[Congressional Record Volume 160, Number 116 (Wednesday, July 23, 2014)]
[Senate]
[Pages S4772-S4843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TEXT OF AMENDMENTS
SA 3582. Mr. WYDEN (for himself and Mr. Hatch) submitted an amendment
intended to be proposed by him to the bill H.R. 5021, to provide an
extension of Federal-aid highway, highway safety, motor carrier safety,
transit, and other programs funded out of the Highway Trust Fund, and
for other purposes; which was ordered to lie on the table; as follows:
Strike title II and insert the following:
TITLE II--REVENUE PROVISIONS
SEC. 2001. SHORT TITLE, ETC.
(a) Short Title.--This title may be cited as the
``Preserving America's Transit and Highways Act of 2014''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
Subtitle A--Extension of Trust Fund Expenditure Authority
SEC. 2011. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.
(a) Highway Trust Fund.--Section 9503 is amended--
(1) by striking ``before October 1, 2014,'' in subsections
(b)(6)(B), (c)(1), and (e)(3), and
(2) by striking ``MAP-21'' in subsections (c)(1) and (e)(3)
and inserting ``Highway and Transportation Funding Act of
2014''.
(b) Sport Fish Restoration and Boating Trust Fund.--Section
9504 is amended--
(1) by striking ``MAP-21'' each place it appears in
subsection (b)(2) and inserting ``Highway and Transportation
Funding Act of 2014'', and
(2) by striking ``before October 1, 2014,'' in subsection
(d)(2).
(c) Leaking Underground Storage Tank Trust Fund.--Paragraph
(2) of section 9508(e) is amended by striking ``before
October 1, 2014,''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 2012. FURTHER APPROPRIATIONS TO TRUST FUND.
Subsection (f) of section 9503 is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
``(5) Further appropriations to trust fund.--For fiscal
year 2014, out of money in the Treasury not otherwise
appropriated, there is hereby appropriated, in addition to
any amounts under paragraph (4), to--
``(A) the Highway Account (as defined in subsection
(e)(5)(B)) in the Highway Trust Fund, $7,824,000,000, and
``(B) the Mass Transit Account of the Highway Trust Fund,
$2,000,000,000.''.
[[Page S4773]]
Subtitle B--Other Revenue Provisions
SEC. 2021. ADDITIONAL INFORMATION ON RETURNS RELATING TO
MORTGAGE INTEREST.
(a) In General.--Paragraph (2) of section 6050H(b) is
amended by striking ``and'' at the end of subparagraph (C),
by redesignating subparagraph (D) as subparagraph (I), and by
inserting after subparagraph (C) the following new
subparagraphs:
``(D) the unpaid balance with respect to such mortgage at
the close of the calendar year,
``(E) the address of the property securing such mortgage,
``(F) information with respect to whether the mortgage is a
refinancing that occurred in such calendar year,
``(G) the amount of real estate taxes paid from an escrow
account with respect to the property securing such mortgage,
``(H) the date of the origination of such mortgage, and''.
(b) Payee Statements.--Subsection (d) of section 6050H is
amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by inserting after paragraph (2) the following
new paragraph:
``(3) the information required to be included on the return
under subparagraphs (D), (E), (F), (G) and (H) of subsection
(b)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to returns and statements the due date for which
(determined without regard to extensions) is after December
31, 2015.
SEC. 2022. CLARIFICATION OF 6-YEAR STATUTE OF LIMITATIONS IN
CASE OF OVERSTATEMENT OF BASIS.
(a) In General.--Subparagraph (B) of section 6501(e)(1) is
amended--
(1) by striking ``and'' at the end of clause (i), by
redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
``(ii) An understatement of gross income by reason of an
overstatement of unrecovered cost or other basis is an
omission from gross income; and'',
(2) by inserting ``(other than in the case of an
overstatement of unrecovered cost or other basis)'' in clause
(iii) (as so redesignated) after ``In determining the amount
omitted from gross income'', and
(3) by inserting ``amount omitted from'' after
``Determination of'' in the heading thereof.
(b) Effective Date.--The amendments made by this section
shall apply to--
(1) returns filed after the date of the enactment of this
Act, and
(2) returns filed on or before such date if the period
specified in section 6501 of the Internal Revenue Code of
1986 (determined without regard to such amendments) for
assessment of the taxes with respect to which such return
relates has not expired as of such date.
SEC. 2023. ADDITIONAL TRANSFER FROM THE LEAKING UNDERGROUND
STORAGE TANK TRUST FUND TO THE HIGHWAY TRUST
FUND.
(a) In General.--Subsection (c) of section 9508 is
amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)'', and
(2) by adding at the end the following new paragraph:
``(3) Additional transfer to highway trust fund.--Out of
amounts in the Leaking Underground Storage Tank Trust Fund
there is hereby appropriated $1,000,000,000 to be transferred
under section 9503(f)(3) to the Highway Account (as defined
in section 9503(e)(5)(B)) in the Highway Trust Fund.''.
(b) Transfer to Highway Trust Fund.--Paragraph (3) of
section 9503(f) is amended by striking ``section
9508(c)(2).'' and inserting ``paragraphs (2) and (3) of
section 9508(c).''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 2024. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NATURAL
GAS AND LIQUEFIED PETROLEUM GAS.
(a) Liquefied Petroleum Gas.--
(1) In general.--Subparagraph (B) of section 4041(a)(2) is
amended by striking ``and'' at the end of clause (i), by
redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
``(ii) in the case of liquefied petroleum gas, 18.3 cents
per energy equivalent of a gallon of gasoline, and''.
(2) Energy equivalent of a gallon of gasoline.--Paragraph
(2) of section 4041(a) is amended by adding at the end the
following:
``(C) Energy equivalent of a gallon of gasoline.--For
purposes of this paragraph, the term `energy equivalent of a
gallon of gasoline' means, with respect to a liquefied
petroleum gas fuel, the amount of such fuel having a Btu
content of 115,400 (lower heating value).''.
(b) Liquefied Natural Gas.--
(1) In general.--Subparagraph (B) of section 4041(a)(2), as
amended by subsection (a)(1), is amended by striking ``and''
at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting ``, and' '' and by inserting
after clause (iii) the following new clause:
``(iv) in the case of liquefied natural gas, 24.3 cents per
energy equivalent of a gallon of diesel.''.
(2) Energy equivalent of a gallon of diesel.--Paragraph (2)
of section 4041(a), as amended by subsection (a)(2), is
amended by adding at the end the following:
``(D) Energy equivalent of a gallon of diesel.--For
purposes of this paragraph, the term `energy equivalent of a
gallon of diesel' means, with respect to a liquefied natural
gas fuel, the amount of such fuel having a Btu content of
128,700 (lower heating value).''.
(3) Conforming amendments.--Section 4041(a)(2)(B)(iv), as
redesignated by subsection (a)(1) and paragraph (1), is
amended--
(A) by striking ``liquefied natural gas,'', and
(B) by striking ``peat), and'' and inserting ``peat) and''.
(c) Effective Date.--The amendments made by this section
shall apply to any sale or use of fuel after September 30,
2014.
SEC. 2025. CLARIFICATION OF THE NORMAL RETIREMENT AGE.
(a) Amendments to the Employee Retirement Income Security
Act of 1974.--Section 204 of the Employee Retirement Income
Security Act of 1974 is amended by redesignating subsection
(k) as subsection (l) and by inserting after subsection (j)
the following new subsection:
``(k) Special Rule for Determining Normal Retirement Age
for Certain Existing Defined Benefit Plans.--
``(1) In general.--Notwithstanding section 3(24), an
applicable plan shall not be treated as failing to meet any
requirement of this title, or as failing to have a uniform
normal retirement age for purposes of this title, solely
because the plan provides for a normal retirement age
described in paragraph (2).
``(2) Applicable plan.--For purposes of this subsection--
``(A) In general.--The term `applicable plan' means a
defined benefit plan the terms of which, on or before June
25, 2014, provided for a normal retirement age which is the
earlier of--
``(i) an age otherwise permitted under section 3(24), or
``(ii) the age at which a participant completes the number
of years (not less than 30 years) of benefit accrual service
specified by the plan.
A plan shall not fail to be treated as an applicable plan
solely because the normal retirement age described in the
preceding sentence only applied to certain participants or
only applied to employees of certain employers in the case of
a plan maintained by more than 1 employer.
``(B) Expanded application.--Subject to subparagraph (C),
if, after June 25, 2014, an applicable plan is amended to
expand the application of the normal retirement age described
in subparagraph (A) to additional participants or to
employees of additional employers maintaining the plan, such
plan shall also be treated as an applicable plan with respect
to such participants or employees.
``(C) Limitation on expanded application.--A defined
benefit plan shall be an applicable plan only with respect to
an individual who--
``(i) is a participant in the plan on or before January 1,
2017, or
``(ii) is an employee at any time on or before January 1,
2017, of any employer maintaining the plan, and who becomes a
participant in such plan after such date.''.
(b) Amendment to the Internal Revenue Code of 1986.--
Section 411 is amended by adding at the end the following new
subsection:
``(f) Special Rule for Determining Normal Retirement Age
for Certain Existing Defined Benefit Plans.--
``(1) In general.--Notwithstanding subsection (a)(8), an
applicable plan shall not be treated as failing to meet any
requirement of this subchapter, or as failing to have a
uniform normal retirement age for purposes of this
subchapter, solely because the plan provides for a normal
retirement age described in paragraph (2).
``(2) Applicable plan.--For purposes of this subsection--
``(A) In general.--The term `applicable plan' means a
defined benefit plan the terms of which, on or before June
25, 2014, provided for a normal retirement age which is the
earlier of--
``(i) an age otherwise permitted under subsection (a)(8),
or
``(ii) the age at which a participant completes the number
of years (not less than 30 years) of benefit accrual service
specified by the plan.
A plan shall not fail to be treated as an applicable plan
solely because the normal retirement age described in the
preceding sentence only applied to certain participants or
only applied to employees of certain employers in the case of
a plan maintained by more than 1 employer.
``(B) Expanded application.--Subject to subparagraph (C),
if, after June 25, 2014, an applicable plan is amended to
expand the application of the normal retirement age described
in subparagraph (A) to additional participants or to
employees of additional employers maintaining the plan, such
plan shall also be treated as an applicable plan with respect
to such participants or employees.
``(C) Limitation on expanded application.--A defined
benefit plan shall be an applicable plan only with respect to
an individual who--
``(i) is a participant in the plan on or before January 1,
2017, or
``(ii) is an employee at any time on or before January 1,
2017, of any employer maintaining the plan, and who becomes a
participant in such plan after such date.''.
[[Page S4774]]
(c) Effective Date.--The amendments made by this section
shall apply to all periods before, on, and after the date of
enactment of this Act.
SEC. 2026. PENALTY FOR FAILURE TO MEET DUE DILIGENCE
REQUIREMENTS FOR THE CHILD TAX CREDIT.
(a) In General.--Section 6695 is amended by adding at the
end the following new subsection:
``(h) Failure to Be Diligent in Determining Eligibility for
Child Tax Credit.--Any person who is a tax return preparer
with respect to any return or claim for refund who fails to
comply with due diligence requirements imposed by the
Secretary by regulations with respect to determining
eligibility for, or the amount of, the credit allowable by
section 24 shall pay a penalty of $500 for each such
failure.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 2027. FUNDING STABILIZATION.
(a) Funding Stabilization Under the Internal Revenue Code
of 1986.--The table in subclause (II) of section
430(h)(2)(C)(iv) is amended to read as follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, or 2015............. 90%.......................... 110%
2016.................................. 85%.......................... 115%
2017.................................. 80%.......................... 120%
2018.................................. 75%.......................... 125%
After 2018............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(b) Funding Stabilization Under the Employee Retirement
Income Security Act of 1974.--
(1) In general.--The table in subclause (II) of section
303(h)(2)(C)(iv) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read
as follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, or 2015............. 90%.......................... 110%
2016.................................. 85%.......................... 115%
2017.................................. 80%.......................... 120%
2018.................................. 75%.......................... 125%
After 2018............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(2) Conforming amendments.--
(A) In general.--Section 101(f)(2)(D) of such Act (29
U.S.C. 1021(f)(2)(D)) is amended--
(i) in clause (i) by inserting ``and Preserving America's
Transit and Highways Act of 2014'' after ``MAP-21'' both
places it appears, and
(ii) in clause (ii) by striking ``2015'' and inserting
``2018''.
(B) Statements.--The Secretary of Labor shall modify the
statements required under subclauses (I) and (II) of section
101(f)(2)(D)(i) of such Act to conform to the amendments made
by this section.
(c) Stabilization Not to Apply for Purposes of Certain
Accelerated Benefit Distribution Rules.--
(1) Internal revenue code of 1986.--The second sentence of
paragraph (2) of section 436(d) is amended by striking ``of
such plan'' and inserting ``of such plan (determined by not
taking into account any adjustment of segment rates under
section 430(h)(2)(C)(iv))''.
(2) Employee retirement income security act of 1974.--The
second sentence of subparagraph (B) of section 206(g)(3) of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1056(g)(3)(B)) is amended by striking ``of such plan''
and inserting ``of such plan (determined by not taking into
account any adjustment of segment rates under section
303(h)(2)(C)(iv))''.
(3) Effective date.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by this subsection shall apply to plan
years beginning after December 31, 2014.
(B) Collectively bargained plans.--In the case of a plan
maintained pursuant to 1 or more collective bargaining
agreements, the amendments made by this subsection shall
apply to plan years beginning after December 31, 2015.
(4) Provisions relating to plan amendments.--
(A) In general.--If this paragraph applies to any amendment
to any plan or annuity contract, such plan or contract shall
be treated as being operated in accordance with the terms of
the plan during the period described in subparagraph (B)(ii).
(B) Amendments to which paragraph applies.--
(i) In general.--This paragraph shall apply to any
amendment to any plan or annuity contract which is made--
(I) pursuant to the amendments made by this subsection, or
pursuant to any regulation issued by the Secretary of the
Treasury or the Secretary of Labor under any provision as so
amended, and
(II) on or before the last day of the first plan year
beginning on or after January 1, 2016, or such later date as
the Secretary of the Treasury may prescribe.
(ii) Conditions.--This subsection shall not apply to any
amendment unless, during the period--
(I) beginning on the date that the amendments made by this
subsection or the regulation described in clause (i)(I) takes
effect (or in the case of a plan or contract amendment not
required by such amendments or such regulation, the effective
date specified by the plan), and
(II) ending on the date described in clause (i)(II) (or, if
earlier, the date the plan or contract amendment is adopted),
the plan or contract is operated as if such plan or contract
amendment were in effect, and such plan or contract amendment
applies retroactively for such period.
(C) Anti-cutback relief.--A plan shall not be treated as
failing to meet the requirements of section 204(g) of the
Employee Retirement Income Security Act of 1974 (29 U. S. C.
1054(g)) and section 411(d)(6) of the Internal Revenue Code
of 1986 solely by reason of a plan amendment to which this
paragraph applies.
(d) Modification of Funding Target Determination Periods.--
(1) Internal revenue code of 1986.--Clause (i) of section
430(h)(2)(B) is amended by striking ``the first day of the
plan year'' and inserting ``the valuation date for the plan
year''.
(2) Employee retirement income security act of 1974.--
Clause (i) of section 303(h)(2)(B) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(B)(i)) is
amended by striking ``the first day of the plan year'' and
inserting ``the valuation date for the plan year''.
(e) Effective Date.--
(1) In general.--The amendments made by subsections (a),
(b), and (d) shall apply with respect to plan years beginning
after December 31, 2012.
(2) Elections.--A plan sponsor may elect not to have the
amendments made by subsections (a), (b), and (d) apply to any
plan year beginning before January 1, 2014, either (as
specified in the election)--
(A) for all purposes for which such amendments apply, or
(B) solely for purposes of determining the adjusted funding
target attainment percentage under sections 436 of the
Internal Revenue Code of 1986 and 206(g) of the Employee
Retirement Income Security Act of 1974 for such plan year.
A plan shall not be treated as failing to meet the
requirements of section 204(g) of such Act (29 U. S. C.
1054(g)) and section 411(d)(6) of such Code solely by reason
of an election under this paragraph.
SEC. 2028. MERCHANDISE PROCESSING FEES.
(a) Rate Increase.--For the period beginning on July 1,
2021, and ending on September 30, 2024, section 13031(a)(9)
of the Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(a)(9)) shall be applied and administered by
substituting ``0.3464'' for ``0.21'' each place it appears.
(b) Extension.--Section 13031(j)(3)(A) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)(A)) is amended by striking ``September 30, 2023''
and inserting ``January 7, 2024''.
SEC. 2029. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE
PROVIDERS AND SUPPLIERS.
(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking the period at the end and inserting ``,
or to a Medicare provider or supplier under title XVIII of
the Social Security Act.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made on or after the date which is 6
months after the date of the enactment of this Act.
SEC. 2030. MODIFICATION OF TAX EXEMPTION REQUIREMENTS FOR
MUTUAL DITCH OR IRRIGATION COMPANIES.
(a) In General.--Paragraph (12) of section 501(c) is
amended by adding at the end the following new subparagraph:
``(I) Treatment of mutual ditch irrigation companies.--
``(i) In general.--In the case of a mutual ditch or
irrigation company or of a like organization to a mutual
ditch or irrigation company, subparagraph (A) shall be
applied without taking into account any income received or
accrued--
``(I) from the sale, lease, or exchange of fee or other
interests in real property, including interests in water,
[[Page S4775]]
``(II) from the sale or exchange of stock in a mutual ditch
or irrigation company (or in a like organization to a mutual
ditch or irrigation company) or contract rights for the
delivery or use of water, or
``(III) from the investment of proceeds from sales, leases,
or exchanges under subclauses (I) and (II),
except that any income received under subclause (I), (II), or
(III) which is distributed or expended for expenses (other
than for operations, maintenance, and capital improvements)
of the mutual ditch or irrigation company or of the like
organization to a mutual ditch or irrigation company (as the
case may be) shall be treated as nonmember income in the year
in which it is distributed or expended. For purposes of the
preceding sentence, expenses (other than for operations,
maintenance, and capital improvements) include expenses for
the construction of conveyances designed to deliver water
outside of the system of the mutual ditch or irrigation
company or of the like organization.
``(ii) Treatment of organizational governance.--In the case
of a mutual ditch or irrigation company or of a like
organization to a mutual ditch or irrigation company, where
State law provides that such a company or organization may be
organized in a manner that permits voting on a basis which is
pro rata to share ownership on corporate governance matters,
subparagraph (A) shall be applied without taking into account
whether its member shareholders have one vote on corporate
governance matters per share held in the corporation. Nothing
in this clause shall be construed to create any inference
about the requirements of this subsection for companies or
organizations not included in this clause.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 2031. SENSE OF THE SENATE RELATING TO THE NEED FOR LONG-
TERM TRANSPORTATION FUNDING BILL.
(a) Findings.--The Senate finds the following:
(1) The Highway Trust Fund is projected to become insolvent
before the end of fiscal year 2014.
(2) The user-fee principle upon which the Highway Trust
Fund was established is eroding as demonstrated by the fact
that since 2008 Congress has transferred $54,000,000,000 from
the general fund to the Highway Trust Fund.
(3) The gas tax and diesel tax, which are the primary
funding mechanisms for the Highway Trust Fund, have not been
increased since 1993 and are not indexed for inflation.
(4) Highway Trust Fund revenues have not kept pace with the
infrastructure needs of the United States, in significant
part due to a decline in miles driven, a decline in the
purchasing power of highway excise taxes, and increased fuel
efficiency.
(5) In 2013, according to the World Economic Forum Report
on Global Competitiveness, the United States was ranked 25th
globally in overall infrastructure quality.
(6) Short-term surface transportation extensions increase
costs of transportation projects, limit the ability of State
and local governments to plan infrastructure improvement, and
ultimately have resulted in the degradation of infrastructure
of the United States.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) any long-term transportation reauthorization bill
should at a minimum fund infrastructure spending levels
established in Senate authorizing legislation through fiscal
year 2020; and
(2) the Committee on Finance of the Senate and other
relevant committees of jurisdiction should work diligently to
produce long-term surface transportation reauthorization
legislation expeditiously.
Subtitle C--Budgetary Provisions
SEC. 2041. UNUSED EARMARKS.
(a) Definitions.--In this section--
(1) the term ``earmark'' means--
(A) a congressionally directed spending item, as defined in
rule XLIV of the Standing Rules of the Senate; and
(B) a congressional earmark, as defined in rule XXI of the
Rules of the House of Representatives; and
(2) the term ``unused DOT earmark'' means an earmark of
funds for the Department of Transportation for a Federal-aid
highway or highway safety construction program provided in an
Act other than an appropriation Act for which--
(A) funds were first made available for any fiscal year
before fiscal year 2005;
(B) as of September 30, 2014, more than 90 percent of the
dollar amount of the earmark of funds remains available for
obligation; and
(C) no amounts from the earmark of funds were expended
during fiscal year 2013 or 2014.
(b) Rescission of Unused DOT Earmarks.--
(1) In general.--Except as provided in paragraph (2),
effective on September 30, 2014, all unobligated amounts made
available under an unused DOT earmark are rescinded.
(2) Exceptions.--
(A) Delay by secretary.--
(i) In general.--The Secretary of Transportation may delay
the rescission of amounts made available under an unused DOT
earmark under paragraph (1) if the Secretary determines that
an additional obligation of amounts from the earmark of funds
is likely to occur during fiscal year 2015.
(ii) Earmark funds not used.--For an unused DOT earmark for
which the Secretary of Transportation delayed rescission
under clause (i), if no amounts from the earmark of funds are
obligated during fiscal year 2015, effective on October 1,
2015, all unobligated amounts made available under the unused
DOT earmark are rescinded.
(B) Written request by recipients.--Amounts made available
under an unused DOT earmark shall not be rescinded under
paragraph (1) if, before September 30, 2014, the recipient of
the unused DOT earmark notifies the Secretary of
Transportation in writing that--
(i) the project to be carried out using the unused DOT
earmark is a priority project for the recipient; and
(ii) the recipient intends to spend the amounts made
available for the project to be carried out using the unused
DOT earmark.
(c) DOT Earmark Identification and Report.--
(1) Identification.--The Secretary of Transportation shall
identify and submit to the Director of the Office of
Management and Budget an annual report regarding every
Federal-aid highway or highway safety construction program of
the Department of Transportation for which--
(A) amounts are made available under an earmark provided in
an Act other than an appropriation Act; and
(B) as of the end of a fiscal year, unobligated balances
remain available.
(2) Annual report.--The Director of the Office of
Management and Budget shall submit to Congress and publically
post on the website of the Office of Management and Budget an
annual report that includes a listing and accounting for
earmarks for a Federal-aid highway or highway safety
construction program of the Department of Transportation
provided in an Act other than an appropriation Act for which
unobligated balances remain available, which shall include,
for each earmark--
(A) the amount of funds made available under the original
earmark;
(B) the amount of the unobligated balances that remain
available;
(C) the fiscal year through which the funds are made
available, if applicable; and
(D) recommendations and justifications for whether the
earmark should be rescinded or retained in the next fiscal
year.
SEC. 2042. TREATMENT FOR PAYGO PURPOSES.
(a) Paygo Scorecard.--The budgetary effects of this Act and
the amendments made by this Act shall not be entered on
either PAYGO scorecard maintained pursuant to section 4(d) of
the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
(b) Senate Paygo Scorecard.--The budgetary effects of this
Act and the amendments made by this Act shall not be entered
on any PAYGO scorecard maintained for purposes of section 201
of S. Con. Res. 21 (110th Congress).
______
SA 3583. Mr. CARPER (for himself, Mr. Corker, and Mrs. Boxer)
submitted an amendment intended to be proposed by him to the bill H.R.
5021, to provide an extension of Federal-aid highway, highway safety,
motor carrier safety, transit, and other programs funded out of the
Highway Trust Fund, and for other purposes; which was ordered to lie on
the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Highway
and Transportation Funding Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--SURFACE TRANSPORTATION PROGRAM EXTENSION
Subtitle A--Federal-aid Highways
Sec. 1001. Extension of Federal-aid highway programs.
Subtitle B--Extension of Highway Safety Programs
Sec. 1101. Extension of National Highway Traffic Safety Administration
highway safety programs.
Sec. 1102. Extension of Federal Motor Carrier Safety Administration
programs.
Sec. 1103. Dingell-Johnson Sport Fish Restoration Act.
Subtitle C--Public Transportation Programs
Sec. 1201. Public transportation programs continuation.
Subtitle D--Hazardous Materials
Sec. 1301. Extension of hazardous materials programs.
TITLE II--REVENUE PROVISIONS
Sec. 2001. Extension of Highway Trust Fund expenditure authority.
Sec. 2002. Funding of Highway Trust Fund.
Sec. 2003. Additional information on returns relating to mortgage
interest.
Sec. 2004. Penalty for failure to meet due diligence requirements for
the child tax credit.
Sec. 2005. Clarification of 6-year statute of limitations in case of
overstatement of basis.
Sec. 2006. 100 percent continuous levy on payment to medicare providers
and suppliers.
[[Page S4776]]
Sec. 2007. Modification of tax exemption requirements for mutual ditch
or irrigation companies.
Sec. 2008. Equalization of excise tax on liquefied natural gas and
liquefied petroleum gas.
Sec. 2009. Extension of customs user fees.
TITLE III--BUDGETARY PROVISIONS
Sec. 301. Treatment for PAYGO purposes.
SEC. 2. DEFINITIONS.
In this Act and the amendments made by this Act:
(1) MAP-21.--The term ``MAP-21'' means the Moving Ahead for
Progress in the 21st Century Act (Public Law 112-141; 126
Stat. 405).
(2) Part-year extension period.--The term ``Part-Year
Extension Period'' means the period beginning on October 1,
2014, and ending on the Part-Year Funding Date.
(3) Part-year funding date.--The term ``Part-Year Funding
Date'' means December 19, 2014.
(4) Part-year ratio.--The term ``Part-Year Ratio'' means
the ratio calculated by dividing--
(A) the number of days included in the period beginning on
October 1, 2014, and ending on the Part-Year Funding Date; by
(B) 365.
(5) SAFETEA-LU.--The term ``SAFETEA-LU'' means the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (Public Law 109-59; 119 Stat. 1144).
TITLE I--SURFACE TRANSPORTATION PROGRAM EXTENSION
Subtitle A--Federal-aid Highways
SEC. 1001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.
(a) In General.--Except as otherwise provided in this
subtitle, requirements, authorities, conditions,
eligibilities, limitations, and other provisions authorized
under divisions A and E of MAP-21 (Public Law 112-141), the
SAFETEA-LU Technical Corrections Act of 2008 (Public Law 110-
244), titles I, V, and VI of SAFETEA-LU (Public Law 109-59),
titles I and V of the Transportation Equity Act for the 21st
Century (Public Law 105-178), the National Highway System
Designation Act of 1995 (Public Law 104-59), titles I and VI
of the Intermodal Surface Transportation Efficiency Act of
1991 (Public Law 102-240), and title 23, United States Code
(excluding chapter 4 of that title), that would otherwise
expire on or cease to apply after September 30, 2014, are
incorporated by reference and shall continue in effect
through the Part-Year Extension Period.
(b) Authorization of Appropriations.--There is authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) for the Part-Year Extension Period
a sum equal to--
(1) the total amount authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account)
for programs, projects, and activities for fiscal year 2014
under divisions A and E of MAP-21 and title 23, United States
Code (excluding chapter 4 of that title); multiplied by
(2) the Part-Year Ratio.
(c) Use of Funds.--
(1) In general.--Except as otherwise expressly provided in
this title, funds authorized to be appropriated under
subsection (b) for the Part-Year Extension Period shall be
distributed, administered, limited, and made available for
obligation in the same manner and in the same amounts (as
calculated using the Part-Year Ratio) as the funds authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) for fiscal year 2014 to carry out
programs, projects, activities, eligibilities, and
requirements under--
(A) MAP-21 (Public Law 112-141);
(B) the SAFETEA-LU Technical Corrections Act of 2008
(Public Law 110-244);
(C) SAFETEA-LU (Public Law 109-59);
(D) the Transportation Equity Act for the 21st Century
(Public Law 105-178);
(E) the National Highway System Designation Act of 1995
(Public Law 104-59);
(F) the Intermodal Surface Transportation Efficiency Act of
1991 (Public Law 102-240); and
(G) title 23, United States Code (excluding chapter 4 of
that title).
(2) Contract authority.--Funds authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under this section shall be--
(A) available for obligation and shall be administered in
the same manner as if the funds were apportioned under
chapter 1 of title 23, United States Code; and
(B) for the Part-Year Extension Period, except as provided
in paragraph (3)(B), subject to the limitation on obligations
for Federal-aid highways and highway safety construction
programs for fiscal year 2015 in paragraph (3)(A) or an Act
making appropriations for fiscal year 2015 or a portion of
that fiscal year.
(3) Obligation ceiling.--
(A) In general.--In the absence of an Act making
appropriations for fiscal year 2015 or a portion of that
fiscal year--
(i) the annual limitation on obligations for Federal-aid
highway and highway safety construction programs for fiscal
year 2015 shall be equal to that of fiscal year 2014; and
(ii) the limitation on obligations shall be distributed and
funding shall be exempt from the limitation on obligations in
the same manner as for fiscal year 2014
(B) Application during part-year extension period.--
(i) Limitation on obligations.--During the Part-Year
Extension Period, obligations subject to the limitation
described in paragraph (2)(B) shall not exceed--
(I) the annual limitation on obligations imposed under that
paragraph; multiplied by
(II) the Part-Year Ratio.
(ii) Exempt nhpp funds.--During the Part-Year Extension
Period, the amount of funds under section 119 of title 23,
United States Code, that is exempt from the limitation on
obligations imposed under paragraph (2)(B) shall be--
(I) $639,000,000; multiplied by
(II) the Part-Year Ratio.
(C) Calculations for distribution of obligation
limitation.--The Secretary of Transportation shall, as
necessary for purposes of making the calculations for the
distribution of any obligation limitation during the Part-
Year Extension Period--
(i) annualize the amount of contract authority provided
under this Act for Federal-aid highways and highway safety
construction programs; and
(ii) multiply the resulting distribution of obligation
limitation by either the Part-Year Ratio or the pro rata for
the period of an Act making appropriations for a portion of
fiscal year 2015, whichever is applicable.
Subtitle B--Extension of Highway Safety Programs
SEC. 1101. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION HIGHWAY SAFETY PROGRAMS.
(a) In General.--Except as otherwise provided in this
section, requirements, authorities, conditions, and other
provisions authorized under subtitle A of title I of division
C of MAP-21 (Public Law 112-141), section 2009 of SAFETEA-LU
(23 U.S.C. 402 note; Public Law 109-59), and chapter 4 of
title 23, United States Code, that would otherwise expire on
or cease to apply after September 30, 2014, are incorporated
by reference and shall continue in effect through the Part-
Year Extension Period.
(b) Authorization of Appropriations.--There is authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) for the Part-Year Extension Period
a sum equal to--
(1) the total amount authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account)
for programs, projects, and activities for fiscal year 2014
under subtitle A of title I of division C of MAP-21 (Public
Law 112-141), section 2009 of SAFETEA-LU (23 U.S.C. 402 note;
Public Law 109-59), and chapter 4 of title 23, United States
Code; multiplied by
(2) the Part-Year Ratio.
(c) Use of Funds.--Funds authorized to appropriated or made
available for obligation under the authority of this section
shall be distributed, administered, and made available for
obligation in the same manner and at the same rate as funds
authorized to be appropriated or made available for fiscal
year 2014 to carry out programs, projects and activities
under--
(1) subtitle A of title I of division C of MAP-21 (Public
Law 112-141);
(2) section 2009 of SAFETEA-LU (23 U.S.C. 402 note; Public
Law 109-59); and
(3) chapter 4 of title 23, United States Code.
(d) Contract Authority.--Section 31101(c) of MAP-21 (126
Stat. 733) is amended by striking ``fiscal years 2013 and
2014'' and inserting ``fiscal years 2013, 2014, and 2015''.
(e) Law Enforcement Campaigns.--Section 2009(a) of SAFETEA-
LU (23 U.S.C. 402 note; Public Law 109-59) is amended by
striking ``fiscal years 2013 and 2014'' each place it appears
and inserting ``fiscal years 2013, 2014, and 2015''.
SEC. 1102. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY
ADMINISTRATION PROGRAMS.
(a) Extension of Programs.--Except as otherwise provided in
this section, requirements, authorities, conditions,
eligibilities, limitations, and other provisions authorized
under title II of division C of MAP-21 (Public Law 112-141),
title IV of SAFETEA-LU (Public Law 109-59), and part B of
subtitle VI of title 49, United States Code, that would
otherwise expire on or cease to apply after September 30,
2014, are incorporated by reference and shall continue in
effect through the Part-Year Extension Period.
(b) Authorization of Appropriations.--There is authorized
to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) for the period beginning October 1,
2014, and ending on the Part-Year Funding Date, a sum equal
to--
(1) the total amount authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) for
programs, projects, and activities for fiscal year 2014 under
title II of division C of MAP-21 (Public Law 112-141), title
IV of SAFETEA-LU (Public Law 109-59), and part B of subtitle
VI of title 49, United States Code; multiplied by
(2) the Part-Year Ratio.
(c) Contract Authority.--Funds authorized to be
appropriated under this section shall be available for
obligation and shall be administered in the same manner as if
the funds were authorized by section 4101 of SAFETEA-LU
(Public Law 109-59) and amendments made by that section, as
amended by section 32603 of MAP-21 (Public Law 112-141), or
authorized by section 31104 of title 49, United States Code.
(d) Use of Funds.--Funds authorized to be appropriated or
made available for obligation and expended under the
authority of this section shall be distributed, administered,
limited, and made available for obligation in the same manner
and at the same
[[Page S4777]]
rate as funds authorized to be appropriated or made available
for fiscal year 2014 to carry out programs, projects,
activities, eligibilities, and requirements under--
(1) title II of division C of MAP-21 (Public Law 112-141);
(2) title IV of SAFETEA-LU (Public Law 109-59); and
(3) part B of subtitle VI of title 49, United States Code.
SEC. 1103. DINGELL-JOHNSON SPORT FISH RESTORATION ACT.
Section 4 of the Dingell-Johnson Sport Fish Restoration Act
(16 U.S.C. 777c) is amended--
(1) in subsection (a) in the matter preceding paragraph (1)
by striking ``2014'' and inserting ``2015''; and
(2) in subsection (b)(1)(A) in the first sentence by
striking ``2014'' and inserting ``2015''.
Subtitle C--Public Transportation Programs
SEC. 1201. PUBLIC TRANSPORTATION PROGRAMS CONTINUATION.
(a) Extension for Public Transportation Programs.--Except
as otherwise provided in this section, requirements,
authorities, conditions, eligibilities, limitations, and
other provisions authorized under division B of MAP-21
(Public Law 112-141) and chapter 53 of title 49, United
States Code, that would otherwise expire on or cease to apply
after September 30, 2014, are incorporated by reference and
shall continue in effect through the Part-Year Extension
Period.
(b) Authorization of Appropriations.--
(1) Mass transit account.--There shall be available from
the Mass Transit Account of the Highway Trust Fund for the
Part-Year Extension Period, a sum equal to--
(A) the total amount authorized to be appropriated out of
the Mass Transit Account of the Highway Trust Fund for
programs, projects, and activities for fiscal year 2014
authorized under division B of MAP-21 (Public Law 112-141)
and under chapter 53 of title 49, United States Code;
multiplied by
(B) the Part-Year Ratio.
(2) General fund.--There is authorized to be appropriated
from the general fund of the Treasury for the period
beginning October 1, 2014, and ending on the Part-Year
Funding Date, a sum equal to--
(A) the total amount authorized to be appropriated from the
general fund of the Treasury for programs, projects, and
activities for fiscal year 2014 under division B of MAP-21
(Public Law 112-141) and under chapter 53 of title 49, United
States Code; multiplied by
(B) the Part-Year Ratio.
(c) Contract Authority.--Funds made available under this
section from the Mass Transit Account of the Highway Trust
Fund shall be available for obligation in the same manner as
set forth in section 5338(j)(1) of title 49, United States
Code.
(d) Use of Funds.--Funds authorized to appropriated or made
available for obligation and expended under the authority of
this section shall be distributed, administered, limited, and
made available for obligation in the same manner and at the
same rate as funds authorized to be appropriated or made
available for fiscal year 2014 to carry out programs,
projects, activities, eligibilities, and requirements under
division B of MAP-21 (Public Law 112-141) and chapter 53 of
title 49, United States Code.
(e) Distribution of Funds Under Division B of MAP-21.--
Funds authorized to be appropriated or made available for
programs continued under this section shall be distributed to
those programs in the same proportion as funds were allocated
for those programs for fiscal year 2014.
Subtitle D--Hazardous Materials
SEC. 1301. EXTENSION OF HAZARDOUS MATERIALS PROGRAMS.
(a) Extension of Programs.--Except as otherwise provided in
this section, requirements, authorities, conditions,
eligibilities, limitations, and other provisions authorized
under title III of division C of MAP-21 (Public Law 112-141)
and chapter 51 of title 49, United States Code, that would
otherwise expire on or cease to apply after September 30,
2014, are incorporated by reference and shall continue in
effect through the Part-Year Extension Period.
(b) Authorization of Appropriations.--There is authorized
to be appropriated from the general fund of the Treasury and
the Hazardous Materials Emergency Preparedness Fund
established under section 5116(i) of title 49, United States
Code, for the period beginning October 1, 2014, and ending on
the Part-Year Funding Date, an amount equal to--
(1) the total amount authorized to be appropriated from the
general fund of the Treasury and the Hazardous Materials
Emergency Preparedness Fund for programs, projects, and
activities for fiscal year 2014 under title III of division C
of MAP-21 (Public Law 112-141) and chapter 51 of title 49,
United States Code; multiplied by
(2) the Part-Year Ratio.
(c) Use of Funds.--Funds authorized to be appropriated or
made available for obligation and expended under the
authority of this section shall be distributed, administered,
limited, and made available for obligation in the same manner
and at the same rate as funds authorized to be appropriated
or made available for fiscal year 2014 to carry out programs,
projects, activities, eligibilities, and requirements under
title III of division C of MAP-21 (Public Law 112-141) and
chapter 51 of title 49, United States Code.
TITLE II--REVENUE PROVISIONS
SEC. 2001. EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE
AUTHORITY.
(a) Highway Trust Fund.--Section 9503 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``October 1, 2014'' in subsections
(b)(6)(B), (c)(1), and (e)(3) and inserting ``December 20,
2014'', and
(2) by striking ``MAP-21'' in subsections (c)(1) and (e)(3)
and inserting ``Highway and Transportation Funding Act of
2014''.
(b) Sport Fish Restoration and Boating Trust Fund.--Section
9504 of the Internal Revenue Code of 1986 is amended--
(1) by striking ``MAP-21'' each place it appears in
subsection (b)(2) and inserting ``Highway and Transportation
Funding Act of 2014'', and
(2) by striking ``October 1, 2014'' in subsection (d)(2)
and inserting ``December 20, 2014''.
(c) Leaking Underground Storage Tank Trust Fund.--Paragraph
(2) of section 9508(e) of the Internal Revenue Code of 1986
is amended by striking ``October 1, 2014'' and inserting
``December 20, 2014''.
SEC. 2002. FUNDING OF HIGHWAY TRUST FUND.
(a) In General.--Subsection (f) of section 9503 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraph (5) as paragraph (7) and by inserting after
paragraph (4) the following new paragraphs:
``(A) $5,633,000,000 to the Highway Account (as defined in
subsection (e)(5)(B)) in the Highway Trust Fund; and
``(B) $1,500,000,000 to the Mass Transit Account in the
Highway Trust Fund.
``(6) Additional increase in fund balance.--There is hereby
transferred to the Highway Account (as defined in subsection
(e)(5)(B)) in the Highway Trust Fund amounts appropriated
from the Leaking Underground Storage Tank Trust Fund under
section 9508(c)(3).''.
(b) Appropriation From Leaking Underground Storage Tank
Trust Fund.--
(1) In general.--Subsection (c) of section 9508 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(3) Additional transfer to highway trust fund.--Out of
amounts in the Leaking Underground Storage Tank Trust Fund
there is hereby appropriated $1,000,000,000 to be transferred
under section 9503(f)(6) to the Highway Account (as defined
in section 9503(e)(5)(B)) in the Highway Trust Fund.''.
(2) Conforming amendment.--Section 9508(c)(1) of the
Internal Revenue Code of 1986 is amended by striking
``paragraph (2)'' and inserting ``paragraphs (2) and (3)''.
SEC. 2003. ADDITIONAL INFORMATION ON RETURNS RELATING TO
MORTGAGE INTEREST.
(a) In General.--Paragraph (2) of section 6050H(b) of the
Internal Revenue Code of 1986 is amended by striking ``and''
at the end of subparagraph (C), by redesignating subparagraph
(D) as subparagraph (I), and by inserting after subparagraph
(C) the following new subparagraphs:
``(D) the unpaid balance with respect to such mortgage at
the close of the calendar year,
``(E) the address of the property securing such mortgage,
``(F) information with respect to whether the mortgage is a
refinancing that occurred in such calendar year,
``(G) the amount of real estate taxes paid from an escrow
account with respect to the property securing such mortgage,
``(H) the date of the origination of such mortgage, and''.
(b) Payee Statements.--Subsection (d) of section 6050H of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of paragraph (1), by striking the period
at the end of paragraph (2) and inserting ``, and'', and by
inserting after paragraph (2) the following new paragraph:
``(3) the information required to be included on the return
under subparagraphs (D), (E), (F), (G) and (H) of subsection
(b)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to returns and statements the due date for which
(determined without regard to extensions) is after December
31, 2015.
SEC. 2004. PENALTY FOR FAILURE TO MEET DUE DILIGENCE
REQUIREMENTS FOR THE CHILD TAX CREDIT.
(a) In General.--Section 6695 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(h) Failure to Be Diligent in Determining Eligibility for
Child Tax Credit.--Any person who is a tax return preparer
with respect to any return or claim for refund who fails to
comply with due diligence requirements imposed by the
Secretary by regulations with respect to determining
eligibility for, or the amount of, the credit allowable by
section 24 shall pay a penalty of $500 for each such
failure.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 2005. CLARIFICATION OF 6-YEAR STATUTE OF LIMITATIONS IN
CASE OF OVERSTATEMENT OF BASIS.
(a) In General.--Subparagraph (B) of section 6501(e)(1) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of clause (i), by
redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
[[Page S4778]]
``(ii) An understatement of gross income by reason of an
overstatement of unrecovered cost or other basis is an
omission from gross income; and'',
(2) by inserting ``(other than in the case of an
overstatement of unrecovered cost or other basis)'' in clause
(iii) (as so redesignated) after ``In determining the amount
omitted from gross income'', and
(3) by inserting ``amount omitted from'' after
``Determination of'' in the heading thereof.
(b) Effective Date.--The amendments made by this section
shall apply to--
(1) returns filed after the date of the enactment of this
Act, and
(2) returns filed on or before such date if the period
specified in section 6501 of the Internal Revenue Code of
1986 (determined without regard to such amendments) for
assessment of the taxes with respect to which such return
relates has not expired as of such date.
SEC. 2006. 100 PERCENT CONTINUOUS LEVY ON PAYMENT TO MEDICARE
PROVIDERS AND SUPPLIERS.
(a) In General.--Paragraph (3) of section 6331(h) of the
Internal Revenue Code of 1986 is amended by striking the
period at the end and inserting ``, or to a Medicare provider
or supplier under title XVIII of the Social Security Act.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made on or after the date which is 6
months after the date of the enactment of this Act.
SEC. 2007. MODIFICATION OF TAX EXEMPTION REQUIREMENTS FOR
MUTUAL DITCH OR IRRIGATION COMPANIES.
(a) In General.--Paragraph (12) of section 501(c) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(I) Treatment of mutual ditch irrigation companies.--
``(i) In general.--In the case of a mutual ditch or
irrigation company or of a like organization to a mutual
ditch or irrigation company, subparagraph (A) shall be
applied without taking into account any income received or
accrued--
``(I) from the sale, lease, or exchange of fee or other
interests in real property, including interests in water,
``(II) from the sale or exchange of stock in a mutual ditch
or irrigation company (or in a like organization to a mutual
ditch or irrigation company) or contract rights for the
delivery or use of water, or
``(III) from the investment of proceeds from sales, leases,
or exchanges under subclauses (I) and (II),
except that any income received under subclause (I), (II), or
(III) which is distributed or expended for expenses (other
than for operations, maintenance, and capital improvements)
of the mutual ditch or irrigation company or of the like
organization to a mutual ditch or irrigation company (as the
case may be) shall be treated as nonmember income in the year
in which it is distributed or expended. For purposes of the
preceding sentence, expenses (other than for operations,
maintenance, and capital improvements) include expenses for
the construction of conveyances designed to deliver water
outside of the system of the mutual ditch or irrigation
company or of the like organization.
``(ii) Treatment of organizational governance.--In the case
of a mutual ditch or irrigation company or of a like
organization to a mutual ditch or irrigation company, where
State law provides that such a company or organization may be
organized in a manner that permits voting on a basis which is
pro rata to share ownership on corporate governance matters,
subparagraph (A) shall be applied without taking into account
whether its member shareholders have one vote on corporate
governance matters per share held in the corporation. Nothing
in this clause shall be construed to create any inference
about the requirements of this subsection for companies or
organizations not included in this clause.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 2008. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NATURAL
GAS AND LIQUEFIED PETROLEUM GAS.
(a) Liquefied Petroleum Gas.--
(1) In general.--Subparagraph (B) of section 4041(a)(2) of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (i), by redesignating clause
(ii) as clause (iii), and by inserting after clause (i) the
following new clause:
``(ii) in the case of liquefied petroleum gas, 18.3 cents
per energy equivalent of a gallon of gasoline, and''.
(2) Energy equivalent of a gallon of gasoline.--Paragraph
(2) of section 4041(a) of such Code is amended by adding at
the end the following:
``(C) Energy equivalent of a gallon of gasoline.--For
purposes of this paragraph, the term `energy equivalent of a
gallon of gasoline' means, with respect to a liquefied
petroleum gas fuel, the amount of such fuel having a Btu
content of 115,400 (lower heating value).''.
(b) Liquefied Natural Gas.--
(1) In general.--Subparagraph (B) of section 4041(a)(2) of
the Internal Revenue Code of 1986, as amended by subsection
(a)(1), is amended by striking ``and'' at the end of clause
(ii), by striking the period at the end of clause (iii) and
inserting ``, and' '' and by inserting after clause (iii) the
following new clause:
``(iv) in the case of liquefied natural gas, 24.3 cents per
energy equivalent of a gallon of diesel.''.
(2) Energy equivalent of a gallon of diesel.--Paragraph (2)
of section 4041(a) of such Code, as amended by subsection
(a)(2), is amended by adding at the end the following:
``(D) Energy equivalent of a gallon of diesel.--For
purposes of this paragraph, the term `energy equivalent of a
gallon of diesel' means, with respect to a liquefied natural
gas fuel, the amount of such fuel having a Btu content of
128,700 (lower heating value).''.
(3) Conforming amendments.--Section 4041(a)(2)(B)(iv) of
the Internal Revenue Code of 1986, as redesignated by
subsection (a)(1) and paragraph (1), is amended--
(A) by striking ``liquefied natural gas,'', and
(B) by striking ``peat), and'' and inserting ``peat) and''.
(c) Effective Date.--The amendments made by this section
shall apply to any sale or use of fuel after September 30,
2014.
SEC. 2009. EXTENSION OF CUSTOMS USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
(1) in subparagraph (A), by striking ``September 30, 2023''
and inserting ``January 7, 2024'', and
(2) in subparagraph (B)(i), by striking ``September 30,
2023'' and inserting ``January 7, 2024''.
TITLE III--BUDGETARY PROVISIONS
SEC. 301. TREATMENT FOR PAYGO PURPOSES.
(a) Paygo Scorecard.--The budgetary effects of this Act and
the amendments made by this Act shall not be entered on
either PAYGO scorecard maintained pursuant to section 4(d) of
the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
(b) Senate Paygo Scorecard.--The budgetary effects of this
Act and the amendments made by this Act shall not be entered
on any PAYGO scorecard maintained for purposes of section 201
of S. Con. Res. 21 (110th Congress).
______
SA 3584. Mr. LEE submitted an amendment intended to be proposed by
him to the bill H.R. 5021, to provide an extension of Federal-aid
highway, highway safety, motor carrier safety, transit, and other
programs funded out of the Highway Trust Fund, and for other purposes;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
TITLE ___--TRANSPORTATION EMPOWERMENT
SEC. __01. SHORT TITLE.
This title may be cited as the ``Transportation Empowerment
Act''.
SEC. __02. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the objective of the Federal highway program has been
to facilitate the construction of a modern freeway system
that promotes efficient interstate commerce by connecting all
States;
(2) the objective described in paragraph (1) has been
attained, and the Interstate System connecting all States is
near completion;
(3) each State has the responsibility of providing an
efficient transportation network for the residents of the
State;
(4) each State has the means to build and operate a network
of transportation systems, including highways, that best
serves the needs of the State;
(5) each State is best capable of determining the needs of
the State and acting on those needs;
(6) the Federal role in highway transportation has, over
time, usurped the role of the States by taxing motor fuels
used in the States and then distributing the proceeds to the
States based on the perceptions of the Federal Government on
what is best for the States;
(7) the Federal Government has used the Federal motor fuels
tax revenues to force all States to take actions that are not
necessarily appropriate for individual States;
(8) the Federal distribution, review, and enforcement
process wastes billions of dollars on unproductive
activities;
(9) Federal mandates that apply uniformly to all 50 States,
regardless of the different circumstances of the States,
cause the States to waste billions of hard-earned tax dollars
on projects, programs, and activities that the States would
not otherwise undertake; and
(10) Congress has expressed a strong interest in reducing
the role of the Federal Government by allowing each State to
manage its own affairs.
