1) shall not be required, except that 
     the loan or loan guarantee shall receive an internal rating 
     score, using methods similar to the rating agencies generated 
     by IFA, measuring the proposed direct loan or loan guarantee 
     against comparable direct loans or loan guarantees of similar 
     credit quality in a similar sector.
       (h) Investment-Grade Rating Requirement.--
       (1) Loans and loan guarantees.--The execution of a direct 
     loan or loan guarantee under this division shall be 
     contingent on the senior obligations of the eligible 
     infrastructure project receiving an investment-grade rating.
       (2) Rating of ifa overall portfolio.--The average rating of 
     the overall portfolio of IFA shall be not less than 
     investment grade after 5 years of operation.
       (i) Terms and Repayment of Direct Loans.--
       (1) Schedule.--The Chief Executive Officer shall establish 
     a repayment schedule for each direct loan under this 
     division, based on the projected cash flow from eligible 
     infrastructure project revenues and other repayment sources.

[[Page 3868]]

       (2) Commencement.--Scheduled loan repayments of principal 
     or interest on a direct loan under this division shall 
     commence not later than 5 years after the date of substantial 
     completion of the eligible infrastructure project, as 
     determined by the Chief Executive Officer of IFA.
       (3) Deferred payments of direct loans.--
       (A) Authorization.--If, at any time after the date of 
     substantial completion of an eligible infrastructure project 
     assisted under this division, the eligible infrastructure 
     project is unable to generate sufficient revenues to pay the 
     scheduled loan repayments of principal and interest on the 
     direct loan under this division, the Chief Executive Officer 
     may allow the obligor to add unpaid principal and interest to 
     the outstanding balance of the direct loan, if the result 
     would benefit the taxpayer.
       (B) Interest.--Any payment deferred under subparagraph (A) 
     shall--
       (i) continue to accrue interest, in accordance with the 
     terms of the obligation, until fully repaid; and
       (ii) be scheduled to be amortized over the remaining term 
     of the loan.
       (C) Criteria.--
       (i) In general.--Any payment deferral under subparagraph 
     (A) shall be contingent on the eligible infrastructure 
     project meeting criteria established by the Board of 
     Directors.
       (ii) Repayment standards.--The criteria established under 
     clause (i) shall include standards for reasonable assurance 
     of repayment.
       (4) Prepayment of direct loans.--
       (A) Use of excess revenues.--Any excess revenues that 
     remain after satisfying scheduled debt service requirements 
     on the eligible infrastructure project obligations and direct 
     loan and all deposit requirements under the terms of any 
     trust agreement, bond resolution, or similar agreement 
     securing project obligations under this division may be 
     applied annually to prepay the direct loan, without penalty.
       (B) Use of proceeds of refinancing.--A direct loan under 
     this division may be prepaid at any time, without penalty, 
     from the proceeds of refinancing from non-Federal funding 
     sources.
       (j) Loan Guarantees.--The terms of a loan guaranteed by IFA 
     under this division shall be consistent with the terms set 
     forth in this section for a direct loan, except that the rate 
     on the guaranteed loan and any payment, prepayment, or 
     refinancing features shall be negotiated between the obligor 
     and the lender (as defined in section 601(a) of title 23, 
     United States Code) with the consent of the Chief Executive 
     Officer.
       (k) Compliance With Federal Credit Reform Act of 1990.--
       (1) In general.--Except as provided in paragraph (2), 
     direct loans and loan guarantees authorized by this division 
     shall be subject to the provisions of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.).
       (2) Exception.--Section 504(b) of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or 
     loan guarantee under this division.
       (l) Policy of Congress.--It is the policy of Congress that 
     IFA shall only make a direct loan or loan guarantee under 
     this division if IFA determines that IFA is reasonably 
     expected to recover the full amount of the direct loan or 
     loan guarantee.

     SEC. 203. ENVIRONMENTAL PERMITTING PROCESS IMPROVEMENTS.