(b) Purposes.--The purposes of this title are--
(1) to return to the individual States maximum
discretionary authority and fiscal responsibility for all
elements of the national surface transportation systems that
are not within the direct purview of the Federal Government;
(2) to preserve Federal responsibility for the Dwight D.
Eisenhower National System of Interstate and Defense
Highways;
(3) to preserve the responsibility of the Department of
Transportation for--
(A) design, construction, and preservation of
transportation facilities on Federal public land;
(B) national programs of transportation research and
development and transportation safety; and
[[Page S4779]]
(C) emergency assistance to the States in response to
natural disasters;
(4) to eliminate to the maximum extent practicable Federal
obstacles to the ability of each State to apply innovative
solutions to the financing, design, construction, operation,
and preservation of Federal and State transportation
facilities; and
(5) with respect to transportation activities carried out
by States, local governments, and the private sector, to
encourage--
(A) competition among States, local governments, and the
private sector; and
(B) innovation, energy efficiency, private sector
participation, and productivity.
SEC. __03. FUNDING LIMITATION.
Notwithstanding any other provision of law, if the
Secretary of Transportation determines for any of fiscal
years 2016 through 2020 that the aggregate amount required to
carry out transportation programs and projects under this
title and amendments made by this title exceeds the estimated
aggregate amount in the Highway Trust Fund available for
those programs and projects for the fiscal year, each amount
made available for that program or project shall be reduced
by the pro rata percentage required to reduce the aggregate
amount required to carry out those programs and projects to
an amount equal to that available for those programs and
projects in the Highway Trust Fund for the fiscal year.
SEC. __04. FUNDING FOR CORE HIGHWAY PROGRAMS.
(a) In General.--
(1) Authorization of appropriations.--The following sums
are authorized to be appropriated out of the Highway Trust
Fund (other than the Mass Transit Account):
(A) Federal-aid highway program.--For the national highway
performance program under section 119 of title 23, United
States Code, the surface transportation program under section
133 of that title, the metropolitan transportation planning
program under section 134 of that title, the highway safety
improvement program under section 148 of that title, and the
congestion mitigation and air quality improvement program
under section 149 of that title--
(i) $37,592,576,000 for fiscal year 2016;
(ii) $19,720,696,000 for fiscal year 2017;
(iii) $13,147,130,000 for fiscal year 2018;
(iv) $10,271,196,000 for fiscal year 2019; and
(v) $7,600,685,000 for fiscal year 2020.
(B) Emergency relief.--For emergency relief under section
125 of title 23, United States Code, $100,000,000 for each of
fiscal years 2016 through 2020.
(C) Federal lands programs.--
(i) Federal lands transportation program.--For the Federal
lands transportation program under section 203 of title 23,
United States Code, $300,000,000 for each of fiscal years
2016 through 2020, of which $240,000,000 of the amount made
available for each fiscal year shall be the amount for the
National Park Service and $30,000,000 of the amount made
available for each fiscal year shall be the amount for the
United States Fish and Wildlife Service.
(ii) Federal lands access program.--For the Federal lands
access program under section 204 of title 23, United States
Code, $250,000,000 for each of fiscal years 2016 through
2020.
(D) Administrative expenses.--Section 104(a) of title 23,
United States Code, is amended by striking paragraph (1) and
inserting the following:
``(1) In general.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to be made available to the Secretary for
administrative expenses of the Federal Highway
Administration--
``(A) $437,600,000 for fiscal year 2016;
``(B) $229,565,000 for fiscal year 2017;
``(C) $153,043,000 for fiscal year 2018;
``(D) $119,565,000 for fiscal year 2019; and
``(E) $88,478,000 for fiscal year 2020.''.
(2) Transferability of funds.--Section 104 of title 23,
United States Code, is amended by striking subsection (f) and
inserting the following:
``(f) Transferability of Funds.--
``(1) In general.--To the extent that a State determines
that funds made available under this title to the State for a
purpose are in excess of the needs of the State for that
purpose, the State may transfer the excess funds to, and use
the excess funds for, any surface transportation (including
mass transit and rail) purpose in the State.
``(2) Enforcement.--If the Secretary determines that a
State has transferred funds under paragraph (1) to a purpose
that is not a surface transportation purpose as described in
paragraph (1), the amount of the improperly transferred funds
shall be deducted from any amount the State would otherwise
receive from the Highway Trust Fund for the fiscal year that
begins after the date of the determination.''.
(3) Federal-aid system.--
(A) In general.--Section 103(a) of title 23, United States
Code, is amended by striking ``the National Highway System,
which includes''.
(B) Conforming amendments.--Chapter 1 of title 23, United
States Code, is amended--
(i) in section 103 by striking the section designation and
heading and inserting the following:
``Sec. 103. Federal-aid system'';
and
(ii) in the analysis by striking the item relating to
section 103 and inserting the following:
``103. Federal-aid system.''.
(4) Calculation of state amounts.--Section 104(c)(2) of
title 23, United States Code, is amended--
(A) in the paragraph heading by striking ``For fiscal year
2014'' and inserting ``Subsequent fiscal years''; and
(B) in subparagraph (A) by striking ``fiscal year 2014''
and inserting ``fiscal year 2016 and each subsequent fiscal
year''.
(5) National bridge and tunnel inventory and inspection
standards.--
(A) In general.--Section 144 of title 23, United States
Code, is amended--
(i) in subsection (e)(1) by inserting ``on the Federal-aid
system'' after ``any bridge''; and
(ii) in subsection (f)(1) by inserting ``on the Federal-aid
system'' after ``construct any bridge''.
(B) Repeal of historic bridges provisions.--Section 144(g)
of title 23, United States Code, is repealed.
(6) Repeal of transportation alternatives program.--The
following provisions are repealed:
(A) Section 213 of title 23, United States Code.
(B) The item relating to section 213 in the analysis for
chapter 1 of title 23, United States Code.
(7) National defense highways.--Section 311 of title 23,
United States Code, is amended--
(A) in the first sentence, by striking ``under subsection
(a) of section 104 of this title'' and inserting ``to carry
out this section''; and
(B) by striking the second sentence.
(8) Federalization and defederalization of projects.--
Notwithstanding any other provision of law, beginning on
October 1, 2015--
(A) a highway construction or improvement project shall not
be considered to be a Federal highway construction or
improvement project unless and until a State expends Federal
funds for the construction portion of the project;
(B) a highway construction or improvement project shall not
be considered to be a Federal highway construction or
improvement project solely by reason of the expenditure of
Federal funds by a State before the construction phase of the
project to pay expenses relating to the project, including
for any environmental document or design work required for
the project; and
(C)(i) a State may, after having used Federal funds to pay
all or a portion of the costs of a highway construction or
improvement project, reimburse the Federal Government in an
amount equal to the amount of Federal funds so expended; and
(ii) after completion of a reimbursement described in
clause (i), a highway construction or improvement project
described in that clause shall no longer be considered to be
a Federal highway construction or improvement project.
(9) Reporting requirements.--No reporting requirement,
other than a reporting requirement in effect as of the date
of enactment of this Act, shall apply on or after October 1,
2016, to the use of Federal funds for highway projects by a
public-private partnership.
(b) Expenditures From Highway Trust Fund.--
(1) Expenditures for core programs.--Section 9503(c) of the
Internal Revenue Code of 1986 is amended--
(A) in paragraph (1)--
(i) by striking ``October 1, 2014'' and inserting ``October
1, 2021''; and
(ii) by striking ``MAP-21'' and inserting ``Transportation
Empowerment Act'';
(B) in paragraphs (3)(A)(i), (4)(A), and (5), by striking
``October 1, 2016'' each place it appears and inserting
``October 1, 2023''; and
(C) in paragraph (2), by striking ``July 1, 2017'' and
inserting ``July 1, 2024''.
(2) Amounts available for core program expenditures.--
Section 9503 of the Internal Revenue Code of 1986 is amended
by adding at the end the following:
``(g) Core Programs Financing Rate.--
``(1) In general.--Except as provided in paragraph (2)--
``(A) in the case of gasoline and special motor fuels the
tax rate of which is the rate specified in section
4081(a)(2)(A)(i), the core programs financing rate is--
``(i) after September 30, 2015, and before October 1, 2016,
18.3 cents per gallon,
``(ii) after September 30, 2016, and before October 1,
2017, 9.6 cents per gallon,
``(iii) after September 30, 2017, and before October 1,
2018, 6.4 cents per gallon,
``(iv) after September 30, 2018, and before October 1,
2019, 5.0 cents per gallon, and
``(v) after September 30, 2019, 3.7 cents per gallon, and
``(B) in the case of kerosene, diesel fuel, and special
motor fuels the tax rate of which is the rate specified in
section 4081(a)(2)(A)(iii), the core programs financing rate
is--
``(i) after September 30, 2015, and before October 1, 2016,
24.3 cents per gallon,
``(ii) after September 30, 2016, and before October 1,
2017, 12.7 cents per gallon,
``(iii) after September 30, 2017, and before October 1,
2018, 8.5 cents per gallon,
``(iv) after September 30, 2018, and before October 1,
2019, 6.6 cents per gallon, and
``(v) after September 30, 2019 5.0 cents per gallon.
``(2) Application of rate.--In the case of fuels used as
described in paragraphs (3)(C), (4)(B), and (5) of subsection
(c), the core programs financing rate is zero.''.
[[Page S4780]]
(c) Termination of Mass Transit Account.--Section
9503(e)(2) of the Internal Revenue Code of 1986 is amended--
(1) in the first sentence, by inserting ``, and before
October 1, 2015'' after ``March 31, 1983''; and
(2) by adding at the end the following:
``(6) Transfer to highway account.--On October 1, 2016, the
Secretary shall transfer all amounts in the Mass Transit
Account to the Highway Account.''.
(d) Effective Date.--The amendments and repeals made by
this section take effect on October 1, 2015.
SEC. __05. FUNDING FOR HIGHWAY RESEARCH AND DEVELOPMENT
PROGRAM.
(a) Authorization of Appropriations.--There is authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) to carry out section 503(b) of
title 23, United States Code, $115,000,000 for each of fiscal
years 2016 through 2020.
(b) Applicability of Title 23, United States Code.--Funds
authorized to be appropriated by subsection (a) shall--
(1) be available for obligation in the same manner as if
those funds were apportioned under chapter 1 of title 23,
United States Code, except that the Federal share of the cost
of a project or activity carried out using those funds shall
be 80 percent, unless otherwise expressly provided by this
title (including the amendments by this title) or otherwise
determined by the Secretary; and
(2) remain available until expended and not be
transferable.
SEC. __06. RETURN OF EXCESS TAX RECEIPTS TO STATES.
(a) In General.--Section 9503(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``(6) Return of excess tax receipts to states for surface
transportation purposes.--
``(A) In general.--On the first day of each of fiscal years
2017, 2018, 2019, and 2020, the Secretary, in consultation
with the Secretary of Transportation, shall--
``(i) determine the excess (if any) of--
``(I) the amounts appropriated in such fiscal year to the
Highway Trust Fund under subsection (b) which are
attributable to the taxes described in paragraphs (1) and (2)
thereof (after the application of paragraph (4) thereof) over
the sum of--
``(II) the amounts so appropriated which are equivalent
to--
``(aa) such amounts attributable to the core programs
financing rate for such year, plus
``(bb) the taxes described in paragraphs (3)(C), (4)(B),
and (5) of subsection (c), and
``(ii) allocate the amount determined under clause (i)
among the States (as defined in section 101(a) of title 23,
United States Code) for surface transportation (including
mass transit and rail) purposes so that--
``(I) the percentage of that amount allocated to each
State, is equal to
``(II) the percentage of the amount determined under clause
(i)(I) paid into the Highway Trust Fund in the latest fiscal
year for which such data are available which is attributable
to highway users in the State.
``(B) Enforcement.--If the Secretary determines that a
State has used amounts under subparagraph (A) for a purpose
which is not a surface transportation purpose as described in
subparagraph (A), the improperly used amounts shall be
deducted from any amount the State would otherwise receive
from the Highway Trust Fund for the fiscal year which begins
after the date of the determination.''.
(b) Effective Date.--The amendment made by this section
takes effect on October 1, 2015.
SEC. __07. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL,
KEROSENE, AND SPECIAL FUELS FUNDING HIGHWAY
TRUST FUND.
(a) Reduction in Tax Rate.--
(1) In general.--Section 4081(a)(2)(A) of the Internal
Revenue Code of 1986 is amended--
(A) in clause (i), by striking ``18.3 cents'' and inserting
``3.7 cents''; and
(B) in clause (iii), by striking ``24.3 cents'' and
inserting ``5.0 cents''.
(2) Conforming amendments.--
(A) Section 4081(a)(2)(D) of such Code is amended--
(i) by striking ``19.7 cents'' and inserting ``4.1 cents'',
and
(ii) by striking ``24.3 cents'' and inserting ``5.0
cents''.
(B) Section 6427(b)(2)(A) of such Code is amended by
striking ``7.4 cents'' and inserting ``1.5 cents''.
(b) Additional Conforming Amendments.--
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue
Code of 1986 is amended by striking ``7.3 cents per gallon
(4.3 cents per gallon after September 30, 2016)'' and
inserting ``1.4 cents per gallon (zero after September 30,
2022)''.
(2) Section 4041(a)(2)(B)(ii) of such Code is amended by
striking ``24.3 cents'' and inserting ``5.0 cents''.
(3) Section 4041(a)(3)(A) of such Code is amended by
striking ``18.3 cents'' and inserting ``3.7 cents''.
(4) Section 4041(m)(1) of such Code is amended--
(A) in subparagraph (A), by striking ``2016'' and inserting
``2022,'';
(B) in subparagraph (A)(i), by striking ``9.15 cents'' and
inserting ``1.8 cents'';
(C) in subparagraph (A)(ii), by striking ``11.3 cents'' and
inserting ``2.3 cents''; and
(D) by striking subparagraph (B) and inserting the
following:
``(B) zero after September 30, 2022.''.
(5) Section 4081(d)(1) of such Code is amended by striking
``4.3 cents per gallon after September 30, 2016'' and
inserting ``zero after September 30, 2022''.
(6) Section 9503(b) of such Code is amended--
(A) in paragraphs (1) and (2), by striking ``October 1,
2016'' both places it appears and inserting ``October 1,
2022'';
(B) in the heading of paragraph (2), by striking ``October
1, 2016'' and inserting ``October 1, 2022'';
(C) in paragraph (2), by striking ``after September 30,
2016, and before July 1, 2017'' and inserting ``after
September 30, 2021, and before July 1, 2023''; and
(D) in paragraph (6)(B), by striking ``October 1, 2014''
and inserting ``October 1, 2020''.
(c) Floor Stock Refunds.--
(1) In general.--If--
(A) before October 1, 2020, tax has been imposed under
section 4081 of the Internal Revenue Code of 1986 on any
liquid; and
(B) on such date such liquid is held by a dealer and has
not been used and is intended for sale;
there shall be credited or refunded (without interest) to the
person who paid such tax (in this subsection referred to as
the ``taxpayer'') an amount equal to the excess of the tax
paid by the taxpayer over the amount of such tax which would
be imposed on such liquid had the taxable event occurred on
such date.
(2) Time for filing claims.--No credit or refund shall be
allowed or made under this subsection unless--
(A) claim therefor is filed with the Secretary of the
Treasury before April 1, 2021; and
(B) in any case where liquid is held by a dealer (other
than the taxpayer) on October 1, 2020--
(i) the dealer submits a request for refund or credit to
the taxpayer before January 1, 2021; and
(ii) the taxpayer has repaid or agreed to repay the amount
so claimed to such dealer or has obtained the written consent
of such dealer to the allowance of the credit or the making
of the refund.
(3) Exception for fuel held in retail stocks.--No credit or
refund shall be allowed under this subsection with respect to
any liquid in retail stocks held at the place where intended
to be sold at retail.
(4) Definitions.--For purposes of this subsection, the
terms ``dealer'' and ``held by a dealer'' have the respective
meanings given to such terms by section 6412 of such Code;
except that the term ``dealer'' includes a producer.
(5) Certain rules to apply.--Rules similar to the rules of
subsections (b) and (c) of section 6412 and sections 6206 and
6675 of such Code shall apply for purposes of this
subsection.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel removed
after September 30, 2020.
(2) Certain conforming amendments.--The amendments made by
subsections (b)(4) and (b)(6) shall apply to fuel removed
after September 30, 2017.
SEC. __08. REPORT TO CONGRESS.
Not later than 180 days after the date of enactment of this
Act, after consultation with the appropriate committees of
Congress, the Secretary of Transportation shall submit a
report to Congress describing such technical and conforming
amendments to titles 23 and 49, United States Code, and such
technical and conforming amendments to other laws, as are
necessary to bring those titles and other laws into
conformity with the policy embodied in this title and the
amendments made by this title.
SEC. __09. EFFECTIVE DATE CONTINGENT ON CERTIFICATION OF
DEFICIT NEUTRALITY.
(a) Purpose.--The purpose of this section is to ensure
that--
(1) this title will become effective only if the Director
of the Office of Management and Budget certifies that this
title is deficit neutral;
(2) discretionary spending limits are reduced to capture
the savings realized in devolving transportation functions to
the State level pursuant to this title; and
(3) the tax reduction made by this title is not scored
under pay-as-you-go and does not inadvertently trigger a
sequestration.
(b) Effective Date Contingency.--Notwithstanding any other
provision of this title, this title and the amendments made
by this title shall take effect only if--
(1) the Director of the Office of Management and Budget
(referred to in this section as the ``Director'') submits the
report as required in subsection (c); and
(2) the report contains a certification by the Director
that, based on the required estimates, the reduction in
discretionary outlays resulting from the reduction in
contract authority is at least as great as the reduction in
revenues for each fiscal year through fiscal year 2021.
(c) OMB Estimates and Report.--
(1) Requirements.--Not later than 5 calendar days after the
date of enactment of this Act, the Director shall--
(A) estimate the net change in revenues resulting from this
title for each fiscal year through fiscal year 2020;
[[Page S4781]]
(B) estimate the net change in discretionary outlays
resulting from the reduction in contract authority under this
title for each fiscal year through fiscal year 2020;
(C) determine, based on those estimates, whether the
reduction in discretionary outlays is at least as great as
the reduction in revenues for each fiscal year through fiscal
year 2021; and
(D) submit to Congress a report setting forth the estimates
and determination.
(2) Applicable assumptions and guidelines.--
(A) Revenue estimates.--The revenue estimates required
under paragraph (1)(A) shall be predicated on the same
economic and technical assumptions and score keeping
guidelines that would be used for estimates made pursuant to
section 252(d) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 902(d)).
(B) Outlay estimates.--The outlay estimates required under
paragraph (1)(B) shall be determined by comparing the level
of discretionary outlays resulting from this title with the
corresponding level of discretionary outlays projected in the
baseline under section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
(d) Conforming Adjustment to Discretionary Spending
Limits.--On compliance with the requirements specified in
subsection (b), the Director shall adjust the adjusted
discretionary spending limits for each fiscal year through
fiscal year 2019 under section 601(a)(2) of the Congressional
Budget Act of 1974 (2 U.S.C. 665(a)(2)) by the estimated
reductions in discretionary outlays under subsection
(c)(1)(B).
(e) PAYGO Interaction.--On compliance with the requirements
specified in subsection (b), no changes in revenues estimated
to result from the enactment of this Act shall be counted for
the purposes of section 252(d) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)).
______
SA 3585. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill H.R. 5021, to provide an extension of Federal-aid
highway, highway safety, motor carrier safety, transit, and other
programs funded out of the Highway Trust Fund, and for other purposes;
which was ordered to lie on the table; as follows:
At the end of subtitle A of title I, add the following:
SEC. 10__. EMERGENCY EXEMPTIONS.
Any road, highway, railway, bridge, or transit facility
that is damaged by an emergency that is declared by the
Governor of the State and concurred in by the Secretary of
Homeland Security or declared as an emergency by the
President pursuant to the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.) and
that is in operation or under construction on the date on
which the emergency occurs--
(1) may be reconstructed in the same location with the same
capacity, dimensions, and design as before the emergency; and
(2) shall be exempt from any environmental reviews,
approvals, licensing, and permit requirements under--
(A) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(B) sections 402 and 404 of the Federal Water Pollution
Control Act (33 U.S.C. 1342, 1344);
(C) the National Historic Preservation Act (16 U.S.C. 470
et seq.);
(D) the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.);
(E) the Wild and Scenic Rivers Act (16 U.S.C. 1271 et
seq.);
(F) the Fish and Wildlife Coordination Act (16 U.S.C. 661
et seq.);
(G) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.), except when the reconstruction occurs in designated
critical habitat for threatened and endangered species;
(H) Executive Order 11990 (42 U.S.C. 4321 note; relating to
the protection of wetland); and
(I) any Federal law (including regulations) requiring no
net loss of wetland.
______
SA 3586. Mr. VITTER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. HEALTH INSURANCE COVERAGE FOR CERTAIN CONGRESSIONAL
STAFF AND MEMBERS OF THE EXECUTIVE BRANCH.
Section 1312(d)(3)(D) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18032(d)(3)(D)) is amended--
(1) by striking the subparagraph heading and inserting the
following:
``(D) Members of congress, congressional staff, and
political appointees in the exchange.--'';
(2) in clause (i), in the matter preceding subclause (I)--
(A) by striking ``and congressional staff with'' and
inserting ``, congressional staff, the President, the Vice
President, and political appointees with''; and
(B) by striking ``or congressional staff shall'' and
inserting ``, congressional staff, the President, the Vice
President, or a political appointee shall'';
(3) in clause (ii)--
(A) in subclause (II), by inserting after ``Congress,'' the
following: ``of a committee of Congress, or of a leadership
office of Congress,''; and
(B) by adding at the end the following:
``(III) Political appointee.--In this subparagraph, the
term `political appointee' means any individual who--
``(aa) is employed in a position described under sections
5312 through 5316 of title 5, United States Code, (relating
to the Executive Schedule);
``(bb) is a limited term appointee, limited emergency
appointee, or noncareer appointee in the Senior Executive
Service, as defined under paragraphs (5), (6), and (7),
respectively, of section 3132(a) of title 5, United States
Code;
``(cc) is employed in a position in the executive branch of
the Government of a confidential or policy-determining
character under schedule C of subpart C of part 213 of title
5 of the Code of Federal Regulations; or
``(dd) is employed in or under the Executive Office of the
President in a position that is excluded from the competitive
service by reason of its confidential, policy-determining,
policy-making, or policy-advocating character.''; and
(4) by adding at the end the following:
``(iii) Government contribution.--No Government
contribution under section 8906 of title 5, United States
Code, shall be provided on behalf of an individual who is a
Member of Congress, a congressional staff member, the
President, the Vice President, or a political appointees for
coverage under this paragraph.
``(iv) Limitation on amount of tax credit or cost-
sharing.--An individual enrolling in health insurance
coverage pursuant to this paragraph shall not be eligible to
receive a tax credit under section 36B of the Internal
Revenue Code of 1986 or reduced cost sharing under section
1402 of this Act in an amount that exceeds the total amount
for which a similarly situated individual (who is not so
enrolled) would be entitled to receive under such sections.
``(v) Limitation on discretion for designation of staff.--
Notwithstanding any other provision of law, a Member of
Congress shall not have discretion in determinations with
respect to which employees employed by the office of such
Member are eligible to enroll for coverage through an
Exchange.''.
______
SA 3587. Mr. McCAIN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Earnings
Reinvestment Act''.
SEC. 2. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION
FOR DIVIDENDS RECEIVED FROM A CONTROLLED
FOREIGN CORPORATION.
(a) Applicability of Provision.--
(1) In general.--Subsection (f) of section 965 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(f) Election; Election Year.--
``(1) In general.--The taxpayer may elect to apply this
section to--
``(A) the taxpayer's last taxable year which begins before
the date of the enactment of the Foreign Earnings
Reinvestment Act, or
``(B) the taxpayer's first taxable year which begins during
the 1-year period beginning on such date.
Such election may be made for a taxable year only if made on
or before the due date (including extensions) for filing the
return of tax for such taxable year.
``(C) Election year.--For purposes of this section, the
term `election year' means the taxable year--
``(i) which begins after the date that is one year before
the date of the enactment of the Foreign Earnings
Reinvestment Act, and
``(ii) to which the taxpayer elects under paragraph (1) to
apply this section.''.
(2) Conforming amendments.--
(A) Extraordinary dividends.--Section 965(b)(2) of such
Code is amended--
(i) by striking ``June 30, 2003'' and inserting ``June 30,
2014'', and
(ii) by adding at the end the following new sentence: ``The
amounts described in clauses (i), (ii), and (iii) shall not
include any amounts which were taken into account in
determining the deduction under subsection (a) for any prior
taxable year.''.
(B) Determinations relating to related party
indebtedness.--Section 965(b)(3)(B) of such Code is amended
by striking ``October 3, 2004'' and inserting ``June 30,
2014''.
(C) Determinations relating to base period.--Section
965(c)(2) of such Code is amended by striking ``June 30,
2003'' and inserting ``June 30, 2014''.
(b) Deduction Includes Current and Accumulated Foreign
Earnings.--
(1) In general.--Paragraph (1) of section 965(b) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(1) In general.--The amount of dividends taken into
account under subsection (a) shall not exceed the sum of the
current and accumulated earnings and profits described in
section 959(c)(3) for the year a deduction is claimed under
subsection (a), without diminution by reason of any
distributions made during the election year, for all
controlled
[[Page S4782]]
foreign corporations of the United States shareholder.''.
(2) Conforming amendments.--
(A) Section 965(c) of such Code, as amended by subsection
(a), is amended by striking paragraph (1) and by
redesignating paragraphs (2), (3), (4), and (5), as
paragraphs (1), (2), (3), and (4), respectively.
(B) Paragraph (4) of section 965(c) of such Code, as
redesignated by subparagraph (A), is amended to read as
follows:
``(4) Controlled groups.--All United States shareholders
which are members of an affiliated group filing a
consolidated return under section 1501 shall be treated as
one United States shareholder.''.
(c) Amount of Deduction.--
(1) In general.--Paragraph (1) of section 965(a) of the
Internal Revenue Code of 1986 is amended by striking ``85
percent'' and inserting ``75 percent''.
(2) Bonus deduction in subsequent taxable year for
increasing jobs.--Section 965 of such Code is amended by
adding at the end the following new subsection:
``(g) Bonus Deduction.--
``(1) In general.--In the case of any taxpayer who makes an
election to apply this section, there shall be allowed as a
deduction for the first taxable year following the election
year an amount equal to the applicable percentage of the cash
dividends which are taken into account under subsection (a)
with respect to such taxpayer for the election year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is the amount which bears the
same ratio (not greater than 1) to 10 percent as--
``(A) the excess (if any) of--
``(i) the qualified payroll of the taxpayer for the
calendar year which begins with or within the first taxable
year following the election year, over
``(ii) the qualified payroll of the taxpayer for calendar
year 2013, bears to
``(B) 10 percent of the qualified payroll of the taxpayer
for calendar year 2013.
``(3) Qualified payroll.--For purposes of this paragraph:
``(A) In general.--The term `qualified payroll' means, with
respect to a taxpayer for any calendar year, the aggregate
wages (as defined in section 3121(a)) paid by the corporation
during such calendar year.
``(B) Exception for changes in ownership of trades or
businesses.--
``(i) Acquisitions.--If, after December 31, 2012, and
before the close of the first taxable year following the
election year, a taxpayer acquires the trade or business of a
predecessor, then the qualified payroll of such taxpayer for
any calendar year shall be increased by so much of the
qualified payroll of the predecessor for such calendar year
as was attributable to the trade or business acquired by the
taxpayer.
``(ii) Dispositions.--If, after December 31, 2012, and
before the close of the first taxable year following the
election year, a taxpayer disposes of a trade or business,
then--
``(I) the qualified payroll of such taxpayer for calendar
year 2013 shall be decreased by the amount of wages for such
calendar year as were attributable to the trade or business
which was disposed of by the taxpayer, and
``(II) if the disposition occurs after the beginning of the
first taxable year following the election year, the qualified
payroll of such taxpayer for the calendar year which begins
with or within such taxable year shall be decreased by the
amount of wages for such calendar year as were attributable
to the trade or business which was disposed of by the
taxpayer.
``(C) Special rule.--For purposes of determining qualified
payroll for any calendar year after calendar year 2014, such
term shall not include wages paid to any individual if such
individual received compensation from the taxpayer for
services performed--
``(i) after the date of the enactment of this paragraph,
and
``(ii) at a time when such individual was not an employee
of the taxpayer.''.
(3) Reduction for failure to maintain employment levels.--
Paragraph (4) of section 965(b) of such Code is amended to
read as follows:
``(4) Reduction in benefits for failure to maintain
employment levels.--
``(A) In general.--If, during the period consisting of the
calendar month in which the taxpayer first receives a
distribution described in subsection (a)(1) and the
succeeding 23 calendar months, the taxpayer does not maintain
an average employment level at least equal to the taxpayer's
prior average employment, an additional amount equal to
$75,000 multiplied by the number of employees by which the
taxpayer's average employment level during such period falls
below the prior average employment (but not exceeding the
aggregate amount allowed as a deduction pursuant to
subsection (a)(1)) shall be taken into income by the taxpayer
during the taxable year that includes the final day of such
period.
``(B) Average employment level.--For purposes of this
paragraph, the taxpayer's average employment level for a
period shall be the average number of full-time United States
employees of the taxpayer, measured at the end of each month
during the period.
``(C) Prior average employment.--For purposes of this
paragraph, the taxpayer's `prior average employment' shall be
the average number of full-time United States employees of
the taxpayer during the period consisting of the 24 calendar
months immediately preceding the calendar month in which the
taxpayer first receives a distribution described in
subsection (a)(1).
``(D) Full-time united states employee.--For purposes of
this paragraph--
``(i) In general.--The term `full-time United States
employee' means an individual who provides services in the
United States as a full-time employee, based on the
employer's standards and practices; except that regardless of
the employer's classification of the employee, an employee
whose normal schedule is 40 hours or more per week is
considered a full-time employee.
``(ii) Exception for changes in ownership of trades or
businesses.--Such term does not include--
``(I) any individual who was an employee, on the date of
acquisition, of any trade or business acquired by the
taxpayer during the 24-month period referred to in
subparagraph (A), and
``(II) any individual who was an employee of any trade or
business disposed of by the taxpayer during the 24-month
period referred to in subparagraph (A) or the 24-month period
referred to in subparagraph (C).
``(E) Aggregation rules.--In determining the taxpayer's
average employment level and prior average employment, all
domestic members of a controlled group shall be treated as a
single taxpayer.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
______
SA 3588. Mr. TESTER (for himself, Mr. Walsh, and Mr. Pryor) submitted
an amendment intended to be proposed by him to the bill S. 2410, to
authorize appropriations for fiscal year 2015 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the end of subtitle D of title I, add the following:
SEC. 141. AUTHORIZATION OF MODERNIZATION PROGRAMS FOR C-130
AIRCRAFT.
The Air Force may use programs in addition to the avionics
modernization program for C-130 aircraft to modernize such
aircraft.
______
SA 3589. Mr. DURBIN (for himself, Mr. Brown, Mr. Reed, Mr. Sanders,
Ms. Warren, and Ms. Baldwin) submitted an amendment intended to be
proposed by him to the bill S. 2569, to provide an incentive for
businesses to bring jobs back to America; which was ordered to lie on
the table; as follows:
At the end, add the following:
SEC. _. PATRIOT EMPLOYER TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986, as amended by
this Act, is amended by adding at the end the following new
section:
``SEC. 45T. PATRIOT EMPLOYER TAX CREDIT.
``(a) Determination of Amount.--
``(1) In general.--For purposes of section 38, the Patriot
employer credit determined under this section with respect to
any taxpayer who is a Patriot employer for any taxable year
shall be equal to 10 percent of the qualified wages paid or
incurred by the Patriot employer.
``(2) Limitation.--The amount of qualified wages which may
be taken into account under paragraph (1) with respect to any
employee for any taxable year shall not exceed $15,000.
``(b) Patriot Employer.--
``(1) In general.--For purposes of subsection (a), the term
`Patriot employer' means, with respect to any taxable year,
any taxpayer--
``(A) which--
``(i) maintains its headquarters in the United States if
the taxpayer (or any predecessor) has ever been headquartered
in the United States, and
``(ii) is not (and no predecessor of which is) an
expatriated entity (as defined in section 7874(a)(2)) for the
taxable year or any preceding taxable year ending after March
4, 2003,
``(B) with respect to which no assessable payment has been
imposed under section 4980H with respect to any month
occurring during the taxable year, and
``(C) in the case of--
``(i) a taxpayer which employs an average of more than 50
employees on business days during the taxable year, which--
``(I) provides compensation for at least 90 percent of its
employees for services provided by such employees during the
taxable year at an hourly rate (or equivalent thereof) not
less than an amount equal to 150 percent of the Federal
poverty level for a family of three for the calendar year in
which the taxable year begins divided by 2,080,
``(II) meets the retirement plan requirements of subsection
(c) with respect to at least 90 percent of its employees
providing services during the taxable year who are not highly
compensated employees, and
``(III) meets the additional requirements of subparagraphs
(A) and (B) of paragraph (2), or
``(ii) any other taxpayer, which meets the requirements of
either subclause (I) or (II) of clause (i) for the taxable
year.
``(2) Additional requirements for large employers.--
[[Page S4783]]
``(A) United states employment.--The requirements of this
subparagraph are met for any taxable year if--
``(i) in any case in which the taxpayer increases the
number of employees performing substantially all of their
services for the taxable year outside the United States, the
taxpayer either--
``(I) increases the number of employees performing
substantially all of their services inside the United States
by an amount not less than the increase in such number for
employees outside the United States, or
``(II) has a percentage increase in such employees inside
the United States which is not less than the percentage
increase in such employees outside the United States,
``(ii) in any case in which the taxpayer decreases the
number of employees performing substantially all of their
services for the taxable year inside the United States, the
taxpayer either--
``(I) decreases the number of employees performing
substantially all of their services outside the United States
by an amount not less than the decrease in such number for
employees inside the United States, or
``(II) has a percentage decrease in employees outside the
United States which is not less than the percentage decrease
in such employees inside the United States, and
``(iii) there is not a decrease in the number of employees
performing substantially all of their services for the
taxable year inside the United States by reason of the
taxpayer contracting out such services to persons who are not
employees of the taxpayer.
``(B) Treatment of individuals in the uniformed services
and the disabled.--The requirements of this subparagraph are
met for any taxable year if--
``(i) the taxpayer provides differential wage payments (as
defined in section 3401(h)(2)) to each employee described in
section 3401(h)(2)(A) for any period during the taxable year
in an amount not less than the difference between the wages
which would have been received from the employer during such
period and the amount of pay and allowances which the
employee receives for service in the uniformed services
during such period, and
``(ii) the taxpayer has in place at all times during the
taxable year a written policy for the recruitment of
employees who have served in the uniformed services or who
are disabled.
``(3) Special rules for applying the minimum wage and
retirement plan requirements.--
``(A) Minimum wage.--In determining whether the minimum
wage requirements of paragraph (1)(C)(i)(I) are met with
respect to 90 percent of a taxpayer's employees for any
taxable year--
``(i) a taxpayer may elect to exclude from such
determination apprentices or learners that an employer may
exclude under the regulations under section 14(a) of the Fair
Labor Standards Act of 1938, and
``(ii) if a taxpayer meets the requirements of paragraph
(2)(B)(i) with respect to providing differential wage
payments to any employee for any period (without regard to
whether such requirements apply to the taxpayer), the hourly
rate (or equivalent thereof) for such payments shall be
determined on the basis of the wages which would have been
paid by the employer during such period if the employee had
not been providing service in the uniformed services.
``(B) Retirement plan.--In determining whether the
retirement plan requirements of paragraph (1)(C)(i)(II) are
met with respect to 90 percent of a taxpayer's employees for
any taxable year, a taxpayer may elect to exclude from such
determination--
``(i) employees not meeting the age or service requirements
under section 410(a)(1) (or such lower age or service
requirements as the employer provides), and
``(ii) employees described in section 410(b)(3).
``(c) Retirement Plan Requirements.--
``(1) In general.--The requirements of this subsection are
met for any taxable year with respect to an employee of the
taxpayer who is not a highly compensated employee if the
employee is eligible to participate in 1 or more applicable
eligible retirement plans maintained by the employer for a
plan year ending with or within the taxable year.
``(2) Applicable eligible retirement plan.--For purposes of
this subsection, the term `applicable eligible retirement
plan' means an eligible retirement plan which, with respect
to the plan year described in paragraph (1), is either--
``(A) a defined contribution plan which--
``(i) requires the employer to make nonelective
contributions of at least 5 percent of the compensation of
the employee, or
``(ii) both--
``(I) includes an eligible automatic contribution
arrangement (as defined in section 414(w)(3)) under which the
uniform percentage described in section 414(w)(3)(B) is at
least 5 percent, and
``(II) requires the employer to make matching contributions
of 100 percent of the elective deferrals (as defined in
section 414(u)(2)(C)) of the employee to the extent such
deferrals do not exceed the percentage specified by the plan
(not less than 5 percent) of the employee's compensation, or
``(B) a defined benefit plan--
``(i) with respect to which the accrued benefit of the
employee derived from employer contributions, when expressed
as an annual retirement benefit, is not less than the product
of--
``(I) the lesser of 2 percent multiplied by the employee's
years of service (determined under the rules of paragraphs
(4), (5), and (6) of section 411(a)) with the employer or 20
percent, multiplied by
``(II) the employee's final average pay, or
``(ii) which is an applicable defined benefit plan (as
defined in section 411(a)(13)(B))--
``(I) which meets the interest credit requirements of
section 411(b)(5)(B)(i) with respect to the plan year, and
``(II) under which the employee receives a pay credit for
the plan year which is not less than 5 percent of
compensation.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Eligible retirement plan.--The term `eligible
retirement plan' has the meaning given such term by section
402(c)(8)(B), except that in the case of an account or
annuity described in clause (i) or (ii) thereof, such term
shall only include an account or annuity which is a
simplified employee pension (as defined in section 408(k)).
``(B) Final average pay.--For purposes of paragraph
(2)(B)(i)(II), final average pay shall be determined using
the period of consecutive years (not exceeding 5) during
which the employee had the greatest compensation from the
taxpayer.
``(C) Alternative plan designs.--The Secretary may
prescribe regulations for a taxpayer to meet the requirements
of this subsection through a combination of defined
contribution plans or defined benefit plans described in
paragraph (1) or through a combination of both such types of
plans.
``(D) Plans must meet requirements without taking into
account social security and similar contributions and
benefits.--A rule similar to the rule of section 416(e) shall
apply.
``(d) Qualified Wages and Compensation.--For purposes of
this section--
``(1) In general.--The term `qualified wages' means wages
(as defined in section 51(c), determined without regard to
paragraph (4) thereof) paid or incurred by the Patriot
employer during the taxable year to employees--
``(A) who perform substantially all of their services for
such Patriot employer inside the United States, and
``(B) with respect to whom--
``(i) in the case of a Patriot employer which employs an
average of more than 50 employees on business days during the
taxable year, the requirements of subclauses (I) and (II) of
subsection (b)(1)(C)(i) are met, and
``(ii) in the case of any other Patriot employer, the
requirements of either subclause (I) or (II) of subsection
(b)(1)(C)(i) are met.
``(2) Special rules for agricultural labor and railway
labor.--Rules similar to the rules of section 51(h) shall
apply.
``(3) Compensation.--For purposes of subsections
(b)(1)(C)(i)(I) and (c), the term `compensation' has the same
meaning as qualified wages, except that section 51(c)(2)
shall be disregarded in determining the amount of such wages.
``(e) Aggregation Rules.--For purposes of this section--
``(1) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 shall be treated as
a single taxpayer.
``(2) Special rules for certain requirements.--For purposes
of applying paragraphs (1)(A) and (2)(A) of subsection (b)--
``(A) the determination under subsections (a) and (b) of
section 52 for purposes of paragraph (1) shall be made
without regard to section 1563(b)(2)(C) (relating to
exclusion of foreign corporations), and
``(B) if any person treated as a single taxpayer under this
subsection (after application of subparagraph (A)), or any
predecessor of such person, was an expatriated entity (as
defined in section 7874(a)(2)) for any taxable year ending
after March 4, 2003, then all persons treated as a single
taxpayer with such person shall be treated as expatriated
entities.
``(f) Election To Have Credit Not Apply.--
``(1) In general.--A taxpayer may elect to have this
section not apply for any taxable year.
``(2) Time for making election.--An election under
paragraph (1) for any taxable year may be made (or revoked)
at any time before the expiration of the 3-year period
beginning on the last date prescribed by law for filing the
return for such taxable year (determined without regard to
extensions).
``(3) Manner of making election.--An election under
paragraph (1) (or revocation thereof) shall be made in such
manner as the Secretary may by regulations prescribe.''.
(b) Allowance as General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986, as amended by this Act, is
amended by striking ``plus'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and
inserting ``, plus'', and by adding at the end the following:
``(38) in the case of a Patriot employer (as defined in
section 45T(b)) for any taxable year, the Patriot employer
credit determined under section 45T(a).''.
(c) Denial of Double Benefit.--Subsection (a) of section
280C of the Internal Revenue Code of 1986 is amended by
inserting ``45T(a),'' after ``45P(a)''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 the Internal
Revenue Code of 1986, as amended by this Act, is amended by
adding at the end the following new item:
``Sec. 45T. Patriot employer tax credit.''.
[[Page S4784]]
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. _. DEFER DEDUCTION OF INTEREST EXPENSE RELATED TO
DEFERRED INCOME.
(a) In General.--Section 163 of the Internal Revenue Code
of 1986 (relating to deductions for interest expense) is
amended by redesignating subsection (n) as subsection (o) and
by inserting after subsection (m) the following new
subsection:
``(n) Deferral of Deduction for Interest Expense Related to
Deferred Income.--
``(1) General rule.--The amount of foreign-related interest
expense of any taxpayer allowed as a deduction under this
chapter for any taxable year shall not exceed an amount equal
to the applicable percentage of the sum of--
``(A) the taxpayer's foreign-related interest expense for
the taxable year, plus
``(B) the taxpayer's deferred foreign-related interest
expense.
For purposes of the paragraph, the applicable percentage is
the percentage equal to the current inclusion ratio.
``(2) Treatment of deferred deductions.--If, for any
taxable year, the amount of the limitation determined under
paragraph (1) exceeds the taxpayer's foreign-related interest
expense for the taxable year, there shall be allowed as a
deduction for the taxable year an amount equal to the lesser
of--
``(A) such excess, or
``(B) the taxpayer's deferred foreign-related interest
expense.
``(3) Definitions and special rule.--For purposes of this
subsection--
``(A) Foreign-related interest expense.--The term `foreign-
related interest expense' means, with respect to any taxpayer
for any taxable year, the amount which bears the same ratio
to the amount of interest expense for such taxable year
allocated and apportioned under sections 861, 864(e), and
864(f) to income from sources outside the United States as--
``(i) the value of all stock held by the taxpayer in all
section 902 corporations with respect to which the taxpayer
meets the ownership requirements of subsection (a) or (b) of
section 902, bears to
``(ii) the value of all assets of the taxpayer which
generate gross income from sources outside the United States.
``(B) Deferred foreign-related interest expense.--The term
`deferred foreign-related interest expense' means the excess,
if any, of the aggregate foreign-related interest expense for
all prior taxable years beginning after December 31, 2014,
over the aggregate amount allowed as a deduction under
paragraphs (1) and (2) for all such prior taxable years.
``(C) Value of assets.--Except as otherwise provided by the
Secretary, for purposes of subparagraph (A)(ii), the value of
any asset shall be the amount with respect to such asset
determined for purposes of allocating and apportioning
interest expense under sections 861, 864(e), and 864(f).
``(D) Current inclusion ratio.--The term `current inclusion
ratio' means, with respect to any domestic corporation which
meets the ownership requirements of subsection (a) or (b) of
section 902 with respect to one or more section 902
corporations for any taxable year, the ratio (expressed as a
percentage) of--
``(i) the sum of all dividends received by the domestic
corporation from all such section 902 corporations during the
taxable year plus amounts includible in gross income under
section 951(a) from all such section 902 corporations, in
each case computed without regard to section 78, divided by
``(ii) the aggregate amount of post-1986 undistributed
earnings.
``(E) Aggregate amount of post-1986 undistributed
earnings.--The term `aggregate amount of post-1986
undistributed earnings' means, with respect to any domestic
corporation which meets the ownership requirements of
subsection (a) or (b) of section 902 with respect to one or
more section 902 corporations, the domestic corporation's pro
rata share of the post-1986 undistributed earnings (as
defined in section 902(c)(1)) of all such section 902
corporations.
``(F) Foreign currency conversion.--For purposes of
determining the current inclusion ratio, and except as
otherwise provided by the Secretary, the aggregate amount of
post-1986 undistributed earnings for the taxable year shall
be determined by translating each section 902 corporation's
post-1986 undistributed earnings into dollars using the
average exchange rate for such year.
``(G) Section 902 corporation.--The term `section 902
corporation' has the meaning given to such term by section
909(d)(5).
``(4) Treatment of affiliated groups.--The current
inclusion ratio of each member of an affiliated group (as
defined in section 864(e)(5)(A)) shall be determined as if
all members of such group were a single corporation.
``(5) Application to separate categories of income.--This
subsection shall be applied separately with respect to the
categories of income specified in section 904(d)(1).
``(6) Regulations.--The Secretary may prescribe such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance providing--
``(A) for the proper application of this subsection with
respect to changes in ownership of a section 902 corporation,
``(B) that certain corporations that otherwise would not be
members of the affiliated group will be treated as members of
the affiliated group for purposes of this subsection,
``(C) for the proper application of this subsection with
respect to the taxpayer's share of a deficit in earnings and
profits of a section 902 corporation,
``(D) for appropriate adjustments to the determination of
the value of stock in any section 902 corporation for
purposes of this subsection or to the foreign-related
interest expense to account for income that is subject to tax
under section 882(a)(1), and
``(E) for the proper application of this subsection with
respect to interest expense that is directly allocable to
income with respect to certain assets.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
______
SA 3590. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end, add the following:
TITLE II--LYON COUNTY ECONOMIC DEVELOPMENT
SEC. 201. LAND CONVEYANCE TO YERINGTON, NEVADA.
(a) Definitions.--In this section:
(1) City.--The term ``City'' means the city of Yerington,
Nevada.
(2) Federal land.--The term ``Federal land'' means the land
located in Lyon County and Mineral County, Nevada, that is
identified on the map as ``City of Yerington Sustainable
Development Conveyance Lands''.
(3) Map.--The term ``map'' means the map entitled
``Yerington Land Conveyance'' and dated December 19, 2012.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Conveyances of Land to City of Yerington, Nevada.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, subject to valid existing rights and
to such terms and conditions as the Secretary determines to
be necessary and notwithstanding the land use planning
requirements of sections 202 and 203 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1712, 1713), the
Secretary shall convey to the City, subject to the agreement
of the City, all right, title, and interest of the United
States in and to the Federal land identified on the map.
(2) Appraisal to determine fair market value.--The
Secretary shall determine the fair market value of the
Federal land to be conveyed--
(A) in accordance with the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.); and
(B) based on an appraisal that is conducted in accordance
with--
(i) the Uniform Appraisal Standards for Federal Land
Acquisition; and
(ii) the Uniform Standards of Professional Appraisal
Practice.
(3) Availability of map.--The map shall be on file and
available for public inspection in the appropriate offices of
the Bureau of Land Management.
(4) Applicable law.--Beginning on the date on which the
Federal land is conveyed to the City, the development of and
conduct of activities on the Federal land shall be subject to
all applicable Federal laws (including regulations).
(5) Costs.--As a condition of the conveyance of the Federal
land under paragraph (1), the City shall pay--
(A) an amount equal to the appraised value determined in
accordance with paragraph (2); and
(B) all costs related to the conveyance, including all
surveys, appraisals, and other administrative costs
associated with the conveyance of the Federal land to the
City under paragraph (1).
SEC. 202. WOVOKA WILDERNESS.
(a) Findings.--Congress finds that--
(1) the area designated as the Wovoka Wilderness by this
section contains unique and spectacular natural resources,
including--
(A) priceless habitat for numerous species of plants and
wildlife;
(B) thousands of acres of land that remain in a natural
state; and
(C) habitat important to the continued survival of the
population of the greater sage grouse of western Nevada and
eastern California (referred to in this section as the ``Bi-
State population of greater sage-grouse'');
(2) continued preservation of those areas would benefit the
County and all of the United States by--
(A) ensuring the conservation of ecologically diverse
habitat;
(B) protecting prehistoric cultural resources;
(C) conserving primitive recreational resources;
(D) protecting air and water quality; and
(E) protecting and strengthening the Bi-State population of
greater sage-grouse; and
(3) the Secretary of Agriculture should collaborate with
the Lyon County Commission and the local community on
wildfire and forest management planning and implementation
with the goal of preventing catastrophic wildfire and
resource damage.
(b) Definitions.--In this section:
(1) County.--The term ``County'' means Lyon County, Nevada.
[[Page S4785]]
(2) Map.--The term ``map'' means the map entitled ``Wovoka
Wilderness Area'' and dated December 18, 2012.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(4) State.--The term ``State'' means the State of Nevada.
(5) Wilderness.--The term ``Wilderness'' means the Wovoka
Wilderness designated by subsection (c)(1).
(c) Additions to National Wilderness Preservation System.--
(1) Designation.--In furtherance of the purposes of the
Wilderness Act (16 U.S.C. 1131 et seq.), the Federal land
managed by the Forest Service, as generally depicted on the
Map, is designated as wilderness and as a component of the
National Wilderness Preservation System, to be known as the
``Wovoka Wilderness''.
(2) Boundary.--The boundary of any portion of the
Wilderness that is bordered by a road shall be 150 feet from
the centerline of the road.
(3) Map and legal description.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall prepare a map and
legal description of the Wilderness.
(B) Effect.--The map and legal description prepared under
subparagraph (A) shall have the same force and effect as if
included in this section, except that the Secretary may
correct any clerical and typographical errors in the map or
legal description.
(C) Availability.--Each map and legal description prepared
under subparagraph (A) shall be on file and available for
public inspection in the appropriate offices of the Forest
Service.
(4) Withdrawal.--Subject to valid existing rights, the
Wilderness is withdrawn from--
(A) all forms of entry, appropriation, or disposal under
the public land laws;
(B) location, entry, and patent under the mining laws; and
(C) disposition under all laws relating to mineral and
geothermal leasing or mineral materials.
(d) Administration.--
(1) Management.--Subject to valid existing rights, the
Wilderness shall be administered by the Secretary in
accordance with the Wilderness Act (16 U.S.C. 1131 et seq.),
except that any reference in that Act to the effective date
shall be considered to be a reference to the date of
enactment of this Act.
(2) Livestock.--The grazing of livestock in the Wilderness,
if established before the date of enactment of this Act,
shall be allowed to continue, subject to such reasonable
regulations, policies, and practices as the Secretary
considers to be necessary, in accordance with--
(A) section 4(d)(4) of the Wilderness Act (16 U.S.C.
1133(d)(4)); and
(B) the guidelines set forth in Appendix A of the report of
the Committee on Interior and Insular Affairs of the House of
Representatives accompanying H.R. 2570 of the 101st Congress
(House Report 101-405).
(3) Incorporation of acquired land and interests.--Any land
or interest in land within the boundary of the Wilderness
that is acquired by the United States after the date of
enactment of this Act shall be added to and administered as
part of the Wilderness.
(4) Adjacent management.--
(A) In general.--Congress does not intend for the
designation of the Wilderness to create a protective
perimeter or buffer zone around the Wilderness.
(B) Nonwilderness activities.--The fact that nonwilderness
activities or uses can be seen or heard from areas within the
Wilderness shall not preclude the conduct of the activities
or uses outside the boundary of the Wilderness.
(5) Overflights.--
(A) Military overflights.--Nothing in this title restricts
or precludes--
(i) low-level overflights of military aircraft over the
Wilderness, including military overflights that can been seen
or heard within the Wilderness;
(ii) flight testing and evaluation; or
(iii) the designation or creation of new units of special
airspace, or the establishment of military flight training
routes, over the Wilderness.
(B) Existing airstrips.--Nothing in this title restricts or
precludes low-level overflights by aircraft originating from
airstrips in existence on the date of enactment of this Act
that are located within 5 miles of the proposed boundary of
the Wilderness.
(6) Wildfire, insect, and disease management.--In
accordance with section 4(d)(1) of the Wilderness Act (16
U.S.C. 1133(d)(1)), the Secretary may take any measures in
the Wilderness that the Secretary determines to be necessary
for the control of fire, insects, and diseases, including, as
the Secretary determines to be appropriate, the coordination
of the activities with a State or local agency.
(7) Water rights.--
(A) Findings.--Congress finds that--
(i) the Wilderness is located--
(I) in the semiarid region of the Great Basin; and
(II) at the headwaters of the streams and rivers on land
with respect to which there are few--
(aa) actual or proposed water resource facilities located
upstream; and
(bb) opportunities for diversion, storage, or other uses of
water occurring outside the land that would adversely affect
the wilderness values of the land;
(ii) the Wilderness is generally not suitable for use or
development of new water resource facilities; and
(iii) because of the unique nature of the Wilderness, it is
possible to provide for proper management and protection of
the wilderness and other values of land in ways different
from those used in other laws.
(B) Purpose.--The purpose of this paragraph is to protect
the wilderness values of the Wilderness by means other than a
federally reserved water right.
(C) Statutory construction.--Nothing in this paragraph--
(i) constitutes an express or implied reservation by the
United States of any water or water rights with respect to
the Wilderness;
(ii) affects any water rights in the State (including any
water rights held by the United States) in existence on the
date of enactment of this Act;
(iii) establishes a precedent with regard to any future
wilderness designations;
(iv) affects the interpretation of, or any designation made
under, any other Act; or
(v) limits, alters, modifies, or amends any interstate
compact or equitable apportionment decree that apportions
water among and between the State and other States.
(D) Nevada water law.--The Secretary shall follow the
procedural and substantive requirements of State law in order
to obtain and hold any water rights not in existence on the
date of enactment of this Act with respect to the Wilderness.
(E) New projects.--
(i) Definition of water resource facility.--
(I) In general.--In this subparagraph, the term ``water
resource facility'' means irrigation and pumping facilities,
reservoirs, water conservation works, aqueducts, canals,
ditches, pipelines, wells, hydropower projects, transmission
and other ancillary facilities, and other water diversion,
storage, and carriage structures.
(II) Exclusion.--In this subparagraph, the term ``water
resource facility'' does not include wildlife guzzlers.
(ii) Restriction on new water resource facilities.--
(I) In general.--Except as otherwise provided in this
section, on or after the date of enactment of this Act, no
officer, employee, or agent of the United States shall fund,
assist, authorize, or issue a license or permit for the
development of any new water resource facility within the
Wilderness, any portion of which is located in the County.
(II) Exception.--If a permittee within the Bald Mountain
grazing allotment submits an application for the development
of water resources for the purpose of livestock watering by
the date that is 10 years after the date of enactment of this
Act, the Secretary shall issue a water development permit
within the non-wilderness boundaries of the Bald Mountain
grazing allotment for the purposes of carrying out activities
under paragraph (2).
(8) Nonwilderness roads.--Nothing in this title prevents
the Secretary from implementing or amending a final travel
management plan.
(e) Wildlife Management.--
(1) In general.--In accordance with section 4(d)(7) of the
Wilderness Act (16 U.S.C. 1133(d)(7)), nothing in this
section affects or diminishes the jurisdiction of the State
with respect to fish and wildlife management, including the
regulation of hunting, fishing, and trapping, in the
Wilderness.
(2) Management activities.--In furtherance of the purposes
and principles of the Wilderness Act (16 U.S.C. 1131 et
seq.), the Secretary may conduct any management activities in
the Wilderness that are necessary to maintain or restore fish
and wildlife populations and the habitats to support the
populations, if the activities are carried out--
(A) consistent with relevant wilderness management plans;
and
(B) in accordance with--
(i) the Wilderness Act (16 U.S.C. 1131 et seq.); and
(ii) appropriate policies, such as those set forth in
Appendix B of the report of the Committee on Interior and
Insular Affairs of the House of Representatives accompanying
H.R. 2570 of the 101st Congress (House Report 101-405),
including the occasional and temporary use of motorized
vehicles and aircraft, if the use, as determined by the
Secretary, would promote healthy, viable, and more naturally
distributed wildlife populations that would enhance
wilderness values with the minimal impact necessary to
reasonably accomplish those tasks.
(3) Existing activities.--Consistent with section 4(d)(1)
of the Wilderness Act (16 U.S.C. 1133(d)(1)) and in
accordance with appropriate policies such as those set forth
in Appendix B of House Report 101-405, the State may continue
to use aircraft, including helicopters, to survey, capture,
transplant, monitor, and provide water for wildlife
populations in the Wilderness.
(4) Hunting, fishing, and trapping.--
(A) In general.--The Secretary may designate areas in
which, and establish periods during which, for reasons of
public safety, administration, or compliance with applicable
laws, no hunting, fishing, or trapping will be permitted in
the Wilderness.
(B) Consultation.--Except in emergencies, the Secretary
shall consult with the appropriate State agency and notify
the public before making any designation under paragraph (1).
(5) Agreement.--The State, including a designee of the
State, may conduct wildlife management activities in the
Wilderness--
[[Page S4786]]
(A) in accordance with the terms and conditions specified
in the cooperative agreement between the Secretary and the
State entitled ``Memorandum of Understanding: Intermountain
Region USDA Forest Service and the Nevada Department of
Wildlife State of Nevada'' and signed by the designee of the
State on February 6, 1984, and by the designee of the
Secretary on January 24, 1984, including any amendments,
appendices, or additions to the agreement agreed to by the
Secretary and the State or a designee; and
(B) subject to all applicable laws (including regulations).
(f) Wildlife Water Development Projects.--Subject to
subsection (d), the Secretary shall authorize structures and
facilities, including existing structures and facilities, for
wildlife water development projects (including guzzlers) in
the Wilderness if--
(1) the structures and facilities will, as determined by
the Secretary, enhance wilderness values by promoting
healthy, viable, and more naturally distributed wildlife
populations; and
(2) the visual impacts of the structures and facilities on
the Wilderness can reasonably be minimized.
SEC. 203. WITHDRAWAL.
(a) Definition of Withdrawal Area.--In this section, the
term ``Withdrawal Area'' means the land administered by the
Forest Service and identified as ``Withdrawal Area'' on the
map described in section 202(b)(2).
(b) Withdrawal.--Subject to valid existing rights, all
Federal land within the Withdrawal Area is withdrawn from all
forms of--
(1) entry, appropriation, or disposal under the public land
laws;
(2) location, entry, and patent under the mining laws; and
(3) operation of the mineral laws, geothermal leasing laws,
and mineral materials laws.
(c) Motorized and Mechanical Vehicles.--
(1) In general.--Subject to paragraph (2), use of motorized
and mechanical vehicles in the Withdrawal Area shall be
permitted only on roads and trails designated for the use of
those vehicles, unless the use of those vehicles is needed--
(A) for administrative purposes; or
(B) to respond to an emergency.
(2) Exception.--Paragraph (1) does not apply to aircraft
(including helicopters).
SEC. 204. NATIVE AMERICAN CULTURAL AND RELIGIOUS USES.
Nothing in this title alters or diminishes the treaty
rights of any Indian tribe.
______
SA 3591. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end, add the following:
SEC. ___. REVIEW OF CERTAIN FEDERAL REGISTER NOTICES.
If, by the date that is 45 days after the date on which a
State Bureau of Land Management office has submitted a
Federal Register notice to the Washington, DC, office of the
Bureau of Land Management for Department of the Interior
review, the review has not been completed--
(1) the notice shall consider to be approved; and
(2) the State Bureau of Land Management office shall
immediately forward the notice to the Federal Register for
publication.
______
SA 3592. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
On page 13, after line 3, add the following:
SEC. 4. EMERGENCY FUEL REDUCTION.
(a) Purposes.--The purposes of this section are--
(1) to expedite wildfire prevention projects to reduce the
chances of wildfire on certain high-risk Federal land
adjacent to communities, private property, and critical
infrastructure;
(2) to improve forest and wildland health; and
(3) to promote the recovery of threatened and endangered
species, or other species under consideration for listing
under the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.), including sage-grouse, whose habitat is negatively
impacted by wildland fire.
(b) Expedited Review of Projects on Federal Land.--Section
104 of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
6514) is amended--
(1) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively;
(2) in subsection (c)(1)(C)(i), by striking ``subsection
(f)'' and inserting ``subsection (g)''; and
(3) by inserting after subsection (d) the following:
``(e) Categorical Exclusion of Certain Projects.--
``(1) Definition of adjacent federal land.--In this
subsection, the term `adjacent Federal land' means an area of
Federal land--
``(A) that, while not located in the wildland-urban
interface, is located within not more than 5 miles of non-
Federal land; and
``(B) on which the Secretary determines that conditions,
such as the risk of wildfire, an insect or disease epidemic,
or the presence of invasive species, pose a risk to the
adjacent non-Federal land.
``(2) Categorical exclusion of certain projects.--
``(A) In general.--An authorized hazardous fuel reduction
project shall be categorically excluded from the requirements
of the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) if the project--
``(i) involves the removal of insect-infected trees, dead
or dying trees, trees presenting a threat to public safety or
electrical reliability, or the removal of other hazardous
fuels within 500 feet of utility or communications
infrastructure, a municipal water supply system, campground,
roadside, heritage site, recreation site, school, or other
infrastructure;
``(ii) is intended to treat 10,000 acres or less of public
land or National Forest System land that--
``(I) contains threatened and endangered species habitat;
or
``(II) provides conservation benefits to species that are
not listed as endangered or threatened under section 4 of the
Endangered Species Act of 1973 (16 U.S.C. 1533) but are a
State- listed species, a special concern species, or
candidates for a listing under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.);
``(iii) is proposed to be conducted on adjacent Federal
land or is recommended in a community wildfire protection
plan if--
``(I) the Secretary determines that the project is
consistent with the applicable resource management plan; and
``(II) the decision to categorically exclude the project is
made in accordance with applicable extraordinary
circumstances procedures established pursuant to section
1508.4 of title 40, Code of Federal Regulations (or a
successor regulation).
``(B) Consultation.--In determining whether an area
contains trees or other hazardous fuels described in clause
(i), the Secretary shall consult with any utility or other
entity that manages the area.
``(C) Priority for certain projects.--In providing
categorical exclusions under subparagraph (A), the Secretary
shall give priority to authorized hazardous fuel reduction
projects and other projects recommended in a community
wildfire protection plan.
``(D) Exclusions.--National Forest System land or public
land eligible for treatment under this subsection shall not
include land--
``(i) that is a component of the National Wilderness
Preservation System;
``(ii) on which the removal of vegetation is specifically
prohibited by Federal law; or
``(iii) that is within a National Monument as of the date
of the enactment of the Bring Jobs Home Act.''.
______
SA 3593. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end of the bill, add the following:
TITLE II--PUBLIC LAND RENEWABLE ENERGY DEVELOPMENT
Subtitle A--Geothermal Energy
SEC. 201. EXTENSION OF FUNDING FOR IMPLEMENTATION OF ENERGY
POLICY ACT OF 2005.
(a) In General.--Section 234(a) of the Energy Policy Act of
2005 (42 U.S.C. 15873(a)) is amended by striking ``in the
first 5 fiscal years beginning after the date of enactment of
this Act'' and inserting ``through fiscal year 2020''.
(b) Authorization.--Section 234(b) of the Energy Policy Act
of 2005 (42 U.S.C. 15873(b)) is amended--
(1) by striking ``Amounts'' and inserting the following:
``(1) In general.--Amounts''; and
(2) by adding at the end the following:
``(2) Authorization.--Effective for fiscal year [2015] and
each fiscal year thereafter, amounts deposited under
subsection (a) shall be available to the Secretary of the
Interior for expenditure, subject to appropriation and
without fiscal year limitation, to implement the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.) and this Act.''.
SEC. 202. CATEGORICAL EXCLUSION FOR GEOTHERMAL DRILLING.
Not later than 1 year after the date of enactment of this
Act, the Secretary of the Interior and the Secretary of
Agriculture shall establish a new categorical exclusion under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) for geothermal drilling activities on any National
Forest System land or public land (as defined in section 103
of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702)) that were reviewed under the programmatic
environmental impact statement relating to the authorization
of geothermal leasing completed in October 2008.
Subtitle B--Development of Wind and Solar Energy on Certain Federal
Land
SEC. 211. DEFINITIONS.
In this subtitle:
(1) Covered land.--The term ``covered land'' means land
that is--
(A)(i) public land administered by the Secretary; or
(ii) National Forest System land administered by the
Secretary of Agriculture; and
[[Page S4787]]
(B) not excluded from the development of solar or wind
energy under--
(i) a final land use plan established under the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1701 et
seq.);
(ii) a final land and resource management plan established
under the National Forest Management Act of 1976 (16 U.S.C.
1600 et seq.); or
(iii) other Federal law.
(2) Fund.--The term ``Fund'' means the Renewable Energy
Resource Conservation Fund established by section 214(b)(1).
(3) Pilot program.--The term ``pilot program'' means the
wind and solar leasing pilot program established under
section 212(a)(1).
(4) Public land.--The term ``public land'' has the meaning
given the term ``public lands'' in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(5) Secretaries.--The term ``Secretaries'' means--
(A) in the case of public land administered by the
Secretary, the Secretary; and
(B) in the case of National Forest System land administered
by the Secretary of Agriculture, the Secretary of
Agriculture.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 212. DEVELOPMENT OF SOLAR AND WIND ENERGY ON COVERED
LAND.
(a) Pilot Program.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Secretaries each shall
establish a wind and solar leasing pilot program under which
the Secretaries shall conduct lease sales of certain sites
located on covered land for purposes of carrying out wind and
solar energy projects.
(2) Selection of sites.--
(A) In general.--Not later than 90 days after the date the
pilot program is established under paragraph (1), the
Secretaries shall each select from covered land--
(i) 1 site for the development of a solar energy project;
and
(ii) 1 site for the development of a wind energy project.
(B) Site selection.--In selecting sites under subparagraph
(A), the Secretaries shall--
(i) give a preference to sites that the Secretaries
determine--
(I) are likely to attract a high level of wind and solar
energy industry interest;
(II) have a comparatively low value for resources, other
than wind and solar energy; and
(III) would serve as models for the expansion of the pilot
program to other locations, if the program is expanded under
subsection (c);
(ii) take into consideration the value of the multiple
resources of the covered land on which the sites are located;
and
(iii) not select any site for which a right-of-way or
special use permit for site testing or construction has been
issued under--
(I) title V of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1761 et seq.); or
(II) the National Forest Management Act of 1976 (16 U.S.C.
1600 et seq.).
(3) Lease sales.--
(A) In general.--Except as provided in paragraph (4)(B)(i),
not later than 180 days after the date on which sites are
selected under paragraph (2), the Secretaries shall offer
each site for competitive leasing to bidders that the
Secretaries determine to be qualified under subparagraph (C)
under such terms and conditions as are required by the
Secretaries.
(B) Bidding systems.--
(i) In general.--In offering the sites for lease, the
Secretaries may vary the bidding system selected by the
Secretaries, including--
(I) cash bonus bids with a requirement for payment of the
royalty established under this subtitle;
(II) variable royalty bids based on a percentage of the
gross proceeds from the sale of electricity produced from the
lease, except that the royalty shall not be less than the
royalty required under this subtitle, together with a fixed
cash bonus; or
(III) such other bidding system as the Secretaries
determine will ensure a fair return to the public, consistent
with the royalty established under this subtitle.
(ii) Round.--The Secretaries shall limit bidding to 1 round
in any lease sale.
(C) Bidder qualifications.--Before conducting a lease sale
under this section, the Secretaries shall--
(i) establish qualifications for bidders that ensure the
bidders--
(I) are able to expeditiously develop a wind or solar
energy project on the site for lease;
(II) possess--
(aa) the financial resources necessary to complete a
project;
(bb) knowledge of the technology needed to complete a
project; and
(cc) such other qualifications as the Secretaries determine
to be necessary; and
(III) meet eligibility requirements that are substantially
similar to the eligibility requirements for leasing that
apply under the first section of the Mineral Leasing Act (30
U.S.C. 181); and
(ii) using the requirements established under clause (i),
determine whether a person is qualified to be a bidder on a
site offered for lease under this subsection.
(D) Credit for bid preparation expenditures.--If more than
1 bid is submitted with respect to a site offered for lease
under this subsection on the date of the lease sale, the
Secretaries shall give credit to each person who submitted a
bid with respect to the site for expenditures the person
incurred in the preparation of the bid.
(4) Lease terms.--
(A) In general.--The Secretaries may establish such lease
terms and conditions with respect to any site offered for
lease under this subsection as the Secretaries consider
appropriate, including the duration of the lease.
(B) Data collection.--As part of the pilot program, the
Secretaries shall--
(i) offer on a noncompetitive basis a short-term lease with
respect to at least 1 site for data collection; and
(ii) on the expiration of the short-term lease described in
clause (i), offer on a competitive basis a long-term lease,
giving credit toward the bonus bid to the holder of the
short-term lease for any qualified expenditures to collect
data or to develop the site during the short-term lease.
(5) Revenues.--Subject to section 213, the Secretaries may
collect bonus bids, royalties, fees, or other payments
(except rental payments) with respect to sites offered for
lease under this subsection.
(6) Report.--Not later than 90 days after the date on which
the Secretaries conduct the final lease sale under this
subsection, the Secretaries shall submit to the Committee on
Energy and Natural Resources and the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Natural Resources and the Committee on
Agriculture of the House of Representatives a report that
describes the results of the pilot program, including--
(A) the level of competitive interest;
(B) a summary of bids and revenues received; and
(C) any other factors that may have impacted the lease sale
process.
(7) Other laws.--
(A) Compliance with land management and environmental
laws.--In offering sites for lease under this subsection, the
Secretary concerned shall comply with--
(i) all Federal laws applicable to public land or National
Forest System land;
(ii) applicable Federal and State environmental laws; and
(iii) any other relevant laws.
(B) Applicability to wind and solar energy projects under
other federal law.--Nothing in this subsection prohibits the
Secretaries from issuing rights-of-way or special use permits
with respect to wind and solar energy projects in compliance
with other Federal laws (including regulations) in effect on
the date of enactment of this Act.
(8) Enforcement of federal land policy management.--
(A) In general.--Sections 302(c) and 303 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1732(c),
1733) shall apply to activities conducted on sites on covered
land offered for lease under this subsection.
(B) Effect on enforcement authority under other federal
law.--Nothing in this subsection reduces or limits the
enforcement authority vested in the Secretaries or the
Attorney General on covered land under any other Federal law.
(b) Temporary Extension of Pilot Program.--Until the date
on which final regulations are promulgated under subsection
(c)(4), the Secretaries--
(1) shall continue to carry out the pilot program on the
sites offered for lease under subsection (a); and
(2) as the Secretaries determine to be necessary, may
extend any lease issued under subsection (a) under the same
terms and conditions applicable to the lease on the date of
the lease sale.
(c) Expansion of Pilot Program to All Covered Land.--
(1) Joint determination required; expansion.--The
Secretaries shall--
(A) not later than 5 years after the date of enactment of
this Act, jointly determine whether to expand the pilot
program to all covered land, including sites with respect to
which leases were issued under subsection (a); and
(B) if the Secretaries determine to expand the pilot
program under subparagraph (A), expand the pilot program.
(2) Consideration; consultation.--In making a determination
under paragraph (1)(A), the Secretaries shall--
(A) take into consideration the results of the pilot
program;
(B) consult with--
(i) the heads of Federal agencies and relevant State
agencies (including State fish and wildlife agencies);
(ii) interested States, Indian tribes, and local
governments;
(iii) representatives of the solar and wind energy
industries;
(iv) representatives of the environment, conservation, and
outdoor sporting communities; and
(v) the public; and
(C) consider whether the expansion of the pilot program--
(i) provides an effective means of developing wind or solar
energy; and
(ii) is in the public interest.
(3) Report on joint determination.--Not later than 60 days
after the date on which the Secretaries make a determination
under paragraph (1)(A) to expand the pilot program, the
Secretaries jointly shall submit to the Committee on Energy
and Natural Resources and the Committee on Agriculture,
Nutrition, and Forestry of the Senate and
[[Page S4788]]
the Committee on Natural Resources and the Committee on
Agriculture of the House of Representatives a report
describing the basis and findings for the determination.
(4) Regulations to implement expansion.--Not later than 1
year after making a determination to expand the pilot program
under paragraph (1)(A), the Secretaries jointly shall
promulgate final regulations to implement this subtitle.
(5) Applicability of provisions of pilot program to
expanded program.--
(A) In general.--Except as provided in subparagraph (B),
paragraphs (3), (7), and (8) of subsection (a) shall apply to
covered land offered for lease under this subsection in the
same manner as those paragraphs apply to sites offered for
lease under subsection (a).
(B) Competitive leasing not required under certain
circumstances.--The requirement under subsection (a)(3) that
a lease be sold on a competitive basis shall not apply to a
lease issued under this subsection if the Secretary or the
Secretary of Agriculture, as applicable, determines that--
(i) no competitive interest exists for the covered land
offered for lease;
(ii) the public interest would not be served by the
competitive issuance of a lease with respect to the covered
land; or
(iii) the lease is for a purpose described in paragraph
(7)(A)(ii).
(6) Payments.--
(A) In general.--Subject to section 213, the Secretaries
jointly shall establish fees, bonuses, or other payments
(except rental payments) to ensure a fair return to the
United States for any lease issued under this subsection.
(B) Bonus bids.--The Secretary concerned may grant credit
toward any bonus bid for a qualified expenditure by the
holder of a lease described in paragraph (7)(A)(ii) in any
competitive lease sale held for a long-term lease of the
covered land that is the subject of the lease described in
that paragraph.
(7) Lease duration, administration, and readjustment.--
(A) Duration.--
(i) In general.--Except as provided in clause (ii), a lease
issued under this subsection shall be for--
(I) an initial term of 30 years; and
(II) any additional period after the initial 25-year term
during which electricity is being produced annually in
commercial quantities from the lease.
(ii) Data collection leases.--In the case of a lease issued
under this subsection for the placement and operation of a
meteorological or data collection facility or for the
development or demonstration of a new wind or solar
technology, the lease shall have a term of not more than 5
years.
(B) Administration.--The Secretaries jointly shall
establish terms and conditions for the issuance, transfer,
renewal, suspension, and cancellation of a lease issued under
this subsection.
(C) Readjustment provision required.--Each lease issued
under this subsection shall provide for readjustment in
accordance with subparagraph (A).
(8) Surface-disturbing activities.--The Secretaries jointly
shall promulgate regulations regarding surface-disturbing
activities conducted under any lease issued under this
subsection, including any reclamation and other actions
necessary to conserve and offset impacts to surface
resources.
(9) Security.--
(A) In general.--The Secretaries shall require that the
holder of a lease issued under this subsection shall--
(i) furnish a surety bond or other form of security, as
prescribed by the Secretaries;
(ii) provide for the reclamation and restoration of the
covered land that is the subject of the lease; and
(iii) comply with such other requirements as the
Secretaries consider to be necessary to protect the interests
of the public and the United States.
(B) Periodic review.--Not less frequently than once every 5
years, the Secretaries shall conduct a review of the adequacy
of a surety bond or other form of security provided by the
holder of a lease issued under this subsection.
SEC. 213. ROYALTIES.
(a) In General.--The Secretaries shall--
(1) require as a term and condition of any lease issued
under section 212, the payment of a royalty; and
(2) pursuant to a joint rulemaking, establish those
royalties as a percentage of the gross proceeds from the sale
of electricity produced on covered land that is the subject
of the lease at a rate that--
(A) encourages production of solar or wind energy;
(B) ensures a fair return to the public comparable to the
return that would be obtained on State or private land; and
(C) encourages the maximum energy generation while
disturbing the least quantity of covered land and other
natural resources, including water.
(b) Factor for Consideration.--In establishing the
royalties under subsection (a), the Secretaries shall take
into consideration the relative capacity factors of wind and
solar energy projects.
(c) Exclusive Payment on Sale of Electricity.--The royalty
under subsection (a) shall be the only rent, royalty, or
similar payment to the Federal Government required with
respect to the sale of electricity produced under a lease
issued under section 212.
(d) Royalty Relief.--The Secretaries may reduce the royalty
rate established under subsection (a) if the holder of a
lease issued under this subtitle demonstrates to the
satisfaction of the Secretaries by clear and convincing
evidence that--
(1) collection of the full royalty would unreasonably
burden energy generation on covered land that is the subject
of the lease; and
(2) the royalty reduction is in the public interest.
(e) Enforcement.--
(1) Auditing system.--The Secretaries jointly shall
establish a comprehensive inspection, collection, fiscal, and
production accounting and auditing system--
(A) to accurately determine royalties, interest, fines,
penalties, fees, deposits, and other payments owed under this
subtitle; and
(B) to collect and account for the payments in a timely
manner.
(2) Applicability of federal oil and gas royalty management
act.--The Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.) (including the civil and criminal
enforcement provisions of that Act) shall apply to leases
issued under this subtitle with respect to wind and solar
energy projects in the same manner as that Act applies to oil
and gas leases.
(f) Report on Royalties.--Not later than 5 years after the
date of enactment of this Act and not less frequently than
once every 5 years thereafter, the Secretary, in consultation
with the Secretary of Agriculture, shall submit to the
Committee on Energy and Natural Resources and the Committee
on Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Natural Resources and the Committee on
Agriculture of the House of Representatives a report that
includes a review of the collections and impacts of the
royalties and fees collected under this subtitle, including--
(1) the total revenues received (expressed by category) on
an annual basis as royalties from wind, solar, and geothermal
development and production, specified by energy source, on
covered land;
(2) whether the revenues received for the development of
wind, solar, and geothermal development are comparable to the
revenues received for similar development on State or private
land;
(3) any impact on the development of wind, solar, or
geothermal development and production on covered land as a
result of the royalties; and
(4) any recommendations with respect to changes in Federal
law (including regulations) relating to the amount or method
of collection (including auditing, compliance, and
enforcement) of the royalties.
(g) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Secretaries jointly shall
promulgate final regulations to carry out this section.
SEC. 214. DISPOSITION OF ROYALTY REVENUES.
(a) Allocation of Revenue.--Effective beginning on the date
of enactment of this Act, all amounts collected by the
Secretaries as royalties or bonuses under subsection (a)(5)
or (c)(6) of section 212 shall be distributed as follows:
(1) 25 percent shall be paid by the Secretary of the
Treasury to States within the boundaries of which the
royalties or bonuses are derived, to be allocated among those
States based on the percentage of covered land from which the
royalties or bonuses are derived in each State.
(2) 25 percent shall be paid by the Secretary of the
Treasury to the counties within the boundaries of which the
royalties or bonuses are derived, to be allocated among those
counties based on the percentage of covered land from which
the royalties or bonuses are derived in each county.
(3) 25 percent shall be deposited in the Fund.
(4) For the 15-year period beginning on the date of
enactment of this Act, 15 percent shall be paid by the
Secretary of the Treasury directly to the State offices of
the Bureau of Land Management and the regional office of the
Forest Service with jurisdiction over the areas from which
the royalties or bonuses are derived for purposes of reducing
the number of renewable energy permits that have not been
processed before the date of enactment of this Act, to be
allocated among those offices based on the percentage of
covered land from which the royalties or bonuses are derived
in each State.
(5) The remainder shall be deposited into the general fund
of the Treasury for purposes of reducing the annual Federal
budget deficit.
(b) Renewable Energy Resource Conservation Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund, to be known as the ``Renewable
Energy Resource Conservation Fund'', to be administered by
the Secretary, in consultation with the Secretary of
Agriculture, for use in regions impacted by the development
of wind or solar energy on public land.
(2) Use of funds.--The Secretary shall use amounts in the
Fund to carry out activities and make payments to State
agencies, Federal agencies, or other interested persons in
regions described in paragraph (1) for--
(A) protecting and restoring important fish and wildlife
habitat in the regions, including corridors, water resources,
and other sensitive land; and
(B) ensuring and improving access to Federal land and water
in the regions for hunting, fishing, and other forms of
outdoor
[[Page S4789]]
recreation in a manner consistent with the conservation of
fish and wildlife habitat.
(3) Availability of amounts.--Amounts in the Fund shall be
available for expenditure, in accordance with this
subsection, without further appropriation and without fiscal
year limitation.
(4) Investment.--
(A) In general.--Amounts deposited in the Fund shall earn
interest in an amount determined by the Secretary of the
Treasury on the basis of the current average market yield on
outstanding marketable obligations of the United States of
comparable maturities.
(B) Use.--Any interest earned under subparagraph (A) may be
expended in accordance with this subsection.
(5) Mitigation requirements.--The expenditure of amounts
under this subsection shall be separate and distinct from any
mitigation requirement imposed pursuant to any law,
regulation, or term or condition of any lease, right-of-way,
or other authorization.
(c) Allocation for Permitting After Expiration of 15-year
Period.--
(1) Certification by secretary.--At the end of the 15-year
period described in paragraph (4) of subsection (a), the
Secretary shall certify whether the State offices referred to
in that paragraph have adequately reduced the renewable
energy permitting backlog referred to in that paragraph.
(2) Allocation after certification.--If the Secretary
certifies under paragraph (1) that--
(A) the State offices referred to in that paragraph have
not adequately reduced the backlog referred to in that
paragraph--
(i) the 15-year period described in subsection (a)(4) shall
be extended by an additional 15-year period; and
(ii) payments shall continue to be made during that period
as described in subsection (a)(4); or
(B) the State offices referred to in that paragraph have
adequately reduced the backlog, of the amount otherwise
required to be paid under subsection (a)(4)--
(i) \2/3\ shall be added to the amount deposited in the
Fund; and
(ii) \1/3\ shall be deposited into the general fund of the
Treasury for purposes of reducing the annual Federal budget
deficit.
(d) Payments to States and Counties.--
(1) In general.--The amounts paid to States and counties
under this section shall be used in a manner that is
consistent with section 35 of the Mineral Leasing Act (30
U.S.C. 191).
(2) Impacts.--Not less than 35 percent of the amounts paid
to a State under this section for each fiscal year shall be
used for the purposes described in subsection (b)(2) .
(3) Addition to pilt payments.--A payment to a county under
this section shall be in addition to a payment received in
lieu of taxes under chapter 69 of title 31, United States
Code.
SEC. 215. STUDY AND REPORT ON MITIGATION BANKING.
(a) Study.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretaries shall carry out a
study to determine the feasibility of carrying out a
mitigation banking program on Federal land administered by
the Secretaries for purposes of fully offsetting the impacts
of wind or solar energy on that Federal land.
(2) Contents.--The study under paragraph (1) shall--
(A) identify areas in which--
(i) privately owned land is not available to fully offset
the impacts of wind or solar energy development on Federal
land administered by the Secretaries; or
(ii) mitigation investments on that Federal land are likely
to provide greater conservation value for the impacts of wind
or solar energy development on the Federal land; and
(B) examine--
(i) the effectiveness of laws (including regulations) and
policies in effect on the date of enactment of this Act in
facilitating the development and effective operation of
mitigation banks;
(ii) the advantages and disadvantages of using mitigation
banks on Federal land administered by the Secretaries to
mitigate impacts to natural resources on private, State, and
tribal land; and
(iii) any changes in Federal law (including regulations) or
policy necessary to advance development of a Federal
mitigation banking program.
(b) Report to Congress.--Not later than 18 months after the
date of enactment of this Act, the Secretaries jointly shall
submit to Congress a report that includes--
(1) the recommendations of the Secretaries relating to--
(A) the most effective system for Federal land administered
by the Secretaries to meet the goals of facilitating the
development of a mitigation banking program on Federal land
administered by the Secretaries; and
(B) any change to Federal law (including regulations) or
policy necessary to address more effectively the siting,
development, and management of mitigation banking programs on
that Federal land to mitigate impacts to natural resources on
private, State, and tribal land; and
(2) a description of any administrative action to be taken
by the Secretaries in response to the recommendations.
(c) Availability to the Public.--Not later than 30 days
after the date on which the report is submitted to Congress
under subsection (b), the Secretaries shall make the report
available to the public.
SEC. 216. RENEWABLE ENERGY POTENTIAL AT MILITARY
INSTALLATIONS.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Defense, in
consultation with the Secretary, shall conduct, and prepare
for States that have not completed a comparable analysis a
report describing the results of, a study that--
(1) identifies locations on land withdrawn from the public
domain and reserved for military purposes that--
(A) exhibit a high potential for solar, wind, geothermal,
or other renewable energy production;
(B) are disturbed or otherwise have comparatively low value
for other resources; and
(C) could be developed for renewable energy production in a
manner consistent with all present and reasonably foreseeable
military training and operational missions and research,
development, testing, and evaluation requirements; and
(2) describes the administration of public land withdrawn
for military purposes for the development of commercial-scale
renewable energy projects, including the legal authorities
governing authorization for that use.
(b) Environmental Impact Analysis.--The Secretary of
Defense, in consultation with the Secretary, shall prepare
and publish in the Federal Register a notice of intent to
prepare an environmental impact analysis document to support
a program to develop renewable energy on withdrawn military
land identified in the study under subsection (a) as suitable
for the production.
(c) Submission to Congress.--On completion of the report
under subsection (a), the Secretary and the Secretary of
Defense jointly shall submit the report to--
(1) the Committee on Armed Services of the Senate;
(2) the Committee on Energy and Natural Resources of the
Senate;
(3) the Committee on Armed Services of the House
Representatives; and
(4) the Committee on Natural Resources of the House of
Representatives.
______
SA 3594. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end of the bill, add the following:
SEC. __. RELIEF FOR ENERGY CONSUMERS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Covered energy-related rule.--The term ``covered
energy-related rule'' means a rule of the Environmental
Protection Agency that--
(A)(i) regulates any aspect of the production, supply,
distribution, or use of energy; or
(ii) provides for the regulation described in clause (i) by
States or other governmental entities; and
(B) is estimated by the Administrator or the Director of
the Office of Management and Budget to impose direct costs
and indirect costs, in the aggregate, of more than
$1,000,000,000.
(3) Direct costs.--The term ``direct costs'' has the
meaning given the term in chapter 8 of the document of the
Environmental Protection Agency entitled ``Guidelines for
Preparing Economic Analyses'' and dated December 17, 2010.
(4) Indirect costs.--The term ``indirect costs'' has the
meaning given the term in chapter 8 of the document of the
Environmental Protection Agency entitled ``Guidelines for
Preparing Economic Analyses'' and dated December 17, 2010.
(5) Rule.--The term ``rule'' has the meaning given the term
in section 551 of title 5, United States Code.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Prohibition Against Finalizing Certain Energy-related
Rules That Will Cause Significant Adverse Effects to the
Economy.--Notwithstanding any other provision of law, the
Administrator shall not promulgate as final any covered
energy-related rule if the Secretary determines under
subsection (c)(4) that the covered energy-related rule will
result in significant adverse effects to the economy.
(c) Reports and Determinations Prior to Promulgating as
Final Certain Energy-related Rules.--
(1) In general.--Before promulgating as final any covered
energy-related rule, the Administrator shall carry out the
activities described in paragraphs (3) and (4).
(2) Report to congress.--For each covered energy-related
rule, the Administrator shall submit to Congress and
Secretary a report containing--
(A) a copy of the covered energy-related rule;
(B) a concise general statement relating to the covered
energy-related rule;
(C) an estimate of the total costs of the covered energy-
related rule, including the direct costs and indirect costs
of the covered energy-related rule;
(D) an estimate of--
(i) the total benefits of the covered energy-related rule;
and
(ii) when those benefits are expected to be realized;
(E) a description of the modeling, the assumptions, and the
limitations due to uncertainty, speculation, or lack of
information
[[Page S4790]]
associated with the estimates under subparagraph (D);
(F) an estimate of the increases in energy prices,
including potential increases in gasoline or electricity
prices for consumers, that may result from implementation or
enforcement of the covered energy-related rule; and
(G) a detailed description of the employment effects,
including potential job losses and shifts in employment, that
may result from implementation or enforcement of the covered
energy-related rule.
(3) Initial determination on increases and impacts.--The
Secretary, in consultation with the Federal Energy Regulatory
Commission and the Administrator of the Energy Information
Administration, shall prepare an independent analysis to
determine whether the covered energy-related rule will
cause--
(A) any increase in energy prices for consumers, including
low-income households, small businesses, and manufacturers;
(B) any impact on fuel diversity of the electricity
generation portfolio of the United States or on national,
regional, or local electric reliability;
(C) any adverse effect on energy supply, distribution, or
use due to the economic or technical infeasibility of
implementing the covered energy-related rule; or
(D) any other adverse effect on energy supply,
distribution, or use (including a shortfall in supply and
increased use of foreign supplies).
(4) Subsequent determination on adverse effects to the
economy.--If the Secretary determines, under paragraph (3),
that the covered energy-related rule will result in an
increase, impact, or effect described in that subsection, the
Secretary, in consultation with the Administrator, the
Secretary of Commerce, the Secretary of Labor, and the
Administrator of the Small Business Administration, shall--
(A) determine whether the covered energy-related rule will
result in significant adverse effects to the economy, taking
into consideration--
(i) the costs and benefits of the covered energy-related
rule and limitations in calculating those costs and benefits
due to uncertainty, speculation, or lack of information; and
(ii) the positive and negative impacts of the covered
energy-related rule on economic indicators, including those
related to gross domestic product, unemployment, wages,
consumer prices, and business and manufacturing activity; and
(B) publish the results of that determination in the
Federal Register.
______
SA 3595. Mr. MORAN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end of the bill, add the following:
SEC. 4. SUPPORTING NEW BUSINESSES.
(a) Short Title.--This section may be cited as the
``Startup Act 3.0''.
(b) Findings.--Congress makes the following findings:
(1) Achieving economic recovery will require the formation
and growth of new companies.
(2) Between 1980 and 2005, companies less than 5 years old
accounted for nearly all net job creation in the United
States.
(3) New firms in the United States create an average of
3,000,000 jobs per year.
(4) To get Americans back to work, entrepreneurs must be
free to innovate, create new companies, and hire employees.
(c) Conditional Permanent Resident Status for Immigrants
With an Advanced Degree in a STEM Field.--
(1) In general.--Chapter 2 of title II of the Immigration
and Nationality Act (8 U.S.C. 1181 et seq.) is amended by
inserting after section 216A the following:
``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS
WITH AN ADVANCED DEGREE IN A STEM FIELD.
``(a) In General.--Notwithstanding any other provision of
this Act, the Secretary of Homeland Security may adjust the
status of not more than 50,000 aliens who have earned a
master's degree or a doctorate degree at an institution of
higher education in a STEM field to that of an alien
conditionally admitted for permanent residence and authorize
each alien granted such adjustment of status to remain in the
United States--
``(1) for up to 1 year after the expiration of the alien's
student visa under section 101(a)(15)(F)(i) if the alien is
diligently searching for an opportunity to become actively
engaged in a STEM field; and
``(2) indefinitely if the alien remains actively engaged in
a STEM field.
``(b) Application for Conditional Permanent Resident
Status.--Every alien applying for a conditional permanent
resident status under this section shall submit an
application to the Secretary of Homeland Security before the
expiration of the alien's student visa in such form and
manner as the Secretary shall prescribe by regulation.
``(c) Ineligibility for Federal Government Assistance.--An
alien granted conditional permanent resident status under
this section shall not be eligible, while in such status,
for--
``(1) any unemployment compensation (as defined in section
85(b) of the Internal Revenue Code of 1986); or
``(2) any Federal means-tested public benefit (as that term
is used in section 403 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613)).
``(d) Effect on Naturalization Residency Requirement.--An
alien granted conditional permanent resident status under
this section shall be deemed to have been lawfully admitted
for permanent residence for purposes of meeting the 5-year
residency requirement set forth in section 316(a)(1).
``(e) Removal of Condition.--The Secretary of Homeland
Security shall remove the conditional basis of an alien's
conditional permanent resident status under this section on
the date that is 5 years after the date such status was
granted if the alien maintained his or her eligibility for
such status during the entire 5-year period.
``(f) Definitions.--In this section:
``(1) Actively engaged in a stem field.--The term `actively
engaged in a STEM field'--
``(A) means--
``(i) gainfully employed in a for-profit business or
nonprofit organization in the United States in a STEM field;
``(ii) teaching 1 or more STEM field courses at an
institution of higher education; or
``(iii) employed by a Federal, State, or local government
entity; and
``(B) includes any period of up to 6 months during which
the alien does not meet the requirement under subparagraph
(A) if such period was immediately preceded by a 1-year
period during which the alien met the requirement under
subparagraph (A).
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
``(3) STEM field.--The term `STEM field' means any field of
study or occupation included on the most recent STEM-
Designated Degree Program List published in the Federal
Register by the Department of Homeland Security (as described
in section 214.2(f)(11)(i)(C)(2) of title 8, Code of Federal
Regulations).''.
(2) Clerical amendment.--The table of contents in the first
section of the Immigration and Nationality Act (8 U.S.C. 1101
et seq.) is amended by inserting after the item relating to
section 216A the following:
``Sec. 216B. Conditional permanent resident status for aliens with an
advanced degree in a STEM field.''.
(d) Government Accountability Office Study.--
(1) Definitions.--In this subsection, the terms
``institution of higher education'' and ``STEM field'' have
the meanings given such terms in section 216B(f) of the
Immigration and Nationality Act, as added by subsection (c).
(2) Report.--Not later than 3 years after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit a report to Congress on the alien college
graduates granted immigrant status under section 216B of the
Immigration and Nationality Act, as added by subsection (c).
(3) Contents.--The report required under paragraph (2)
shall include--
(A) the number of aliens described in paragraph (2) who
have earned a master's degree, broken down by the number of
such degrees in science, technology, engineering, and
mathematics;
(B) the number of aliens described in paragraph (2) who
have earned a doctorate degree, broken down by the number of
such degrees in science, technology, engineering, and
mathematics;
(C) the number of aliens described in paragraph (2) who
have founded a business in the United States in a STEM field;
(D) the number of aliens described in paragraph (2) who are
employed in the United States in a STEM field, broken down by
employment sector (for profit, nonprofit, or government); and
(E) the number of aliens described in paragraph (2) who are
employed by an institution of higher education.
(e) Immigrant Entrepreneurs.--
(1) Qualified alien entrepreneurs.--
(A) Admission as immigrants.--Chapter 1 of title II of the
Immigration and Nationality Act (8 U.S.C. 1151 et seq.) is
amended by adding at the end the following:
``SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS.
``(a) Admission as Immigrants.--The Secretary of Homeland
Security, in accordance with the provisions of this section
and section 216B, may issue a conditional immigrant visa to
not more than 75,000 qualified alien entrepreneurs.
``(b) Application for Conditional Permanent Resident
Status.--Every alien applying for a conditional immigrant
visa under this section shall submit an application to the
Secretary of Homeland Security in such form and manner as the
Secretary shall prescribe by regulation.
``(c) Revocation.--If, during the 4-year period beginning
on the date that an alien is granted a visa under this
section, the Secretary of Homeland Security determines that
such alien is no longer a qualified alien entrepreneur, the
Secretary shall--
``(1) revoke such visa; and
``(2) notify the alien that the alien--
``(A) may voluntarily depart from the United States in
accordance to section 240B; or
[[Page S4791]]
``(B) will be subject to removal proceedings under section
240 if the alien does not depart from the United States not
later than 6 months after receiving such notification.
``(d) Removal of Conditional Basis.--The Secretary of
Homeland Security shall remove the conditional basis of the
status of an alien issued an immigrant visa under this
section on that date that is 4 years after the date on which
such visa was issued if such visa was not revoked pursuant to
subsection (c).
``(e) Definitions.--In this section:
``(1) Full-time employee.--The term `full-time employee'
means a United States citizen or legal permanent resident who
is paid by the new business entity registered by a qualified
alien entrepreneur at a rate that is comparable to the median
income of employees in the region.
``(2) Qualified alien entrepreneur.--The term `qualified
alien entrepreneur' means an alien who--
``(A) at the time the alien applies for an immigrant visa
under this section--
``(i) is lawfully present in the United States; and
``(ii)(I) holds a nonimmigrant visa pursuant to section
101(a)(15)(H)(i)(b); or
``(II) holds a nonimmigrant visa pursuant to section
101(a)(15)(F)(i);
``(B) during the 1-year period beginning on the date the
alien is granted a visa under this section--
``(i) registers at least 1 new business entity in a State;
``(ii) employs, at such business entity in the United
States, at least 2 full-time employees who are not relatives
of the alien; and
``(iii) invests, or raises capital investment of, not less
than $100,000 in such business entity; and
``(C) during the 3-year period beginning on the last day of
the 1-year period described in paragraph (2), employs, at
such business entity in the United States, an average of at
least 5 full-time employees who are not relatives of the
alien.''.
(B) Table of contents amendment.--The table of contents in
the first section of the Immigration and Nationality Act (8
U.S.C. 1101 et seq.) is amended by adding after the item
relating to section 210 the following:
``Sec. 210A. Qualified alien entrepreneurs.''.
(2) Conditional permanent resident status.--Section 216A of
the Immigration and Nationality Act (8 U.S.C. 1186b) is
amended--
(A) by striking ``Attorney General'' each place such term
appears and inserting ``Secretary of Homeland Security'';
(B) in subsection (b)(1)(C), by striking ``203(b)(5),'' and
inserting ``203(b)(5) or 210A, as appropriate,'';
(C) in subsection (c)(1), by striking ``alien entrepreneur
must'' each place such term appears and inserting ``alien
entrepreneur shall'';
(D) in subsection (d)(1)(B), by striking the period at the
end and inserting ``or 210A, as appropriate.''; and
(E) in subsection (f)(1), by striking the period at the end
and inserting ``or 210A.''.
(f) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress on the
qualified alien entrepreneurs granted immigrant status under
section 210A of the Immigration and Nationality Act, as added
by subsection (e).
(2) Contents.--The report described in paragraph (1) shall
include information regarding--
(A) the number of qualified alien entrepreneurs who have
received immigrant status under section 210A of the
Immigration and Nationality Act, listed by country of origin;
(B) the localities in which such qualified alien
entrepreneurs have initially settled;
(C) whether such qualified alien entrepreneurs generally
remain in the localities in which they initially settle;
(D) the types of commercial enterprises that such qualified
alien entrepreneurs have established; and
(E) the types and number of jobs created by such qualified
alien entrepreneurs.
(g) Elimination of the Per-country Numerical Limitation for
Employment-based Visas.--
(1) In general.--Section 202(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1152(a)(2)) is amended--
(A) in the paragraph heading, by striking ``and employment-
based'';
(B) by striking ``(3), (4), and (5),'' and inserting ``(3)
and (4),'';
(C) by striking ``subsections (a) and (b) of section 203''
and inserting ``section 203(a)'';
(D) by striking ``7'' and inserting ``15''; and
(E) by striking ``such subsections'' and inserting ``such
section''.