       (a) Interagency Coordination.--As soon as practicable after 
     IFA approves financing for a proposed project under this 
     title, the President shall convene a meeting of 
     representatives of all relevant and appropriate permitting 
     agencies--
       (1) to establish or update a permitting timetable for the 
     proposed project;
       (2) to coordinate concurrent permitting reviews by all 
     necessary agencies; and
       (3) to coordinate with relevant State agencies and regional 
     infrastructure development agencies to ensure--
       (A) adequate participation; and
       (B) the timely provision of necessary documentation to 
     allow any State review to proceed without delay.
       (b) Goal.--The permitting timetable for each proposed 
     project established pursuant to subsection (a)(1) shall 
     ensure that the environmental review process is completed as 
     soon as practicable.
       (c) Earlier.--The President may carry out the functions set 
     forth in subsection (a) with respect to a proposed project 
     before the IFA has approved financing for such project upon 
     the request of the Chief Executive Officer.
       (d) Concurrent Reviews.--Each agency, to the greatest 
     extent permitted by law, shall--
       (1) carry out the obligations of the agency under other 
     applicable law concurrently, and in conjunction with other 
     reviews being conducted by other participating agencies, 
     including environmental reviews required under the National 
     Environmental Policy Act (42 U.S.C. 4321 et seq.), unless 
     such concurrent reviews would impair the ability of the 
     agency to carry out its statutory obligations; and
       (2) formulate and implement administrative, policy, and 
     procedural mechanisms to enable the agency to ensure the 
     completion of the environmental review process in a timely, 
     coordinated, and environmentally responsible manner.

     SEC. 204. COMPLIANCE AND ENFORCEMENT.

       (a) Credit Agreement.--Notwithstanding any other provision 
     of law, each eligible entity that receives assistance under 
     this division shall enter into a credit agreement that 
     requires such entity to comply with all applicable policies 
     and procedures of IFA, in addition to all other provisions of 
     the loan agreement.
       (b) Applicability of Federal Laws.--Each eligible entity 
     that receives assistance under this division shall provide 
     written assurance, in such form and manner and containing 
     such terms as are to be prescribed by IFA, that the eligible 
     infrastructure project will be performed in compliance with 
     the requirements of all Federal laws that would otherwise 
     apply to similar projects to which the United States is a 
     party, or financed in whole or in part from Federal funds or 
     in accordance with guarantees of a Federal agency or financed 
     from funds obtained by pledge of any contract of a Federal 
     agency to make a loan, grant, or annual contribution (except 
     where a different meaning is expressly indicated).
       (c) IFA Authority on Noncompliance.--In any case in which 
     an eligible entity that receives assistance under this 
     division is materially out of compliance with the loan 
     agreement, or any applicable policy or procedure of IFA, the 
     Board of Directors may take action--
       (1) to cancel unused loan amounts; or
       (2) to accelerate the repayment terms of any outstanding 
     obligation.

     SEC. 205. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.

       (a) Accounting.--The books of account of IFA shall be--
       (1) maintained in accordance with generally accepted 
     accounting principles; and
       (2) subject to an annual audit by independent public 
     accountants of nationally recognized standing appointed by 
     the Board of Directors.
       (b) Reports.--
       (1) Board of directors.--Not later than 90 days after the 
     last day of each fiscal year, the Board of Directors shall 
     submit to the President and Congress a complete and detailed 
     report with respect to the preceding fiscal year, setting 
     forth--
       (A) a summary of the operations of IFA for that fiscal 
     year;
       (B) a schedule of the obligations of IFA and capital 
     securities outstanding at the end of that fiscal year, with a 
     statement of the amounts issued and redeemed or paid during 
     that fiscal year;
       (C) the status of eligible infrastructure projects 
     receiving funding or other assistance pursuant to this 
     division during that fiscal year, including--
       (i) all nonperforming loans; and
       (ii) disclosure of all entities with a development, 
     ownership, or operational interest in those eligible 
     infrastructure projects;
       (D) a description of the successes and challenges 
     encountered in lending to rural communities, including the 
     role of the Office of Technical and Rural Assistance 
     established under this division; and
       (E) an assessment of the risks of the portfolio of IFA, 
     which shall be prepared by an independent source.
       (2) GAO.--Not later than 5 years after the date of 
     enactment of this division, the Comptroller General of the 
     United States shall conduct an evaluation of, and submit to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and to the Committees on Transportation and 
     Infrastructure and Energy and Commerce of the House of 
     Representatives a report on the activities of IFA for the 
     fiscal years covered by the report that includes--
       (A) an assessment of the impact and benefits of each funded 
     eligible infrastructure project, including a review of how 
     effectively each eligible infrastructure project accomplished 
     the goals prioritized by the eligible infrastructure project 
     criteria of IFA; and
       (B) an evaluation of the effectiveness of, and challenges 
     facing, loan programs at the Department of Transportation and 
     Department of Energy, and an analysis of the advisability of 
     consolidating those programs within IFA.
       (c) Books and Records.--
       (1) In general.--IFA shall maintain adequate books and 
     records to support the financial transactions of IFA, with a 
     description of financial transactions and eligible 
     infrastructure projects receiving funding, and the amount of 
     funding for each project maintained on a publically 
     accessible database.
       (2) Audits by the secretary and gao.--The books and records 
     of IFA shall at all times be open to inspection by the 
     Secretary, the Special Inspector General, and the Comptroller 
     General of the United States.