(2) Conforming amendments.--Section 202 of the Immigration
and Nationality Act (8 U.S.C. 1152) is amended--
(A) in subsection (a)--
(i) in paragraph (3), by striking ``both subsections (a)
and (b) of section 203'' and inserting ``section 203(a)'';
and
(ii) by striking paragraph (5); and
(B) by amending subsection (e) to read as follows:
``(e) Special Rules for Countries at Ceiling.--If it is
determined that the total number of immigrant visas made
available under section 203(a) to natives of any single
foreign state or dependent area will exceed the numerical
limitation specified in subsection (a)(2) in any fiscal year,
in determining the allotment of immigrant visa numbers to
natives under section 203(a), visa numbers with respect to
natives of that state or area shall be allocated (to the
extent practicable and otherwise consistent with this section
and section 203) in a manner so that, except as provided in
subsection (a)(4), the proportion of the visa numbers made
available under each of paragraphs (1) through (4) of section
203(a) is equal to the ratio of the total number of visas
made available under the respective paragraph to the total
number of visas made available under section 203(a).''.
(3) Country-specific offset.--Section 2 of the Chinese
Student Protection Act of 1992 (8 U.S.C. 1255 note) is
amended--
(A) in subsection (a), by striking ``subsection (e))'' and
inserting ``subsection (d))''; and
(B) by striking subsection (d) and redesignating subsection
(e) as subsection (d).
(h) Transition Rules for Employment-Based Immigrants.--
(1) In general.--Subject to paragraphs (2) and (4), and
notwithstanding title II of the Immigration and Nationality
Act (8 U.S.C. 1151 et seq.), the following rules shall apply:
(A) For fiscal year 2014, 15 percent of the immigrant visas
made available under each of paragraphs (2) and (3) of
section 203(b) of such Act (8 U.S.C. 1153(b)) shall be
allotted to immigrants who are natives of a foreign state or
dependent area that was not 1 of the 2 states with the
largest aggregate numbers of natives obtaining immigrant
visas during fiscal year 2012 under such paragraphs.
(B) For fiscal year 2015, 10 percent of the immigrant visas
made available under each of such paragraphs shall be
allotted to immigrants who are natives of a foreign state or
dependent area that was not 1 of the 2 states with the
largest aggregate numbers of natives obtaining immigrant
visas during fiscal year 2013 under such paragraphs.
(C) For fiscal year 2016, 10 percent of the immigrant visas
made available under each of such paragraphs shall be
allotted to immigrants who are natives of a foreign state or
dependent area that was not 1 of the 2 states with the
largest aggregate numbers of natives obtaining immigrant
visas during fiscal year 2014 under such paragraphs.
(2) Per-country levels.--
(A) Reserved visas.--With respect to the visas reserved
under each of subparagraphs (A) through (C) of paragraph (1),
the number of such visas made available to natives of any
single foreign state or dependent area in the appropriate
fiscal year may not exceed 25 percent (in the case of a
single foreign state) or 2 percent (in the case of a
dependent area) of the total number of such visas.
(B) Unreserved visas.--With respect to the immigrant visas
made available under each of paragraphs (2) and (3) of
section 203(b) of such Act (8 U.S.C. 1153(b)) and not
reserved under paragraph (1), for each of fiscal years 2013,
2014, and 2015, not more than 85 percent shall be allotted to
immigrants who are natives of any single foreign state.
(3) Special rule to prevent unused visas.--If, with respect
to fiscal year 2014, 2015, or 2016, the operation of
paragraphs (1) and (2) would prevent the total number of
immigrant visas made available under paragraph (2) or (3) of
section 203(b) of such Act (8 U.S.C. 1153(b)) from being
issued, such visas may be issued during the remainder of such
fiscal year without regard to paragraphs (1) and (2).
(4) Rules for chargeability.--Section 202(b) of the
Immigration and Nationality Act (8 U.S.C. 1152(b)) shall
apply in determining the foreign state to which an alien is
chargeable for purposes of this subsection.
(i) Capital Gains Tax Exemption for Startup Companies.--
(1) Permanent full exclusion.--
(A) In general.--Section 1202(a) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(a) Exclusion.--In the case of a taxpayer other than a
corporation, gross income shall not include 100 percent of
any gain from the sale or exchange of qualified small
business stock held for more than 5 years.''.
(B) Conforming amendments.--
(i) The heading for section 1202 of such Code is amended by
striking ``partial''.
(ii) The item relating to section 1202 in the table of
sections for part I of subchapter P of chapter 1 of such Code
is amended by striking ``Partial exclusion'' and inserting
``Exclusion''.
(iii) Section 1223(13) of such Code is amended by striking
``1202(a)(2),''.
(2) Repeal of minimum tax preference.--
(A) In general.--Section 57(a) of the Internal Revenue Code
of 1986 is amended by striking paragraph (7).
(B) Technical amendment.--Section 53(d)(1)(B)(ii)(II) of
such Code is amended by striking ``, (5), and (7)'' and
inserting ``and (5)''.
(3) Repeal of 28 percent capital gains rate on qualified
small business stock.--
(A) In general.--Section 1(h)(4)(A) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(A) collectibles gain, over''.
(B) Conforming amendments.--
(i) Section 1(h) of such Code is amended--
(I) by striking paragraph (7); and
(II) by redesignating paragraphs (8), (9), (10), (11),
(12), and (13) as paragraphs (7), (8), (9), (10), (11), and
(12), respectively.
(ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D) of such
Code are each amended by striking ``section 1(h)(11)(B)'' and
inserting ``section 1(h)(10)(B)''.
[[Page S4792]]
(iii) The following sections of such Code are each amended
by striking ``section 1(h)(11)'' and inserting ``section
1(h)(10)'':
(I) Section 301(f)(4).
(II) Section 306(a)(1)(D).
(III) Section 584(c).
(IV) Section 702(a)(5).
(V) Section 854(a).
(VI) Section 854(b)(2).
(iv) The heading of section 857(c)(2) of such Code is
amended by striking ``1(h)(11)'' and inserting ``1(h)(10)''.
(4) Effective date.--The amendments made by this subsection
shall apply to stock acquired after the date of the enactment
of this Act.
(j) Research Credit for Startup Companies.--
(1) In general.--
(A) In general.--Section 41 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(i) Treatment of Credit to Qualified Small Businesses.--
``(1) In general.--At the election of a qualified small
business, the payroll tax credit portion of the credit
determined under subsection (a) shall be treated as a credit
allowed under section 3111(f) (and not under this section).
``(2) Payroll tax credit portion.--For purposes of this
subsection, the payroll tax credit portion of the credit
determined under subsection (a) for any taxable year is so
much of such credit as does not exceed $250,000.
``(3) Qualified small business.--For purposes of this
subsection--
``(A) In general.--The term `qualified small business'
means, with respect to any taxable year--
``(i) a corporation, partnership, or S corporation if--
``(I) the gross receipts (as determined under subsection
(c)(7)) of such entity for the taxable year is less than
$5,000,000, and
``(II) such entity did not have gross receipts (as so
determined) for any period preceding the 5-taxable-year
period ending with such taxable year, and
``(ii) any person not described in subparagraph (A) if
clauses (i) and (ii) of subparagraph (A) applied to such
person, determined--
``(I) by substituting `person' for `entity' each place it
appears, and
``(II) in the case of an individual, by only taking into
account the aggregate gross receipts received by such
individual in carrying on trades or businesses of such
individual.
``(B) Limitation.--Such term shall not include an
organization which is exempt from taxation under section 501.
``(4) Election.--
``(A) In general.--In the case of a partnership or S
corporation, an election under this subsection shall be made
at the entity level.
``(B) Revocation.--An election under this subsection may
not be revoked without the consent of the Secretary.
``(C) Limitation.--A taxpayer may not make an election
under this subsection if such taxpayer has made an election
under this subsection for 5 or more preceding taxable years.
``(5) Aggregation rules.--For purposes of determining the
$250,000 limitation under paragraph (2) and determining gross
receipts under paragraph (3), all members of the same
controlled group of corporations (within the meaning of
section 267(f)) and all persons under common control (within
the meaning of section 52(b) but determined by treating an
interest of more than 50 percent as a controlling interest)
shall be treated as 1 person.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection, including--
``(A) regulations to prevent the avoidance of the purposes
of paragraph (3) through the use of successor companies or
other means,
``(B) regulations to minimize compliance and recordkeeping
burdens under this subsection for start-up companies, and
``(C) regulations for recapturing the benefit of credits
determined under section 3111(f) in cases where there is a
subsequent adjustment to the payroll tax credit portion of
the credit determined under subsection (a), including
requiring amended returns in the cases where there is such an
adjustment.''.
(B) Conforming amendment.--Section 280C(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(5) Treatment of qualified small business credit.--For
purposes of determining the amount of any credit under
section 41(a) under this subsection, any election under
section 41(i) shall be disregarded.''.
(2) Credit allowed against fica taxes.--
(A) In general.--Section 3111 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(f) Credit for Research Expenditures of Qualified Small
Businesses.--
``(1) In general.--In the case of a qualified small
business which has made an election under section 41(i),
there shall be allowed as a credit against the tax imposed by
subsection (a) on wages paid with respect to the employment
of all employees of the qualified small business for days in
an applicable calendar quarter an amount equal to the payroll
tax credit portion of the research credit determined under
section 41(a).
``(2) Carryover of unused credit.--In any case in which the
payroll tax credit portion of the research credit determined
under section 41(a) exceeds the tax imposed under subsection
(a) for an applicable calendar quarter--
``(A) the succeeding calendar quarter shall be treated as
an applicable calendar quarter, and
``(B) the amount of credit allowed under paragraph (1)
shall be reduced by the amount of credit allowed under such
paragraph for all preceding applicable calendar quarters.
``(3) Allocation of credit for controlled groups, etc.--In
determining the amount of the credit under this subsection--
``(A) all persons treated as a single taxpayer under
section 41 shall be treated as a single taxpayer under this
section, and
``(B) the credit (if any) allowable by this section to each
such member shall be its proportionate share of the qualified
research expenses, basic research payments, and amounts paid
or incurred to energy research consortiums, giving rise to
the credit allowable under section 41.
``(4) Definitions.--For purposes of this subsection--
``(A) Applicable calendar quarter.--The term `applicable
calendar quarter' means--
``(i) the first calendar quarter following the date on
which the qualified small business files a return under
section 6012 for the taxable year for which the payroll tax
credit portion of the research credit under section 41(a) is
determined, and
``(ii) any succeeding calendar quarter treated as an
applicable calendar quarter under paragraph (2)(A).
``For purposes of determining the date on which a return is
filed, rules similar to the rules of section 6513 shall
apply.
``(B) Other terms.--Any term used in this subsection which
is also used in section 41 shall have the meaning given such
term under section 41.''.
(B) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
amendments made by paragraph (1). Amounts appropriated by the
preceding sentence shall be transferred from the general fund
at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to
such Trust Fund had such amendments not been enacted.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2012.
(k) Accelerated Commercialization of Taxpayer-funded
Research.--
(1) Definitions.--In this subsection:
(A) Council.--The term ``Council'' means the Advisory
Council on Innovation and Entrepreneurship of the Department
of Commerce established pursuant to section 25(c) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3720(c)).
(B) Extramural budget.--The term ``extramural budget''
means the sum of the total obligations minus amounts
obligated for such activities by employees of the agency in
or through Government-owned, Government-operated facilities,
except that for the Department of Energy it shall not include
amounts obligated for atomic energy defense programs solely
for weapons activities or for naval reactor programs, and
except that for the Agency for International Development it
shall not include amounts obligated solely for general
institutional support of international research centers or
for grants to foreign countries.
(C) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(D) Research or research and development.--The term
``research'' or ``research and development'' means any
activity that is--
(i) a systematic, intensive study directed toward greater
knowledge or understanding of the subject studied;
(ii) a systematic study directed specifically toward
applying new knowledge to meet a recognized need; or
(iii) a systematic application of knowledge toward the
production of useful materials, devices, and systems or
methods, including design, development, and improvement of
prototypes and new processes to meet specific requirements.
(E) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(2) Grant program authorized.--
(A) In general.--Each Federal agency that has an extramural
budget for research or research and development that is in
excess of $100,000,000 for each of the fiscal years 2015
through 2019, shall transfer 0.15 percent of such extramural
budget for each of such fiscal years to the Secretary to
enable the Secretary to carry out a grant program in
accordance with this paragraph.
(B) Grants.--
(i) Awarding of grants.--
(I) In general.--From amounts transferred under
subparagraph (A), the Secretary shall use the criteria
developed by the Council to award grants to institutions of
higher education, including consortia of institutions of
higher education, for initiatives to improve
commercialization and transfer of technology.
(II) Request for proposals.--Not later than 30 days after
the Council submits the
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recommendations for criteria to the Secretary under paragraph
(3)(B)(i), and annually thereafter for each fiscal year for
which the grant program is authorized, the Secretary shall
release a request for proposals.
(III) Applications.--Each institution of higher education
that desires to receive a grant under this paragraph shall
submit an application to the Secretary not later than 90 days
after the Secretary releases the request for proposals under
subclause (II).
(IV) Council review.--
(aa) In general.--The Secretary shall submit each
application received under subclause (III) to the Council for
Council review.
(bb) Recommendations.--The Council shall review each
application received under item (aa) and submit
recommendations for grant awards to the Secretary, including
funding recommendations for each proposal.
(cc) Public release.--The Council shall publicly release
any recommendations made under item (bb).
(dd) Consideration of recommendations.--In awarding grants
under this paragraph, the Secretary shall take into
consideration the recommendations of the Council under item
(bb)).
(ii) Commercialization capacity building grants.--
(I) In general.--The Secretary shall award grants to
support institutions of higher education pursuing specific
innovative initiatives to improve an institution's capacity
to commercialize faculty research that can be widely adopted
if the research yields measurable results.
(II) Content of proposals.--Grants shall be awarded under
this clause to proposals demonstrating the capacity for
accelerated commercialization, proof-of-concept proficiency,
and translating scientific discoveries and cutting-edge
inventions into technological innovations and new companies.
Grant funds shall be expended to support innovative
approaches to achieving these goals that can be replicated by
other institutions of higher education if the innovative
approaches are successful.
(iii) Commercialization accelerator grants.--The Secretary
shall award grants to support institutions of higher
education pursuing initiatives that allow faculty to directly
commercialize research in an effort to accelerate research
breakthroughs. The Secretary shall prioritize those
initiatives that have a management structure that encourages
collaboration between other institutions of higher education
or other entities with demonstrated proficiency in creating
and growing new companies based on verifiable metrics.
(C) Assessment of success.--Grants awarded under this
paragraph shall use criteria for assessing the success of
programs through the establishment of benchmarks.
(D) Termination.--The Secretary shall have the authority to
terminate grant funding to an institution of higher education
in accordance with the process and performance metrics
recommended by the Council.
(E) Limitations.--
(i) Project management costs.--A grant recipient may use
not more than 10 percent of grant funds awarded under this
paragraph for the purpose of funding project management costs
of the grant program.
(ii) Supplement, not supplant.--An institution of higher
education that receives a grant under this paragraph shall
use the grant funds to supplement, and not supplant, non-
Federal funds that would, in the absence of such grant funds,
be made available for activities described in this
subsection.
(F) Unspent funds.--Any funds transferred to the Secretary
under subparagraph (A) for a fiscal year that are not
expended by the end of such fiscal year may be expended in
any subsequent fiscal year through fiscal year 2019. Any
funds transferred under subparagraph (A) that are remaining
at the end of the grant program's authorization under this
subsection shall be transferred to the Treasury for deficit
reduction.
(3) Council.--
(A) In general.--Not later than 120 days after the date of
the enactment of this Act, the Council shall convene and
develop recommendations for criteria in awarding grants to
institutions of higher education under paragraph (2).
(B) Submission to secretary of commerce and public
release.--The Council shall--
(i) submit the recommendations described in subparagraph
(A) to the Secretary; and
(ii) release the recommendations to the public.
(C) Majority vote.--The recommendations submitted by the
Council under subparagraph (A) shall be determined by a
majority vote of Council members.
(D) Performance metrics.--The Council shall develop and
provide to the Secretary recommendations on performance
metrics to be used to evaluate grants awarded under paragraph
(2).
(E) Evaluation.--
(i) In general.--Not later than 180 days before the date on
which the grant program authorized under paragraph (2)
expires, the Council shall conduct an evaluation of the
effect that the grant program is having on accelerating the
commercialization of faculty research.
(ii) Inclusions.--The evaluation shall include--
(I) the recommendation of the Council as to whether the
grant program should be continued or terminated;
(II) quantitative data related to the effect, if any, that
the grant program has had on faculty research
commercialization; and
(III) a description of lessons learned in administering the
grant program, and how those lessons could be applied to
future efforts to accelerate commercialization of faculty
research.
(iii) Availability.--Upon completion of the evaluation, the
evaluation shall be made available on a public website and
submitted to Congress. The Secretary shall notify all
institutions of higher education when the evaluation is
published and how it can be accessed.
(4) Construction.--Nothing in this subsection may be
construed to alter, modify, or amend any provision of chapter
18 of title 35, United States Code (commonly known as the
``Bayh-Dole Act'').
(l) Economic Impact of Significant Federal Agency Rules.--
Section 553 of title 5, United States Code, is amended by
adding at the end the following:
``(f) Required Review Before Issuance of Significant
Rules.--
``(1) In general.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of
a proposed significant rule, the head of the Federal agency
or independent regulatory agency seeking to issue the rule
shall complete a review, to the extent permitted by law,
that--
``(A) analyzes the problem that the proposed rule intends
to address, including--
``(i) the specific market failure, such as externalities,
market power, or lack of information, that justifies such
rule; or
``(ii) any other specific problem, such as the failures of
public institutions, that justifies such rule;
``(B) analyzes the expected impact of the proposed rule on
the ability of new businesses to form and expand;
``(C) identifies the expected impact of the proposed rule
on State, local, and tribal governments, including the
availability of resources--
``(i) to carry out the mandates imposed by the rule on such
government entities; and
``(ii) to minimize the burdens that uniquely or
significantly affect such governmental entities, consistent
with achieving regulatory objectives;
``(D) identifies any conflicting or duplicative
regulations;
``(E) determines--
``(i) if existing laws or regulations created, or
contributed to, the problem that the new rule is intended to
correct; and
``(ii) if the laws or regulations referred to in clause (i)
should be modified to more effectively achieve the intended
goal of the rule; and
``(F) includes the cost-benefit analysis described in
paragraph (2).
``(2) Cost-benefit analysis.--A cost-benefit analysis
described in this paragraph shall include--
``(A)(i) an assessment, including the underlying analysis,
of benefits anticipated from the proposed rule, such as--
``(I) promoting the efficient functioning of the economy
and private markets;
``(II) enhancing health and safety;
``(III) protecting the natural environment; and
``(IV) eliminating or reducing discrimination or bias; and
``(ii) the quantification of the benefits described in
clause (i), to the extent feasible;
``(B)(i) an assessment, including the underlying analysis,
of costs anticipated from the proposed rule, such as--
``(I) the direct costs to the Federal Government to
administer the rule;
``(II) the direct costs to businesses and others to comply
with the rule; and
``(III) any adverse effects on the efficient functioning of
the economy, private markets (including productivity,
employment, and competitiveness), health, safety, and the
natural environment; and
``(ii) the quantification of the costs described in clause
(i), to the extent feasible;
``(C)(i) an assessment, including the underlying analysis,
of costs and benefits of potentially effective and reasonably
feasible alternatives to the proposed rule, which have been
identified by the agency or by the public, including taking
reasonably viable nonregulatory actions; and
``(ii) an explanation of why the proposed rule is
preferable to the alternatives identified under clause (i).
``(3) Report.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of
a proposed significant rule, the head of the Federal agency
or independent regulatory agency seeking to issue the rule
shall--
``(A) submit the results of the review conducted under
paragraph (1) to the appropriate congressional committees;
and
``(B) post the results of the review conducted under
paragraph (1) on a publicly available website.
``(4) Judicial review.--Any determinations made, or other
actions taken, by an agency or independent regulatory agency
under this subsection shall not be subject to judicial
review.
``(5) Defined term.--In this subsection the term
`significant rule' means a rule that is likely to--
``(A) have an annual effect on the economy of $100,000,000
or more;
``(B) adversely affect, in a material way, the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or
tribal governments or communities; or
[[Page S4794]]
``(C) create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency.''.
(m) Biennial State Startup Business Report.--
(1) Data collection.--The Secretary of Commerce shall
regularly compile information from each of the 50 States and
the District of Columbia on State or District laws that
affect the formation and growth of new businesses within the
State or District.
(2) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 2 years thereafter, the
Secretary, using data compiled under paragraph (1), shall
prepare a report that--
(A) analyzes the economic effect of State and District laws
that either encourage or inhibit business formation and
growth; and
(B) ranks the States and the District based on the
effectiveness with which their laws foster new business
creation and economic growth.
(3) Distribution.--The Secretary shall--
(A) submit each report prepared under paragraph (1) to
Congress; and
(B) make each report available to the public on the website
of the Department of Commerce.
(4) Inclusion of large metropolitan areas.--Not later than
90 days after the submission of the first report under this
subsection, the Secretary of Commerce shall submit a study to
Congress on the feasibility and advisability of including, in
future reports, information about the effect of local laws
and ordinances on the formation and growth of new businesses
in large metropolitan areas within the United States.
(5) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
(n) New Business Formation Report.--
(1) In general.--The Secretary of Commerce shall regularly
compile quantitative and qualitative information on
businesses in the United States that are not more than 1 year
old.
(2) Data collection.--The Secretary shall--
(A) regularly compile information from the Bureau of the
Census' business register on new business formation in the
United States; and
(B) conduct quarterly surveys of business owners who start
a business during the 1-year period ending on the date on
which such survey is conducted to gather qualitative
information about the factors that influenced their decision
to start the business.
(3) Random sampling.--In conducting surveys under paragraph
(2)(B), the Secretary may use random sampling to identify a
group of business owners who are representative of all the
business owners described in paragraph (2)(B).
(4) Benefits.--The Secretary shall inform business owners
selected to participate in a survey conducted under this
subsection of the benefits they would receive from
participating in the survey.
(5) Voluntary participation.--Business owners selected to
participate in a survey conducted under this subsection may
decline to participate without penalty.
(6) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 3 months thereafter, the
Secretary shall use the data compiled under paragraph (2) to
prepare a report that--
(A) lists the aggregate number of new businesses formed in
the United States;
(B) lists the aggregate number of persons employed by new
businesses formed in the United States;
(C) analyzes the payroll of new businesses formed in the
United States;
(D) summarizes the data collected under paragraph (2); and
(E) identifies the most effective means by which government
officials can encourage the formation and growth of new
businesses in the United States.
(7) Distribution.--The Secretary shall--
(A) submit each report prepared under paragraph (6) to
Congress; and
(B) make each report available to the public on the website
of the Department of Commerce.
(8) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
(o) Rescission of Unspent Federal Funds.--
(1) In general.--Notwithstanding any other provision of
law, of all available unobligated funds for fiscal year 2014,
the amount necessary to carry out this section and the
amendments made by this section in appropriated discretionary
funds are hereby rescinded.
(2) Implementation.--
(A) Determination.--The Director of the Office of
Management and Budget shall determine and identify from which
appropriation accounts the rescission under paragraph (1)
shall apply and the amount of such rescission that shall
apply to each such account.
(B) Report.--Not later than 60 days after the date of the
enactment of this Act, the Director of the Office of
Management and Budget shall submit a report to the Secretary
of the Treasury and Congress of the accounts and amounts
determined and identified for rescission under subparagraph
(A).
______
SA 3596. Mr. FLAKE submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end, insert the following:
SEC. 4. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR
SMALL BUSINESS.
(a) In General.--
(1) Dollar limitation.--Paragraph (1) of section 179(b) of
the Internal Revenue Code of 1986 is amended by striking
``shall not exceed--'' and all that follows and inserting
``shall not exceed $500,000.''.
(2) Reduction in limitation.--Paragraph (2) of section
179(b) of such Code is amended by striking ``exceeds--'' and
all that follows and inserting ``exceeds $2,000,000.''.
(b) Computer Software.--Clause (ii) of section 179(d)(1)(A)
of the Internal Revenue Code of 1986 is amended by striking
``, to which section 167 applies, and which is placed in
service in a taxable year beginning after 2002 and before
2014'' and inserting ``and to which section 167 applies''.
(c) Election.--Paragraph (2) of section 179(c) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``may not be revoked'' and all that follows
through ``and before 2014'', and
(2) by striking ``irrevocable'' in the heading thereof.
(d) Air Conditioning and Heating Units.--Paragraph (1) of
section 179(d) of the Internal Revenue Code of 1986 is
amended by striking ``and shall not include air conditioning
or heating units''.
(e) Qualified Real Property.--Subsection (f) of section 179
of the Internal Revenue Code of 1986 is amended--
(1) by striking ``beginning in 2010, 2011, 2012, or 2013''
in paragraph (1), and
(2) by striking paragraphs (3) and (4).
(f) Inflation Adjustment.--Subsection (b) of section 179 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2014, the dollar amounts in paragraphs (1)
and (2) shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(c)(2)(A) for such calendar year, determined by
substituting `calendar year 2013' for `calendar year 2012' in
clause (ii) thereof.
``(B) Rounding.--The amount of any increase under
subparagraph (A) shall be rounded to the nearest multiple of
$10,000.''.
(g) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.
______
SA 3597. Mr. FLAKE submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. ___. AUTHORITY TO OFFER ADDITIONAL PLAN OPTIONS.
(a) Catastrophic Plans.--Notwithstanding title I of the
Patient Protection and Affordable Care Act (Public Law 111-
148), a catastrophic plan as described in section 1302(e) of
such Act shall be deemed to be a qualified health plan
(including for purposes of receiving tax credits under
section 36B of the Internal Revenue Code of 1986 and cost-
sharing assistance under section 1402 of the Patient
Protection and Affordable Care Act), except that for purposes
of enrollment in such plans, the provisions of paragraph (2)
of such section 1302(e) shall not apply.
(b) Individual Mandate.--Coverage under a catastrophic plan
under subsection (a) shall be deemed to be minimum essential
coverage for purposes of section 5000A of the Internal
Revenue Code of 1986.
______
SA 3598. Mr. ENZI (for himself, Mr. Barrasso, and Mr. Portman)
submitted an amendment intended to be proposed by him to the bill S.
2569, to provide an incentive for businesses to bring jobs back to
America; which was ordered to lie on the table; as follows:
At the end, add the following:
SEC. __. RESTRICTIONS ON APPLICATION OF EMPLOYER HEALTH
INSURANCE MANDATE.
(a) Exception for Small Business Concerns.--Section
4980H(c)(2) of the Internal Revenue Code of 1986 is amended
by adding at the end the following new subparagraph:
``(F) Exception for small business concerns.--The term
`applicable large employer' shall not include any employer
which is a small business concern (within the meaning of
section 3 of the Small Business Act).''.
(b) Definition of Full-Time Employee.--Section 4980H(c) of
such Code is amended--
(1) in paragraph (2)(E), by striking ``by 120'' and
inserting ``by 174'', and
(2) in paragraph (4)(A), by striking ``30 hours'' and
inserting ``40 hours''.
(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2013.
______
SA 3599. Mr. ENZI submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
[[Page S4795]]
At the end, add the following:
TITLE _--TAX RETURN DUE DATE SIMPLIFICATION AND MODERNIZATION
SEC. _01. SHORT TITLE; REFERENCE.
(a) Short Title.--This title may be cited as the ``Tax
Return Due Date Simplification and Modernization Act of
2014''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986.
SEC. _02. NEW DUE DATE FOR PARTNERSHIP FORM 1065, S
CORPORATION FORM 1120S, AND C CORPORATION FORM
1120.
(a) Partnerships.--
(1) In general.--Section 6072 is amended by adding at the
end the following new subsection:
``(f) Returns of Partnerships.--Returns of partnerships
under section 6031 made on the basis of the calendar year
shall be filed on or before the 15th day of March following
the close of the calendar year, and such returns made on the
basis of a fiscal year shall be filed on or before the 15th
day of the third month following the close of the fiscal
year.''.
(2) Conforming amendment.--Section 6072(a) is amended by
striking ``6017, or 6031'' and inserting ``or 6017''.
(b) S Corporations.--
(1) In general.--So much of subsection (b) of 6072 as
precedes the second sentence thereof is amended to read as
follows:
``(b) Returns of Certain Corporations.--Returns of S
corporations under sections 6012 and 6037 made on the basis
of the calendar year shall be filed on or before the 31st day
of March following the close of the calendar year, and such
returns made on the basis of a fiscal year shall be filed on
or before the last day of the third month following the close
of the fiscal year.''.
(2) Conforming amendments.--
(A) Section 1362(b) is amended--
(i) by striking ``15th'' each place it appears and
inserting ``last'',
(ii) by striking ``2\1/2\'' each place it appears and
inserting ``3'', and
(iii) by striking ``2 months and 15 days'' in paragraph (4)
and inserting ``3 months''.
(B) Section 1362(d)(1)(C)(i) is amended by striking
``15th'' and inserting ``last''.
(C) Section 1362(d)(1)(C)(ii) is amended by striking ``such
15th day'' and inserting ``the last day of the 3d month
thereof''.
(c) Conforming Amendments Relating to C Corporations.--
(1) Section 170(a)(2)(B) is amended by striking ``third
month'' and inserting ``4th month''.
(2) Section 563 is amended by striking ``third month'' each
place it appears and inserting ``4th month''.
(3) Section 1354(d)(1)(B)(i) is amended by striking ``3d
month'' and inserting ``4th month''.
(4) Subsection (a) and (c) of section 6167 are each amended
by striking ``third month'' and inserting ``4th month''.
(5) Section 6425(a)(1) is amended by striking ``third
month'' and inserting ``4th month''.
(6) Subsections (b)(2)(A), (g)(3), and (h)(1) of section
6655 are each amended by striking ``3rd month'' and inserting
``4th month''.
(d) Effective Date.--The amendments made by this section
shall apply to returns for taxable years beginning after
December 31, 2014.
SEC. _03. MODIFICATION OF DUE DATES BY REGULATION.
In the case of returns for taxable years beginning after
December 31, 2014, the Secretary of the Treasury or the
Secretary's delegate shall modify appropriate regulations to
provide as follows:
(1) The maximum extension for the returns of partnerships
filing Form 1065 shall be a 6-month period beginning on the
due date for filing the return (without regard to any
extensions).
(2) The maximum extension for the returns of trusts and
estates filing Form 1041 shall be a 5\1/2\-month period
beginning on the due date for filing the return (without
regard to any extensions).
(3) The maximum extension for the returns of employee
benefit plans filing Form 5500 shall be an automatic 3\1/2\-
month period beginning on the due date for filing the return
(without regard to any extensions).
(4) The maximum extension for the Forms 990 (series)
returns of organizations exempt from income tax shall be an
automatic 6-month period beginning on the due date for filing
the return (without regard to any extensions).
(5) The maximum extension for the returns of organizations
exempt from income tax that are required to file Form 4720
returns of excise taxes shall be an automatic 6-month period
beginning on the due date for filing the return (without
regard to any extensions).
(6) The maximum extension for the returns of trusts
required to file Form 5227 shall be an automatic 6-month
period beginning on the due date for filing the return
(without regard to any extensions).
(7) The maximum extension for the returns of Black Lung
Benefit Trusts required to file Form 6069 returns of excise
taxes shall be an automatic 6-month period beginning on the
due date for filing the return (without regard to any
extensions).
(8) The maximum extension for a taxpayer required to file
Form 8870 shall be an automatic 6-month period beginning on
the due date for filing the return (without regard to any
extensions).
(9) The due date of Form 3520-A, Annual Information Return
of a Foreign Trust with a United States Owner, shall be the
15th day of the 4th month after the close of the trust's
taxable year, and the maximum extension shall be a 6-month
period beginning on such day.
(10) The due date of Form TD F 90-22.1 (relating to Report
of Foreign Bank and Financial Accounts) shall be April 15
with a maximum extension for a 6-month period ending on
October 15, and with provision for an extension under rules
similar to the rules of 26 C.F.R. 1.6081-5. For any taxpayer
required to file such form for the first time, the Secretary
of the Treasury may waive any penalty for failure to timely
request or file an extension.
(11) Taxpayers filing Form 3520, Annual Return to Report
Transactions with Foreign Trusts and Receipt of Certain
Foreign Gifts, shall be allowed to extend the time for filing
such form separately from the income tax return of the
taxpayer, for an automatic 6-month period beginning on the
due date for filing the return (without regard to any
extensions).
SEC. _04. CORPORATIONS PERMITTED STATUTORY AUTOMATIC 6-MONTH
EXTENSION OF INCOME TAX RETURNS.
(a) In General.--Section 6081(b) is amended by striking ``3
months'' and inserting ``6 months''.
(b) Effective Date.--The amendment made by this section
shall apply to returns for taxable years beginning after
December 31, 2014.
______
SA 3600. Mr. ENZI submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``United
States Job Creation and International Tax Reform Act of
2014''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--PARTICIPATION EXEMPTION SYSTEM FOR TAXATION OF FOREIGN INCOME
Sec. 101. Deduction for dividends received by domestic corporations
from certain foreign corporations.
Sec. 102. Application of dividends received deduction to certain sales
and exchanges of stock.
Sec. 103. Deduction for foreign intangible income derived from trade or
business within the United States.
Sec. 104. Treatment of deferred foreign income upon transition to
participation exemption system of taxation.
TITLE II--OTHER INTERNATIONAL TAX REFORMS
Subtitle A--Modifications of Subpart F
Sec. 201. Treatment of low-taxed foreign income as subpart F income.
Sec. 202. Permanent extension of look-thru rule for controlled foreign
corporations.
Sec. 203. Permanent extension of exceptions for active financing
income.
Sec. 204. Foreign base company income not to include sales or services
income.
Subtitle B--Modifications Related to Foreign Tax Credit
Sec. 211. Modification of application of sections 902 and 960 with
respect to post-2014 earnings.
Sec. 212. Separate foreign tax credit basket for foreign intangible
income.
Sec. 213. Inventory property sales source rule exceptions not to apply
for foreign tax credit limitation.
Subtitle C--Allocation of Interest on Worldwide Basis
Sec. 221. Acceleration of election to allocate interest on a worldwide
basis.
TITLE I--PARTICIPATION EXEMPTION SYSTEM FOR TAXATION OF FOREIGN INCOME
SEC. 101. DEDUCTION FOR DIVIDENDS RECEIVED BY DOMESTIC
CORPORATIONS FROM CERTAIN FOREIGN CORPORATIONS.
(a) Allowance of Deduction.--Part VIII of subchapter B of
chapter 1 is amended by inserting after section 245 the
following new section:
``SEC. 245A. DIVIDENDS RECEIVED BY DOMESTIC CORPORATIONS FROM
CERTAIN FOREIGN CORPORATIONS.
``(a) In General.--In the case of any dividend received
from a controlled foreign corporation by a domestic
corporation which is a United States shareholder with respect
to such controlled foreign corporation, there
[[Page S4796]]
shall be allowed as a deduction an amount equal to 95 percent
of the qualified foreign-source portion of the dividend.
``(b) Treatment of Electing Noncontrolled Section 902
Corporations as Controlled Foreign Corporations.--
``(1) In general.--If a domestic corporation elects the
application of this subsection for any noncontrolled section
902 corporation with respect to the domestic corporation,
then, for purposes of this title--
``(A) the noncontrolled section 902 corporation shall be
treated as a controlled foreign corporation with respect to
the domestic corporation, and
``(B) the domestic corporation shall be treated as a United
States shareholder with respect to the noncontrolled section
902 corporation.
``(2) Election.--
``(A) Time of election.--Any election under this subsection
with respect to any noncontrolled section 902 corporation
shall be made not later than the due date for filing the
return of tax for the first taxable year of the taxpayer with
respect to which the foreign corporation is a noncontrolled
section 902 corporation with respect to the taxpayer (or, if
later, the first taxable year of the taxpayer for which this
section is in effect).
``(B) Revocation of election.--Any election under this
subsection, once made, may be revoked only with the consent
of the Secretary.
``(C) Controlled groups.--If a domestic corporation making
an election under this subsection with respect to any
noncontrolled section 902 corporation is a member of a
controlled group of corporations (within the meaning of
section 1563(a), except that `more than 50 percent' shall be
substituted for `at least 80 percent' each place it appears
therein), then, except as otherwise provided by the
Secretary, such election shall apply to all members of such
group.
``(c) Qualified Foreign-Source Portion of Dividends.--For
purposes of this section--
``(1) Qualified foreign-source portion.--
``(A) In general.--The qualified foreign-source portion of
any dividend is an amount which bears the same ratio to such
dividend as--
``(i) the post-2014 undistributed qualified foreign
earnings, bears to
``(ii) the total post-2014 undistributed earnings.
``(B) Post-2014 undistributed earnings.--The term `post-
2014 undistributed earnings' means the amount of the earnings
and profits of a controlled foreign corporation (computed in
accordance with sections 964(a) and 986) accumulated in
taxable years beginning after December 31, 2014--
``(i) as of the close of the taxable year of the controlled
foreign corporation in which the dividend is distributed, and
``(ii) without diminution by reason of dividends
distributed during such taxable years.
``(C) Post-2014 undistributed qualified foreign earnings.--
The term `post-2014 undistributed qualified foreign earnings'
means the portion of the post-2014 undistributed earnings
which is attributable to income other than--
``(i) income described in section 245(a)(5)(A), or
``(ii) dividends described in section 245(a)(5)(B).
``(2) Ordering rule for distributions of earnings and
profits.--Distributions shall be treated as first made out of
earnings and profits of a controlled foreign corporation
which are not post-2014 undistributed earnings and then out
of post-2014 undistributed earnings.
``(d) Disallowance of Foreign Tax Credit, etc.--
``(1) In general.--No credit shall be allowed under section
901 for any taxes paid or accrued (or treated as paid or
accrued) with respect to the qualified foreign-source portion
of any dividend.
``(2) Denial of deduction.--No deduction shall be allowed
under this chapter for any tax for which credit is not
allowable under section 901 by reason of paragraph (1).
``(3) Coordination with section 78.--Section 78 shall not
apply to any tax for which credit is not allowable under
section 901 by reason of paragraph (1).
``(4) Treatment of nondeductible portion in applying
foreign tax credit limit.--For purposes of applying the
limitation under section 904(a), the remaining 5 percent of
the qualified foreign-source portion of any dividend with
respect to which a deduction is not allowable to the domestic
corporation under subsection (a) shall be treated as income
from sources within the United States.
``(e) Special Rules for Hybrid Dividends.--
``(1) In general.--Subsection (a) shall not apply to any
dividend received by a United States shareholder from a
controlled foreign corporation if the dividend is a hybrid
dividend.
``(2) Hybrid dividends of tiered controlled foreign
corporations.--If a controlled foreign corporation with
respect to which a domestic corporation is a United States
shareholder receives a hybrid dividend from any other
controlled foreign corporation with respect to which such
domestic corporation is also a United States shareholder,
then, notwithstanding any other provision of this title--
``(A) the hybrid dividend shall be treated for purposes of
section 951(a)(1)(A) as subpart F income of the receiving
controlled foreign corporation for the taxable year of the
controlled foreign corporation in which the dividend was
received, and
``(B) the United States shareholder shall include in gross
income an amount equal to the shareholder's pro rata share
(determined in the same manner as under section 951(a)(2)) of
the subpart F income described in subparagraph (A).
``(3) Denial of foreign tax credit, etc.--The rules of
subsection (d) shall apply to any hybrid dividend received
by, or any amount included under paragraph (2) in the gross
income of, a United States shareholder, except that, for
purposes of applying subsection (d)(4), all of such dividend
or amount shall be treated as income from sources within the
United States.
``(4) Hybrid dividend.--The term `hybrid dividend' means an
amount received from a controlled foreign corporation--
``(A) which is treated as a dividend for purposes of this
title, and
``(B) for which the controlled foreign corporation received
a deduction (or similar tax benefit) under the laws of the
country in which the controlled foreign corporation was
created or organized.
``(f) Definitions.--For purposes of this section--
``(1) United states shareholder.--The term `United States
shareholder' has the meaning given such term in section
951(b).
``(2) Controlled foreign corporation.--The term `controlled
foreign corporation' has the meaning given such term in
section 957(a).
``(3) Noncontrolled section 902 corporation.--The term
`noncontrolled section 902 corporation' has the meaning given
such term in section 904(d)(2)(E)(i).
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the provisions of this section.''.
(b) Application of Holding Period Requirement.--Subsection
(c) of section 246 is amended--
(1) by striking ``or 245'' in paragraph (1) and inserting
``245, or 245A'', and
(2) by adding at the end the following new paragraph:
``(5) Special rules for qualified foreign-source portion of
dividends received from controlled foreign corporations.--
``(A) 1-year holding period requirement.--For purposes of
section 245A--
``(i) paragraph (1)(A) shall be applied--
``(I) by substituting `365 days' for `45 days' each place
it appears, and
``(II) by substituting `731-day period' for `91-day
period', and
``(ii) paragraph (2) shall not apply.
``(B) Status must be maintained during holding period.--For
purposes of section 245A, the holding period requirement of
this subsection shall be treated as met only if--
``(i) the controlled foreign corporation referred to in
section 245A(a) is a controlled foreign corporation at all
times during such period, and
``(ii) the taxpayer is a United States shareholder (as
defined in section 951) with respect to such controlled
foreign corporation at all times during such period.
``(C) Special rules for electing noncontrolled section 902
corporations.--In the case of an election under section
245A(b) to treat a noncontrolled section 902 corporation as a
controlled foreign corporation, the requirements of
subparagraph (B) shall be treated as met for any continuous
period ending on the day before the effective date of the
election for which the taxpayer met the ownership
requirements of section 904(d)(2)(E) with respect to such
corporation.''.
(c) Application of Rules Generally Applicable to Deductions
for Dividends Received.--
(1) Treatment of dividends from tax-exempt corporations.--
Paragraph (1) of section 246(a) is amended by striking ``and
245'' and inserting ``245, and 245A''.
(2) Assets generating tax-exempt portion of dividend not
taken into account in allocating and apportioning deductible
expenses.--Paragraph (3) of section 864(e) is amended by
striking ``or 245(a)'' and inserting ``, 245(a), or 245A''.
(3) Coordination with section 1059.--Subparagraph (B) of
section 1059(b)(2) is amended by striking ``or 245'' and
inserting ``245, or 245A''.
(d) Conforming Amendments.--
(1) Clause (vi) of section 56(g)(4)(C) is amended by
inserting ``245A or'' before ``965''.
(2) Subsection (b) of section 951 is amended--
(A) by striking ``subpart'' and inserting ``title'', and
(B) by adding at the end the following: ``Such term shall
include, with respect to any entity treated as a controlled
foreign corporation under section 245A(b), any domestic
corporation treated as a United States shareholder with
respect to such entity under such section.''.
(3) Subsection (a) of section 957 is amended--
(A) by striking ``subpart'' in the matter preceding
paragraph (1) and inserting ``title'', and
(B) by adding at the end the following: ``Such term shall
include any entity treated as a controlled foreign
corporation under section 245A(b).''.
(4) The table of sections for part VIII of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 245 the following new item:
[[Page S4797]]
``Sec. 245A. Dividends received by domestic corporations from certain
foreign corporations.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 102. APPLICATION OF DIVIDENDS RECEIVED DEDUCTION TO
CERTAIN SALES AND EXCHANGES OF STOCK.
(a) Sales by United States Persons of Stock in CFC.--
Section 1248 is amended by redesignating subsection (j) as
subsection (k) and by inserting after subsection (i) the
following new subsection:
``(j) Coordination With Dividends Received Deduction.--
``(1) In general.--In the case of the sale or exchange by a
domestic corporation of stock in a foreign corporation held
for 1 year or more, any amount received by the domestic
corporation which is treated as a dividend by reason of this
section shall be treated as a dividend for purposes of
applying section 245A.
``(2) Losses disallowed.--If a domestic corporation--
``(A) sells or exchanges stock in a foreign corporation in
a taxable year of the domestic corporation with or within
which a taxable year of the foreign corporation beginning
after December 31, 2014, ends, and
``(B) met the ownership requirements of subsection (a)(2)
with respect to such stock,
no deduction shall be allowed to the domestic corporation
with respect to any loss from the sale or exchange.''.
(b) Sale by a CFC of a Lower Tier CFC.--Section 964(e) is
amended by adding at the end the following new paragraph:
``(4) Coordination with dividends received deduction.--
``(A) In general.--If, for any taxable year of a controlled
foreign corporation beginning after December 31, 2014, any
amount is treated as a dividend under paragraph (1) by reason
of a sale or exchange by the controlled foreign corporation
of stock in another foreign corporation held for 1 year or
more, then, notwithstanding any other provision of this
title--
``(i) the qualified foreign-source portion of such dividend
shall be treated for purposes of section 951(a)(1)(A) as
subpart F income of the selling controlled foreign
corporation for such taxable year,
``(ii) a United States shareholder with respect to the
selling controlled foreign corporation shall include in gross
income for the taxable year of the shareholder with or within
which such taxable year of the controlled foreign corporation
ends an amount equal to the shareholder's pro rata share
(determined in the same manner as under section 951(a)(2)) of
the amount treated as subpart F income under clause (i), and
``(iii) the deduction under section 245A(a) shall be
allowable to the United States shareholder with respect to
the subpart F income included in gross income under clause
(ii) in the same manner as if such subpart F income were a
dividend received by the shareholder from the selling
controlled foreign corporation.
``(B) Effect of loss on earnings and profits.--For purposes
of this title, in the case of a sale or exchange by a
controlled foreign corporation of stock in another foreign
corporation in a taxable year of the selling controlled
foreign corporation beginning after December 31, 2014, to
which this paragraph would apply if gain were recognized, the
earnings and profits of the selling controlled foreign
corporation shall not be reduced by reason of any loss from
such sale or exchange.
``(C) Qualified foreign-source portion.--For purposes of
this paragraph, the qualified foreign-source portion of any
amount treated as a dividend under paragraph (1) shall be
determined in the same manner as under section 245A(c).''.
SEC. 103. DEDUCTION FOR FOREIGN INTANGIBLE INCOME DERIVED
FROM TRADE OR BUSINESS WITHIN THE UNITED
STATES.
(a) In General.--Part VIII of subchapter B of chapter 1 is
amended by adding at the end the following new section:
``SEC. 250. FOREIGN INTANGIBLE INCOME DERIVED FROM TRADE OR
BUSINESS WITHIN THE UNITED STATES.
``(a) In General.--In the case of a domestic corporation,
there shall be allowed as a deduction an amount equal to 50
percent of the qualified foreign intangible income of such
domestic corporation for the taxable year.
``(b) Qualified Foreign Intangible Income.--
``(1) In general.--The term `qualified foreign intangible
income' means, with respect to any domestic corporation,
foreign intangible income which is derived by the domestic
corporation from the active conduct of a trade or business
within the United States with respect to the intangible
property giving rise to the income.
``(2) Requirements relating to trade or business within the
united states.--For purposes of this section, foreign
intangible income shall be treated as derived by a domestic
corporation from the active conduct of a trade or business
within the United States only if--
``(A) the domestic corporation developed, created, or
produced within the United States the intangible property
giving rise to the income, or
``(B) in any case in which the domestic corporation
acquired such intangible property, the domestic corporation
added substantial value to the property through the active
conduct of such trade or business within the United States.
``(c) Foreign Intangible Income.--For purposes of this
section--
``(1) In general.--The term `foreign intangible income'
means any intangible income which is derived in connection
with--
``(A) property which is sold, leased, licensed, or
otherwise disposed of for use, consumption, or disposition
outside the United States, or
``(B) services provided with respect to persons or property
located outside the United States.
``(2) Exceptions for certain income.--The following amounts
shall not be taken into account in computing foreign
intangible income:
``(A) Any amount treated as received by the domestic
corporation under section 367(d)(2) with respect to any
intangible property.
``(B) Any payment under a cost-sharing arrangement entered
into under section 482.
``(C) Any amount received from a controlled foreign
corporation with respect to which the domestic corporation is
a United States shareholder to the extent such amount is
attributable or properly allocable to income which is--
``(i) effectively connected with the conduct of a trade or
business within the United States and subject to tax under
this chapter, or
``(ii) subpart F income.
For purposes of clause (ii), amounts not otherwise treated as
subpart F income shall be so treated if the amount creates
(or increases) a deficit which under section 952(c) may
reduce the subpart F income of the payor or any other
controlled foreign corporation.
``(3) Intangible income.--The term `intangible income'
means gross income from--
``(A) the sale, lease, license, or other disposition of
property in which intangible property is used directly or
indirectly, or
``(B) the provision of services related to intangible
property or in connection with property in which intangible
property is used directly or indirectly,
to the extent that such gross income is properly attributable
to such intangible property.
``(4) Deductions to be taken into account.--The gross
income of a domestic corporation taken into account under
this subsection shall be reduced, under regulations
prescribed by the Secretary, so as to take into account
deductions properly allocable to such income.
``(5) Intangible property.--The term `intangible property'
has the meaning given such term by section 936(h)(3)(B).
``(d) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the provisions of this section.''.
(b) Conforming Amendment.--The table of sections for part
VIII of subchapter B of chapter 1 is amended by adding at the
end the following new item:
``Sec. 250. Foreign intangible income derived from trade or business
within the United States.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of domestic corporations
beginning after December 31, 2014.
SEC. 104. TREATMENT OF DEFERRED FOREIGN INCOME UPON
TRANSITION TO PARTICIPATION EXEMPTION SYSTEM OF
TAXATION.
(a) In General.--Section 965 is amended to read as follows:
``SEC. 965. TREATMENT OF DEFERRED FOREIGN INCOME UPON
TRANSITION TO PARTICIPATION EXEMPTION SYSTEM OF
TAXATION.
``(a) Deduction Allowed.--In the case of a domestic
corporation which elects the application of this section to
any controlled foreign corporation with respect to which it
is a United States shareholder, there shall be allowed as a
deduction for the taxable year of the United States
shareholder with or within which the first taxable year of
the controlled foreign corporation beginning after December
31, 2014, ends an amount equal to 70 percent of the amount
determined under subsection (b) for the taxable year.
``(b) Eligible Amount.--For purposes of subsection (a)--
``(1) In general.--The amount determined under this
subsection for a United States shareholder with respect to
any controlled foreign corporation for the taxable year of
the shareholder described in subsection (a) is the lesser
of--
``(A) the shareholder's pro rata share of the earnings and
profits of the controlled foreign corporation described in
section 959(c)(3) as of the close of the taxable year
preceding the first taxable year of the controlled foreign
corporation beginning after December 31, 2014, or
``(B) an amount equal to the sum of--
``(i) the dividends received by the shareholder during such
taxable year from the controlled foreign corporation which
are attributable to the earnings and profits described in
subparagraph (A), plus
``(ii) the increase in subpart F income required to be
included in gross income of the shareholder for the taxable
year by reason of the election under paragraph (2).
``(2) Election of deemed subpart f inclusion.--A United
States shareholder may
[[Page S4798]]
elect for purposes of paragraph (1)(B)(ii) to treat all (or
any portion) of the shareholder's pro rata share of the
earnings and profits of a controlled foreign corporation
described in paragraph (1)(A) as subpart F income includible
in the gross income of the shareholder for the taxable year
of the shareholder described in subsection (a).
``(3) Ordering rule.--For purposes of paragraph (1)(B)(i),
distributions shall be treated as first made out of earnings
and profits of a controlled foreign corporation described in
paragraph (1)(A).
``(4) Dividend.--The term `dividend' shall not include
amounts includible in gross income as a dividend under
section 78.
``(c) Disallowance of Foreign Tax Credit, etc.--In the case
of a domestic corporation making an election under subsection
(a) with respect to any controlled foreign corporation--
``(1) In general.--No credit shall be allowed under section
901 for any taxes paid or accrued (or treated as paid or
accrued) with respect to the earnings and profits taken into
account in determining the amount under subsection (b).
``(2) Denial of deduction.--No deduction shall be allowed
under this chapter for any tax for which credit is not
allowable under section 901 by reason of paragraph (1).
``(3) Coordination with section 78.--Section 78 shall not
apply to any tax for which credit is not allowable under
section 901 by reason of paragraph (1).
``(4) Treatment of nondeductible portion in applying
foreign tax credit limit.--For purposes of applying the
limitation under section 904(a), the remaining 30 percent of
the amount determined under subsection (b) with respect to
which a deduction is not allowable under subsection (a) shall
be treated as income from sources within the United States.
``(d) Election To Pay Liability for Deemed Subpart F Income
in Installments.--
``(1) In general.--In the case of a United States
shareholder with respect to 1 or more controlled foreign
corporations to which elections under subsections (a) and
(b)(2) apply, such United States shareholder may elect to pay
the net tax liability determined with respect to its deemed
subpart F inclusions with respect to such corporations under
subsection (b)(2) for the taxable year described in
subsection (a) in 2 or more (but not exceeding 8) equal
installments.
``(2) Date for payment of installments.--If an election is
made under paragraph (1), the first installment shall be paid
on the due date (determined without regard to any extension
of time for filing the return) for the return of tax for the
taxable year for which the election was made and each
succeeding installment shall be paid on the due date (as so
determined) for the return of tax for the taxable year
following the taxable year with respect to which the
preceding installment was made.
``(3) Acceleration of payment.--If there is an addition to
tax for failure to pay timely assessed with respect to any
installment required under this subsection, a liquidation or
sale of substantially all the assets of the taxpayer
(including in a title 11 or similar case), a cessation of
business by the taxpayer, or any similar circumstance, then
the unpaid portion of all remaining installments shall be due
on the date of such event (or in the case of a title 11 or
similar case, the day before the petition is filed).
``(4) Proration of deficiency to installments.--If an
election is made under paragraph (1) to pay the net tax
liability described in paragraph (1) in installments and a
deficiency has been assessed which increases such net tax
liability, the increase shall be prorated to the installments
payable under paragraph (1). The part of the increase so
prorated to any installment the date for payment of which has
not arrived shall be collected at the same time as, and as a
part of, such installment. The part of the increase so
prorated to any installment the date for payment of which has
arrived shall be paid upon notice and demand from the
Secretary. This subsection shall not apply if the deficiency
is due to negligence, to intentional disregard of rules and
regulations, or to fraud with intent to evade tax.
``(5) Time for payment of interest.--Interest payable under
section 6601 on the unpaid portion of any amount of tax the
time for payment of which as been extended under this
subsection shall be paid annually at the same time as, and as
part of, each installment payment of such tax. In the case of
a deficiency to which paragraph (4) applies, interest with
respect to such deficiency which is assigned under the
preceding sentence to any installment the date for payment of
which has arrived on or before the date of the assessment of
the deficiency, shall be paid upon notice and demand from the
Secretary.
``(6) Net tax liability for deemed subpart f inclusions.--
For purposes of this subsection--
``(A) In general.--The net tax liability described in
paragraph (1) with respect to any United States shareholder
for any taxable year is the excess (if any) of--
``(i) such taxpayer's net income tax for the taxable year,
over
``(ii) such taxpayer's net income tax for such taxable year
determined as if the elections under subsection (b)(2) with
respect to 1 or more controlled foreign corporations had not
been made.
``(B) Net income tax.--The term `net income tax' means the
net income tax (as defined in section 38(c)(1)) reduced by
the credit allowed under section 38.
``(e) Special Rules.--For purposes of this section--
``(1) Elections.--Any election under subsection (a),
(b)(2), or (d)(1) shall be made not later than the due date
(including extensions) for the return of tax for the taxable
year for which made and shall be made in such manner as the
Secretary may provide.
``(2) Section not to apply to noncontrolled section 902
corporations treated as cfcs.--No election may be made under
subsection (a) with respect to a controlled foreign
corporation which was a noncontrolled section 902 corporation
which a United States shareholder elected under section
245A(b) to treat as a controlled foreign corporation.
``(3) Pro rata share.--A shareholder's pro rata share of
any earnings and profits shall be determined in the same
manner as under section 951(a)(2).''.
(b) Conforming Amendments.--
(1) Clause (vi) of section 56(g)(4)(C), as amended by this
Act, is amended--
(A) by striking ``965'' and inserting ``965(b)'', and
(B) by inserting ``and inclusions'' after ``certain
distributions'' in the heading thereof.
(2) Paragraph (2) of section 6601(b) is amended--
(A) by striking ``section 6156(a)'' in the matter preceding
subparagraph (A) and inserting ``section 965(d)(1) or
6156(a)'', and
(B) by striking ``section 6156(b)'' in subparagraph (A) and
inserting ``section 965(d)(2) or 6156(b), as the case may
be''.
(3) The table of section for subpart F of part III of
subchapter N of chapter 1 is amended by striking the item
relating to section 965 and inserting the following:
``Sec. 965. Treatment of deferred foreign income upon transition to
participation exemption system of taxation.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
TITLE II--OTHER INTERNATIONAL TAX REFORMS
Subtitle A--Modifications of Subpart F
SEC. 201. TREATMENT OF LOW-TAXED FOREIGN INCOME AS SUBPART F
INCOME.
(a) In General.--Subsection (a) of section 952 is amended
by redesignating paragraphs (3), (4), and (5) as paragraphs
(4), (5), and (6), respectively, and by inserting after
paragraph (2) the following new paragraph:
``(3) low-taxed income (as defined under subsection
(e)),''.
(b) Low-Taxed Income.--Section 952 is amended by adding at
the end the following new subsection:
``(e) Low-Taxed Income.--
``(1) In general.--For purposes of subsection (a), except
as provided in paragraph (2), the term `low-taxed income'
means, with respect to any taxable year of a controlled
foreign corporation, the entire gross income of the
controlled foreign corporation unless the taxpayer
establishes to the satisfaction of the Secretary that such
income was subject to an effective rate of income tax
(determined under rules similar to the rules of section
954(b)(4)) imposed by a foreign country in excess of one-half
of the highest rate of tax under section 11(b) for taxable
years of United States corporations beginning in the same
calendar year as the taxable year of the controlled foreign
corporation begins.
``(2) Exception for qualified business income.--For
purposes of paragraph (1), qualified business income--
``(A) shall be taken into account in determining the
effective rate of income tax at which the entire gross income
of the controlled foreign corporation is taxed, but
``(B) the amount of gross income treated as low-taxed
income under paragraph (1) shall be reduced by the amount of
the qualified business income.
``(3) Qualified business income.--For purposes of this
subsection--
``(A) In general.--The term `qualified business income'
means, with respect to any controlled foreign corporation,
income derived by the controlled foreign corporation in a
foreign country but only if--
``(i) such income is attributable to the active conduct of
a trade or business of such corporation in such foreign
country,
``(ii) the corporation maintains an office or fixed place
of business in such foreign country, and
``(iii) officers and employees of the corporation
physically located at such office or place of business in
such foreign country conducted (or significantly contributed
to the conduct of) activities within the foreign country
which are substantial in relation to the activities necessary
for the active conduct of the trade or business to which such
income is attributable.
``(B) Exception for intangible income.--For purposes of
subparagraph (A), qualified business income of a controlled
foreign corporation shall not include intangible income (as
defined in section 250(c)(3)).
``(4) Determination of effective rate of foreign income tax
and qualified business income.--
[[Page S4799]]
``(A) Country-by-country determination.--For purposes of
determining the effective rate of income tax imposed by any
foreign country under paragraph (1) and qualified business
income under paragraph (3), each such paragraph shall be
applied separately with respect to--
``(i) each foreign country in which a controlled foreign
corporation conducts any trade or business, and
``(ii) the entire gross income and qualified business
income derived with respect to such foreign country.
``(B) Treatment of losses.--For purposes of determining the
effective rate of income tax imposed by any foreign country
under paragraph (1)--
``(i) such effective rate shall be determined without
regard to any losses carried to the relevant taxable year,
and
``(ii) to the extent the income of the controlled foreign
corporation reduces losses in the relevant taxable year, such
effective rate shall be treated as being the effective rate
which would have been imposed on such income without regard
to such losses.
``(5) Deductions to be taken into account.--The gross
income of a controlled foreign corporation taken into account
under this subsection shall be reduced, under regulations
prescribed by the Secretary, so as to take into account
deductions (including taxes) properly allocable to such
income.''.
(c) Conforming Amendments.--
(1) Subsection (a) of section 952 is amended--
(A) by striking ``paragraph (4)'' in the next to last
sentence and inserting ``paragraph (5)'', and
(B) by striking ``paragraph (5)'' in the last sentence and
inserting ``paragraph (6)''.
(2) Subsection (d) of section 952 is amended by striking
``subsection (a)(5)'' and inserting ``subsection (a)(6)''.
(3) Paragraphs (1) and (2) of section 999(c) are each
amended by striking ``section 952(a)(3)'' and inserting
``section 952(a)(4)''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 202. PERMANENT EXTENSION OF LOOK-THRU RULE FOR
CONTROLLED FOREIGN CORPORATIONS.
(a) In General.--Section 954(c)(6)(C) is amended by
striking ``and before January 1, 2014,''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2013, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 203. PERMANENT EXTENSION OF EXCEPTIONS FOR ACTIVE
FINANCING INCOME.
(a) Exception From Insurance Income.--Section 953(e)(10) is
amended--
(1) by striking ``and before January 1, 2014,'', and
(2) by striking the last sentence.
(b) Exception From Foreign Personal Holding Company
Income.--Section 954(h)(9) is amended by striking ``and
before January 1, 2014,''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2013, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 204. FOREIGN BASE COMPANY INCOME NOT TO INCLUDE SALES OR
SERVICES INCOME.
(a) Repeal.--Paragraphs (2) and (3) of section 954(a) are
repealed.
(b) Conforming Amendments.--
(1) Section 954(d) is amended by adding at the end the
following new paragraph:
``(5) Termination.--This subsection shall not apply to
taxable years of foreign corporations beginning after
December 31, 2014, and to taxable years of United States
shareholders with or within which such taxable years of
foreign corporations end.''.
(2) Section 954(e) is amended by adding at the end the
following new paragraph:
``(3) Termination.--This subsection shall not apply to
taxable years of foreign corporations beginning after
December 31, 2014, and to taxable years of United States
shareholders with or within which such taxable years of
foreign corporations end.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
Subtitle B--Modifications Related to Foreign Tax Credit
SEC. 211. MODIFICATION OF APPLICATION OF SECTIONS 902 AND 960
WITH RESPECT TO POST-2014 EARNINGS.
(a) Section 902 Not To Apply to Dividends From Post-2014
Earnings.--Section 902 is amended by redesignating subsection
(d) as subsection (e) and by inserting after subsection (c)
the following new subsection:
``(d) Section Not To Apply to Dividends From Post-2014
Earnings.--
``(1) In general.--This section shall not apply to the
portion of any dividend paid by a foreign corporation to the
extent such portion is made out of earnings and profits of
the foreign corporation (computed in accordance with sections
964(a) and 986) accumulated in taxable years beginning after
December 31, 2014.
``(2) Coordination with distributions from pre-2015
earnings and profits.--For purposes of this section--
``(A) Ordering rule.--Any distribution in a taxable year
beginning after December 31, 2014, shall be treated as first
made out of earnings and profits of the foreign corporation
(computed in accordance with sections 964(a) and 986)
accumulated in taxable years beginning before January 1,
2015.
``(B) Post-1986 undistributed earnings.--Post-1986
undistributed earnings shall not include earnings and profits
described in paragraph (1).''.
(b) Determination of Section 960 Credit on Current Year
Basis.--Section 960 is amended by adding at the end the
following new subsection:
``(d) Deemed Paid Credit for Subpart F Inclusions
Attributable to Post-2014 Earnings.--
``(1) In general.--For purposes of this subpart, if there
is included in the gross income of a domestic corporation any
amount under section 951(a)--
``(A) with respect to any controlled foreign corporation
with respect to which such domestic corporation is a United
States shareholder, and
``(B) which is attributable to the earnings and profits of
the controlled foreign corporation (computed in accordance
with sections 964(a) and 986) accumulated in taxable years
beginning after December 31, 2014,
then subsections (a), (b), and (c) shall not apply and such
domestic corporation shall be deemed to have paid so much of
such foreign corporation's foreign income taxes as are
properly attributable to the amount so included.
``(2) Foreign income taxes.--For purposes of this
subsection, the term `foreign income taxes' means any income,
war profits, or excess profits taxes paid or accrued by the
controlled foreign corporation to any foreign country or
possession of the United States.
``(3) Regulations.--The Secretary shall provide such
regulations as may be necessary or appropriate to carry out
the provisions of this subsection.''.
SEC. 212. SEPARATE FOREIGN TAX CREDIT BASKET FOR FOREIGN
INTANGIBLE INCOME.
(a) In General.--Paragraph (1) of section 904(d) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following:
``(C) foreign intangible income (as defined in paragraph
(2)(J)).''.
(b) Foreign Intangible Income.--
(1) In general.--Section 904(d)(2) is amended by
redesignating subparagraphs (J) and (K) as subparagraphs (K)
and (L) and by inserting after subparagraph (I) the
following:
``(J) Foreign intangible income.--For purposes of this
section--
``(i) In general.--The term `foreign intangible income' has
the meaning given such term by section 250(c).
``(ii) Coordination.--Passive category income and general
category income shall not include foreign intangible
income.''.
(2) General category income.--Section 904(d)(2)(A)(ii) is
amended by inserting ``or foreign intangible income'' after
``passive category income''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
(2) Transitional rule.--For purposes of section 904(d)(1)
of the Internal Revenue Code of 1986 (as amended by this
Act)--
(A) taxes carried from any taxable year beginning before
January 1, 2015, to any taxable year beginning on or after
such date, with respect to any item of income, shall be
treated as described in the subparagraph of such section
904(d)(1) in which such income would be described without
regard to the amendments made by this section, and
(B) any carryback of taxes with respect to foreign
intangible income from a taxable year beginning on or after
January 1, 2015, to a taxable year beginning before such date
shall be allocated to the general income category.
SEC. 213. INVENTORY PROPERTY SALES SOURCE RULE EXCEPTIONS NOT
TO APPLY FOR FOREIGN TAX CREDIT LIMITATION.
(a) In General.--Section 904 is amended by redesignating
subsection (l) as subsection (m) and by inserting after
subsection (k) the following new subsection:
``(l) Inventory Property Sales Source Rule Exceptions Not
To Apply.--Any amount which would be treated as derived from
sources without the United States by reason of the
application of section 862(a)(6) or 863(b)(2) for any taxable
year shall be treated as derived from sources within the
United States for purposes of this section.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
Subtitle C--Allocation of Interest on Worldwide Basis
SEC. 221. ACCELERATION OF ELECTION TO ALLOCATE INTEREST ON A
WORLDWIDE BASIS.
Section 864(f)(6) is amended by striking ``December 31,
2020'' and inserting ``December 31, 2014''.
______
SA 3601. Mr. ALEXANDER submitted an amendment intended to be proposed
[[Page S4800]]
by him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
TITLE __--IMPACT OF ACA
SEC. _01. SHORT TITLE.
This title may be cited as the ``Certify It Act of 2014''.
SEC. _02. STUDY ON IMPACT ON SMALL BUSINESS JOBS.
(a) Study and Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and December 1 for each of the 4
consecutive years thereafter, the Comptroller General of the
United States, shall conduct a study on the impact of the
Affordable Care Act on small businesses, including--
(A) the impact of any increased health insurance costs
resulting from the provisions of such Act on economic
indicators (including jobs lost, hours worked per employee,
and any resulting loss of wages); and
(B) the impact of section 4980H of the Internal Revenue
Code of 1986 (relating to shared responsibility for employers
regarding health coverage) on economic indicators, including
any jobs lost.
(2) Report.--The Comptroller General of the United States,
using data from the Office of the Actuary, Centers for
Medicare & Medicaid Services, under section _03 and economic
indicators data from other Federal agencies, shall submit to
the appropriate committees of Congress a report on the study
conducted under paragraph (1).
(b) Appropriate Committees of Congress.--For purposes of
this section, the term ``appropriate committees of Congress''
means the Committee on Ways and Means, the Committee on
Education and Labor, the Committee on Energy and Commerce,
and the Small Business Committee of the House of
Representatives and the Committee on Finance, the Committee
on Health, Education, Labor and Pensions, and the Small
Business and Entrepreneurship Committee of the Senate.
(c) Definitions.--For purposes of this title:
(1) Affordable care act.--The term ``Affordable Care Act''
means the Patient Protection and Affordable Care Act (Public
Law 111-148) and title I and subtitle B of title II of the
Health Care and Education Reconciliation Act of 2010 (Public
law 111-152).
(2) Small business.--The term ``small business'' means an
employer with 250 or fewer employees.
SEC. _03. STUDY ON IMPACT ON SMALL BUSINESS HEALTH INSURANCE.
(a) Study and Report.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, and December 1 for each of the 4
consecutive years thereafter, the Office of the Actuary,
Centers for Medicare & Medicaid Services, shall conduct a
study on the impact of the Affordable Care Act on small group
health insurance costs, including--
(A) the impact of requirements and benefits pursuant to
such Act on the small group health insurance market,
including community rating requirements, minimum actuarial
value requirements, requirements to provide for essential
health benefits described in section 1302(b) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18022(b)),
requirements related to cost-sharing, the prohibition on
annual and lifetime limits on benefits under section 2711 of
the Public Health Service Act (42 U.S.C. 300gg-11),
prohibitions on cost-sharing requirements for preventive
services, and the extension of dependent coverage under
section 2714 of the Public Health Service Act (42 U.S.C.
300gg-14); and
(B) the impact of new taxes and fees on the small group
health insurance market costs, including the fee imposed
under section 9010 of the Patient Protection and Affordable
Care Act (relating to imposition of annual fee on health
insurance providers), the transitional reinsurance program
contributions, the fees imposed under subchapter B of chapter
34 of the Internal Revenue Code of 1986 (relating to the
Patient Centered Outcome Research Institute fees), and
Exchange assessments or user fees.
(2) Report.--The Office of the Actuary, Centers for
Medicare & Medicaid Services, in consultation with the
Comptroller General for purposes of verifying the
methodology, assumptions, validity, and reasonableness of the
data used by the Actuary, shall submit to the appropriate
committees of Congress a report on the study conducted under
paragraph (1).
(b) Appropriate Committees of Congress.--For purposes of
this section, the term ``appropriate committees of Congress''
means the Committee on Ways and Means, the Committee on
Education and Labor, the Committee on Energy and Commerce,
and the Small Business Committee of the House of
Representatives and the Committee on Finance, the Committee
on Health, Education, Labor and Pensions, and the Small
Business and Entrepreneurship Committee of the Senate.
SEC. _04. ONE-YEAR DELAY FOR EMPLOYER MANDATE IN CASE OF
NEGATIVE IMPACT ON SMALL BUSINESS.
(a) In General.--If the Comptroller General of the United
States or the Office of the Actuary, Centers for Medicare &
Medicaid Services, determines in any report submitted under
section _02 or _03 that the Affordable Care Act has caused
net employment loss amongst small businesses or caused small
group health insurance costs to rise, section 4980H of the
Internal Revenue Code of 1986 shall not apply for months
beginning during the 1-year period beginning on the date of
the submission of such report.
(b) Failure to Submit.--If the Comptroller General of the
United States or the Office of the Actuary, Centers for
Medicare & Medicaid Services, fails to submit a report in
accordance with the timelines specified in this title,
section 4980H of the Internal Revenue Code of 1986 shall not
apply the following calendar year.
______
SA 3602. Mr. McCONNELL submitted an amendment intended to be proposed
by him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end of the bill, add the following:
TITLE II--SAVING COAL JOBS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Saving Coal Jobs Act of
2014''.
Subtitle A--Prohibition on Energy Tax
SEC. 211. PROHIBITION ON ENERGY TAX.
(a) Findings; Purposes.--
(1) Findings.--Congress finds that--
(A) on June 25, 2013, President Obama issued a Presidential
memorandum directing the Administrator of the Environmental
Protection Agency to issue regulations relating to power
sector carbon pollution standards for existing coal fired
power plants;
(B) the issuance of that memorandum circumvents Congress
and the will of the people of the United States;
(C) any action to control emissions of greenhouse gases
from existing coal fired power plants in the United States by
mandating a national energy tax would devastate major sectors
of the economy, cost thousands of jobs, and increase energy
costs for low-income households, small businesses, and
seniors on fixed income;
(D) joblessness increases the likelihood of hospital
visits, illnesses, and premature deaths;
(E) according to testimony on June 15, 2011, before the
Committee on Environment and Public Works of the Senate by
Dr. Harvey Brenner of Johns Hopkins University, ``The
unemployment rate is well established as a risk factor for
elevated illness and mortality rates in epidemiological
studies performed since the early 1980s. In addition to
influences on mental disorder, suicide and alcohol abuse and
alcoholism, unemployment is also an important risk factor in
cardiovascular disease and overall decreases in life
expectancy.'';
(F) according to the National Center for Health Statistics,
``children in poor families were four times as likely to be
in fair or poor health as children that were not poor'';
(G) any major decision that would cost the economy of the
United States millions of dollars and lead to serious
negative health effects for the people of the United States
should be debated and explicitly authorized by Congress, not
approved by a Presidential memorandum or regulations; and
(H) any policy adopted by Congress should make United
States energy as clean as practicable, as quickly as
practicable, without increasing the cost of energy for
struggling families, seniors, low-income households, and
small businesses.
(2) Purposes.--The purposes of this section are--
(A) to ensure that--
(i) a national energy tax is not imposed on the economy of
the United States; and
(ii) struggling families, seniors, low-income households,
and small businesses do not experience skyrocketing
electricity bills and joblessness;
(B) to protect the people of the United States,
particularly families, seniors, and children, from the
serious negative health effects of joblessness;
(C) to allow sufficient time for Congress to develop and
authorize an appropriate mechanism to address the energy
needs of the United States and the potential challenges posed
by severe weather; and
(D) to restore the legislative process and congressional
authority over the energy policy of the United States.
(b) Presidential Memorandum.--Notwithstanding any other
provision of law, the head of a Federal agency shall not
promulgate any regulation relating to power sector carbon
pollution standards or any substantially similar regulation
on or after June 25, 2013, unless that regulation is
explicitly authorized by an Act of Congress.
Subtitle B--Permits
SEC. 221. NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM.
(a) Applicability of Guidance.--Section 402 of the Federal
Water Pollution Control Act (33 U.S.C. 1342) is amended by
adding at the end the following:
``(s) Applicability of Guidance.--
``(1) Definitions.--In this subsection:
``(A) Guidance.--
``(i) In general.--The term `guidance' means draft,
interim, or final guidance issued by the Administrator.
``(ii) Inclusions.--The term `guidance' includes--
``(I) the comprehensive guidance issued by the
Administrator and dated April 1, 2010;
``(II) the proposed guidance entitled `Draft Guidance on
Identifying Waters Protected by the Clean Water Act' and
dated April 28, 2011;
[[Page S4801]]
``(III) the final guidance proposed by the Administrator
and dated July 21, 2011; and
``(IV) any other document or paper issued by the
Administrator through any process other than the notice and
comment rulemaking process.
``(B) New permit.--The term `new permit' means a permit
covering discharges from a structure--
``(i) that is issued under this section by a permitting
authority; and
``(ii) for which an application is--
``(I) pending as of the date of enactment of this
subsection; or
``(II) filed on or after the date of enactment of this
subsection.
``(C) Permitting authority.--The term `permitting
authority' means--
``(i) the Administrator; or
``(ii) a State, acting pursuant to a State program that is
equivalent to the program under this section and approved by
the Administrator.
``(2) Permits.--
``(A) In general.--Notwithstanding any other provision of
law, in making a determination whether to approve a new
permit or a renewed permit, the permitting authority--
``(i) shall base the determination only on compliance with
regulations issued by the Administrator or the permitting
authority; and
``(ii) shall not base the determination on the extent of
adherence of the applicant for the new permit or renewed
permit to guidance.
``(B) New permits.--If the permitting authority does not
approve or deny an application for a new permit by the date
that is 270 days after the date of receipt of the application
for the new permit, the applicant may operate as if the
application were approved in accordance with Federal law for
the period of time for which a permit from the same industry
would be approved.
``(C) Substantial completeness.--In determining whether an
application for a new permit or a renewed permit received
under this paragraph is substantially complete, the
permitting authority shall use standards for determining
substantial completeness of similar permits for similar
facilities submitted in fiscal year 2007.''.
(b) State Permit Programs.--
(1) In general.--Section 402 of the Federal Water Pollution
Control Act (33 U.S.C. 1342) is amended by striking
subsection (b) and inserting the following:
``(b) State Permit Programs.--
``(1) In general.--At any time after the promulgation of
the guidelines required by section 304(a)(2), the Governor of
each State desiring to administer a permit program for
discharges into navigable waters within the jurisdiction of
the State may submit to the Administrator--
``(A) a full and complete description of the program the
State proposes to establish and administer under State law or
under an interstate compact; and
``(B) a statement from the attorney general (or the
attorney for those State water pollution control agencies
that have independent legal counsel), or from the chief legal
officer in the case of an interstate agency, that the laws of
the State, or the interstate compact, as applicable, provide
adequate authority to carry out the described program.
``(2) Approval.--The Administrator shall approve each
program for which a description is submitted under paragraph
(1) unless the Administrator determines that adequate
authority does not exist--
``(A) to issue permits that--
``(i) apply, and ensure compliance with, any applicable
requirements of sections 301, 302, 306, 307, and 403;
``(ii) are for fixed terms not exceeding 5 years;
``(iii) can be terminated or modified for cause,
including--
``(I) a violation of any condition of the permit;
``(II) obtaining a permit by misrepresentation or failure
to disclose fully all relevant facts; and
``(III) a change in any condition that requires either a
temporary or permanent reduction or elimination of the
permitted discharge; and
``(iv) control the disposal of pollutants into wells;
``(B)(i) to issue permits that apply, and ensure compliance
with, all applicable requirements of section 308; or
``(ii) to inspect, monitor, enter, and require reports to
at least the same extent as required in section 308;
``(C) to ensure that the public, and any other State the
waters of which may be affected, receives notice of each
application for a permit and an opportunity for a public
hearing before a ruling on each application;
``(D) to ensure that the Administrator receives notice and
a copy of each application for a permit;
``(E) to ensure that any State (other than the permitting
State), whose waters may be affected by the issuance of a
permit may submit written recommendations to the permitting
State and the Administrator with respect to any permit
application and, if any part of the written recommendations
are not accepted by the permitting State, that the permitting
State will notify the affected State and the Administrator in
writing of the failure of the State to accept the
recommendations, including the reasons for not accepting the
recommendations;
``(F) to ensure that no permit will be issued if, in the
judgment of the Secretary of the Army (acting through the
Chief of Engineers), after consultation with the Secretary of
the department in which the Coast Guard is operating,
anchorage and navigation of any of the navigable waters would
be substantially impaired by the issuance of the permit;
``(G) to abate violations of the permit or the permit
program, including civil and criminal penalties and other
means of enforcement;
``(H) to ensure that any permit for a discharge from a
publicly owned treatment works includes conditions to require
the identification in terms of character and volume of
pollutants of any significant source introducing pollutants
subject to pretreatment standards under section 307(b) into
the treatment works and a program to ensure compliance with
those pretreatment standards by each source, in addition to
adequate notice, which shall include information on the
quality and quantity of effluent to be introduced into the
treatment works and any anticipated impact of the change in
the quantity or quality of effluent to be discharged from the
publicly owned treatment works, to the permitting agency of--
``(i) new introductions into the treatment works of
pollutants from any source that would be a new source (as
defined in section 306(a)) if the source were discharging
pollutants;
``(ii) new introductions of pollutants into the treatment
works from a source that would be subject to section 301 if
the source were discharging those pollutants; or
``(iii) a substantial change in volume or character of
pollutants being introduced into the treatment works by a
source introducing pollutants into the treatment works at the
time of issuance of the permit; and
``(I) to ensure that any industrial user of any publicly
owned treatment works will comply with sections 204(b), 307,
and 308.
``(3) Administration.--Notwithstanding paragraph (2), the
Administrator may not disapprove or withdraw approval of a
program under this subsection on the basis of the following:
``(A) The failure of the program to incorporate or comply
with guidance (as defined in subsection (s)(1)).
``(B) The implementation of a water quality standard that
has been adopted by the State and approved by the
Administrator under section 303(c).''.
(2) Conforming amendments.--
(A) Section 309 of the Federal Water Pollution Control Act
(33 U.S.C. 1319) is amended--
(i) in subsection (c)--
(I) in paragraph (1)(A), by striking ``402(b)(8)'' and
inserting ``402(b)(2)(H)''; and
(II) in paragraph (2)(A), by striking ``402(b)(8)'' and
inserting ``402(b)(2)(H)''; and
(ii) in subsection (d), in the first sentence, by striking
``402(b)(8)'' and inserting ``402(b)(2)(H)''.
(B) Section 402(m) of the Federal Water Pollution Control
Act (33 U.S.C. 1342(m)) is amended in the first sentence by
striking ``subsection (b)(8) of this section'' and inserting
``subsection (b)(2)(H)''.
(c) Suspension of Federal Program.--Section 402(c) of the
Federal Water Pollution Control Act (33 U.S.C. 1342(c)) is
amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following:
``(4) Limitation on disapproval.--Notwithstanding
paragraphs (1) through (3), the Administrator may not
disapprove or withdraw approval of a State program under
subsection (b) on the basis of the failure of the following:
``(A) The failure of the program to incorporate or comply
with guidance (as defined in subsection (s)(1)).
``(B) The implementation of a water quality standard that
has been adopted by the State and approved by the
Administrator under section 303(c).''.
(d) Notification of Administrator.--Section 402(d)(2) of
the Federal Water Pollution Control Act (33 U.S.C.
1342(d)(2)) is amended--
(1) by striking ``(2)'' and all that follows through the
end of the first sentence and inserting the following:
``(2) Objection by administrator.--
``(A) In general.--Subject to subparagraph (C), no permit
shall issue if--
``(i) not later than 90 days after the date on which the
Administrator receives notification under subsection
(b)(2)(E), the Administrator objects in writing to the
issuance of the permit; or
``(ii) not later than 90 days after the date on which the
proposed permit of the State is transmitted to the
Administrator, the Administrator objects in writing to the
issuance of the permit as being outside the guidelines and
requirements of this Act.'';
(2) in the second sentence, by striking ``Whenever the
Administrator'' and inserting the following:
``(B) Requirements.--If the Administrator''; and
(3) by adding at the end the following:
``(C) Exception.--The Administrator shall not object to or
deny the issuance of a permit by a State under subsection (b)
or (s) based on the following:
``(i) Guidance, as that term is defined in subsection
(s)(1).
[[Page S4802]]
``(ii) The interpretation of the Administrator of a water
quality standard that has been adopted by the State and
approved by the Administrator under section 303(c).''.
SEC. 222. PERMITS FOR DREDGED OR FILL MATERIAL.
(a) In General.--Section 404 of the Federal Water Pollution
Control Act (33 U.S.C. 1344) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 404. (a) The Secretary may issue'' and
inserting the following:
``SEC. 404. PERMITS FOR DREDGED OR FILL MATERIAL.
``(a) Permits.--
``(1) In general.--The Secretary may issue''; and
(2) in subsection (a), by adding at the end the following:
``(2) Deadline for approval.--
``(A) Permit applications.--
``(i) In general.--Except as provided in clause (ii), if an
environmental assessment or environmental impact statement,
as appropriate, is required under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Secretary
shall--
``(I) begin the process not later than 90 days after the
date on which the Secretary receives a permit application;
and
``(II) approve or deny an application for a permit under
this subsection not later than the latter of--
``(aa) if an agency carries out an environmental assessment
that leads to a finding of no significant impact, the date on
which the finding of no significant impact is issued; or
``(bb) if an agency carries out an environmental assessment
that leads to a record of decision, 15 days after the date on
which the record of decision on an environmental impact
statement is issued.
``(ii) Processes.--Notwithstanding clause (i), regardless
of whether the Secretary has commenced an environmental
assessment or environmental impact statement by the date
described in clause (i)(I), the following deadlines shall
apply:
``(I) An environmental assessment carried out under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) shall be completed not later than 1 year after the
deadline for commencing the permit process under clause
(i)(I).
``(II) An environmental impact statement carried out under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) shall be completed not later than 2 years after the
deadline for commencing the permit process under clause
(i)(I).
``(B) Failure to act.--If the Secretary fails to act by the
deadline specified in clause (i) or (ii) of subparagraph
(A)--
``(i) the application, and the permit requested in the
application, shall be considered to be approved;
``(ii) the Secretary shall issue a permit to the applicant;
and
``(iii) the permit shall not be subject to judicial
review.''.
(b) State Permitting Programs.--Section 404 of the Federal
Water Pollution Control Act (33 U.S.C. 1344) is amended by
striking subsection (c) and inserting the following:
``(c) Authority of Administrator.--
``(1) In general.--Subject to paragraphs (2) through (4),
until the Secretary has issued a permit under this section,
the Administrator is authorized to prohibit the specification
(including the withdrawal of specification) of any defined
area as a disposal site, and deny or restrict the use of any
defined area for specification (including the withdrawal of
specification) as a disposal site, if the Administrator
determines, after notice and opportunity for public hearings,
that the discharge of the materials into the area will have
an unacceptable adverse effect on municipal water supplies,
shellfish beds or fishery areas (including spawning and
breeding areas), wildlife, or recreational areas.
``(2) Consultation.--Before making a determination under
paragraph (1), the Administrator shall consult with the
Secretary.
``(3) Findings.--The Administrator shall set forth in
writing and make public the findings of the Administrator and
the reasons of the Administrator for making any determination
under this subsection.
``(4) Authority of state permitting programs.--This
subsection shall not apply to any permit if the State in
which the discharge originates or will originate does not
concur with the determination of the Administrator that the
discharge will result in an unacceptable adverse effect as
described in paragraph (1).''.
(c) State Programs.--Section 404(g)(1) of the Federal Water
Pollution Control Act (33 U.S.C. 1344(g)(1)) is amended in
the first sentence by striking ``for the discharge'' and
inserting ``for all or part of the discharges''.
SEC. 223. IMPACTS OF ENVIRONMENTAL PROTECTION AGENCY
REGULATORY ACTIVITY ON EMPLOYMENT AND ECONOMIC
ACTIVITY.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Covered action.--The term ``covered action'' means any
of the following actions taken by the Administrator under the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.):
(A) Issuing a regulation, policy statement, guidance,
response to a petition, or other requirement.
(B) Implementing a new or substantially altered program.
(3) More than a de minimis negative impact.--The term
``more than a de minimis negative impact'' means the
following:
(A) With respect to employment levels, a loss of more than
100 jobs, except that any offsetting job gains that result
from the hypothetical creation of new jobs through new
technologies or government employment may not be used in the
job loss calculation.
(B) With respect to economic activity, a decrease in
economic activity of more than $1,000,000 over any calendar
year, except that any offsetting economic activity that
results from the hypothetical creation of new economic
activity through new technologies or government employment
may not be used in the economic activity calculation.
(b) Analysis of Impacts of Actions on Employment and
Economic Activity.--
(1) Analysis.--Before taking a covered action, the
Administrator shall analyze the impact, disaggregated by
State, of the covered action on employment levels and
economic activity, including estimated job losses and
decreased economic activity.
(2) Economic models.--
(A) In general.--In carrying out paragraph (1), the
Administrator shall use the best available economic models.
(B) Annual gao report.--Not later than December 31st of
each year, the Comptroller General of the United States shall
submit to Congress a report on the economic models used by
the Administrator to carry out this subsection.
(3) Availability of information.--With respect to any
covered action, the Administrator shall--
(A) post the analysis under paragraph (1) as a link on the
main page of the public Internet Web site of the
Environmental Protection Agency; and
(B) request that the Governor of any State experiencing
more than a de minimis negative impact post the analysis in
the Capitol of the State.
(c) Public Hearings.--
(1) In general.--If the Administrator concludes under
subsection (b)(1) that a covered action will have more than a
de minimis negative impact on employment levels or economic
activity in a State, the Administrator shall hold a public
hearing in each such State at least 30 days prior to the
effective date of the covered action.
(2) Time, location, and selection.--
(A) In general.--A public hearing required under paragraph
(1) shall be held at a convenient time and location for
impacted residents.
(B) Priority.--In selecting a location for such a public
hearing, the Administrator shall give priority to locations
in the State that will experience the greatest number of job
losses.
(d) Notification.--If the Administrator concludes under
subsection (b)(1) that a covered action will have more than a
de minimis negative impact on employment levels or economic
activity in any State, the Administrator shall give notice of
such impact to the congressional delegation, Governor, and
legislature of the State at least 45 days before the
effective date of the covered action.
SEC. 224. IDENTIFICATION OF WATERS PROTECTED BY THE CLEAN
WATER ACT.
(a) In General.--The Secretary of the Army and the
Administrator of the Environmental Protection Agency may
not--
(1) finalize, adopt, implement, administer, or enforce the
proposed guidance described in the notice of availability and
request for comments entitled ``EPA and Army Corps of
Engineers Guidance Regarding Identification of Waters
Protected by the Clean Water Act'' (EPA-HQ-OW-2011-0409) (76
Fed. Reg. 24479 (May 2, 2011)); and
(2) use the guidance described in paragraph (1), any
successor document, or any substantially similar guidance
made publicly available on or after December 3, 2008, as the
basis for any decision regarding the scope of the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.) or any
rulemaking.
(b) Rules.--The use of the guidance described in subsection
(a)(1), or any successor document or substantially similar
guidance made publicly available on or after December 3,
2008, as the basis for any rule shall be grounds for vacating
the rule.
SEC. 225. LIMITATIONS ON AUTHORITY TO MODIFY STATE WATER
QUALITY STANDARDS.
(a) State Water Quality Standards.--Section 303(c)(4) of
the Federal Water Pollution Control Act (33 U.S.C.
1313(c)(4)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and indenting appropriately;
(2) by striking ``(4) The'' and inserting the following:
``(4) Promulgation of revised or new standards.--
``(A) In general.--The'';
(3) by striking ``The Administrator shall promulgate'' and
inserting the following:
``(B) Deadline.--The Administrator shall promulgate;'' and
(4) by adding at the end the following:
``(C) State water quality standards.--Notwithstanding any
other provision of this paragraph, the Administrator may not
promulgate a revised or new standard for a pollutant in any
case in which the State has submitted to the Administrator
and the Administrator has approved a water quality standard
for that pollutant, unless the State concurs with the
determination of the Administrator that the revised or new
standard is necessary to meet the requirements of this
Act.''.
[[Page S4803]]
(b) Federal Licenses and Permits.--Section 401(a) of the
Federal Water Pollution Control Act (33 U.S.C. 1341(a)) is
amended by adding at the end the following:
``(7) State or interstate agency determination.--With
respect to any discharge, if a State or interstate agency
having jurisdiction over the navigable waters at the point at
which the discharge originates or will originate determines
under paragraph (1) that the discharge will comply with the
applicable provisions of sections 301, 302, 303, 306, and
307, the Administrator may not take any action to supersede
the determination.''.
SEC. 226. STATE AUTHORITY TO IDENTIFY WATERS WITHIN
BOUNDARIES OF THE STATE.
Section 303(d) of the Federal Water Pollution Control Act
(33 U.S.C. 1313(d)) is amended by striking paragraph (2) and
inserting the following:
``(2) State authority to identify waters within boundaries
of the state.--
``(A) In general.--Each State shall submit to the
Administrator from time to time, with the first such
submission not later than 180 days after the date of
publication of the first identification of pollutants under
section 304(a)(2)(D), the waters identified and the loads
established under subparagraphs (A), (B), (C), and (D) of
paragraph (1).
``(B) Approval or disapproval by administrator.--
``(i) In general.--Not later than 30 days after the date of
submission, the Administrator shall approve the State
identification and load or announce the disagreement of the
Administrator with the State identification and load.
``(ii) Approval.--If the Administrator approves the
identification and load submitted by the State under this
subsection, the State shall incorporate the identification
and load into the current plan of the State under subsection
(e).
``(iii) Disapproval.--If the Administrator announces the
disagreement of the Administrator with the identification and
load submitted by the State under this subsection. the
Administrator shall submit, not later than 30 days after the
date that the Administrator announces the disagreement of the
Administrator with the submission of the State, to the State
the written recommendation of the Administrator of those
additional waters that the Administrator identifies and such
loads for such waters as the Administrator believes are
necessary to implement the water quality standards applicable
to the waters.
``(C) Action by state.--Not later than 30 days after
receipt of the recommendation of the Administrator, the State
shall--
``(i) disregard the recommendation of the Administrator in
full and incorporate its own identification and load into the
current plan of the State under subsection (e);
``(ii) accept the recommendation of the Administrator in
full and incorporate its identification and load as amended
by the recommendation of the Administrator into the current
plan of the State under subsection (e); or
``(iii) accept the recommendation of the Administrator in
part, identifying certain additional waters and certain
additional loads proposed by the Administrator to be added to
the State's identification and load and incorporate the
State's identification and load as amended into the current
plan of the State under subsection (e).
``(D) Noncompliance by administrator.--
``(i) In general.--If the Administrator fails to approve
the State identification and load or announce the
disagreement of the Administrator with the State
identification and load within the time specified in this
subsection--
``(I) the identification and load of the State shall be
considered approved; and
``(II) the State shall incorporate the identification and
load that the State submitted into the current plan of the
State under subsection (e).
``(ii) Recommendations not submitted.--If the Administrator
announces the disagreement of the Administrator with the
identification and load of the State but fails to submit the
written recommendation of the Administrator to the State
within 30 days as required by subparagraph (B)(iii)--
``(I) the identification and load of the State shall be
considered approved; and
``(II) the State shall incorporate the identification and
load that the State submitted into the current plan of the
State under subsection (e).
``(E) Application.--This section shall apply to any
decision made by the Administrator under this subsection
issued on or after March 1, 2013.''.
______
SA 3603. Mr. BARRASSO (for himself and Mr. Enzi) submitted an
amendment intended to be proposed by him to the bill S. 2569, to
provide an incentive for businesses to bring jobs back to America;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
TITLE II--NATURAL GAS GATHERING ENHANCEMENT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Natural Gas Gathering
Enhancement Act''.
SEC. 202. FINDINGS.
Congress finds that--
(1) record volumes of natural gas production in the United
States as of the date of enactment of this Act are providing
enormous benefits to the United States, including by--
(A) reducing the need for imports of natural gas, thereby
directly reducing the trade deficit;
(B) strengthening trade ties among the United States,
Canada, and Mexico;
(C) providing the opportunity for the United States to join
the emerging global gas trade through the export of liquefied
natural gas;
(D) creating and supporting millions of new jobs across the
United States;
(E) adding billions of dollars to the gross domestic
product of the United States every year;
(F) generating additional Federal, State, and local
government tax revenues; and
(G) revitalizing the manufacturing sector by providing
abundant and affordable feedstock;
(2) large quantities of natural gas are lost due to venting
and flaring, primarily in areas where natural gas
infrastructure has not been developed quickly enough, such as
States with large quantities of Federal land and Indian land;
(3) permitting processes can hinder the development of
natural gas infrastructure, such as pipeline lines and
gathering lines on Federal land and Indian land; and
(4) additional authority for the Secretary of the Interior
to approve natural gas pipelines and gathering lines on
Federal land and Indian land would--
(A) assist in bringing gas to market that would otherwise
be vented or flared; and
(B) significantly increase royalties collected by the
Secretary of the Interior and disbursed to Federal, State,
and tribal governments and individual Indians.
SEC. 203. AUTHORITY TO APPROVE NATURAL GAS PIPELINES.
Section 1 of the Act of February 15, 1901 (31 Stat. 790,
chapter 372; 16 U.S.C. 79) is amended by inserting ``, for
natural gas pipelines'' after ``distribution of electrical
power''.
SEC. 204. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON
FEDERAL LAND AND INDIAN LAND.
(a) In General.--Subtitle B of title III of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 685) is
amended by adding at the end the following:
``SEC. 319. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON
FEDERAL LAND AND INDIAN LAND.
``(a) Definitions.--In this section:
``(1) Gas gathering line and associated field compression
unit.--
``(A) In general.--The term `gas gathering line and
associated field compression unit' means--
``(i) a pipeline that is installed to transport natural gas
production associated with 1 or more wells drilled and
completed to produce crude oil; and
``(ii) if necessary, a compressor to raise the pressure of
that transported natural gas to higher pressures suitable to
enable the gas to flow into pipelines and other facilities.
``(B) Exclusions.--The term `gas gathering line and
associated field compression unit' does not include a
pipeline or compression unit that is installed to transport
natural gas from a processing plant to a common carrier
pipeline or facility.
``(2) Federal land.--
``(A) In general.--The term `Federal land' means land the
title to which is held by the United States.
``(B) Exclusions.--The term `Federal land' does not
include--
``(i) a unit of the National Park System;
``(ii) a unit of the National Wildlife Refuge System; or
``(iii) a component of the National Wilderness Preservation
System.
``(3) Indian land.--The term `Indian land' means land the
title to which is held by--
``(A) the United States in trust for an Indian tribe or an
individual Indian; or
``(B) an Indian tribe or an individual Indian subject to a
restriction by the United States against alienation.
``(b) Certain Natural Gas Gathering Lines.--
``(1) In general.--Subject to paragraph (2), the issuance
of a sundry notice or right-of-way for a gas gathering line
and associated field compression unit that is located on
Federal land or Indian land and that services any oil well
shall be considered to be an action that is categorically
excluded (as defined in section 1508.4 of title 40, Code of
Federal Regulations (as in effect on the date of enactment of
this Act)) for purposes of the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) if the gas gathering
line and associated field compression unit are--
``(A) within a field or unit for which an approved land use
plan or an environmental document prepared pursuant to the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) analyzed transportation of natural gas produced from 1
or more oil wells in that field or unit as a reasonably
foreseeable activity; and
``(B) located adjacent to an existing disturbed area for
the construction of a road or pad.
``(2) Applicability.--
``(A) Federal land.--Paragraph (1) shall not apply to
Federal land, or a portion of Federal land, for which the
Governor of the State in which the Federal land is located
submits to the Secretary of the Interior or the Secretary of
Agriculture, as applicable, a
[[Page S4804]]
written request that paragraph (1) not apply to that Federal
land (or portion of Federal land).
``(B) Indian land.--Paragraph (1) shall apply to Indian
land, or a portion of Indian land, for which the Indian tribe
with jurisdiction over the Indian land submits to the
Secretary of the Interior a written request that paragraph
(1) apply to that Indian land (or portion of Indian land).
``(c) Effect on Other Law.--Nothing in this section affects
or alters any requirement--
``(1) relating to prior consent under--
``(A) section 2 of the Act of February 5, 1948 (25 U.S.C.
324); or
``(B) section 16(e) of the Act of June 18, 1934 (25 U.S.C.
476(e)) (commonly known as the `Indian Reorganization Act');
or
``(2) under any other Federal law (including regulations)
relating to tribal consent for rights-of-way across Indian
land.''.
(b) Assessments.--Title XVIII of the Energy Policy Act of
2005 (Public Law 109-58; 119 Stat. 1122) is amended by adding
at the end the following:
``SEC. 1841. NATURAL GAS GATHERING SYSTEM ASSESSMENTS.
``(a) Definition of Gas Gathering Line and Associated Field
Compression Unit.--In this section, the term `gas gathering
line and associated field compression unit' has the meaning
given the term in section 319.
``(b) Study.--Not later than 1 year after the date of
enactment of the Natural Gas Gathering Enhancement Act, the
Secretary of the Interior, in consultation with other
appropriate Federal agencies, States, and Indian tribes,
shall conduct a study to identify--
``(1) any actions that may be taken, under Federal law
(including regulations), to expedite permitting for gas
gathering lines and associated field compression units that
are located on Federal land or Indian land, for the purpose
of transporting natural gas associated with crude oil
production on any land to a processing plant or a common
carrier pipeline for delivery to markets; and
``(2) any proposed changes to Federal law (including
regulations) to expedite permitting for gas gathering lines
and associated field compression units that are located on
Federal land or Indian land, for the purpose of transporting
natural gas associated with crude oil production on any land
to a processing plant or a common carrier pipeline for
delivery to markets.