     SEC. 206. EFFECT ON OTHER LAWS.

       Nothing in this division may be construed to affect or 
     alter the responsibility of an eligible entity that receives 
     assistance under this division to comply with applicable 
     Federal and State laws (including regulations) relating to an 
     eligible infrastructure project.

                       TITLE III--FUNDING OF IFA

     SEC. 301. FEES.

       The Chief Executive Officer shall establish fees with 
     respect to loans and loan guarantees under this division 
     that--

[[Page 3869]]

       (1) are sufficient to cover all the administrative costs to 
     the Federal Government for the operations of IFA;
       (2) may be in the form of an application or transaction 
     fee, or interest rate adjustment; and
       (3) may be based on the risk premium associated with the 
     loan or loan guarantee, taking into consideration--
       (A) the price of Treasury obligations of a similar 
     maturity;
       (B) prevailing market conditions;
       (C) the ability of the eligible infrastructure project to 
     support the loan or loan guarantee; and
       (D) the total amount of the loan or loan guarantee.

     SEC. 302. SELF-SUFFICIENCY OF IFA.

       The Chief Executive Officer shall, to the extent 
     practicable, take actions consistent with this division to 
     make IFA a self-sustaining entity, with administrative costs 
     and Federal credit subsidy costs fully funded by fees and 
     risk premiums on loans and loan guarantees.

     SEC. 303. FUNDING.

       (a) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     IFA to make direct loans and loan guarantees under this 
     division $10,000,000,000, which shall remain available until 
     expended.
       (2) Administrative costs.--Of the amounts appropriated 
     pursuant to paragraph (1), the IFA may expend, for 
     administrative costs, not more than--
       (A) $25,000,000 for each of the fiscal years 2016 and 2017; 
     and
       (B) not more than $50,000,000 for fiscal year 2018.
       (b) Interest.--The amounts made available to IFA pursuant 
     to subsection (a) shall be placed in interest-bearing 
     accounts.
       (c) Rural Infrastructure Projects.--Of the amounts made 
     available to IFA under this section, not less than 5 percent 
     shall be used to offset subsidy costs associated with rural 
     infrastructure projects.

     SEC. 304. CONTRACT AUTHORITY.

       Notwithstanding any other provision of law, approval by the 
     Board of Directors of a Federal credit instrument that uses 
     funds made available under this division shall impose upon 
     the United States a contractual obligation to fund the 
     Federal credit investment.

     SEC. 305. LIMITATION ON AUTHORITY.

       IFA shall not have the authority to issue debt in its own 
     name.

     TITLE IV--TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS

     SEC. 401. NATIONAL LIMITATION ON AMOUNT OF TAX-EXEMPT 
                   FINANCING FOR FACILITIES.

       Section 142(m)(2)(A) of the Internal Revenue Code of 1986 
     is amended by striking ``$15,000,000,000'' and inserting 
     ``$16,000,000,000''.

                       TITLE V--BUDGETARY EFFECTS

     SEC. 501. BUDGETARY EFFECTS.

       The budgetary effects of this division, 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 division, 
     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 3563. Mr. HELLER submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EXTENSION OF ENERGY CREDIT FOR CERTAIN ENERGY 
                   PROPERTY.