``(c) Report.--Not later than 180 days after the date of
enactment of the Natural Gas Gathering Enhancement Act, and
every 180 days thereafter, the Secretary of the Interior, in
consultation with other appropriate Federal agencies, States,
and Indian tribes, shall submit to Congress a report that
describes--
``(1) the progress made in expediting permits for gas
gathering lines and associated field compression units that
are located on Federal land or Indian land, for the purpose
of transporting natural gas associated with crude oil
production on any land to a processing plant or a common
carrier pipeline for delivery to markets; and
``(2) any issues impeding that progress.''.
(c) Technical Amendments.--
(1) Section 1(b) of the Energy Policy Act of 2005 (Public
Law 109-58; 119 Stat. 594) is amended by adding at the end of
subtitle B of title III the following:
``Sec. 319. Natural gas gathering lines located on Federal land and
Indian land.''.
(2) Section 1(b) of the Energy Policy Act of 2005 (Public
Law 109-58; 119 Stat. 594) is amended by adding at the end of
title XXVIII the following:
``Sec. 1841. Natural gas gathering system assessments.''.
SEC. 205. DEADLINES FOR PERMITTING NATURAL GAS GATHERING
LINES UNDER THE MINERAL LEASING ACT.
Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is
amended by adding at the end the following:
``(z) Natural Gas Gathering Lines.--The Secretary of the
Interior or other appropriate agency head shall issue a
sundry notice or right-of-way for a gas gathering line and
associated field compression unit (as defined in section
319(a) of the Energy Policy Act of 2005) that is located on
Federal lands--
``(1) for a gas gathering line and associated field
compression unit described in section 319(b) of the Energy
Policy Act of 2005, not later than 30 days after the date on
which the applicable agency head receives the request for
issuance; and
``(2) for all other gas gathering lines and associated
field compression units, not later than 60 days after the
date on which the applicable agency head receives the request
for issuance.''.
SEC. 206. DEADLINES FOR PERMITTING NATURAL GAS GATHERING
LINES UNDER THE FEDERAL LAND POLICY AND
MANAGEMENT ACT OF 1976.
Section 504 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1764) is amended by adding at the end the
following:
``(k) Natural Gas Gathering Lines.--The Secretary concerned
shall issue a sundry notice or right-of-way for a gas
gathering line and associated field compression unit (as
defined in section 319(a) of the Energy Policy Act of 2005)
that is located on public lands--
``(1) for a gas gathering line and associated field
compression unit described in section 319(b) of the Energy
Policy Act of 2005, not later than 30 days after the date on
which the applicable agency head receives the request for
issuance; and
``(2) for all other gas gathering lines and associated
field compression units, not later than 60 days after the
date on which the applicable agency head receives the request
for issuance.''.
______
SA 3604. Mr. BARRASSO (for himself, Mr. Inhofe, and Mr. Enzi)
submitted an amendment intended to be proposed by him to the bill S.
2569, to provide an incentive for businesses to bring jobs back to
America; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. NATURAL GAS EXPORTS.
(a) In General.--Section 3(c) of the Natural Gas Act (15
U.S.C. 717b(c)) is amended--
(1) by striking ``(c) For purposes'' and inserting the
following:
``(c) Expedited Application and Approval Process.--
``(1) Definition of world trade organization member
country.--In this subsection, the term `World Trade
Organization member country' has the meaning given the term
`WTO member country' in section 2 of the Uruguay Round
Agreements Act (19 U.S.C. 3501).
``(2) Expedited application and approval process.--For
purposes''; and
(2) in paragraph (2) (as so designated), by striking
``nation with which there is in effect a free trade agreement
requiring national treatment for trade in natural gas'' and
inserting ``World Trade Organization member country''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to applications for the authorization to export
natural gas under section 3 of the Natural Gas Act (15 U.S.C.
717b) that are pending on, or filed on or after, the date of
enactment of this Act.
______
SA 3605. Ms. AYOTTE submitted an amendment intended to be proposed by
her to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. FIDUCIARY EXCLUSION.
Section 3(21)(A) of the Employee Retirement Income and
Security Act of 1974 (29 U.S.C. 1002(21)(A)) is amended by
inserting ``and except to the extent a person is providing an
appraisal or fairness opinion with respect to qualifying
employer securities (as defined in section 407(d)(5))
included in an employee stock ownership plan (as defined in
section 407(d)(6)),'' after ``subparagraph (B),''.
______
SA 3606. Mr. CRUZ submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
DIVISION _--AMERICAN ENERGY RENAISSANCE
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the
``American Energy Renaissance Act of 2014''.
(b) Table of Contents.--The table of contents for this
division is as follows:
Sec. 2001. Short title; table of contents.
TITLE I--EXPANDING AMERICAN ENERGY EXPORTS
Sec. 2101. Finding.
Sec. 2102. Natural gas exports.
Sec. 2103. Crude oil exports.
Sec. 2104. Coal exports.
TITLE II--IMPROVING NORTH AMERICAN ENERGY INFRASTRUCTURE
Subtitle A--North American Energy Infrastructure
Sec. 2201. Finding.
Sec. 2202. Definitions.
Sec. 2203. Authorization of certain energy infrastructure projects at
the national boundary of the United States.
Sec. 2204. Transmission of electric energy to Canada and Mexico.
Sec. 2205. Effective date; rulemaking deadlines.
Subtitle B--Keystone XL Permit Approval
Sec. 2211. Findings.
Sec. 2212. Keystone XL permit approval.
TITLE III--OUTER CONTINENTAL SHELF LEASING
Sec. 3001. Finding.
Sec. 3002. Extension of leasing program.
Sec. 3003. Lease sales.
Sec. 3004. Applications for permits to drill.
Sec. 3005. Lease sales for certain areas.
TITLE IV--UTILIZING AMERICA'S ONSHORE RESOURCES
Sec. 4001. Findings.
Sec. 4002. State option for energy development.
Subtitle A--Energy Development by States
Sec. 4011. Definitions.
Sec. 4012. State programs.
Sec. 4013. Leasing, permitting, and regulatory programs.
Sec. 4014. Judicial review.
Sec. 4015. Administrative Procedure Act.
[[Page S4805]]
Subtitle B--Onshore Oil and Gas Permit Streamlining
PART I--Oil and Gas Leasing Certainty
Sec. 4021. Minimum acreage requirement for onshore lease sales.
Sec. 4022. Leasing certainty.
Sec. 4023. Leasing consistency.
Sec. 4024. Reduce redundant policies.
Sec. 4025. Streamlined congressional notification.
PART II--Application for Permits to Drill Process Reform
Sec. 4031. Permit to drill application timeline.
Sec. 4032. Administrative protest documentation reform.
Sec. 4033. Improved Federal energy permit coordination.
Sec. 4034. Administration.
PART III--Oil Shale
Sec. 4041. Effectiveness of oil shale regulations, amendments to
resource management plans, and record of decision.
Sec. 4042. Oil shale leasing.
PART IV--National Petroleum Reserve in Alaska Access
Sec. 4051. Sense of Congress and reaffirming national policy for the
National Petroleum Reserve in Alaska.
Sec. 4052. National Petroleum Reserve in Alaska: lease sales.
Sec. 4053. National Petroleum Reserve in Alaska: planning and
permitting pipeline and road construction.
Sec. 4054. Issuance of a new integrated activity plan and environmental
impact statement.
Sec. 4055. Departmental accountability for development.
Sec. 4056. Deadlines under new proposed integrated activity plan.
Sec. 4057. Updated resource assessment.
PART V--Miscellaneous Provisions
Sec. 4061. Sanctions.
Sec. 4062. Internet-based onshore oil and gas lease sales.
PART VI--Judicial Review
Sec. 4071. Definitions.
Sec. 4072. Exclusive venue for certain civil actions relating to
covered energy projects.
Sec. 4073. Timely filing.
Sec. 4074. Expedition in hearing and determining the action.
Sec. 4075. Limitation on injunction and prospective relief.
Sec. 4076. Limitation on attorneys' fees and court costs.
Sec. 4077. Legal standing.
TITLE V--ADDITIONAL ONSHORE RESOURCES
Subtitle A--Leasing Program for Land Within Coastal Plain
Sec. 5001. Finding.
Sec. 5002. Definitions.
Sec. 5003. Leasing program for land on the Coastal Plain.
Sec. 5004. Lease sales.
Sec. 5005. Grant of leases by the Secretary.
Sec. 5006. Lease terms and conditions.
Sec. 5007. Coastal Plain environmental protection.
Sec. 5008. Expedited judicial review.
Sec. 5009. Treatment of revenues.
Sec. 5010. Rights-of-way across the Coastal Plain.
Sec. 5011. Conveyance.
Subtitle B--Native American Energy
Sec. 5021. Findings.
Sec. 5022. Appraisals.
Sec. 5023. Standardization.
Sec. 5024. Environmental reviews of major Federal actions on Indian
land.
Sec. 5025. Judicial review.
Sec. 5026. Tribal resource management plans.
Sec. 5027. Leases of restricted lands for the Navajo Nation.
Sec. 5028. Nonapplicability of certain rules.
Subtitle C--Additional Regulatory Provisions
PART I--State Authority Over Hydraulic Fracturing
Sec. 5031. Finding.
Sec. 5032. State authority.
PART II--Miscellaneous Provisions
Sec. 5041. Environmental legal fees.
Sec. 5042. Master leasing plans.
TITLE VI--IMPROVING AMERICA'S DOMESTIC REFINING CAPACITY
Subtitle A--Refinery Permitting Reform
Sec. 6001. Finding.
Sec. 6002. Definitions.
Sec. 6003. Streamlining of refinery permitting process.
Subtitle B--Repeal of Renewable Fuel Standard
Sec. 6011. Findings.
Sec. 6012. Phase out of renewable fuel standard.
TITLE VII--STOPPING EPA OVERREACH
Sec. 7001. Findings.
Sec. 7002. Clarification of Federal regulatory authority to exclude
greenhouse gases from regulation under the Clean Air Act.
Sec. 7003. Jobs analysis for all EPA regulations.
TITLE VIII--DEBT FREEDOM FUND
Sec. 8001. Findings.
Sec. 8002. Debt freedom fund.
TITLE I--EXPANDING AMERICAN ENERGY EXPORTS
SEC. 2101. FINDING.
Congress finds that opening up energy exports will
contribute to economic development, private sector job
growth, and continued growth in American energy production.
SEC. 2102. NATURAL GAS EXPORTS.
(a) Finding.--Congress finds that expanding natural gas
exports will lead to increased investment and development of
domestic supplies of natural gas that will contribute to job
growth and economic development.
(b) Natural Gas Exports.--Section 3(c) of the Natural Gas
Act (15 U.S.C. 717b(c)) is amended--
(1) by inserting ``or any other nation not excluded by this
section'' after ``trade in natural gas'';
(2) by striking ``(c) For purposes'' and inserting the
following:
``(c) Expedited Application and Approval Process.--
``(1) In general.--For purposes''; and
(3) by adding at the end the following:
``(2) Exclusions.--
``(A) In general.--Any nation subject to sanctions or trade
restrictions imposed by the United States is excluded from
expedited approval under paragraph (1).
``(B) Designation by president or congress.--The President
or Congress may designate nations that may be excluded from
expedited approval under paragraph (1) for reasons of
national security.
``(3) Order not required.--No order is required under
subsection (a) to authorize the export or import of any
natural gas to or from Canada or Mexico.''.
SEC. 2103. CRUDE OIL EXPORTS.
(a) Findings.--Congress finds that--
(1) the restrictions on crude oil exports from the 1970s
are no longer necessary due to the technological advances
that have increased the domestic supply of crude oil; and
(2) repealing restrictions on crude oil exports will
contribute to job growth and economic development.
(b) Repeal of Presidential Authority to Restrict Oil
Exports.--
(1) In general.--Section 103 of the Energy Policy and
Conservation Act (42 U.S.C. 6212) is repealed.
(2) Conforming amendments.--
(A) Section 12 of the Alaska Natural Gas Transportation Act
of 1976 (15 U.S.C. 719j) is amended--
(i) by striking ``and section 103 of the Energy Policy and
Conservation Act''; and
(ii) by striking ``such Acts'' and inserting ``that Act''.
(B) The Energy Policy and Conservation Act is amended--
(i) in section 251 (42 U.S.C. 6271)--
(I) by striking subsection (d); and
(II) by redesignating subsection (e) as subsection (d); and
(ii) in section 523(a)(1) (42 U.S.C. 6393(a)(1)), by
striking ``(other than section 103 thereof)''.
(c) Repeal of Limitations on Exports of Oil.--
(1) In general.--Section 28 of the Mineral Leasing Act (30
U.S.C. 185) is amended--
(A) by striking subsection (u); and
(B) by redesignating subsections (v) through (y) as
subsection (u) through (x), respectively.
(2) Conforming amendments.--
(A) Section 1107(c) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3167(c)) is amended by striking
``(u) through (y)'' and inserting ``(u) through (x)''.
(B) Section 23 of the Deep Water Port Act of 1974 (33
U.S.C. 1522) is repealed.
(C) Section 203(c) of the Trans-Alaska Pipeline
Authorization Act (43 U.S.C. 1652(c)) is amended in the first
sentence by striking ``(w)(2), and (x))'' and inserting
``(v)(2), and (w))''.
(D) Section 509(c) of the Public Utility Regulatory
Policies Act of 1978 (43 U.S.C. 2009(c)) is amended by
striking ``subsection (w)(2)'' and inserting ``subsection
(v)(2)''.
(d) Repeal of Limitations on Export of OCS Oil or Gas.--
Section 28 of the Outer Continental Shelf Lands Act (43
U.S.C. 1354) is repealed.
(e) Termination of Limitation on Exportation of Crude
Oil.--Section 7(d) of the Export Administration Act of 1979
(50 U.S.C. App. 2406(d)) (as in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.)) shall have no force or effect.
(f) Clarification of Crude Oil Regulation.--
(1) In general.--Section 754.2 of title 15, Code of Federal
Regulations (relating to crude oil) shall have no force or
effect.
(2) Crude oil license requirements.--The Bureau of Industry
and Security of the Department of Commerce shall grant
licenses to export to a country crude oil (as the term is
defined in subsection (a) of the regulation referred to in
paragraph (1)) (as in effect on the date that is 1 day before
the date of enactment of this Act) unless--
(A) the country is subject to sanctions or trade
restrictions imposed by the United States; or
(B) the President or Congress has designated the country as
subject to exclusion for reasons of national security.
SEC. 2104. COAL EXPORTS.
(a) Findings.--Congress finds that--
(1) increased international demand for coal is an
opportunity to support jobs and promote economic growth in
the United States; and
[[Page S4806]]
(2) exports of coal should not be unreasonably restricted
or delayed.
(b) NEPA Review for Coal Exports.--In completing an
environmental impact statement or similar analysis required
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) for an approval or permit for coal
export terminals, or transportation of coal to coal export
terminals, the Secretary of the Army, acting through the
Chief of Engineers--
(1) may only take into account domestic environmental
impacts; and
(2) may not take into account any impacts resulting from
the final use overseas of the exported coal.
TITLE II--IMPROVING NORTH AMERICAN ENERGY INFRASTRUCTURE
Subtitle A--North American Energy Infrastructure
SEC. 2201. FINDING.
Congress finds that the United States should establish a
more efficient, transparent, and modern process for the
construction, connection, operation, and maintenance of oil
and natural gas pipelines and electric transmission
facilities for the import and export of oil, natural gas, and
electricity to and from Canada and Mexico, in pursuit of a
more secure and efficient North American energy market.
SEC. 2202. DEFINITIONS.
In this title:
(1) Electric reliability organization.--The term ``Electric
Reliability Organization'' has the meaning given the term in
section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
(2) Independent system operator.--The term ``Independent
System Operator'' has the meaning given the term in section 3
of the Federal Power Act (16 U.S.C. 796).
(3) Natural gas.--The term ``natural gas'' has the meaning
given the term in section 2 of the Natural Gas Act (15 U.S.C.
717a).
(4) Oil.--The term ``oil'' means petroleum or a petroleum
product.
(5) Regional entity.--The term ``regional entity'' has the
meaning given the term in section 215(a) of the Federal Power
Act (16 U.S.C. 824o(a)).
(6) Regional transmission organization.--The term
``Regional Transmission Organization'' has the meaning given
the term in section 3 of the Federal Power Act (16 U.S.C.
796).
SEC. 2203. AUTHORIZATION OF CERTAIN ENERGY INFRASTRUCTURE
PROJECTS AT THE NATIONAL BOUNDARY OF THE UNITED
STATES.
(a) Authorization.--Except as provided in subsections (d)
and (e), no person may construct, connect, operate, or
maintain an oil or natural gas pipeline or electric
transmission facility at the national boundary of the United
States for the import or export of oil, natural gas, or
electricity to or from Canada or Mexico without obtaining
approval of the construction, connection, operation, or
maintenance under this section.
(b) Approval.--
(1) Requirement.--Not later than 120 days after receiving a
request for approval of construction, connection, operation,
or maintenance under this section, the relevant official
identified under paragraph (2), in consultation with
appropriate Federal agencies, shall approve the request
unless the relevant official finds that the construction,
connection, operation, or maintenance harms the national
security interests of the United States.
(2) Relevant official.--The relevant official referred to
in paragraph (1) is--
(A) the Secretary of Commerce with respect to oil
pipelines;
(B) the Federal Energy Regulatory Commission with respect
to natural gas pipelines; and
(C) the Secretary of Energy with respect to electric
transmission facilities.
(3) Approval not major federal action.--An approval of
construction, connection, operation, or maintenance under
paragraph (1) shall not be considered a major Federal action
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(4) Additional requirement for electric transmission
facilities.--In the case of a request for approval of the
construction, connection, operation, or maintenance of an
electric transmission facility, the Secretary of Energy shall
require, as a condition of approval of the request under
paragraph (1), that the electric transmission facility be
constructed, connected, operated, or maintained consistent
with all applicable policies and standards of--
(A) the Electric Reliability Organization and the
applicable regional entity; and
(B) any Regional Transmission Organization or Independent
System Operator with operational or functional control over
the electric transmission facility.
(c) No Other Approval Required.--No Presidential permit (or
similar permit) required under Executive Order 13337 (3
U.S.C. 301 note; 69 Fed. Reg. 25299 (April 30, 2004)),
Executive Order 11423 (3 U.S.C. 301 note; 33 Fed. Reg. 11741
(August 16, 1968)), section 301 of title 3, United States
Code, Executive Order 12038 (43 Fed. Reg. 3674 (January 26,
1978)), Executive Order 10485 (18 Fed. Reg. 5397 (September
9, 1953)), or any other Executive order shall be necessary
for construction, connection, operation, or maintenance to
which this section applies.
(d) Exclusions.--This section shall not apply to--
(1) any construction, connection, operation, or maintenance
of an oil or natural gas pipeline or electric transmission
facility at the national boundary of the United States for
the import or export of oil, natural gas, or electricity to
or from Canada or Mexico if--
(A) the pipeline or facility is operating at the national
boundary for that import or export as of the date of
enactment of this Act;
(B) a permit described in subsection (c) for the
construction, connection, operation, or maintenance has been
issued;
(C) approval of the construction, connection, operation, or
maintenance has previously been obtained under this section;
or
(D) an application for a permit described in subsection (c)
for the construction, connection, operation, or maintenance
is pending on the date of enactment of this Act, until the
earlier of--
(i) the date on which the application is denied; and
(ii) July 1, 2015; or
(2) the construction, connection, operation, or maintenance
of the Keystone XL pipeline.
(e) Modifications to Existing Projects.--No approval under
this section, or permit described in subsection (c), shall be
required for modifications to construction, connection,
operation, or maintenance described in subparagraphs (A),
(B), or (C) of subsection (d)(1), including reversal of flow
direction, change in ownership, volume expansion, downstream
or upstream interconnection, or adjustments to maintain flow
(such as a reduction or increase in the number of pump or
compressor stations).
(f) Effect of Other Laws.--Nothing in this section affects
the application of any other Federal law to a project for
which approval of construction, connection, operation, or
maintenance is sought under this section.
SEC. 2204. TRANSMISSION OF ELECTRIC ENERGY TO CANADA AND
MEXICO.
(a) Repeal of Requirement To Secure Order.--Section 202 of
the Federal Power Act (16 U.S.C. 824a) is amended by striking
subsection (e).
(b) Conforming Amendments.--
(1) State regulations.--Section 202 of the Federal Power
Act (16 U.S.C. 824a) is amended--
(A) by redesignating subsections (f) and (g) as subsection
(e) and (f), respectively; and
(B) in subsection (e) (as so redesignated), by striking
``insofar as such State regulation does not conflict with the
exercise of the Commission's powers under or relating to
subsection 202(e)''.
(2) Seasonal diversity electricity exchange.--Section
602(b) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 824a-4(b)) is amended by striking ``the Commission
has conducted hearings and made the findings required under
section 202(e) of the Federal Power Act'' and all that
follows through the period at the end and inserting ``the
Secretary has conducted hearings and finds that the proposed
transmission facilities would not impair the sufficiency of
electric supply within the United States or would not impede
or tend to impede the coordination in the public interest of
facilities subject to the jurisdiction of the Secretary.''.
SEC. 2205. EFFECTIVE DATE; RULEMAKING DEADLINES.
(a) Effective Date.--Sections 2203 and 2204, and the
amendments made by those sections, shall take effect on July
1, 2015.
(b) Rulemaking Deadlines.--Each relevant official described
in section 2203(b)(2) shall--
(1) not later than 180 days after the date of enactment of
this Act, publish in the Federal Register notice of a
proposed rulemaking to carry out the applicable requirements
of section 2203; and
(2) not later than 1 year after the date of enactment of
this Act, publish in the Federal Register a final rule to
carry out the applicable requirements of section 2203.
Subtitle B--Keystone XL Permit Approval
SEC. 2211. FINDINGS.
Congress finds that--
(1) building the Keystone XL pipeline will provide jobs and
economic growth to the United States; and
(2) the Keystone XL pipeline should be approved
immediately.
SEC. 2212. KEYSTONE XL PERMIT APPROVAL.
(a) In General.--Notwithstanding Executive Order 13337 (3
U.S.C. 301 note ; 69 Fed. Reg. 25299 (April 30, 2004)),
Executive Order 11423 (3 U.S.C. 301 note; 33 Fed. Reg. 11741
(August 16, 1968)), section 301 of title 3, United States
Code, and any other Executive order or provision of law, no
presidential permit shall be required for the pipeline
described in the application filed on May 4, 2012, by
TransCanada Corporation to the Department of State for the
northern portion of the Keystone XL pipeline from the
Canadian border to the border between the States of South
Dakota and Nebraska.
(b) Environmental Impact Statement.--The final
environmental impact statement issued by the Secretary of
State on January 31, 2014, regarding the pipeline referred to
in subsection (a), shall be considered to satisfy all
requirements of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).
(c) Critical Habitat.--No area necessary to construct or
maintain the Keystone XL pipeline shall be considered
critical habitat under the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.) or any other provision of law.
(d) Permits.--Any Federal permit or authorization issued
before the date of enactment of this Act for the pipeline and
cross-
[[Page S4807]]
border facilities described in subsection (a), and the
related facilities in the United States, shall remain in
effect.
(e) Federal Judicial Review.--The pipeline and cross-border
facilities described in subsection (a), and the related
facilities in the United States, that are approved by this
section, and any permit, right-of-way, or other action taken
to construct or complete the project pursuant to Federal law,
shall only be subject to judicial review on direct appeal to
the United States Court of Appeals for the District of
Columbia Circuit.
TITLE III--OUTER CONTINENTAL SHELF LEASING
SEC. 3001. FINDING.
Congress finds that the United States has enormous
potential for offshore energy development and that the people
of the United States should have access to the jobs and
economic benefits from developing those resources.
SEC. 3002. EXTENSION OF LEASING PROGRAM.
(a) In General.--Subject to subsection (c), the Draft
Proposed Outer Continental Shelf Oil and Gas Leasing Program
2010-2015 issued by the Secretary of the Interior (referred
to in this title as the ``Secretary'') under section 18 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1344) shall
be considered to be the final oil and gas leasing program
under that section for the period of fiscal years 2014
through 2019.
(b) Final Environmental Impact Statement.--The Secretary is
considered to have issued a final environmental impact
statement for the program applicable to the period described
in subsection (a) in accordance with all requirements under
section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)).
(c) Exceptions.--Lease Sales 214, 232, and 239 shall not be
included in the final oil and gas leasing program for the
period of fiscal years 2014 through 2019.
SEC. 3003. LEASE SALES.
(a) In General.--Except as otherwise provided in this
section, not later than 180 days after the date of enactment
of this Act and every 270 days thereafter, the Secretary
shall conduct a lease sale in each outer Continental Shelf
planning area for which the Secretary determines that there
is a commercial interest in purchasing Federal oil and gas
leases for production on the outer Continental Shelf.
(b) Subsequent Determinations and Sales.--If the Secretary
determines that there is not a commercial interest in
purchasing Federal oil and gas leases for production on the
outer Continental Shelf in a planning area under this
section, not later than 2 years after the date of the
determination and every 2 years thereafter, the Secretary
shall--
(1) make an additional determination on whether there is a
commercial interest in purchasing Federal oil and gas leases
for production on the outer Continental Shelf in the planning
area; and
(2) if the Secretary determines that there is a commercial
interest under paragraph (1), conduct a lease sale in the
planning area.
(c) Protection of State Interest.--In developing future
leasing programs, the Secretary shall give deference to
affected coastal States (as the term is used in the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)) in
determining leasing areas to be included in the leasing
program.
(d) Petitions.--If a person petitions the Secretary to
conduct a lease sale for an outer Continental Shelf planning
area in which the person has a commercial interest, the
Secretary shall conduct a lease sale for the area in
accordance with subsection (a).
SEC. 3004. APPLICATIONS FOR PERMITS TO DRILL.
Section 5 of the Outer Continental Shelf Lands Act (43
U.S.C. 1334) is amended by adding at the end the following:
``(k) Applications for Permits To Drill.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall approve or disapprove an application for a permit to
drill submitted under this Act not later than 20 days after
the date on which the application is submitted to the
Secretary.
``(2) Disapproval.--If the Secretary disapproves an
application for a permit to drill under paragraph (1), the
Secretary shall--
``(A) provide to the applicant a description of the reasons
for the disapproval of the application;
``(B) allow the applicant to resubmit an application during
the 10-day period beginning on the date of the receipt of the
description described in subparagraph (A) by the applicant;
and
``(C) approve or disapprove any resubmitted application not
later than 10 days after the date on which the application is
submitted to the Secretary.''.
SEC. 3005. LEASE SALES FOR CERTAIN AREAS.
(a) In General.--As soon as practicable but not later than
1 year after the date of enactment of this Act, the Secretary
shall conduct Lease Sale 220 for areas offshore of the State
of Virginia.
(b) Compliance With Other Laws.--For purposes of the lease
sale described in subsection (a), the environmental impact
statement prepared under section 3001 shall satisfy the
requirements of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).
(c) Energy Projects in Gulf of Mexico.--
(1) Jurisdiction.--The United States Court of Appeals for
the Fifth Circuit shall have exclusive jurisdiction over
challenges to offshore energy projects and permits to drill
carried out in the Gulf of Mexico.
(2) Filing deadline.--Any civil action to challenge a
project or permit described in paragraph (1) shall be filed
not later than 60 days after the date of approval of the
project or the issuance of the permit.
TITLE IV--UTILIZING AMERICA'S ONSHORE RESOURCES
SEC. 4001. FINDINGS.
Congress finds that--
(1) current policy has failed to take full advantage of the
natural resources on Federal land;
(2) the States should be given the option to lead energy
development on all available Federal land in a State; and
(3) the Federal Government should not inhibit energy
development on Federal land.
SEC. 4002. STATE OPTION FOR ENERGY DEVELOPMENT.
Notwithstanding any other provision of this title, a State
may elect to control energy development and production on
available Federal land in accordance with the terms and
conditions of subtitle A and the amendments made by subtitle
A in lieu of being subject to the Federal system established
under subtitle B and the amendments made by subtitle B.
Subtitle A--Energy Development by States
SEC. 4011. DEFINITIONS.
In this subtitle:
(1) Available federal land.--The term ``available Federal
land'' means any Federal land that, as of the date of
enactment of this Act--
(A) is located within the boundaries of a State;
(B) is not held by the United States in trust for the
benefit of a federally recognized Indian tribe;
(C) is not a unit of the National Park System;
(D) is not a unit of the National Wildlife Refuge System;
and
(E) is not a congressionally designated wilderness area.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(3) State.--The term ``State'' means--
(A) a State; and
(B) the District of Columbia.
SEC. 4012. STATE PROGRAMS.
(a) In General.--A State--
(1) may establish a program covering the leasing and
permitting processes, regulatory requirements, and any other
provisions by which the State would exercise the rights of
the State to develop all forms of energy resources on
available Federal land in the State; and
(2) as a condition of certification under section 4013(b)
shall submit a declaration to the Departments of the
Interior, Agriculture, and Energy that a program under
paragraph (1) has been established or amended.
(b) Amendment of Programs.--A State may amend a program
developed and certified under this subtitle at any time.
(c) Certification of Amended Programs.--Any program amended
under subsection (b) shall be certified under section
4013(b).
SEC. 4013. LEASING, PERMITTING, AND REGULATORY PROGRAMS.
(a) Satisfaction of Federal Requirements.--Each program
certified under this section shall be considered to satisfy
all applicable requirements of Federal law (including
regulations), including--
(1) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); and
(3) the National Historic Preservation Act (16 U.S.C. 470
et seq.).
(b) Federal Certification and Transfer of Development
Rights.--Upon submission of a declaration by a State under
section 4012(a)(2)--
(1) the program under section 4012(a)(1) shall be
certified; and
(2) the State shall receive all rights from the Federal
Government to develop all forms of energy resources covered
by the program.
(c) Issuance of Permits and Leases.--If a State elects to
issue a permit or lease for the development of any form of
energy resource on any available Federal land within the
borders of the State in accordance with a program certified
under subsection (b), the permit or lease shall be considered
to meet all applicable requirements of Federal law (including
regulations).
SEC. 4014. JUDICIAL REVIEW.
Activities carried out in accordance with this subtitle
shall not be subject to Federal judicial review.
SEC. 4015. ADMINISTRATIVE PROCEDURE ACT.
Activities carried out in accordance with this subtitle
shall not be subject to subchapter II of chapter 5, and
chapter 7, of title 5, United States Code (commonly known as
the ``Administrative Procedure Act'').
Subtitle B--Onshore Oil and Gas Permit Streamlining
PART I--OIL AND GAS LEASING CERTAINTY
SEC. 4021. MINIMUM ACREAGE REQUIREMENT FOR ONSHORE LEASE
SALES.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended--
(1) by striking ``Sec. 17. (a) All lands'' and inserting
the following:
``SEC. 17. LEASE OF OIL AND GAS LAND.
``(a) Authority of Secretary.--
[[Page S4808]]
``(1) In general.--All land''; and
(2) in subsection (a), by adding at the end the following:
``(2) Minimum acreage requirement for onshore lease
sales.--
``(A) In general.--In conducting lease sales under
paragraph (1)--
``(i) there shall be a presumption that nominated land
should be leased; and
``(ii) the Secretary of the Interior shall offer for sale
all of the nominated acreage not previously made available
for lease, unless the Secretary demonstrates by clear and
convincing evidence that an individual lease should not be
granted.
``(B) Administration.--Acreage offered for lease pursuant
to this paragraph--
``(i) shall not be subject to protest; and
``(ii) shall be eligible for categorical exclusions under
section 390 of the Energy Policy Act of 2005 (42 U.S.C.
15942), except that the categorical exclusions shall not be
subject to the test of extraordinary circumstances or any
other similar regulation or policy guidance.
``(C) Availability.--In administering this paragraph, the
Secretary shall only consider leasing of Federal land that is
available for leasing at the time the lease sale occurs.''.
SEC. 4022. LEASING CERTAINTY.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a))
(as amended by section 4061) is amended by adding at the end
the following:
``(3) Leasing certainty.--
``(A) In general.--The Secretary of the Interior shall not
withdraw any covered energy project (as defined in section
4051 of the American Energy Renaissance Act of 2014 ) issued
under this Act without finding a violation of the terms of
the lease by the lessee.
``(B) Delay.--The Secretary shall not infringe on lease
rights under leases issued under this Act by indefinitely
delaying issuance of project approvals, drilling and seismic
permits, and rights-of-way for activities under the lease.
``(C) Availability for lease.--Not later than 18 months
after an area is designated as open under the applicable land
use plan, the Secretary shall make available nominated areas
for lease using the criteria established under section 2.
``(D) Last payment.--
``(i) In general.--Notwithstanding any other provision of
law, the Secretary shall issue all leases sold not later than
60 days after the last payment is made.
``(ii) Cancellation.--The Secretary shall not cancel or
withdraw any lease parcel after a competitive lease sale has
occurred and a winning bidder has submitted the last payment
for the parcel.
``(E) Protests.--
``(i) In general.--Not later than the end of the 60-day
period beginning on the date a lease sale is held under this
Act, the Secretary shall adjudicate any lease protests filed
following a lease sale.
``(ii) Unsettled protest.--If, after the 60-day period
described in clause (i) any protest is left unsettled--
``(I) the protest shall be considered automatically denied;
and
``(II) the appeal rights of the protestor shall begin.
``(F) Additional lease stipulations.--No additional lease
stipulation may be added after the parcel is sold without
consultation and agreement of the lessee, unless the
Secretary considers the stipulation as an emergency action to
conserve the resources of the United States.''.
SEC. 4023. LEASING CONSISTENCY.
A Federal land manager shall follow existing resource
management plans and continue to actively lease in areas
designated as open when resource management plans are being
amended or revised, until such time as a new record of
decision is signed.
SEC. 4024. REDUCE REDUNDANT POLICIES.
Bureau of Land Management Instruction Memorandum 2010-117
shall have no force or effect.
SEC. 4025. STREAMLINED CONGRESSIONAL NOTIFICATION.
Section 31(e) of the Mineral Leasing Act (30 U.S.C. 188(e))
is amended in the first sentence of the matter following
paragraph (4) by striking ``at least thirty days in advance
of the reinstatement'' and inserting ``in an annual report''.
PART II--APPLICATION FOR PERMITS TO DRILL PROCESS REFORM
SEC. 4031. PERMIT TO DRILL APPLICATION TIMELINE.
Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p))
is amended by striking paragraph (2) and inserting the
following:
``(2) Applications for permits to drill reform and
process.--
``(A) In general.--Not later than the end of the 30-day
period beginning on the date an application for a permit to
drill is received by the Secretary, the Secretary shall
decide whether to issue the permit.
``(B) Extension.--
``(i) In general.--The Secretary may extend the period
described in subparagraph (A) for up to 2 periods of 15 days
each, if the Secretary has given written notice of the delay
to the applicant.
``(ii) Notice.--The notice shall--
``(I) be in the form of a letter from the Secretary or a
designee of the Secretary; and
``(II) include--
``(aa) the names and titles of the persons processing the
application;
``(bb) the specific reasons for the delay; and
``(cc) a specific date a final decision on the application
is expected.
``(C) Notice of reasons for denial.--If the application is
denied, the Secretary shall provide the applicant--
``(i) a written statement that provides clear and
comprehensive reasons why the application was not accepted
and detailed information concerning any deficiencies; and
``(ii) an opportunity to remedy any deficiencies.
``(D) Application deemed approved.--
``(i) In general.--Except as provided in clause (ii), if
the Secretary has not made a decision on the application by
the end of the 60-day period beginning on the date the
application is received by the Secretary, the application
shall be considered approved.
``(ii) Exceptions.--Clause (i) shall not apply in cases in
which existing reviews under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) or Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.) are incomplete.
``(E) Denial of permit.--If the Secretary decides not to
issue a permit to drill under this paragraph, the Secretary
shall--
``(i) provide to the applicant a description of the reasons
for the denial of the permit;
``(ii) allow the applicant to resubmit an application for a
permit to drill during the 10-day period beginning on the
date the applicant receives the description of the denial
from the Secretary; and
``(iii) issue or deny any resubmitted application not later
than 10 days after the date the application is submitted to
the Secretary.
``(F) Fee.--
``(i) In general.--Notwithstanding any other provision of
law, the Secretary shall collect a single $6,500 permit
processing fee per application from each applicant at the
time the final decision is made whether to issue a permit
under subparagraph (A).
``(ii) Resubmitted application.--The fee required under
clause (i) shall not apply to any resubmitted application.
``(iii) Treatment of permit processing fee.--Subject to
appropriation, of all fees collected under this paragraph for
each fiscal year, 50 percent shall be--
``(I) transferred to the field office at which the fees are
collected; and
``(II) used to process protests, leases, and permits under
this Act.''.
SEC. 4032. ADMINISTRATIVE PROTEST DOCUMENTATION REFORM.
Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p))
(as amended by section 4031) is amended by adding at the end
the following:
``(4) Protest fee.--
``(A) In general.--The Secretary shall collect a $5,000
documentation fee to accompany each administrative protest
for a lease, right-of-way, or application for a permit to
drill.
``(B) Treatment of fees.--Subject to appropriation, of all
fees collected under this paragraph for each fiscal year, 50
percent shall--
``(i) remain in the field office at which the fees are
collected; and
``(ii) be used to process protests.''.
SEC. 4033. IMPROVED FEDERAL ENERGY PERMIT COORDINATION.
(a) Definitions.--In this section:
(1) Energy project.--The term ``energy project'' includes
any oil, natural gas, coal, or other energy project, as
defined by the Secretary.
(2) Project.--The term ``Project'' means the Federal Permit
Streamlining Project established under subsection (b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Establishment.--The Secretary shall establish a Federal
Permit Streamlining Project in each Bureau of Land Management
field office with responsibility for permitting energy
projects on Federal land.
(c) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding for purposes of carrying out this
section with--
(A) the Secretary of Agriculture;
(B) the Administrator of the Environmental Protection
Agency; and
(C) the Chief of Engineers.
(2) State participation.--The Secretary may request that
the Governor of any State with energy projects on Federal
land to be a signatory to the memorandum of understanding.
(d) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date of
the signing of the memorandum of understanding under
subsection (c), each Federal signatory party shall, if
appropriate, assign to each Bureau of Land Management field
office an employee who has expertise in the regulatory issues
relating to the office in which the employee is employed,
including, as applicable, particular expertise in--
(A) the consultations and the preparation of biological
opinions under section 7 of the Endangered Species Act of
1973 (16 U.S.C. 1536);
(B) permits under section 404 of the Federal Water
Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42 U.S.C.
7401 et seq.);
(D) planning under the National Forest Management Act of
1976 (16 U.S.C. 1600 et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
[[Page S4809]]
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) not later than 90 days after the date of assignment,
report to the Bureau of Land Management Field Managers in the
office to which the employee is assigned;
(B) be responsible for all issues relating to the energy
projects that arise under the authorities of the home agency
of the employee; and
(C) participate as part of the team of personnel working on
proposed energy projects, planning, and environmental
analyses on Federal land.
(e) Additional Personnel.--The Secretary shall assign to
each Bureau of Land Management field office described in
subsection (b) any additional personnel that are necessary to
ensure the effective approval and implementation of energy
projects administered by the Bureau of Land Management field
office, including inspection and enforcement relating to
energy development on Federal land, in accordance with the
multiple use mandate of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.).
(f) Funding.--Funding for the additional personnel shall
come from the Department of the Interior reforms under
paragraph (2) of section 17(p) of the Mineral Leasing Act (30
U.S.C. 226(p)) (as amended by section 4031 and section 4032).
(g) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency any employee of which is participating in the
Project.
SEC. 4034. ADMINISTRATION.
Notwithstanding any other provision of law, the Secretary
of the Interior shall not require a finding of extraordinary
circumstances in administering section 390 of the Energy
Policy Act of 2005 (42 U.S.C. 15942).
PART III--OIL SHALE
SEC. 4041. EFFECTIVENESS OF OIL SHALE REGULATIONS, AMENDMENTS
TO RESOURCE MANAGEMENT PLANS, AND RECORD OF
DECISION.
(a) Regulations.--
(1) In general.--Notwithstanding any other provision of law
(including regulations), the final regulations regarding oil
shale management published by the Bureau of Land Management
on November 18, 2008 (73 Fed. Reg. 69414) shall be considered
to satisfy all legal and procedural requirements under any
law, including--
(A) the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); and
(C) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(2) Implementation.--The Secretary of the Interior shall
implement the regulations described in paragraph (1)
(including the oil shale leasing program authorized by the
regulations) without any other administrative action
necessary.
(b) Amendments to Resource Management Plans and Record of
Decision.--
(1) In general.--Notwithstanding any other provision of law
(including regulations) to the contrary, the Approved
Resource Management Plan Amendments/Record of Decision for
Oil Shale and Tar Sands Resources to Address Land Use
Allocations in Colorado, Utah, and Wyoming and the Final
Programmatic Environmental Impact Statement of the Bureau of
Land Management, as in effect on November 17, 2008, shall be
considered to satisfy all legal and procedural requirements
under any law, including--
(A) the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); and
(C) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(2) Implementation.--The Secretary of the Interior shall
implement the oil shale leasing program authorized by the
regulations described in paragraph (1) in those areas covered
by the resource management plans covered by the amendments,
and covered by the record of decision, described in paragraph
(1) without any other administrative action necessary.
SEC. 4042. OIL SHALE LEASING.
(a) Additional Research and Development Lease Sales.--Not
later than 180 days after the date of enactment of this Act,
the Secretary of the Interior shall hold a lease sale
offering an additional 10 parcels for lease for research,
development, and demonstration of oil shale resources, under
the terms offered in the solicitation of bids for such leases
published on January 15, 2009 (74 Fed. Reg. 2611).
(b) Commercial Lease Sales.--
(1) In general.--Not later than January 1, 2016, the
Secretary of the Interior shall hold not less than 5 separate
commercial lease sales in areas considered to have the most
potential for oil shale development, as determined by the
Secretary, in areas nominated through public comment.
(2) Administration.--Each lease sale shall be--
(A) for an area of not less than 25,000 acres; ;and
(B) in multiple lease blocs.
PART IV--NATIONAL PETROLEUM RESERVE IN ALASKA ACCESS
SEC. 4051. SENSE OF CONGRESS AND REAFFIRMING NATIONAL POLICY
FOR THE NATIONAL PETROLEUM RESERVE IN ALASKA.
It is the sense of Congress that--
(1) the National Petroleum Reserve in Alaska remains
explicitly designated, both in name and legal status, for
purposes of providing oil and natural gas resources to the
United States; and
(2) accordingly, the national policy is to actively advance
oil and gas development within the Reserve by facilitating
the expeditious exploration, production, and transportation
of oil and natural gas from and through the Reserve.
SEC. 4052. NATIONAL PETROLEUM RESERVE IN ALASKA: LEASE SALES.
Section 107 of the Naval Petroleum Reserves Production Act
of 1976 (42 U.S.C. 6506a) is amended by striking subsection
(a) and inserting the following
``(a) In General.--The Secretary shall conduct an
expeditious program of competitive leasing of oil and gas in
the Reserve--
``(1) in accordance with this Act; and
``(2) that shall include at least 1 lease sale annually in
the areas of the Reserve most likely to produce commercial
quantities of oil and natural gas for each of calendar years
2014 through 2023.''.
SEC. 4053. NATIONAL PETROLEUM RESERVE IN ALASKA: PLANNING AND
PERMITTING PIPELINE AND ROAD CONSTRUCTION.
(a) In General.--Notwithstanding any other provision of
law, the Secretary of the Interior, in consultation with
other appropriate Federal agencies, shall facilitate and
ensure permits, in a timely and environmentally responsible
manner, for all surface development activities, including for
the construction of pipelines and roads, necessary--
(1) to develop and bring into production any areas within
the National Petroleum Reserve in Alaska that are subject to
oil and gas leases; and
(2) to transport oil and gas from and through the National
Petroleum Reserve in Alaska in the most direct manner
possible to existing transportation or processing
infrastructure on the North Slope of Alaska.
(b) Timeline.--The Secretary shall ensure that any Federal
permitting agency shall issue permits in accordance with the
following timeline:
(1) Permits for the construction described in subsection
(a) for transportation of oil and natural gas produced under
existing Federal oil and gas leases with respect to which the
Secretary has issued a permit to drill shall be approved not
later than 60 days after the date of enactment of this Act.
(2) Permits for the construction described in subsection
(a) for transportation of oil and natural gas produced under
Federal oil and gas leases shall be approved not later than
180 days after the date on which a request for a permit to
drill is submitted to the Secretary.
(c) Plan.--To ensure timely future development of the
National Petroleum Reserve in Alaska, not later than 270 days
after the date of enactment of this Act, the Secretary of the
Interior shall submit to Congress a plan for approved rights-
of-way for a plan for pipeline, road, and any other surface
infrastructure that may be necessary infrastructure that will
ensure that all leasable tracts in the Reserve are within 25
miles of an approved road and pipeline right-of-way that can
serve future development of the Reserve.
SEC. 4054. ISSUANCE OF A NEW INTEGRATED ACTIVITY PLAN AND
ENVIRONMENTAL IMPACT STATEMENT.
(a) Issuance of New Integrated Activity Plan.--Not later
than 180 days after the date of enactment of this Act, the
Secretary of the Interior shall issue--
(1) a new proposed integrated activity plan from among the
nonadopted alternatives in the National Petroleum Reserve
Alaska Integrated Activity Plan Record of Decision issued by
the Secretary of the Interior and dated February 21, 2013;
and
(2) an environmental impact statement under section
102(2)(C) of the National Environmental Policy Act of 1969
(42 U.S.C. 4332(2)(C)) for issuance of oil and gas leases in
the National Petroleum Reserve-Alaska to promote efficient
and maximum development of oil and natural gas resources of
the Reserve.
(b) Nullification of Existing Record of Decision, IAP, and
EIS.--Except as provided in subsection (a), the National
Petroleum Reserve-Alaska Integrated Activity Plan Record of
Decision issued by the Secretary of the Interior and dated
February 21, 2013, including the integrated activity plan and
environmental impact statement referred to in that record of
decision, shall have no force or effect.
SEC. 4055. DEPARTMENTAL ACCOUNTABILITY FOR DEVELOPMENT.
The Secretary of the Interior shall promulgate regulations
not later than 180 days after the date of enactment of this
Act that establish clear requirements to ensure that the
Department of the Interior is supporting development of oil
and gas leases in the National Petroleum Reserve-Alaska.
SEC. 4056. DEADLINES UNDER NEW PROPOSED INTEGRATED ACTIVITY
PLAN.
At a minimum, the new proposed integrated activity plan
issued under section 4054(a)(1) shall--
(1) require the Department of the Interior to respond
within 5 business days to a person who submits an application
for a permit for development of oil and natural gas leases in
the National Petroleum Reserve-Alaska acknowledging receipt
of the application; and
[[Page S4810]]
(2) establish a timeline for the processing of each
application that--
(A) specifies deadlines for decisions and actions on permit
applications; and
(B) provides that the period for issuing a permit after the
date on which the application is submitted shall not exceed
60 days without the concurrence of the applicant.
SEC. 4057. UPDATED RESOURCE ASSESSMENT.
(a) In General.--The Secretary of the Interior shall
complete a comprehensive assessment of all technically
recoverable fossil fuel resources within the National
Petroleum Reserve in Alaska, including all conventional and
unconventional oil and natural gas.
(b) Cooperation and Consultation.--The assessment required
by subsection (a) shall be carried out by the United States
Geological Survey in cooperation and consultation with the
State of Alaska and the American Association of Petroleum
Geologists.
(c) Timing.--The assessment required by subsection (a)
shall be completed not later than 2 years after the date of
enactment of this Act.
(d) Funding.--In carrying out this section, the United
States Geological Survey may cooperatively use resources and
funds provided by the State of Alaska.
PART V--MISCELLANEOUS PROVISIONS
SEC. 4061. SANCTIONS.
Nothing in this title authorizes the issuance of a lease
under the Mineral Leasing Act (30 U.S.C. 181 et seq.) to any
person designated for the imposition of sanctions pursuant
to--
(1) the Syria Accountability and Lebanese Sovereignty
Restoration Act of 2003 (22 U.S.C. 2151 note; Public Law 108-
175);
(2) the Comprehensive Iran Sanctions, Accountability, and
Divestiture Act of 2010 (22 U.S.C. 8501 et seq.);
(3) section 1245 of the National Defense Authorization Act
for Fiscal Year 2012 (22 U.S.C. 8513a);
(4) the Iran Threat Reduction and Syria Human Rights Act of
2012 (22 U.S.C. 8701 et seq.);
(5) the Iran Freedom and Counter-Proliferation Act of 2012
(22 U.S.C. 8801 et seq.);
(6) the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note;
Public Law 104-172);
(7) Executive Order 13224 (50 U.S.C. 1701 note; relating to
blocking property and prohibiting transactions with persons
who commit, threaten to commit, or support terrorism);
(8) Executive Order 13338 (50 U.S.C. 1701 note; relating to
blocking property of certain persons and prohibiting the
export of certain goods to Syria);
(9) Executive Order 13622 (50 U.S.C. 1701 note; relating to
authorizing additional sanctions with respect to Iran);
(10) Executive Order 13628 (50 U.S.C. 1701 note; relating
to authorizing additional sanctions with respect to Iran); or
(11) Executive Order 13645 (50 U.S.C. 1701 note; relating
to authorizing additional sanctions with respect to Iran).
SEC. 4062. INTERNET-BASED ONSHORE OIL AND GAS LEASE SALES.
(a) Authorization.--Section 17(b)(1) of the Mineral Leasing
Act (30 U.S.C. 226(b)(1)) is amended--
(1) in subparagraph (A), in the third sentence, by
inserting ``, except as provided in subparagraph (C)'' after
``by oral bidding''; and
(2) by adding at the end the following:
``(C) Internet-based Bidding.--
``(i) In general.--In order to diversify and expand the
onshore leasing program of the United States to ensure the
best return to the Federal taxpayer, reduce fraud, and secure
the leasing process, the Secretary may conduct onshore lease
sales through Internet-based bidding methods.
``(ii) Conclusion.--Each individual Internet-based lease
sale shall conclude not later than 7 days after the date on
which the sale begins.''.
(b) Report.--Not later than 90 days after the date on which
the tenth Internet-based lease sale conducted under the
amendment made by subsection (a) concludes, the Secretary of
the Interior shall analyze the first 10 Internet-based lease
sales and report to Congress the findings of the analysis,
including--
(1) estimates on increases or decreases in Internet-based
lease sales, compared to sales conducted by oral bidding,
in--
(A) the number of bidders;
(B) the average amount of bid;
(C) the highest amount bid; and
(D) the lowest bid;
(2) an estimate on the total cost or savings to the
Department of the Interior as a result of Internet-based
lease sales, compared to sales conducted by oral bidding; and
(3) an evaluation of the demonstrated or expected
effectiveness of different structures for lease sales which
may provide an opportunity to better--
(A) maximize bidder participation;
(B) ensure the highest return to the Federal taxpayers;
(C) minimize opportunities for fraud or collusion; and
(D) ensure the security and integrity of the leasing
process.
PART VI--JUDICIAL REVIEW
SEC. 4071. DEFINITIONS.
In this part:
(1) Covered civil action.--The term ``covered civil
action'' means a civil action containing a claim under
section 702 of title 5, United States Code, regarding agency
action (as defined for the purposes of that section)
affecting a covered energy project on Federal land.
(2) Covered energy project.--
(A) In general.--The term ``covered energy project''
means--
(i) the leasing of Federal land for the exploration,
development, production, processing, or transmission of oil,
natural gas, wind, or any other source of energy; and
(ii) any action under the lease.
(B) Exclusion.--The term ``covered energy project'' does
not include any dispute between the parties to a lease
regarding the obligations under the lease, including any
alleged breach of the lease.
SEC. 4072. EXCLUSIVE VENUE FOR CERTAIN CIVIL ACTIONS RELATING
TO COVERED ENERGY PROJECTS.
Venue for any covered civil action shall lie in the United
States district court in which the covered energy project or
lease exists or is proposed.
SEC. 4073. TIMELY FILING.
To ensure timely redress by the courts, a covered civil
action shall be filed not later than the end of the 90-day
period beginning on the date of the final Federal agency
action to which the covered civil action relates.
SEC. 4074. EXPEDITION IN HEARING AND DETERMINING THE ACTION.
The court shall endeavor to hear and determine any covered
civil action as expeditiously as practicable.
SEC. 4075. LIMITATION ON INJUNCTION AND PROSPECTIVE RELIEF.
(a) In General.--In a covered civil action, a court shall
not grant or approve any prospective relief unless the court
finds that the relief--
(1) is narrowly drawn;
(2) extends no further than necessary to correct the
violation of a legal requirement; and
(3) is the least intrusive means necessary to correct the
violation.
(b) Duration.--
(1) In general.--A court shall limit the duration of
preliminary injunctions to halt covered energy projects to
not more than 60 days, unless the court finds clear reasons
to extend the injunction.
(2) Administration.--In the case of an extension, the
extension shall--
(A) only be in 30-day increments; and
(B) require action by the court to renew the injunction.
SEC. 4076. LIMITATION ON ATTORNEYS' FEES AND COURT COSTS.
(a) In General.--Sections 504 of title 5 and 2412 of title
28, United States Code (commonly known as the ``Equal Access
to Justice Act''), shall not apply to a covered civil action.
(b) Court Costs.--A party to a covered civil action shall
not receive payment from the Federal Government for the
attorneys' fees, expenses, or other court costs incurred by
the party.
SEC. 4077. LEGAL STANDING.
A challenger that files an appeal with the Department of
the Interior Board of Land Appeals shall meet the same
standing requirements as a challenger before a United States
district court.
TITLE V--ADDITIONAL ONSHORE RESOURCES
Subtitle A--Leasing Program for Land Within Coastal Plain
SEC. 5001. FINDING.
Congress finds that development of energy reserves under
the Coastal Plain of Alaska, performed in an environmentally
responsible manner, will contribute to job growth and
economic development.
SEC. 5002. DEFINITIONS.
In this subtitle:
(1) Coastal plain.--The term ``Coastal Plain'' means the
area described in appendix I to part 37 of title 50, Code of
Federal Regulations.
(2) Peer reviewed.--The term ``peer reviewed'' means
reviewed--
(A) by individuals chosen by the National Academy of
Sciences with no contractual relationship with, or those who
have no application for a grant or other funding pending
with, the Federal agency with leasing jurisdiction; or
(B) if individuals described in subparagraph (A) are not
available, by the top individuals in the specified biological
fields, as determined by the National Academy of Sciences.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 5003. LEASING PROGRAM FOR LAND ON THE COASTAL PLAIN.
(a) In General.--The Secretary shall--
(1) establish and implement, in accordance with this
subtitle and acting through the Director of the Bureau of
Land Management in consultation with the Director of the
United States Fish and Wildlife Service, a competitive oil
and gas leasing program that will result in the exploration,
development, and production of the oil and gas resources of
the Coastal Plain; and
(2) administer the provisions of this subtitle through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain do not result in any
significant adverse effect on fish and wildlife, the habitat
of fish and wildlife, subsistence resources, or the
environment, including, in furtherance of this goal, by
requiring the application of the best commercially available
technology for oil
[[Page S4811]]
and gas exploration, development, and production to all
exploration, development, and production operations under
this subtitle in a manner that ensures the receipt of fair
market value by the public for the mineral resources to be
leased.
(b) Repeal of Existing Restriction.--
(1) Repeal.--Section 1003 of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3143) is repealed.
(2) Conforming amendment.--The table of contents contained
in section 1 of that Act (16 U.S.C. 3101 note) is amended by
striking the item relating to section 1003.
(c) Compliance With Requirements Under Certain Other
Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.), the oil and gas leasing program and activities
authorized by this section on the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National
Wildlife Refuge was established, and no further findings or
decisions are required to implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The document of
the Department of the Interior entitled ``Final Legislative
Environmental Impact Statement'' and dated April 1987
relating to the Coastal Plain prepared pursuant to section
1002 of the Alaska National Interest Lands Conservation Act
(16 U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
that apply with respect to prelease activities under this
subtitle, including actions authorized to be taken by the
Secretary to develop and promulgate regulations for the
establishment of a leasing program authorized by this
subtitle before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--
(A) In general.--Prior to conducting the first lease sale
under this subtitle, the Secretary shall prepare an
environmental impact statement under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
with respect to the actions authorized by this subtitle not
covered by paragraph (2).
(B) Nonleasing alternatives not required.--Notwithstanding
any other provision of law, in preparing the environmental
impact statement under subparagraph (A), the Secretary--
(i) shall--
(I) only identify a preferred action for leasing and a
single leasing alternative; and
(II) analyze the environmental effects and potential
mitigation measures for those 2 alternatives; and
(ii) is not required--
(I) to identify nonleasing alternative courses of action;
or
(II) to analyze the environmental effects of nonleasing
alternative courses of action.
(C) Deadline.--The identification under subparagraph
(B)(i)(I) for the first lease sale conducted under this
subtitle shall be completed not later than 18 months after
the date of enactment of this Act.
(D) Public comment.--The Secretary shall only consider
public comments that--
(i) specifically address the preferred action of the
Secretary; and
(ii) are filed not later than 20 days after the date on
which the environmental analysis is published.
(E) Compliance.--Notwithstanding any other provision of
law, compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this
subtitle.
(d) Relationship to State and Local Authority.--Nothing in
this subtitle expands or limits State or local regulatory
authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik and the North Slope
Borough of the State of Alaska, may designate not more than
45,000 acres of the Coastal Plain as a ``Special Area'' if
the Secretary determines that the area is of such unique
character and interest so as to require special management
and regulatory protection.
(2) Sadlerochit spring area.--The Secretary shall designate
the Sadlerochit Spring area, consisting of approximately
4,000 acres, as a Special Area.
(3) Management.--Each Special Area shall be managed to
protect and preserve the unique and diverse character of the
area, including the fish, wildlife, and subsistence resource
values of the area.
(4) Exclusion from leasing or surface occupancy.--
(A) In general.--The Secretary may exclude any Special Area
from leasing.
(B) No surface occupancy.--If the Secretary leases a
Special Area, or any part of a Special Area, for oil and gas
exploration, development, production, or related activities,
there shall be no surface occupancy of the land comprising
the Special Area.
(5) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or
a portion of a Special Area under terms that permit the use
of horizontal drilling technology from sites on leases tracts
located outside the Special Area.
(f) Limitation on Closed Areas.--The authority of the
Secretary to close land on the Coastal Plain to oil and gas
leasing, exploration, development, or production shall be
limited to the authority provided under this subtitle.
(g) Regulations.--
(1) In general.--Not later than 15 months after the date of
enactment of this Act, the Secretary shall promulgate
regulations necessary to carry out this subtitle, including
regulations relating to protection of fish and wildlife, the
habitat of fish and wildlife, subsistence resources, and
environment of the Coastal Plain.
(2) Revision of regulations.--The Secretary shall, through
a rulemaking conducted in accordance with section 553 of
title 5, United States Code, periodically review and, if
appropriate, revise the regulations promulgated under
paragraph (1) to reflect a preponderance of the best
available scientific evidence that has been peer reviewed and
obtained by following appropriate, documented scientific
procedures, the results of which can be repeated using those
same procedures.
SEC. 5004. LEASE SALES.
(a) In General.--In accordance with the requirements of
this subtitle, the Secretary may lease land under this
subtitle to any person qualified to obtain a lease for
deposits of oil and gas under the Mineral Leasing Act (30
U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation and not
later than 180 days after the date of enactment of this Act,
establish procedures for--
(1) receipt and consideration of sealed nominations for any
area of the Coastal Plain for inclusion in, or exclusion
from, a lease sale;
(2) the holding of lease sales after the nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Lease sales under this subtitle may
be conducted through an Internet leasing program, if the
Secretary determines that the Internet leasing program will
result in savings to the taxpayer, an increase in the number
of bidders participating, and higher returns than oral
bidding or a sealed bidding system.
(d) Sale Acreages and Schedule.--The Secretary shall--
(1) offer for lease under this subtitle--
(A) those tracts the Secretary considers to have the
greatest potential for the discovery of hydrocarbons, taking
into consideration nominations received under subsection
(b)(1); and
(B)(i) not fewer than 50,000 acres by not later than 22
months after the date of the enactment of this Act; and
(ii) not fewer than an additional 50,000 acres at 6-, 12-,
and 18-month intervals following the initial offering under
subclause (i);
(2) conduct 4 additional lease sales under the same terms
and schedule as the last lease sale under paragraph
(1)(B)(ii) not later than 2 years after the date of that
sale, if sufficient interest in leasing exists to warrant, in
the judgment of the Secretary, the conduct of the sales; and
(3) evaluate the bids in each lease sale under this
subsection and issue leases resulting from the sales not
later than 90 days after the date on which the sale is
completed.
SEC. 5005. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--The Secretary may grant to the highest
responsible qualified bidder in a lease sale conducted under
section 5004 any land to be leased on the Coastal Plain upon
payment by the bidder of any bonus as may be accepted by the
Secretary.
(b) Subsequent Transfers.--No lease issued under this
subtitle may be sold, exchanged, assigned, sublet, or
otherwise transferred except with the approval of the
Secretary after the Secretary consults with, and gives due
consideration to the views of, the Attorney General.
SEC. 5006. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued under this subtitle shall--
(1) provide for the payment of a royalty of not less than
12.5 percent in amount or value of the production removed or
sold under the lease, as determined by the Secretary under
the regulations applicable to other Federal oil and gas
leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife based on a preponderance
of the best available scientific evidence that has been peer
reviewed and obtained by following appropriate, documented
scientific procedures, the results of which can be repeated
using those same procedures;
(3) require that the lessee of land on the Coastal Plain
shall be fully responsible and liable for the reclamation of
land on the Coastal Plain and any other Federal land that is
adversely affected in connection with exploration,
development, production, or transportation activities
conducted under the lease and on the Coastal Plain by the
lessee or by any of the subcontractors or agents of the
lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for land
required to be reclaimed under
[[Page S4812]]
this subtitle shall be, as nearly as practicable, a condition
capable of supporting the uses which the land was capable of
supporting prior to any exploration, development, or
production activities, or upon application by the lessee, to
a higher or better use as certified by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, the habitat of fish and wildlife,
subsistence resources, and the environment as required under
section 5003(a)(2);
(7) provide that the lessee, agents of the lessee, and
contractors of the lessee use best efforts to provide a fair
share, as determined by the level of obligation previously
agreed to in the 1974 agreement implementing section 29 of
the Federal Agreement and Grant of Right of Way for the
Operation of the Trans-Alaska Pipeline, of employment and
contracting for Alaska Natives and Alaska Native corporations
from throughout the State; and
(8) contain such other provisions as the Secretary
determines necessary to ensure compliance with this subtitle
and the regulations issued pursuant to this subtitle.
SEC. 5007. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern
Authorized Coastal Plain Activities.--The Secretary shall,
consistent with the requirements of section 5003, administer
this subtitle through regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other
provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain shall not result
in any significant adverse effect on fish and wildlife, the
habitat of fish and wildlife, or the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration,
development, and production on all new exploration,
development, and production operations; and
(3) ensure that the maximum amount of surface acreage
covered by production and support facilities, including
airstrips and any areas covered by gravel berms or piers for
support of pipelines, does not exceed 10,000 acres on the
Coastal Plain for each 100,000 acres of area leased.
(b) Site-Specific Assessment and Mitigation.--With respect
to any proposed drilling and related activities, the
Secretary shall require that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, the habitat of fish and wildlife,
subsistence resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations to Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Prior to
implementing the leasing program authorized by this subtitle,
the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations,
and other measures designed to ensure that the activities
undertaken on the Coastal Plain under this subtitle are
conducted in a manner consistent with the purposes and
environmental requirements of this subtitle.
(d) Compliance With Federal and State Environmental Laws
and Other Requirements.--The proposed regulations, lease
terms, conditions, restrictions, prohibitions, and
stipulations for the leasing program under this subtitle
shall require compliance with all applicable provisions of
Federal and State environmental law and compliance with the
following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1
through 29 at pages 167 through 169 of the document of the
Department of the Interior entitled ``Final Legislative
Environmental Impact Statement'' and dated April 1987
relating to the Coastal Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration
based on a preponderance of the best available scientific
evidence that has been peer reviewed and obtained by
following appropriate, documented scientific procedures, the
results of which can be repeated using those same procedures.
(3) That exploration activities, except for surface
geological studies--
(A) be limited to the period between approximately November
1 and May 1 each year; and
(B) be supported, if necessary, by ice roads, winter trails
with adequate snow cover, ice pads, ice airstrips, and air
transport methods, except that exploration activities may
occur at other times if the Secretary finds that the
exploration will have no significant adverse effect on the
fish and wildlife, the habitat of fish and wildlife, and the
environment of the Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that minimize, to
the maximum extent practicable, adverse effects on--
(A) the passage of migratory species such as caribou; and
(B) the flow of surface water by requiring the use of
culverts, bridges, and other structural devices.
(5) Prohibitions on general public access and use on all
pipeline access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this subtitle,
requiring the removal from the Coastal Plain of all oil and
gas development and production facilities, structures, and
equipment upon completion of oil and gas production
operations, except that the Secretary may exempt from the
requirements of this paragraph those facilities, structures,
or equipment that the Secretary determines would assist in
the management of the Arctic National Wildlife Refuge and
that are donated to the United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on the use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river systems, the protection of natural surface
drainage patterns, wetlands, and riparian habitats, and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or minimization of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law (including
regulations).
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions determined necessary by
the Secretary.
(e) Considerations.--In preparing and promulgating
regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations under this section, the
Secretary shall consider--
(1) the stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set
forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact
Statement;
(2) the environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal
Regulations; and
(3) the land use stipulations for exploratory drilling on
the KIC-ASRC private land that are set forth in appendix 2 of
the August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production,
and transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities and
activities.
(B) Encouraging consolidation of common facilities and
activities.
(C) Locating or confining facilities and activities to
areas that will minimize impact on fish and wildlife, the
habitat of fish and wildlife, and the environment.
(D) Using existing facilities wherever practicable.
(E) Enhancing compatibility between wildlife values and
development activities.
(g) Access to Public Land.--The Secretary shall--
(1) manage public land in the Coastal Plain subject to
section 811 of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable
access to public land in the Coastal Plain for traditional
uses.
SEC. 5008. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of--
(A) any provision of this subtitle shall be filed by not
later than 1 year after the date of enactment of this Act; or
(B) any action of the Secretary under this subtitle shall
be filed--
(i) except as provided in clause (ii), during the 90-day
period beginning on the date on which the action is
challenged; or
(ii) in the case of a complaint based solely on grounds
arising after the period described
[[Page S4813]]
in clause (i), not later than 90 days after the date on which
the complainant knew or reasonably should have known of the
grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of any
provision of this subtitle or any action of the Secretary
under this subtitle may be filed only in the United States
Court of Appeals for the District of Columbia.
(3) Limitation on scope of certain review.--
(A) In general.--Judicial review of a decision by the
Secretary to conduct a lease sale under this subtitle,
including an environmental analysis, shall be--
(i) limited to whether the Secretary has complied with this
subtitle; and
(ii) based on the administrative record of that decision.
(B) Presumption.--The identification by the Secretary of a
preferred course of action to enable leasing to proceed and
the analysis by the Secretary of environmental effects under
this subtitle is presumed to be correct unless shown
otherwise by clear and convincing evidence.
(b) Limitation on Other Review.--Actions of the Secretary
with respect to which review could have been obtained under
this section shall not be subject to judicial review in any
civil or criminal proceeding for enforcement.
(c) Limitation on Attorneys' Fees and Court Costs.--
(1) In general.--Sections 504 of title 5 and 2412 of title
28, United States Code (commonly known as the ``Equal Access
to Justice Act''), shall not apply to any action under this
subtitle.
(2) Court costs.--A party to any action under this subtitle
shall not receive payment from the Federal Government for the
attorneys' fees, expenses, or other court costs incurred by
the party.
SEC. 5009. TREATMENT OF REVENUES.
Notwithstanding any other provision of law, 90 percent of
the amount of bonus, rental, and royalty revenues from
Federal oil and gas leasing and operations authorized under
this subtitle shall be deposited in the Treasury.
SEC. 5010. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General.--The Secretary shall issue rights-of-way
and easements across the Coastal Plain for the transportation
of oil and gas produced under leases under this subtitle--
(1) except as provided in paragraph (2), under section 28
of the Mineral Leasing Act (30 U.S.C. 185), without regard to
title XI of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3161 et seq.); and
(2) under title XI of the Alaska National Interest Lands
Conservation Act (30 U.S.C. 3161 et seq.), for access
authorized by sections 1110 and 1111 of that Act (16 U.S.C.
3170, 3171).
(b) Terms and Conditions.--The Secretary shall include in
any right-of-way or easement issued under subsection (a) such
terms and conditions as may be necessary to ensure that
transportation of oil and gas does not result in a
significant adverse effect on the fish and wildlife, the
habitat of fish and wildlife, subsistence resources, or the
environment of the Coastal Plain, including requirements that
facilities be sited or designed so as to avoid unnecessary
duplication of roads and pipelines.
(c) Regulations.--The Secretary shall include in
regulations promulgated under section 5003(g) provisions
granting rights-of-way and easements described in subsection
(a).
SEC. 5011. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on
titles to land and clarifying land ownership patterns on the
Coastal Plain, and notwithstanding section 1302(h)(2) of the
Alaska National Interest Lands Conservation Act (16 U.S.C.
3192(h)(2)), the Secretary shall convey--
(1) to the Kaktovik Inupiat Corporation, the surface estate
of the land described in paragraph 1 of Public Land Order
6959, to the extent necessary to fulfill the entitlement of
the Kaktovik Inupiat Corporation under sections 12 and 14 of
the Alaska Native Claims Settlement Act (43 U.S.C. 1611,
1613) in accordance with the terms and conditions of the
Agreement between the Department of the Interior, the United
States Fish and Wildlife Service, the Bureau of Land
Management, and the Kaktovik Inupiat Corporation dated
January 22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining
subsurface estate to which the Arctic Slope Regional
Corporation is entitled pursuant to the August 9, 1983,
agreement between the Arctic Slope Regional Corporation and
the United States of America.
Subtitle B--Native American Energy
SEC. 5021. FINDINGS.
Congress finds that--
(1) the Federal Government has unreasonably interfered with
the efforts of Indian tribes to develop energy resources on
tribal land; and
(2) Indian tribes should have the opportunity to gain the
benefits of the jobs, investment, and economic development to
be gained from energy development.
SEC. 5022. APPRAISALS.
(a) Amendment.--Title XXVI of the Energy Policy Act of 1992
(25 U.S.C. 3501 et seq.) is amended by adding at the end the
following:
``SEC. 2607. APPRAISAL REFORMS.
``(a) Options to Indian Tribes.--With respect to a
transaction involving Indian land or the trust assets of an
Indian tribe that requires the approval of the Secretary, any
appraisal or other estimates of value relating to fair market
value required to be conducted under applicable law,
regulation, or policy may be completed by--
``(1) the Secretary;
``(2) the affected Indian tribe; or
``(3) a certified, third-party appraiser pursuant to a
contract with the Indian tribe.
``(b) Time Limit on Secretarial Review and Action.--Not
later than 30 days after the date on which the Secretary
receives an appraisal conducted by or for an Indian tribe
pursuant to paragraphs (2) or (3) of subsection (a), the
Secretary shall--
``(1) review the appraisal; and
``(2) provide to the Indian tribe a written notice of
approval or disapproval of the appraisal.
``(c) Failure of Secretary to Approve or Disapprove.--If
the Secretary has failed to approve or disapprove any
appraisal by the date that is 60 days after the date on which
the appraisal is received, the appraisal shall be deemed
approved.
``(d) Option of Indian Tribes to Waive Appraisal.--An
Indian tribe may waive the requirements of subsection (a) if
the Indian tribe provides to the Secretary a written
resolution, statement, or other unambiguous indication of
tribal intent to waive the requirements that--
``(1) is duly approved by the governing body of the Indian
tribe; and
``(2) includes an express waiver by the Indian tribe of any
claims for damages the Indian tribe might have against the
United States as a result of the waiver.
``(e) Regulations.--The Secretary shall promulgate
regulations to implement this section, including standards
the Secretary shall use for approving or disapproving an
appraisal under subsection (b).''.
(b) Conforming Amendment.--The table of contents of the
Energy Policy Act of 1992 (42 U.S.C. 13201 note) is amended
by adding at the end of the items relating to title XXVI the
following:
``Sec. 2607. Appraisal reforms.''.
SEC. 5023. STANDARDIZATION.
As soon as practicable after the date of enactment of this
Act, the Secretary of the Interior shall implement procedures
to ensure that each agency within the Department of the
Interior that is involved in the review, approval, and
oversight of oil and gas activities on Indian land shall use
a uniform system of reference numbers and tracking systems
for oil and gas wells.
SEC. 5024. ENVIRONMENTAL REVIEWS OF MAJOR FEDERAL ACTIONS ON
INDIAN LAND.
Section 102 of the National Environmental Policy Act of
1969 (42 U.S.C. 4332) is amended--
(1) in the matter preceding paragraph (1) by inserting
``(a) In General.--'' before ``The Congress authorizes''; and
(2) by adding at the end the following:
``(b) Review of Major Federal Actions on Indian Land.--
``(1) Definitions of indian land and indian tribe.--In this
subsection, the terms `Indian land' and `Indian tribe' have
the meaning given those terms in section 2601 of the Energy
Policy Act of 1992 (25 U.S.C. 3501).
``(2) In general.--For any major Federal action on Indian
land of an Indian tribe requiring the preparation of a
statement under subsection (a)(2)(C), the statement shall
only be available for review and comment by--
``(A) the members of the Indian tribe; and
``(B) any other individual residing within the affected
area.
``(3) Regulations.--The Chairman of the Council on
Environmental Quality, in consultation with Indian tribes,
shall develop regulations to implement this section,
including descriptions of affected areas for specific major
Federal actions.''.
SEC. 5025. JUDICIAL REVIEW.
(a) Definitions.--In this section:
(1) Agency action.--The term ``agency action'' has the
meaning given the term in section 551 of title 5, United
States Code.
(2) Energy related action.--The term ``energy-related
action'' means a civil action that--
(A) is filed on or after the date of enactment of this Act;
and
(B) seeks judicial review of a final agency action relating
to the issuance of a permit, license, or other form of agency
permission allowing--
(i) any person or entity to conduct on Indian Land
activities involving the exploration, development,
production, or transportation of oil, gas, coal, shale gas,
oil shale, geothermal resources, wind or solar resources,
underground coal gasification, biomass, or the generation of
electricity; or
(ii) any Indian Tribe, or any organization of 2 or more
entities, not less than 1 of which is an Indian tribe, to
conduct activities involving the exploration, development,
production, or transportation of oil, gas, coal, shale gas,
oil shale, geothermal resources, wind or solar resources,
underground coal gasification, biomass, or the generation of
electricity, regardless of where such activities are
undertaken.
(3) Indian land.--
(A) In general.--The term ``Indian land'' has the meaning
given the term in section 2601 of the Energy Policy Act of
1992 (25 U.S.C. 3501).
(B) Inclusion.--The term ``Indian land'' includes land
owned by a Native Corporation (as that term is defined in
section 3 of the Alaska Native Claims Settlement Act (43
U.S.C. 1602)) under that Act (43 U.S.C. 1601 et seq.).
[[Page S4814]]
(4) Ultimately prevail.--
(A) In general.--The term ``ultimately prevail'' means, in
a final enforceable judgment that the court rules in the
party's favor on at least 1 civil claim that is an underlying
rationale for the preliminary injunction, administrative
stay, or other relief requested by the party.
(B) Exclusion.--The term ``ultimately prevail'' does not
include circumstances in which the final agency action is
modified or amended by the issuing agency unless the
modification or amendment is required pursuant to a final
enforceable judgment of the court or a court-ordered consent
decree.
(b) Time for Filing Complaint.--
(1) In general.--Any energy related action shall be filed
not later than the end of the 60-day period beginning on the
date of the action or decision by a Federal official that
constitutes the covered energy project concerned.
(2) Prohibition.--Any energy related action that is not
filed within the time period described in paragraph (1) shall
be barred.
(c) District Court Venue and Deadline.--An energy related
action--
(1) may only be brought in the United States District Court
for the District of Columbia; and
(2) shall be resolved as expeditiously as possible, and in
any event not more than 180 days after the energy related
action is filed.
(d) Appellate Review.--An interlocutory order or final
judgment, decree or order of the district court in an energy
related action--
(1) may be appealed to the United States Court of Appeals
for the District of Columbia Circuit; and
(2) if the court described in paragraph (1) undertakes the
review, the court shall resolve the review as expeditiously
as possible, and in any event by not later than 180 days
after the interlocutory order or final judgment, decree or
order of the district court was issued.
(e) Limitation on Certain Payments.--Notwithstanding
section 1304 of title 31, United States Code, no award may be
made under section 504 of title 5, United States Code, or
under section 2412 of title 28, United States Code, and no
amounts may be obligated or expended from the Claims and
Judgment Fund of the United States Treasury to pay any fees
or other expenses under such sections, to any person or party
in an energy related action.
(f) Limitation on Attorneys' Fees and Court Costs.--
(1) In general.--Sections 504 of title 5 and 2412 of title
28, United States Code (commonly known as the ``Equal Access
to Justice Act''), shall not apply to an energy related
action.
(2) Court costs.--A party to a covered civil action shall
not receive payment from the Federal Government for the
attorneys' fees, expenses, or other court costs incurred by
the party.
SEC. 5026. TRIBAL RESOURCE MANAGEMENT PLANS.
Unless otherwise explicitly exempted by Federal law enacted
after the date of enactment of this Act, any activity
conducted or resources harvested or produced pursuant to a
tribal resource management plan or an integrated resource
management plan approved by the Secretary of the Interior
under the National Indian Forest Resources Management Act (25
U.S.C. 3101 et seq.) or the American Indian Agricultural
Resource Management Act (25 U.S.C. 3701 et seq.), shall be
considered a sustainable management practice for purposes of
any Federal standard, benefit, or requirement that requires a
demonstration of such sustainability.
SEC. 5027. LEASES OF RESTRICTED LANDS FOR THE NAVAJO NATION.
Subsection (e)(1) of the first section of the Act of August
9, 1955 (25 U.S.C. 415) (commonly known as the ``Long-Term
Leasing Act''), is amended--
(1) by striking ``, except a lease for'' and inserting ``,
including leases for'';
(2) in subparagraph (A), by striking ``25 years, except''
and all that follows through ``; and'' and inserting ``99
years;'';
(3) in subparagraph (B), by striking the period and
inserting ``; and''; and
(4) by adding at the end the following:
``(C) in the case of a lease for the exploration,
development, or extraction of mineral resources, including
geothermal resources, 25 years, except that the lease may
include an option to renew for 1 additional term not to
exceed 25 years.''.
SEC. 5028. NONAPPLICABILITY OF CERTAIN RULES.
No rule promulgated by the Secretary of the Interior
regarding hydraulic fracturing used in the development or
production of oil or gas resources shall affect any land held
in trust or restricted status for the benefit of Indians
except with the express consent of the beneficiary on behalf
of which the land is held in trust or restricted status.
Subtitle C--Additional Regulatory Provisions
PART I--STATE AUTHORITY OVER HYDRAULIC FRACTURING
SEC. 5031. FINDING.
Congress finds that given variations in geology, land use,
and population, the States are best placed to regulate the
process of hydraulic fracturing occurring on any land within
the boundaries of the individual State.
SEC. 5032. STATE AUTHORITY.
(a) Definition of Federal Land.--In this section, the term
``Federal land'' means--
(1) public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702));
(2) National Forest System land;
(3) land under the jurisdiction of the Bureau of
Reclamation; and
(4) land under the jurisdiction of the Corps of Engineers.
(b) State Authority.--
(1) In general.--Notwithstanding any other provision of
law, a State shall have the sole authority to promulgate or
enforce any regulation, guidance, or permit requirement
regarding the treatment of a well by the application of
fluids under pressure to which propping agents may be added
for the expressly designed purpose of initiating or
propagating fractures in a target geologic formation in order
to enhance production of oil, natural gas, or geothermal
production activities on or under any land within the
boundaries of the State.
(2) Federal land.--Notwithstanding any other provision of
law, the treatment of a well by the application of fluids
under pressure to which propping agents may be added for the
expressly designed purpose of initiating or propagating
fractures in a target geologic formation in order to enhance
production of oil, natural gas, or geothermal production
activities on Federal land shall be subject to the law of the
State in which the land is located.
PART II--MISCELLANEOUS PROVISIONS
SEC. 5041. ENVIRONMENTAL LEGAL FEES.
Section 504 of title 5, United States Code, is amended by
adding at the end the following:
``(g) Environmental Legal Fees.--Notwithstanding section
1304 of title 31, no award may be made under this section and
no amounts may be obligated or expended from the Claims and
Judgment Fund of the Treasury to pay any legal fees of a
nongovernmental organization related to an action that (with
respect to the United States)--
``(1) prevents, terminates, or reduces access to or the
production of--
``(A) energy;
``(B) a mineral resource;
``(C) water by agricultural producers;
``(D) a resource by commercial or recreational fishermen;
or
``(E) grazing or timber production on Federal land;
``(2) diminishes the private property value of a property
owner; or
``(3) eliminates or prevents 1 or more jobs.''.
SEC. 5042. MASTER LEASING PLANS.
(a) In General.--Notwithstanding any other provision of
law, the Secretary of the Interior, acting through the Bureau
of Land Management, shall not establish a master leasing plan
as part of any guidance issued by the Secretary.
(b) Existing Master Leasing Plans.--Instruction Memorandum
No. 2010-117 and any other master leasing plan described in
subsection (a) issued on or before the date of enactment of
this Act shall have no force or effect.
TITLE VI--IMPROVING AMERICA'S DOMESTIC REFINING CAPACITY
Subtitle A--Refinery Permitting Reform
SEC. 6001. FINDING.
Congress finds that the domestic refining industry is an
important source of jobs and economic growth and whose growth
should not be limited by an excessively drawn out permitting
and approval process.
SEC. 6002. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Expansion.--The term ``expansion'' means a physical
change that results in an increase in the capacity of a
refinery.
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(4) Permit.--The term ``permit'' means any permit, license,
approval, variance, or other form of authorization that a
refiner is required to obtain--
(A) under any Federal law; or
(B) from a State or tribal government agency delegated
authority by the Federal Government, or authorized under
Federal law, to issue permits.
(5) Refiner.--The term ``refiner'' means a person that--
(A) owns or operates a refinery; or
(B) seeks to become an owner or operator of a refinery.
(6) Refinery.--
(A) In general.--The term ``refinery'' means--
(i) a facility at which crude oil is refined into
transportation fuel or other petroleum products; and
(ii) a coal liquification or coal-to-liquid facility at
which coal is processed into synthetic crude oil or any other
fuel.
(B) Inclusion.--The term ``refinery'' includes an expansion
of a refinery.
(7) Refinery permitting agreement.--The term ``refinery
permitting agreement'' means an agreement entered into
between the Administrator and a State or Indian tribe under
subsection (c).
(8) State.--The term ``State'' means--
(A) a State; and
(B) the District of Columbia.
SEC. 6003. STREAMLINING OF REFINERY PERMITTING PROCESS.
(a) In General.--At the request of the Governor of a State
or the governing body of
[[Page S4815]]
an Indian tribe, the Administrator shall enter into a
refinery permitting agreement with the State or Indian tribe
under which the process for obtaining all permits necessary
for the construction and operation of a refinery shall be
streamlined using a systematic, interdisciplinary multimedia
approach, as provided in this section.
(b) Authority of Administrator.--Under a refinery
permitting agreement, the Administrator shall have the
authority, as applicable and necessary--
(1) to accept from a refiner a consolidated application for
all permits that the refiner is required to obtain to
construct and operate a refinery;
(2) in consultation and cooperation with each Federal,
State, or tribal government agency that is required to make
any determination to authorize the issuance of a permit, to
establish a schedule under which each agency shall--
(A) concurrently consider, to the maximum extent
practicable, each determination to be made; and
(B) complete each step in the permitting process; and
(3) to issue a consolidated permit that combines all
permits issued under the schedule established under paragraph
(2).
(c) Refinery Permitting Agreements.--Under a refinery
permitting agreement, a State or governing body of an Indian
tribe shall agree that--
(1) the Administrator shall have each of the authorities
described in subsection (b); and
(2) the State or tribal government agency shall--
(A) in accordance with State law, make such structural and
operational changes in the agencies as are necessary to
enable the agencies to carry out consolidated, project-wide
permit reviews concurrently and in coordination with the
Environmental Protection Agency and other Federal agencies;
and
(B) comply, to the maximum extent practicable, with the
applicable schedule established under subsection (b)(2).
(d) Deadlines.--
(1) New refineries.--In the case of a consolidated permit
for the construction of a new refinery, the Administrator and
the State or governing body of an Indian tribe shall approve
or disapprove the consolidated permit not later than--
(A) 365 days after the date of receipt of an
administratively complete application for the consolidated
permit; or
(B) on agreement of the applicant, the Administrator, and
the State or governing body of the Indian tribe, 90 days
after the expiration of the deadline described in
subparagraph (A).
(2) Expansion of existing refineries.--In the case of a
consolidated permit for the expansion of an existing
refinery, the Administrator and the State or governing body
of an Indian tribe shall approve or disapprove the
consolidated permit not later than--
(A) 120 days after the date of receipt of an
administratively complete application for the consolidated
permit; or
(B) on agreement of the applicant, the Administrator, and
the State or governing body of the Indian tribe, 30 days
after the expiration of the deadline described in
subparagraph (A).
(e) Federal Agencies.--Each Federal agency that is required
to make any determination to authorize the issuance of a
permit shall comply with the applicable schedule established
under subsection (b)(2).
(f) Judicial Review.--Any civil action for review of a
permit determination under a refinery permitting agreement
shall be brought exclusively in the United States district
court for the district in which the refinery is located or
proposed to be located.
(g) Efficient Permit Review.--In order to reduce the
duplication of procedures, the Administrator shall use State
permitting and monitoring procedures to satisfy substantially
equivalent Federal requirements under this subtitle.
(h) Severability.--If 1 or more permits that are required
for the construction or operation of a refinery are not
approved on or before an applicable deadline under subsection
(d), the Administrator may issue a consolidated permit that
combines all other permits that the refiner is required to
obtain, other than any permits that are not approved.
(i) Consultation With Local Governments.--The
Administrator, States, and tribal governments shall consult,
to the maximum extent practicable, with local governments in
carrying out this section.
(j) Effect of Section.--Nothing in this section affects--
(1) the operation or implementation of any otherwise
applicable law regarding permits necessary for the
construction and operation of a refinery;
(2) the authority of any unit of local government with
respect to the issuance of permits; or
(3) any requirement or ordinance of a local government
(such as a zoning regulation).
Subtitle B--Repeal of Renewable Fuel Standard
SEC. 6011. FINDINGS.
Congress finds that the mandates under the renewable fuel
standard contained in section 211(o) of the Clean Air Act (42
U.S.C. 7545(o))--
(1) impose significant costs on American citizens and the
American economy, without offering any benefit; and
(2) should be repealed.
SEC. 6012. PHASE OUT OF RENEWABLE FUEL STANDARD.
(a) In General.--Section 211(o) of the Clean Air Act (42
U.S.C. 7545(o)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking clause (ii); and
(ii) by redesignating clauses (iii) and (iv) as clauses
(ii) and (iii), respectively; and
(B) in subparagraph (B), by striking clauses (ii) through
(v) and inserting the following:
``(ii) Calendar years 2014 through 2018.--Notwithstanding
clause (i), for purposes of subparagraph (A), the applicable
volumes of renewable fuel for each of calendar years 2014
through 2018 shall be determined as follows:
``(I) For calendar year 2014, in accordance with the table
entitled `I-2--Proposed 2014 Volume Requirements' of the
proposed rule published at pages 71732 through 71784 of
volume 78 of the Federal Register (November 29, 2013).
``(II) For calendar year 2015, the applicable volumes
established under subclause (I), reduced by 20 percent.
``(III) For calendar year 2016, the applicable volumes
established under subclause (I), reduced by 40 percent.
``(IV) For calendar year 2017, the applicable volumes
established under subclause (I), reduced by 60 percent.
``(V) For calendar year 2018, the applicable volumes
established under subclause (I), reduced by 80 percent.'';
(2) in paragraph (3)--
(A) by striking ``2021'' and inserting ``2017'' each place
it appears; and
(B) in subparagraph (B)(i), by inserting ``, subject to the
condition that the renewable fuel obligation determined for a
calendar year is not more than the applicable volumes
established under paragraph (2)(B)(ii)'' before the period;
and
(3) by adding at the end the following:
``(13) Sunset.--The program established under this
subsection shall terminate on December 31, 2018.''.
(b) Regulations.--Effective beginning on January 1, 2019,
the regulations contained in subparts K and M of part 80 of
title 40, Code of Federal Regulations (as in effect on that
date of enactment), shall have no force or effect.
TITLE VII--STOPPING EPA OVERREACH
SEC. 7001. FINDINGS.
Congress finds that--
(1) the Environmental Protection Agency has exceeded its
statutory authority by promulgating regulations that were not
contemplated by Congress in the authorizing language of the
statutes enacted by Congress;
(2) no Federal agency has the authority to regulate
greenhouse gases under current law; and
(3) no attempt to regulate greenhouse gases should be
undertaken without further Congressional action.
SEC. 7002. CLARIFICATION OF FEDERAL REGULATORY AUTHORITY TO
EXCLUDE GREENHOUSE GASES FROM REGULATION UNDER
THE CLEAN AIR ACT.
(a) Repeal of Federal Climate Change Regulation.--
(1) Greenhouse gas regulation under clean air act.--Section
302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is amended--
(A) by striking ``(g) The term'' and inserting the
following:
``(g) Air Pollutant.--
``(1) In general.--The term''; and
(B) by adding at the end the following:
``(2) Exclusion.--The term `air pollutant' does not include
carbon dioxide, water vapor, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, or sulfur
hexafluoride.''.
(2) No regulation of climate change.--Notwithstanding any
other provision of law, nothing in any of the following Acts
or any other law authorizes or requires the regulation of
climate change or global warming:
(A) The Clean Air Act (42 U.S.C. 7401 et seq.).
(B) The Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.).
(C) The National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(D) The Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.).
(E) The Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).
(b) Effect on Proposed Rules of the EPA.--In accordance
with this section, the following proposed or contemplated
rules (or any similar or successor rules) of the
Environmental Protection Agency shall be void and have no
force or effect:
(1) The proposed rule entitled ``Standards of Performance
for Greenhouse Gas Emissions From New Stationary Sources:
Electric Utility Generating Units'' (published at 79 Fed.
Reg. 1430 (January 8, 2014)).
(2) The contemplated rules on carbon pollution for existing
power plants.
(3) Any other contemplated or proposed rules proposed to be
issued pursuant to the purported authority described in
subsection (a)(2).
SEC. 7003. JOBS ANALYSIS FOR ALL EPA REGULATIONS.
(a) In General.--Before proposing or finalizing any
regulation, rule, or policy, the Administrator of the
Environmental Protection Agency shall provide an analysis of
the regulation, rule, or policy and describe the direct and
indirect net and gross impact of the regulation, rule, or
policy on employment in the United States.
(b) Limitation.--No regulation, rule, or policy described
in subsection (a) shall take effect if the regulation, rule,
or policy has a
[[Page S4816]]
negative impact on employment in the United States unless the
regulation, rule, or policy is approved by Congress and
signed by the President.
TITLE VIII--DEBT FREEDOM FUND
SEC. 8001. FINDINGS.
Congress finds that--
(1) the national debt being over $17,000,000,000,000 in
2014--
(A) threatens the current and future prosperity of the
United States;
(B) undermines the national security interests of the
United States; and
(C) imposes a burden on future generations of United States
citizens; and
(2) revenue generated from the development of the natural
resources in the United States should be used to reduce the
national debt.
SEC. 8002. DEBT FREEDOM FUND.
Notwithstanding any other provision of law, in accordance
with all revenue sharing arrangement with States in effect on
the date of enactment of this Act, an amount equal to the
additional amount of Federal funds generated by the programs
and activities under this division (and the amendments made
by this division)--
(1) shall be deposited in a special trust fund account in
the Treasury, to be known as the ``Debt Freedom Fund''; and
(2) shall not be withdrawn for any purpose other than to
pay down the national debt of the United States, for which
purpose payments shall be made expeditiously.
______
SA 3607. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
TITLE __--REINS ACT
SECTION _01. SHORT TITLE.
This title may be cited as the ``Regulations From the
Executive in Need of Scrutiny Act of 2014'' or the ``REINS
Act''.
SEC. _02. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Section 1 of article I of the United States
Constitution grants all legislative powers to Congress.
(2) Over time, Congress has excessively delegated its
constitutional charge while failing to conduct appropriate
oversight and retain accountability for the content of the
laws it passes.
(3) By requiring a vote in Congress, the REINS Act will
result in more carefully drafted and detailed legislation, an
improved regulatory process, and a legislative branch that is
truly accountable to the people of the United States for the
laws imposed upon them.
(b) Purpose.--The purpose of this title is to increase
accountability for and transparency in the Federal regulatory
process.
SEC. _03. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.
Chapter 8 of title 5, United States Code, is amended to
read as follows:
``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
``Sec.
``801. Congressional review.
``802. Congressional approval procedure for major rules.
``803. Congressional disapproval procedure for nonmajor rules.
``804. Definitions.
``805. Judicial review.
``806. Exemption for monetary policy.
``807. Effective date of certain rules.
``Sec. 801. Congressional review
``(a)(1)(A) Before a rule may take effect, the Federal
agency promulgating such rule shall submit to each House of
Congress and to the Comptroller General a report containing--
``(i) a copy of the rule;
``(ii) a concise general statement relating to the rule;
``(iii) a classification of the rule as a major or nonmajor
rule, including an explanation of the classification
specifically addressing each criteria for a major rule
contained within sections 804(2)(A), 804(2)(B), and
804(2)(C);
``(iv) a list of any other related regulatory actions
intended to implement the same statutory provision or
regulatory objective as well as the individual and aggregate
economic effects of those actions; and
``(v) the proposed effective date of the rule.
``(B) On the date of the submission of the report under
subparagraph (A), the Federal agency promulgating the rule
shall submit to the Comptroller General and make available to
each House of Congress--
``(i) a complete copy of the cost-benefit analysis of the
rule, if any;
``(ii) the actions of the agency pursuant to sections 603,
604, 605, 607, and 609 of title 5, United States Code;
``(iii) the actions of the agency pursuant to sections
1532, 1533, 1534, and 1535 of title 2, United States Code;
and
``(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
``(C) Upon receipt of a report submitted under subparagraph
(A), each House shall provide copies of the report to the
chairman and ranking member of each standing committee with
jurisdiction under the rules of the House of Representatives
or the Senate to report a bill to amend the provision of law
under which the rule is issued.
``(2)(A) The Comptroller General shall provide a report on
each major rule to the committees of jurisdiction by the end
of 15 calendar days after the submission or publication date
as provided in section 802(b)(2). The report of the
Comptroller General shall include an assessment of compliance
by the agency with procedural steps required by paragraph
(1)(B).
``(B) Federal agencies shall cooperate with the Comptroller
General by providing information relevant to the Comptroller
General's report under subparagraph (A).
``(3) A major rule relating to a report submitted under
paragraph (1) shall take effect upon enactment of a joint
resolution of approval described in section 802 or as
provided for in the rule following enactment of a joint
resolution of approval described in section 802, whichever is
later.
``(4) A nonmajor rule shall take effect as provided by
section 803 after submission to Congress under paragraph (1).
``(5) If a joint resolution of approval relating to a major
rule is not enacted within the period provided in subsection
(b)(2), then a joint resolution of approval relating to the
same rule may not be considered under this chapter in the
same Congress by either the House of Representatives or the
Senate.
``(b)(1) A major rule shall not take effect unless the
Congress enacts a joint resolution of approval described
under section 802.
``(2) If a joint resolution described in subsection (a) is
not enacted into law by the end of 70 session days or
legislative days, as applicable, beginning on the date on
which the report referred to in section 801(a)(1)(A) is
received by Congress (excluding days either House of Congress
is adjourned for more than 3 days during a session of
Congress), then the rule described in that resolution shall
be deemed not to be approved and such rule shall not take
effect.
``(c)(1) Notwithstanding any other provision of this
section (except subject to paragraph (3)), a major rule may
take effect for one 90-calendar-day period if the President
makes a determination under paragraph (2) and submits written
notice of such determination to the Congress.
``(2) Paragraph (1) applies to a determination made by the
President by Executive order that the major rule should take
effect because such rule is--
``(A) necessary because of an imminent threat to health or
safety or other emergency;
``(B) necessary for the enforcement of criminal laws;
``(C) necessary for national security; or
``(D) issued pursuant to any statute implementing an
international trade agreement.
``(3) An exercise by the President of the authority under
this subsection shall have no effect on the procedures under
section 802.
``(d)(1) In addition to the opportunity for review
otherwise provided under this chapter, sections 802 and 803
shall apply, in the succeeding session of Congress, to any
rule for which a report was submitted in accordance with
subsection (a)(1)(A) during the period beginning on the date
occurring--
``(A) in the case of the Senate, 60 session days before the
date the Congress is scheduled to adjourn a session of
Congress through the date on which the same or succeeding
Congress first convenes its next session; or
``(B) in the case of the House of Representatives, 60
legislative days before the date the Congress is scheduled to
adjourn a session of Congress through the date on which the
same or succeeding Congress first convenes its next session.
``(2)(A) In applying sections 802 and 803 for purposes of
such additional review, a rule described under paragraph (1)
shall be treated as though--
``(i) such rule were published in the Federal Register on--
``(I) in the case of the Senate, the 15th session day after
the succeeding session of Congress first convenes; or
``(II) in the case of the House of Representatives, the
15th legislative day after the succeeding session of Congress
first convenes; and
``(ii) a report on such rule were submitted to Congress
under subsection (a)(1) on such date.
``(B) Nothing in this paragraph shall be construed to
affect the requirement under subsection (a)(1) that a report
shall be submitted to Congress before a rule can take effect.
``(3) A rule described under paragraph (1) shall take
effect as otherwise provided by law (including other
subsections of this section).
``Sec. 802. Congressional approval procedure for major rules
``(a)(1) For purposes of this section, the term `joint
resolution' means only a joint resolution addressing a report
classifying a rule as major pursuant to section
801(a)(1)(A)(iii) that--
``(A) bears no preamble;
``(B) bears the following title: `Approving the rule
submitted by ___ relating to ___.' (The blank spaces being
appropriately filled in);
``(C) includes after its resolving clause only the
following: `That Congress approves the rule submitted by ___
relating to ___.' (The blank spaces being appropriately
filled in); and
``(D) is introduced pursuant to paragraph (2).
[[Page S4817]]
``(2) After a House of Congress receives a report
classifying a rule as major pursuant to section
801(a)(1)(A)(iii), the majority leader of that House (or the
designee of the majority leader) shall introduce (by request,
if appropriate) a joint resolution described in paragraph
(1)--
``(A) in the case of the House of Representatives, within 3
legislative days; and
``(B) in the case of the Senate, within 3 session days.
``(3) A joint resolution described in paragraph (1) shall
not be subject to amendment at any stage of proceeding.
``(b) A joint resolution described in subsection (a) shall
be referred in each House of Congress to the committees
having jurisdiction over the provision of law under which the
rule is issued.