       (a) Qualified Fuel Cell Property.--Section 48(c)(1)(D) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``for any period after December 31, 2016'' and inserting 
     ``the construction of which does not begin before January 1, 
     2022''.
       (b) Qualified Microturbine Property.--Section 48(c)(2)(D) 
     of such Code is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2022''.
       (c) Combined Heat and Power System Property.--Section 
     48(c)(3)(A)(iv) of such Code is amended by striking ``which 
     is placed in service before January 1, 2017'' and inserting 
     ``the construction of which begins before January 1, 2022''.
       (d) Qualified Small Wind Energy Property.--Section 
     48(c)(4)(C) of such Code is amended by striking ``for any 
     period after December 31, 2016'' and inserting ``the 
     construction of which does not begin before January 1, 
     2022''.
       (e) Thermal Energy Property.--Section 48(a)(3)(A)(vii) of 
     such Code is amended by striking ``periods ending before 
     January 1, 2017'' and inserting ``property the construction 
     of which begins before January 1, 2022''.
       (f) Geothermal Energy Property.--Subclause (II) of section 
     48(a)(2)(A)(i) of such Code is amended by striking 
     ``paragraph (3)(A)(i)'' and inserting ``clause (i) or (iii) 
     of paragraph (3)(A)''.
       (g) Phaseout of 30 Percent Credit Rate for Fuel Cell, Small 
     Wind, and Geothermal Energy Property.--
       (1) In general.--Subsection (a) of section 48 of such Code 
     is amended by adding at the end the following new paragraph:
       ``(7) Phaseout for qualified fuel cell property, qualified 
     small wind energy property, and geothermal property.--
       ``(A) In general.--In the case of qualified fuel cell 
     property, qualified small wind energy property, or property 
     described in paragraph (3)(A)(iii), the construction of which 
     begins before January 1, 2022, the energy percentage 
     determined under paragraph (2) shall be equal to--
       ``(i) in the case of any property the construction of which 
     begins after December 31, 2019, and before January 1, 2021, 
     26 percent, and
       ``(ii) in the case of any property the construction of 
     which begins after December 31, 2020, and before January 1, 
     2022, 22 percent.
       ``(B) Placed in service deadline.--Subparagraph (A) shall 
     not apply to any property which is not placed in service 
     before January 1, 2024.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     48(a)(2) of such Code is amended by striking ``paragraph 
     (6)'' and inserting ``paragraphs (6) and (7)''.
       (h) Phaseout of 10 Percent Credit Rate.--
       (1) In general.--Subsection (a) of section 48 of such Code, 
     as amended by subsection (g), is amended by adding at the end 
     the following new paragraph:
       ``(8) Phaseout of 10 percent credit rate.--
       ``(A) In general.--In the case of property to which 
     paragraph (2)(A)(ii) applies (before the application of this 
     paragraph), the energy percentage determined under paragraph 
     (2) shall be equal to--
       ``(i) in the case of any property the construction of which 
     begins after December 31, 2019, and before January 1, 2021, 8 
     percent, and
       ``(ii) in the case of any property the construction of 
     which begins after December 31, 2020, and before January 1, 
     2022, 6 percent.
       ``(B) Placed in service deadline.--Subparagraph (A) shall 
     not apply to any property which is not placed in service 
     before January 1, 2024.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     48(a)(2) of such Code, as amended by subsection (g), is 
     amended by striking ``(6) and (7)'' and inserting ``(6), (7), 
     and (8).''.
       (i) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3564. Mr. SASSE submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title V, add the following:

     SEC. 5032. TREATMENT OF TRANSPORTATION SECURITY 
                   ADMINISTRATION TRUSTED TRAVELER PROGRAM FEES.

       Section 540 of the Department of Homeland Security 
     Appropriations Act, 2006 (Public Law 109-90; 49 U.S.C. 114 
     note) is amended by striking ``and shall be credited'' and 
     all that follows and inserting the following: ``; Provided 
     further, That such fees shall be deposited in the general 
     fund of the Treasury and shall be available to the 
     Transportation Security Administration as provided in advance 
     in appropriations Acts.''.

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