``(c) In the Senate, if the committee or committees to
which a joint resolution described in subsection (a) has been
referred have not reported it at the end of 15 session days
after its introduction, such committee or committees shall be
automatically discharged from further consideration of the
resolution and it shall be placed on the calendar. A vote on
final passage of the resolution shall be taken on or before
the close of the 15th session day after the resolution is
reported by the committee or committees to which it was
referred, or after such committee or committees have been
discharged from further consideration of the resolution.
``(d)(1) In the Senate, when the committee or committees to
which a joint resolution is referred have reported, or when a
committee or committees are discharged (under subsection (c))
from further consideration of a joint resolution described in
subsection (a), it is at any time thereafter in order (even
though a previous motion to the same effect has been
disagreed to) for a motion to proceed to the consideration of
the joint resolution, and all points of order against the
joint resolution (and against consideration of the joint
resolution) are waived. The motion is not subject to
amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion to proceed to
the consideration of the joint resolution is agreed to, the
joint resolution shall remain the unfinished business of the
Senate until disposed of.
``(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 2 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
``(3) In the Senate, immediately following the conclusion
of the debate on a joint resolution described in subsection
(a), and a single quorum call at the conclusion of the debate
if requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to
the application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
``(e) In the House of Representatives, if the committee or
committees to which a joint resolution described in
subsection (a) has been referred has not reported it to the
House at the end of 15 legislative days after its
introduction, such committee or committees shall be
discharged from further consideration of the joint
resolution, and it shall be placed on the appropriate
calendar. On the second and fourth Thursdays of each month it
shall be in order at any time for the Speaker to recognize a
Member who favors passage of a joint resolution that has
appeared on the calendar for not fewer than 5 legislative
days to call up the joint resolution for immediate
consideration in the House without intervention of any point
of order. When so called up, a joint resolution shall be
considered as read and shall be debatable for 1 hour equally
divided and controlled by the proponent and an opponent, and
the previous question shall be considered as ordered to its
passage without intervening motion. It shall not be in order
to reconsider the vote on passage. If a vote on final passage
of the joint resolution has not been taken by the third
Thursday on which the Speaker may recognize a Member under
this subsection, such vote shall be taken on that day.
``(f)(1) For purposes of this subsection, the term
`identical joint resolution' means a joint resolution of the
first House that proposes to approve the same major rule as a
joint resolution of the second House.
``(2) If the second House receives from the first House a
joint resolution, the Chair shall determine whether the joint
resolution is an identical joint resolution.
``(3) If the second House receives an identical joint
resolution--
``(A) the identical joint resolution shall not be referred
to a committee; and
``(B) the procedure in the second House shall be the same
as if no joint resolution had been received from the first
house, except that the vote on final passage shall be on the
identical joint resolution.
``(4) This subsection shall not apply to the House of
Representatives if the joint resolution received from the
Senate is a revenue measure.
``(g) If either House has not taken a vote on final passage
of the joint resolution by the last day of the period
described in section 801(b)(2), then such vote shall be taken
on that day.
``(h) This section and section 803 are enacted by
Congress--
``(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such is
deemed to be part of the rules of each House, respectively,
but applicable only with respect to the procedure to be
followed in that House in the case of a joint resolution
described in subsection (a) and superseding other rules only
where explicitly so; and
``(2) with full recognition of the constitutional right of
either House to change the rules (so far as they relate to
the procedure of that House) at any time, in the same manner
and to the same extent as in the case of any other rule of
that House.
``Sec. 803. Congressional disapproval procedure for nonmajor
rules
``(a) For purposes of this section, the term `joint
resolution' means only a joint resolution introduced in the
period beginning on the date on which the report referred to
in section 801(a)(1)(A) is received by Congress and ending 60
days thereafter (excluding days either House of Congress is
adjourned for more than 3 days during a session of Congress),
the matter after the resolving clause of which is as follows:
`That Congress disapproves the nonmajor rule submitted by the
___ relating to ___, and such rule shall have no force or
effect.' (The blank spaces being appropriately filled in).
``(b)(1) A joint resolution described in subsection (a)
shall be referred to the committees in each House of Congress
with jurisdiction.
``(2) For purposes of this section, the term `submission or
publication date' means the later of the date on which--
``(A) the Congress receives the report submitted under
section 801(a)(1); or
``(B) the nonmajor rule is published in the Federal
Register, if so published.
``(c) In the Senate, if the committee to which is referred
a joint resolution described in subsection (a) has not
reported such joint resolution (or an identical joint
resolution) at the end of 15 session days after the date of
introduction of the joint resolution, such committee may be
discharged from further consideration of such joint
resolution upon a petition supported in writing by 30 Members
of the Senate, and such joint resolution shall be placed on
the calendar.
``(d)(1) In the Senate, when the committee to which a joint
resolution is referred has reported, or when a committee is
discharged (under subsection (c)) from further consideration
of a joint resolution described in subsection (a), it is at
any time thereafter in order (even though a previous motion
to the same effect has been disagreed to) for a motion to
proceed to the consideration of the joint resolution, and all
points of order against the joint resolution (and against
consideration of the joint resolution) are waived. The motion
is not subject to amendment, or to a motion to postpone, or
to a motion to proceed to the consideration of other
business. A motion to reconsider the vote by which the motion
is agreed to or disagreed to shall not be in order. If a
motion to proceed to the consideration of the joint
resolution is agreed to, the joint resolution shall remain
the unfinished business of the Senate until disposed of.
``(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 10 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
``(3) In the Senate, immediately following the conclusion
of the debate on a joint resolution described in subsection
(a), and a single quorum call at the conclusion of the debate
if requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to
the application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
``(e) In the Senate the procedure specified in subsection
(c) or (d) shall not apply to the consideration of a joint
resolution respecting a nonmajor rule--
``(1) after the expiration of the 60 session days beginning
with the applicable submission or publication date, or
``(2) if the report under section 801(a)(1)(A) was
submitted during the period referred to in section 801(d)(1),
after the expiration of the 60 session days beginning on the
15th session day after the succeeding session of Congress
first convenes.
``(f) If, before the passage by one House of a joint
resolution of that House described in subsection (a), that
House receives from the other House a joint resolution
described in subsection (a), then the following procedures
shall apply:
``(1) The joint resolution of the other House shall not be
referred to a committee.
``(2) With respect to a joint resolution described in
subsection (a) of the House receiving the joint resolution--
``(A) the procedure in that House shall be the same as if
no joint resolution had been received from the other House;
but
[[Page S4818]]
``(B) the vote on final passage shall be on the joint
resolution of the other House.
``Sec. 804. Definitions
``For purposes of this chapter--
``(1) the term `Federal agency' means any agency as that
term is defined in section 551(1);
``(2) the term `major rule' means any rule, including an
interim final rule, that the Administrator of the Office of
Information and Regulatory Affairs of the Office of
Management and Budget finds has resulted in or is likely to
result in--
``(A) an annual effect on the economy of $100,000,000 or
more;
``(B) a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions; or
``(C) significant adverse effects on competition,
employment, investment, productivity, innovation, or on the
ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets;
``(3) the term `nonmajor rule' means any rule that is not a
major rule; and
``(4) the term `rule' has the meaning given such term in
section 551, except that such term does not include--
``(A) any rule of particular applicability, including a
rule that approves or prescribes for the future rates, wages,
prices, services, or allowances therefore, corporate or
financial structures, reorganizations, mergers, or
acquisitions thereof, or accounting practices or disclosures
bearing on any of the foregoing;
``(B) any rule relating to agency management or personnel;
or
``(C) any rule of agency organization, procedure, or
practice that does not substantially affect the rights or
obligations of non-agency parties.
``Sec. 805. Judicial review
``(a) No determination, finding, action, or omission under
this chapter shall be subject to judicial review.
``(b) Notwithstanding subsection (a), a court may determine
whether a Federal agency has completed the necessary
requirements under this chapter for a rule to take effect.
``(c) The enactment of a joint resolution of approval under
section 802 shall not--
``(1) be interpreted to serve as a grant or modification of
statutory authority by Congress for the promulgation of a
rule;
``(2) extinguish or affect any claim, whether substantive
or procedural, against any alleged defect in a rule; and
``(3) form part of the record before the court in any
judicial proceeding concerning a rule except for purposes of
determining whether or not the rule is in effect.
``Sec. 806. Exemption for monetary policy
``Nothing in this chapter shall apply to rules that concern
monetary policy proposed or implemented by the Board of
Governors of the Federal Reserve System or the Federal Open
Market Committee.
``Sec. 807. Effective date of certain rules
``Notwithstanding section 801--
``(1) any rule that establishes, modifies, opens, closes,
or conducts a regulatory program for a commercial,
recreational, or subsistence activity related to hunting,
fishing, or camping; or
``(2) any rule other than a major rule which an agency for
good cause finds (and incorporates the finding and a brief
statement of reasons therefore in the rule issued) that
notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest,
shall take effect at such time as the Federal agency
promulgating the rule determines.''.
SEC. _04. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 802
OF TITLE 5, UNITED STATES CODE.
Section 257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 907(b)(2)) is amended
by adding at the end the following:
``(E) Any rules subject to the congressional approval
procedure set forth in section 802 of chapter 8 of title 5,
United States Code, affecting budget authority, outlays, or
receipts shall be assumed to be effective unless it is not
approved in accordance with such section.''.
______
SA 3608. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. ___. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General.--Notwithstanding section 714 of title 31,
United States Code, or any other provision of law, an audit
of the Board of Governors of the Federal Reserve System and
the Federal reserve banks under subsection (b) of such
section 714 shall be completed within 12 months of the date
of enactment of this Act.
(b) Report.--
(1) In general.--A report on the audit required under
subsection (a) shall be submitted by the Comptroller General
to the Congress before the end of the 90-day period beginning
on the date on which such audit is completed and made
available to the Speaker of the House, the majority and
minority leaders of the House of Representatives, the
majority and minority leaders of the Senate, the Chairman and
Ranking Member of the committee and each subcommittee of
jurisdiction in the House of Representatives and the Senate,
and any other Member of Congress who requests it.
(2) Contents.--The report under paragraph (1) shall include
a detailed description of the findings and conclusion of the
Comptroller General with respect to the audit that is the
subject of the report, together with such recommendations for
legislative or administrative action as the Comptroller
General may determine to be appropriate.
(c) Repeal of Certain Limitations.--Subsection (b) of
section 714 of title 31, United States Code, is amended by
striking all after ``in writing.''.
(d) Technical and Conforming Amendment.--Section 714 of
title 31, United States Code, is amended by striking
subsection (f).
SEC. ___. AUDIT OF LOAN FILE REVIEWS REQUIRED BY ENFORCEMENT
ACTIONS.
(a) In General.--The Comptroller General of the United
States shall conduct an audit of the review of loan files of
homeowners in foreclosure in 2009 or 2010, required as part
of the enforcement actions taken by the Board of Governors of
the Federal Reserve System against supervised financial
institutions.
(b) Content of Audit.--The audit carried out pursuant to
subsection (a) shall consider, at a minimum--
(1) the guidance given by the Board of Governors of the
Federal Reserve System to independent consultants retained by
the supervised financial institutions regarding the
procedures to be followed in conducting the file reviews;
(2) the factors considered by independent consultants when
evaluating loan files;
(3) the results obtained by the independent consultants
pursuant to those reviews;
(4) the determinations made by the independent consultants
regarding the nature and extent of financial injury sustained
by each homeowner as well as the level and type of
remediation offered to each homeowner; and
(5) the specific measures taken by the independent
consultants to verify, confirm, or rebut the assertions and
representations made by supervised financial institutions
regarding the contents of loan files and the extent of
financial injury to homeowners.
(c) Report.--Not later than the end of the 6-month period
beginning on the date of the enactment of this Act, the
Comptroller General shall issue a report to the Congress
containing all findings and determinations made in carrying
out the audit required under subsection (a).
______
SA 3609. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. NATIONAL RIGHT-TO-WORK.
(a) Amendments to the National Labor Relations Act.--
(1) Rights of employees.--Section 7 of the National Labor
Relations Act (29 U.S.C. 157) is amended by striking ``except
to'' and all that follows through ``authorized in section
8(a)(3)''.
(2) Unfair labor practices.--Section 8 of the National
Labor Relations Act (29 U.S.C. 158) is amended--
(A) in subsection (a)(3), by striking ``: Provided, That''
and all that follows through ``retaining membership'';
(B) in subsection (b)--
(i) in paragraph (2), by striking ``or to discriminate''
and all that follows through ``retaining membership''; and
(ii) in paragraph (5), by striking ``covered by an
agreement authorized under subsection (a)(3) of this
section''; and
(C) in subsection (f), by striking clause (2) and
redesignating clauses (3) and (4) as clauses (2) and (3),
respectively.
(b) Amendment to the Railway Labor Act.--Section 2 of the
Railway Labor Act (45 U.S.C. 152) is amended by striking
paragraph Eleven.
______
SA 3610. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. PROTECTING SMALL BUSINESS JOBS.
Section 558 of title 5, United States Code, is amended by
adding at the end the following:
``(d) Before any enforcement action is taken on a sanction
on a business for a violation of a rule or pursuant to an
adjudication, and subject to subsection (e) and (f), an
agency shall--
``(1) not later than 10 business days after the date on
which the agency determines that the sanction may be imposed
on the business, provide notice to the business that, if the
business is a small business, the small business may be
subject to a sanction at the end of the grace period
described in paragraph (3);
``(2) delay any further action relating to the sanction
until the end of the 15-calendar day period beginning on the
date on which
[[Page S4819]]
the agency provides notice under paragraph (1);
``(3) for a small business--
``(A) delay any further action relating to the sanction
until not earlier than the end of the 6-month period
beginning on the date on which the agency provides notice
under paragraph (1); and
``(B) upon application by the small business demonstrating
reasonable efforts made in good faith to remedy the violation
or other conduct giving rise to the sanction, extending the
period under subparagraph (A) by 3 months;
``(4) after the end of the period described in paragraph
(3), redetermine whether, as of the day after the end of the
period, the small business would still be subject to the
sanction; and
``(5) if the agency determines under paragraph (4) that the
small business would not be subject to the sanction, waive
the sanction.
``(e) If an agency provides notice described in subsection
(d)(1) to a business on or after the date that is 11 business
days after the date on which the agency determines that a
sanction may be imposed on the business--
``(1) if the agency determines that the same sanction may
have been imposed on the business 10 business days before the
date of the notice, the agency shall take further action in
accordance with subsection (d); and
``(2) if the agency determines that the same sanction could
not have been imposed on the business 10 business days before
the date of the notice, the agency shall waive the sanction
and take no further action relating to imposition of the
sanction.
``(f) The period during which further action is delayed
under subsection (d)--
``(1) shall apply to a business only 1 time in relation to
any single rule;
``(2) until the end of such period, as determined in
accordance with subsection (d), shall apply to action by the
agency relating to any subsequent violation of the same rule;
and
``(3) shall not apply to a violation that puts any person
in imminent danger, within the meaning given that term under
section 13 of the Occupational Safety and Health Act (29
U.S.C. 662).
``(g) Nothing in subsection (d) shall be construed to
prevent a small business from appealing any sanction imposed
in accordance with the procedures of the agency, or from
seeking review under chapter 7.
``(h) Any sanction imposed by an agency on a small business
for any violation of a rule or pursuant to an adjudication,
absent proof of written notice of the sanction and the date
on which the agency determined that a sanction may be
imposed, or in violation of subsection (d)(3), shall have no
force or effect.
``(i) Each Federal agency shall submit to the Ombudsman an
annual report on the implementation of subsection (d),
including a discussion of the deferral of action relating to
and waiver of sanctions on small businesses.
``(j) The Ombudsman shall include in the annual report to
Congress required under section 30(b)(2)(C) of the Small
Business Act (15 U.S.C. 657(b)(2)(C)) the agency reports
described by subsection (i) and a summary of the findings.
``(k) For purposes of this section--
``(1) the term `consumer price index' means the consumer
price index for all urban consumers published by the
Department of Labor;
``(2) the term `CPI adjusted gross receipts' means the
amount of gross receipts, divided by the consumer price index
for calendar year 2012, and multiplied by the consumer price
index for the preceding calendar year, rounded to the nearest
multiple of $100,000 (or, if midway between multiples of
$100,000, to the next higher multiple of $100,000);
``(3) the term `Ombudsman' has the same meaning given such
term in section 30(a) of the Small Business Act (15 U.S.C.
657(a)); and
``(4) term `small business' means any sole proprietorship,
partnership, corporation, limited liability company, or other
business entity, that--
``(A) had less than $10,000,000 in gross receipts in the
preceding calendar year;
``(B) is considered a small-business concern (as defined
under section 3(a) of the Small Business Act (15 U.S.C.
632(a));
``(C) employed fewer than 200 individuals in the preceding
calendar year; or
``(D) had CPI adjusted gross receipts of less than
$10,000,000 in the preceding calendar year.''.
______
SA 3611. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
DIVISION--ECONOMIC FREEDOM ZONES
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the
``Economic Freedom Zones Act of 2014''.
(b) Table of Contents.--The table of contents for this
division is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS
Sec. 101. Prohibition of Federal Government bailouts.
TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)
Sec. 201. Eligibility requirements for Economic Freedom Zone Status.
Sec. 202. Application and duration of designation.
TITLE III--FEDERAL TAX INCENTIVES
Sec. 301. Tax incentives related to Economic Freedom Zones.
TITLE IV--FEDERAL REGULATORY REDUCTIONS
Sec. 401. Suspension of certain laws and regulations.
TITLE V--EDUCATIONAL ENHANCEMENTS
Sec. 501. Educational opportunity tax credit.
Sec. 502. School choice through portability.
Sec. 503. Special economic freedom zone visas.
Sec. 504. Economic Freedom Zone educational savings accounts.
TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING
Sec. 601. Nonapplication of Davis-Bacon.
Sec. 602. Economic Freedom Zone charitable tax credit.
TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS
Sec. 701. Sense of the Senate concerning policy recommendations.
SEC. 2. DEFINITIONS.
In this division:
(1) City.--The term ``city'' means any unit of general
local government that is classified as a municipality by the
United States Census Bureau, or is a town or township as
determined jointly by the Director of the Office of
Management and Budget and the Secretary.
(2) County.--The term ``county'' means any unit of local
general government that is classified as a county by the
United States Census Bureau.
(3) Eligible entity.--The term ``eligible entity'' means a
municipality or a zip code.
(4) Municipality.--The term ``municipality'' has the
meaning given that term in section 101(40) of title 11,
United States Code.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) Zip code.--The term ``zip code'' means any area or
region associated with or covered by a United States Postal
zip code of not less than 5 digits.
TITLE I--PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS
SEC. 101. PROHIBITION OF FEDERAL GOVERNMENT BAILOUTS.
(a) Definitions.--In this section--
(1) the term ``credit rating'' has the meaning given that
term in section 3(a)(60) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(60));
(2) the term ``credit rating agency'' has the meaning given
that term in section 3(a)(61) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(61));
(3) the term ``Federal assistance'' means the use of any
advances from the Federal Reserve credit facility or discount
window that is not part of a program or facility with broad-
based eligibility under section 13(3)(A) of the Federal
Reserve Act (12 U.S.C. 343(3)(A)), Federal Deposit Insurance
Corporation insurance, or guarantees for the purpose of--
(A) making a loan to, or purchasing any interest or debt
obligation of, a municipality;
(B) purchasing the assets of a municipality;
(C) guaranteeing a loan or debt issuance of a municipality;
or
(D) entering into an assistance arrangement, including a
grant program, with an eligible entity;
(4) the term ``insolvent'' means, with respect to an
eligible entity, a financial condition such that the eligible
entity--
(A) has any debt that has been given a credit rating lower
than a ``B'' by a nationally recognized statistical rating
organization or a credit rating agency;
(B) is not paying its debts as they become due, unless such
debts are the subject of a bona fide dispute; or
(C) is unable to pay its debts as they become due; and
(5) the term ``nationally recognized statistical rating
organization'' has the meaning given that term in section
3(a)(62) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(62)).
(b) Prohibition of Federal Government Bailouts.--
(1) Prohibition of federal assistance.--Notwithstanding any
other provision of law, no Federal assistance may be provided
to an eligible entity (other than the assistance provided for
in this division for an area that is designated as an
Economic Free Zone).
(2) Prohibition of financial assistance to bankrupt or
insolvent eligible entities.--Except as provided in paragraph
(1), the Federal Government may not provide financial
assistance--
(A) to a municipality that is a debtor under chapter 9 of
title 11, United States Code; or
(B) to a municipality that is insolvent.
TITLE II--DESIGNATION OF ECONOMIC FREEDOM ZONES (EFZ)
SEC. 201. ELIGIBILITY REQUIREMENTS FOR ECONOMIC FREEDOM ZONE
STATUS.
(a) Designation of Municipalities as Economic Freedom
Zones.--
(1) In general.--An eligible entity that is a municipality
may be designated by the
[[Page S4820]]
Secretary as an Economic Freedom Zone if the municipality--
(A) meets the requirements under section 109(c) of title
11, United States Code; or
(B) is at risk of insolvency, as determined under paragraph
(2).
(2) At risk of insolvency.--A municipality is at risk of
insolvency if--
(A) an independent actuarial firm that has been engaged by
the municipality and that does not have a conflict of
interest with the municipality, including any previous
relationship with the municipality, as determined by the
Secretary--
(i) determines that the municipality is insolvent (as
defined in section 101(a)(4) of title 11, United States
Code); and
(ii) submits its analysis regarding the insolvency of the
municipality to the Secretary; and
(B) the Secretary has reviewed and approved the
determination of insolvency by the actuarial firm.
(b) Designation of Counties, Cities, and Zip Codes as
Economic Freedom Zones.--
(1) In general.--An eligible entity may be designated by
the Secretary as an Economic Freedom Zone if the eligible
entity--
(A) is a county or city that--
(i) is located in a non-metropolitan statistical area (as
defined by the Director of the Office of Management and
Budget); and
(ii) meets the requirements under paragraph (2); or
(B) is a zip code that meets the requirements under
paragraph (2).
(2) Low economic and high poverty area.--
(A) In general.--An eligible entity shall be eligible for
designation as an Economic Freedom Zone under paragraph (1)
if the eligible entity is designated by the Secretary as a
low economic or high poverty area under subparagraph (B).
(B) Designation as low economic and high poverty area.--The
Secretary, after reviewing supporting data as determined
appropriate, shall designate an eligible entity as a low
economic or high poverty area if--
(i) the State or local government with jurisdiction over
the eligible entity certifies that--
(I) the eligible entity is one of pervasive poverty,
unemployment, and general distress;
(II) the average rate of unemployment within such eligible
entity during the most recent 3-month period for which data
is available is at least 1.5 times the national unemployment
rate for the period involved;
(III) during the most recent 3-month period, at least 30
percent of the residents of the eligible entity have incomes
below the national poverty level; or
(IV) at least 70 percent of the residents of the eligible
have incomes below 80 percent of the median income of
households within the jurisdiction of the local government
(as determined in the same manner as under section 119(b)(2)
of the Housing and Community Development Act of 1974); and
(ii) the Secretary determines that such a designation is
appropriate.
(c) Refusal to Grant Status.--The Secretary may refuse to
designate an eligible entity as an Economic Freedom Zone if
the Secretary determines that any requirement under this
division, including any requirement under subsection (a)(2),
has not been satisfied.
SEC. 202. APPLICATION AND DURATION OF DESIGNATION.
(a) Application.--The Secretary shall develop procedures to
enable an eligible entity to submit to the Secretary an
application for designation as an Economic Freedom Zone under
this title.
(b) Duration.--The designation by the Secretary of an
eligible entity as a Economic Freedom Zone shall be for a
period of 10 years.
TITLE III--FEDERAL TAX INCENTIVES
SEC. 301. TAX INCENTIVES RELATED TO ECONOMIC FREEDOM ZONES.
(a) In General.--Chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter Z--Economic Freedom Zones
``PART I--Tax Incentives
``PART II--Definitions
``PART I--TAX INCENTIVES
``Sec. 1400V-1. Economic Freedom Zone individual flat tax.
``Sec. 1400V-2. Economic Freedom Zone corporate flat tax.
``Sec. 1400V-3. Zero percent capital gains rate.
``Sec. 1400V-4. Reduced payroll taxes.
``Sec. 1400V-5. Increase in expensing under section 179.
``SEC. 1400V-1. ECONOMIC FREEDOM ZONE INDIVIDUAL FLAT TAX.
``(a) In General.--In the case of any individual whose
principal residence (within the meaning of section 121) is
located in an Economic Freedom Zone for the taxable year, in
lieu of the tax imposed by section 1, there shall be imposed
a tax equal to 5 percent of the taxable income of such
taxpayer. For purposes of this title, the tax imposed by the
preceding sentence shall be treated as a tax imposed by
section 1.
``(b) Joint Returns.--In the case of a joint return under
section 6013, subsection (a) shall apply so long as either
spouse has a principal residence (within the meaning of
section 121) in an Economic Freedom Zone for the taxable
year.
``(c) Alternative Minimum Tax Not to Apply.--The tax
imposed by section 55 shall not apply to any taxpayer to whom
subsection (a) applies.
``SEC. 1400V-2. ECONOMIC FREEDOM ZONE CORPORATE FLAT TAX.
``(a) In General.--In the case of any corporation located
in an Economic Freedom Zone for the taxable year, in lieu of
the tax imposed by section 11, there shall be imposed a tax
equal to 5 percent of the taxable income of such corporation.
For purposes of this title, the tax imposed by the preceding
sentence shall be treated as a tax imposed by section 11.
``(b) Limitation.--Subsection (a) shall not apply to any
corporation for any taxable year if the adjusted gross income
of such corporation for such taxable year exceeds
$500,000,000.
``(c) Located.--For purposes of this section, a corporation
shall be considered to be located in an Economic Freedom Zone
if--
``(1) not less than 10 percent of the total gross income of
such corporation is derived from the active conduct of a
trade or business within an Economic Freedom Zone, or
``(2) at least 25 percent of the employees of such
corporation are residents of an Economic Freedom Zone.
``(d) Alternative Minimum Tax Not to Apply.--The tax
imposed by section 55 shall not apply to any taxpayer to whom
subsection (a) applies.
``SEC. 1400V-3. ZERO PERCENT CAPITAL GAINS RATE.
``(a) Exclusion.--Gross income shall not include qualified
capital gain from the sale or exchange of--
``(1) any Economic Freedom Zone asset held for more than 5
years,
``(2) any real property located in an Economic Freedom
Zone.
``(b) Economic Freedom Zone Asset.--For purposes of this
section--
``(1) In general.--The term `Economic Freedom Zone asset'
means--
``(A) any Economic Freedom Zone business stock,
``(B) any Economic Freedom Zone partnership interest, and
``(C) any Economic Freedom Zone business property.
``(2) Economic freedom zone business stock.--
``(A) In general.--The term `Economic Freedom Zone business
stock' means any stock in a domestic corporation if--
``(i) such stock is acquired by the taxpayer, before the
date on which such corporation no longer qualifies as an
Economic Freedom Zone business due to the lapse of 1 or more
Economic Freedom Zones, at its original issue (directly or
through an underwriter) solely in exchange for cash,
``(ii) as of the time such stock was issued, such
corporation was an Economic Freedom Zone business (or, in the
case of a new corporation, such corporation was being
organized for purposes of being an Economic Freedom Zone
business), and
``(iii) during substantially all of the taxpayer's holding
period for such stock, such corporation qualified as an
Economic Freedom Zone business.
``(B) Redemptions.--A rule similar to the rule of section
1202(c)(3) shall apply for purposes of this paragraph.
``(3) Economic freedom zone partnership interest.--The term
`Economic Freedom Zone partnership interest' means any
capital or profits interest in a domestic partnership if--
``(A) such interest is acquired by the taxpayer, before the
date on which such partnership no longer qualifies as an
Economic Freedom Zone business due to the lapse of 1 or more
Economic Freedom Zones, from the partnership solely in
exchange for cash,
``(B) as of the time such interest was acquired, such
partnership was an Economic Freedom Zone business (or, in the
case of a new partnership, such partnership was being
organized for purposes of being an Economic Freedom Zone
business), and
``(C) during substantially all of the taxpayer's holding
period for such interest, such partnership qualified as an
Economic Freedom Zone business.
A rule similar to the rule of paragraph (2)(B) shall apply
for purposes of this paragraph.
``(4) Economic freedom zone business property.--
``(A) In general.--The term `Economic Freedom Zone business
property' means tangible property if--
``(i) such property was acquired by the taxpayer by
purchase (as defined in section 179(d)(2)) after the date on
such taxpayer qualifies as an Economic Freedom Zone business
and before the date on which such taxpayer no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones,
``(ii) the original use of such property in the Economic
Freedom Zone commences with the taxpayer, and
``(iii) during substantially all of the taxpayer's holding
period for such property, substantially all of the use of
such property was in an Economic Freedom Zone business of the
taxpayer.
``(B) Special rule for buildings which are substantially
improved.--
``(i) In general.--The requirements of clauses (i) and (ii)
of subparagraph (A) shall be treated as met with respect to--
``(I) property which is substantially improved by the
taxpayer before the date on which such taxpayer no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones, and
[[Page S4821]]
``(II) any land on which such property is located.
``(ii) Substantial improvement.--For purposes of clause
(i), property shall be treated as substantially improved by
the taxpayer only if, during any 24-month period beginning
after the date on which the taxpayer qualifies as an Economic
Freedom Zone business additions to basis with respect to such
property in the hands of the taxpayer exceed the greater of--
``(I) an amount equal to the adjusted basis of such
property at the beginning of such 24-month period in the
hands of the taxpayer, or
``(II) $5,000.
``(5) Treatment of economic freedom zone termination.--
Except as otherwise provided in this subsection, the
termination of the designation of the Economic Freedom Zone
shall be disregarded for purposes of determining whether any
property is an Economic Freedom Zone asset.
``(6) Treatment of subsequent purchasers, etc.--The term
`Economic Freedom Zone asset' includes any property which
would be an Economic Freedom Zone asset but for paragraph
(2)(A)(i), (3)(A), or (4)(A)(i) or (ii) in the hands of the
taxpayer if such property was an Economic Freedom Zone asset
in the hands of a prior holder.
``(7) 5-year safe harbor.--If any property ceases to be an
Economic Freedom Zone asset by reason of paragraph
(2)(A)(iii), (3)(C), or (4)(A)(iii) after the 5-year period
beginning on the date the taxpayer acquired such property,
such property shall continue to be treated as meeting the
requirements of such paragraph; except that the amount of
gain to which subsection (a) applies on any sale or exchange
of such property shall not exceed the amount which would be
qualified capital gain had such property been sold on the
date of such cessation.
``(c) Economic Freedom Zone Business.--For purposes of this
section, the term `Economic Freedom Zone business' means any
enterprise zone business (as defined in section 1397C),
determined--
``(1) after the application of section 1400(e),
``(2) by substituting `80 percent' for `50 percent' in
subsections (b)(2) and (c)(1) of section 1397C, and
``(3) by treating only areas that are Economic Freedom
Zones as an empowerment zone or enterprise community.
``(d) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Qualified capital gain.--Except as otherwise provided
in this subsection, the term `qualified capital gain' means
any gain recognized on the sale or exchange of--
``(A) a capital asset, or
``(B) property used in the trade or business (as defined in
section 1231(b)).
``(2) Certain gain not qualified.--The term `qualified
capital gain' shall not include any gain attributable to
periods before the date on which the a business qualifies as
an Economic Freedom Zone business or after the date that is 4
years after the date on which such business no longer
qualifies as an Economic Freedom Zone business due to the
lapse of 1 or more Economic Freedom Zones.
``(3) Certain gain not qualified.--The term `qualified
capital gain' shall not include any gain which would be
treated as ordinary income under section 1245 or under
section 1250 if section 1250 applied to all depreciation
rather than the additional depreciation.
``(4) Intangibles not integral part of economic freedom
zone business.--In the case of gain described in subsection
(a)(1), the term `qualified capital gain' shall not include
any gain which is attributable to an intangible asset which
is not an integral part of an Economic Freedom Zone business.
``(5) Related party transactions.--The term `qualified
capital gain' shall not include any gain attributable,
directly or indirectly, in whole or in part, to a transaction
with a related person. For purposes of this paragraph,
persons are related to each other if such persons are
described in section 267(b) or 707(b)(1).
``(e) Sales and Exchanges of Interests in Partnerships and
S Corporations Which Are Economic Freedom Zone Businesses.--
In the case of the sale or exchange of an interest in a
partnership, or of stock in an S corporation, which was an
Economic Freedom Zone business during substantially all of
the period the taxpayer held such interest or stock, the
amount of qualified capital gain shall be determined without
regard to--
``(1) any gain which is attributable to an intangible asset
which is not an integral part of an Economic Freedom Zone
business, and
``(2) any gain attributable to periods before the date on
which the a business qualifies as an Economic Freedom Zone
business or after the date that is 4 years after the date on
which such business no longer qualifies as an Economic
Freedom Zone business due to the lapse of 1 or more Economic
Freedom Zones.
``SEC. 1400V-4. REDUCED PAYROLL TAXES.
``(a) In General.--
``(1) Employees.--The rate of tax under 3101(a) (including
for purposes of determining the applicable percentage under
sections 3201(a) and 3211(a)(1)) shall be 4.2 percent for any
remuneration received during any period in which the
individual's principal residence (within the meaning of
section 121) is located in an Economic Freedom Zone.
``(2) Employers.--
``(A) In general.--The rate of tax under section 3111(a)
(including for purposes of determining the applicable
percentage under sections 3221(a)) shall be 4.2 percent with
respect to remuneration paid for qualified services during
any period in which the employer is located in an Economic
Freedom Zone.
``(B) Qualified services.--For purposes of this section,
the term `qualified services' means services performed--
``(i) in a trade or business of a qualified employer, or
``(ii) in the case of a qualified employer exempt from tax
under section 501(a) of the Internal Revenue Code of 1986, in
furtherance of the activities related to the purpose or
function constituting the basis of the employer's exemption
under section 501 of such Code.
``(C) Location of employer.--For purposes of this
paragraph, the location of an employer shall be determined in
the same manner as under section 1400V--2(c).
``(3) Self-employed individuals.--The rate of tax under
section 1401(a) shall be 8.40 percent any taxable year in
which such individual was located (determined under section
1400V--2(c) as if such individual were a corporation) in an
Economic Freedom Zone.
``(b) Transfers of Funds.---
``(1) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
application of subsection (a). Amounts appropriated by the
preceding sentence shall be transferred from the general fund
at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to
such Trust Fund had such amendments not been enacted.
``(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under section
15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C.
231n-1(a)) amounts equal to the reduction in revenues to the
Treasury by reason of the application of paragraphs (1) and
(2) of subsection (a). Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent
possible the transfers which would have occurred to such
Account had such amendments not been enacted.
``(3) Coordination with other federal laws.--For purposes
of applying any provision of Federal law other than the
provisions of the Internal Revenue Code of 1986, the rate of
tax in effect under section 3101(a) shall be determined
without regard to the reduction in such rate under this
section.
``SEC. 1400V-5. INCREASE IN EXPENSING UNDER SECTION 179.
``(a) In General.--In the case of an Economic Freedom Zone
business, for purposes of section 179--
``(1) the limitation under section 179(b)(1) shall be
increased by the lesser of--
``(A) 200 percent of the amount in effect under such
section (determined without regard to this section), or
``(B) the cost of section 179 property which is Economic
Freedom Zone business property placed in service during the
taxable year, and
``(2) the amount taken into account under section 179(b)(2)
with respect to any section 179 property which is Economic
Freedom Zone business property shall be 50 percent of the
cost thereof.
``(b) Economic Freedom Zone Business Property.--For
purposes of this section, the term `Economic Freedom Zone
business property' has the meaning given such term under
section 1400V--3(b)(4), except that for purposes of
subparagraph (A)(ii) thereof, if property is sold and leased
back by the taxpayer within 3 months after the date such
property was originally placed in service, such property
shall be treated as originally placed in service not earlier
than the date on which such property is used under the
leaseback
``(c) Recapture.--Rules similar to the rules under section
179(d)(10) shall apply with respect to any qualified zone
property which ceases to be used in an empowerment zone by an
enterprise zone business.
``PART II--DEFINITIONS
``Sec. 1400V-6. Economic Freedom Zone.
``SEC. 1400V-6. ECONOMIC FREEDOM ZONE.
``For purposes of this subchapter, the term `Economic
Freedom Zone' means any area which is an Economic Freedom
Zone under title II of the Economic Freedom Zone Act.''.
(b) Clerical Amendment.--The table of subchapters for
chapter 1 of such Code is amended by inserting after the item
relating to subchapter Y the following new item:
``subchapter z--economic freedom zones''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
TITLE IV--FEDERAL REGULATORY REDUCTIONS
SEC. 401. SUSPENSION OF CERTAIN LAWS AND REGULATIONS.
(a) Environmental Protection Agency.--For each area
designated as an Economic Freedom Zone under this Act, the
Administrator of the Environmental Protection Agency shall
not enforce, with respect to that Economic Freedom Zone, and
the Economic Freedom Zone shall be exempt from compliance
with--
[[Page S4822]]
(1) part D of the Clean Air Act (42 U.S.C. 7501 et seq.)
(including any regulations promulgated under that part);
(2) section 402 of the Federal Water Pollution Control Act
(33 U.S.C. 1342);
(3) sections 139, 168, 169, 326, and 327 of title 23,
United States Code;
(4) section 304 of title 49, United States Code; and
(5) sections 1315 through 1320 of Public Law 112-141 (126
Stat. 549).
(b) Department of the Interior.--
(1) Wild and scenic rivers.--For each area designated as an
Economic Freedom Zone under this Act, the Secretary of the
Interior shall not enforce, with respect to that Economic
Freedom Zone, and the Economic Freedom Zone shall be exempt
from compliance with the Wild and Scenic Rivers Act (16
U.S.C. 1271 et seq.).
(2) National heritage areas.--For the period beginning on
the date of enactment of this Act and ending on the date on
which an area is removed from designation as an Economic
Freedom Zone, any National Heritage Area located within that
Economic Freedom Zone shall not be considered to be a
National Heritage Area and any applicable Federal law
(including regulations) relating to that National Heritage
Area shall not apply.
TITLE V--EDUCATIONAL ENHANCEMENTS
SEC. 501. EDUCATIONAL OPPORTUNITY TAX CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. CREDIT FOR QUALIFIED ELEMENTARY AND SECONDARY
EDUCATION EXPENSES.
``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the qualified
elementary and secondary education expenses of an eligible
student.
``(b) Limitation.--The amount taken into account under
subsection (a) with respect to any student for any taxable
year shall not exceed $5,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified elementary and secondary education
expenses.--The term `qualified elementary and secondary
education expenses' has the meaning given such term under
section 530(b)(3).
``(2) Eligible student.--The term `eligible student' means
any student who--
``(A) is enrolled in, or attends, any public, private, or
religious school (as defined in section 530(b)(3)(B)), and
``(B) whose principal residence (within the meaning of
section 123) is located in an Economic Freedom Zone.
``(3) Economic freedom zone.--The term `Economic Freedom
Zone' means any area which is an Economic Freedom Zone under
title II of the Economic Freedom Zone Act.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 25D
the following new item:
``Sec. 25E. Credit for qualified elementary and secondary education
expenses.''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures made in taxable years beginning
after the date of the enactment of this Act.
SEC. 502. SCHOOL CHOICE THROUGH PORTABILITY.
(a) In General.--Subpart 2 of part A of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6331 et seq.) is amended by adding at the end the following:
``SEC. 1128. SCHOOL CHOICE THROUGH PORTABILITY.
``(a) Authorization.--
``(1) In general.--Notwithstanding sections 1124, 1124A,
and 1125 and any other provision of law, and to the extent
permitted under State law, a State educational agency may
allocate grant funds under this subpart among the local
educational agencies in the State based on the formula
described in paragraph (2).
``(2) Formula.--A State educational agency may allocate
grant funds under this subpart for a fiscal year among the
local educational agencies in the State in proportion to the
number of eligible children enrolled in public schools served
by the local educational agency and enrolled in State-
accredited private schools within the local educational
agency's geographic jurisdiction, for the most recent fiscal
year for which satisfactory data are available, compared to
the number of such children in all such local educational
agencies for that fiscal year.
``(b) Eligible Child.--
``(1) In general.--In this section, the term `eligible
child' means a child--
``(A) from a family with an income below the poverty level,
on the basis of the most recent satisfactory data published
by the Department of Commerce; and
``(B) who resides in an Economic Freedom Zone as designated
under title II of the Economic Freedom Zones Act of 2014.
``(2) Criteria of poverty.--In determining the families
with incomes below the poverty level for the purposes of
paragraph (2), a State educational agency shall use the
criteria of poverty used by the Census Bureau in compiling
the most recent decennial census.
``(3) Identification of eligible children.--On an annual
basis, on a date to be determined by the State educational
agency, each local educational agency that receives grant
funding in accordance with subsection (a) shall inform the
State educational agency of the number of eligible children
enrolled in public schools served by the local educational
agency and enrolled in State-accredited private schools
within the local educational agency's geographic
jurisdiction.
``(c) Distribution to Schools.--Each local educational
agency that receives grant funding under subsection (a) shall
distribute such funds to the public schools served by the
local educational agency and State-accredited private schools
with the local educational agency's geographic jurisdiction--
``(1) based on the number of eligible children enrolled in
such schools; and
``(2) in the manner that would, in the absence of such
Federal funds, supplement the funds made available from the
non-Federal resources for the education of pupils
participating in programs under this part, and not to
supplant such funds.''.
(b) Table of Contents.--The table of contents in section 2
of the Elementary and Secondary Education Act of 1965 is
amended by inserting after the item relating to section 1127
the following:
``Sec. 1128. School choice through portability.''.
SEC. 503. SPECIAL ECONOMIC FREEDOM ZONE VISAS.
(a) Definitions.--In this section:
(1) Abandoned; dilapidated.--The terms ``abandoned'' and
``dilapidated'' shall be defined by the States in accordance
with the provisions of this Act.
(2) Full-time employment.--The term ``full-time
employment'' means employment in a position that requires at
least 35 hours of service per week at any time, regardless of
who fills the position.
(b) Purpose.--The purpose of this section is to facilitate
increased investment and enhanced human capital in Economic
Freedom Zones through the issuance of special regional visas.
(c) Authorization.--The Secretary of Homeland Security, in
collaboration with the Secretary of Labor, may issue Special
Economic Freedom Zone Visas, in a number determined by the
Governor of each State, in consultation with local officials
in regions designated by the Secretary of Treasury as
Economic Freedom Zones, to authorize qualified aliens to
enter the United States for the purpose of--
(1) engaging in a new commercial enterprise (including a
limited partnership)--
(A) in which such alien has invested, or is actively in the
process of investing, capital in an amount not less than the
amount specified in subsection (d); and
(B) which will benefit the region designated as an Economic
Freedom Zone by creating full-time employment of not fewer
than 5 United States citizens, aliens lawfully admitted for
permanent residence, or other immigrants lawfully authorized
to be employed in the United States (excluding the alien and
the alien's immediate family);
(2) engaging in the purchase and renovation of dilapidated
or abandoned properties or residences (as determined by State
and local officials) in which such alien has invested, or is
actively in the process of investing, in the ownership of
such properties or residences; or
(3) residing and working in an Economic Freedom Zone.
(d) Effective Period.--A visa issued to an alien under this
section shall expire on the later of--
(1) the date on which the relevant Economic Freedom Zone
loses such designation; or
(2) the date that is 5 years after the date on which such
visa was issued to such alien.
(e) Capital and Educational Requirements.--
(1) New commercial enterprises.--Except as otherwise
provided under this section, the minimum amount of capital
required to comply with subsection (c)(1)(A) shall be
$50,000.
(2) Renovation of dilapidated or abandoned properties.--An
alien is not in compliance with subsection (c)(2) unless the
alien--
(A) purchases a dilapidated or abandoned property in an
Economic Freedom Zone; and
(B) not later than 18 months after such purchase, invests
not less than $25,000 to rebuild, rehabilitate, or repurpose
the property.
(3) Verification.--A visa issued under subsection (c) shall
not remain in effect for more than 2 years unless the
Secretary of Homeland Security has verified that the alien
has complied with the requirements described in subsection
(c).
(4) Education and skill requirements.--An alien is not in
compliance with subsection (c)(3) unless the alien
possesses--
(A) a bachelor's degree (or its equivalent) or an advanced
degree;
(B) a degree or specialty certification that--
(i) is required for the job the alien will be performing;
and
(ii) is specific to an industry or job that is so complex
or unique that it can be performed only by an individual with
the specialty certification;
(C)(i) the knowledge required to perform the duties of the
job the alien will be performing; and
(ii) the nature of the specific duties is so specialized
and complex that such knowledge is usually associated with
attainment of a bachelor's or higher degree; or
[[Page S4823]]
(D) a skill or talent that would benefit the Economic
Freedom Zone.
(f) Additional Provisions.--
(1) Geographic limitation.--An alien who has been issued a
visa under this section is not permitted to live or work
outside of an Economic Freedom Zone.
(2) Rescission.--A visa issued under this section shall be
rescinded if the visa holder resides or works outside of an
Economic Freedom Zone or otherwise fails to comply with the
provisions of this section.
(3) Other visas.--An alien who has been issued a visa under
this section may apply for any other visa for which the alien
is eligible in order to pursue employment outside of an
Economic Freedom Zone.
(g) Adjustment of Status.--The Secretary of Homeland
Security may adjust the status of an alien who has been
issued a visa under this section to that of an alien lawfully
admitted for permanent residence, without numerical
limitation, if the alien--
(1) has fully complied with the requirements set forth in
this section for at least 5 years;
(2) submits a completed application to the Secretary; and
(3) is not inadmissible to the United States based on any
of the factors set forth in section 212(a) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)).
SEC. 504. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS ACCOUNTS.
(a) In General.--Part VIII of subchapter F of chapter 1 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:
``SEC. 530A. ECONOMIC FREEDOM ZONE EDUCATIONAL SAVINGS
ACCOUNTS.
``(a) In General.--Except as provided in this section, an
Economic Freedom Zone educational savings account shall be
treated for purposes of this title in the same manner as a
Coverdell education savings account.
``(b) Definitions.--For purposes of this section--
``(1) Economic freedom zone educational savings account.--
The term `Economic Freedom Zone educational savings account'
means a trust created or organized in the United States
exclusively for the purpose of paying the qualified education
expenses (as defined in section 530(b)(2)) of an individual
who is the designated beneficiary of the trust (and
designated as an Economic Freedom Zone educational saving
account at the time created or organized) and who is a
qualified individual at the time such trust is established,
but only if the written governing instrument creating the
trust meets the following requirements:
``(A) No contribution will be accepted--
``(i) unless it is in cash,
``(ii) after the date on which such beneficiary attains age
25, or
``(iii) except in the case of rollover contributions, if
such contribution would result in aggregate contributions for
the taxable year exceeding $10,000.
``(B) No contribution shall be accepted at any time in
which the designated beneficiary is not a qualified
individual.
``(C) The trust meets the requirements of subparagraphs
(B), (C), (D), and (E) of section 530(b)(1).
The age limitations in subparagraphs (A)(ii), subparagraph
(E) of section 530(b)(1), and paragraphs (5) and (6) of
section 530(d), shall not apply to any designated beneficiary
with special needs (as determined under regulations
prescribed by the Secretary).
``(2) Qualified individual.--The term `qualified
individual' means any individual whose principal residence
(within the meaning of section 121) is located in an Economic
Freedom Zone (as defined in section 1400V--6).
``(c) Deduction for Contributions.--
``(1) In general.--There shall be allowed as a deduction
under part VII of subchapter B of this chapter an amount
equal to the aggregate amount of contributions made by the
taxpayer to any Economic Freedom Zone educational savings
account during the taxable year .
``(2) Limitation.--The amount of the deduction allowed
under paragraph (1) for any taxpayer for any taxable year
shall not exceed $40,000.
``(3) No deduction for rollover contributions.--No
deduction shall be allowed under paragraph (1) for any
rollover contribution described in section 530(d)(5).
``(d) Other Rules.--
``(1) No income limit.--In the case of an Economic Freedom
Zone educational savings account, subsection (c) of section
530 shall not apply.
``(2) Change in beneficiaries.--Notwithstanding paragraph
(6) of section 530(b), a change in the beneficiary of an
Economic Freedom Zone education savings account shall be
treated as a distribution unless the new beneficiary is a
qualified individual.''.
(b) Clerical Amendment.--The table of sections for part
VIII of subchapter F of chapter 1 of such Code is amended by
adding at the end the following new item:
``Sec. 530A. Economic Freedom Zone educational savings accounts.''.
TITLE VI--COMMUNITY ASSISTANCE AND REBUILDING
SEC. 601. NONAPPLICATION OF DAVIS-BACON.
The wage rate requirements of subchapter IV of chapter 31
of title 40, United States Code (commonly referred to as the
``Davis-Bacon Act''), shall not apply with respect to any
area designated as an Economic Freedom Zone under this Act.
SEC. 602. ECONOMIC FREEDOM ZONE CHARITABLE TAX CREDIT.
(a) In General.--Section 170 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (p) as
subsection (q) and by inserting after subsection (o) the
following new subsection:
``(o) Election to Treat Contributions for Economic Freedom
Zone Charities as a Credit.--
``(1) In general.--In the case of an individual, at the
election of the taxpayer, so much of the deduction allowed
under subsection (a) (determined without regard to this
subsection) which is attributable to Economic Freedom Zone
charitable contributions--
``(A) shall be allowed as a credit against the tax imposed
by this chapter for the taxable year, and
``(B) shall not be allowed as a deduction for such taxable
year under subsection (a).
Any amount allowable as a credit under this subsection shall
be treated as a credit allowed under subpart A of part IV of
subchapter A for purposes of this title.
``(2) Amount attributable to economic freedom zone
charitable contributions.--For purposes of paragraph (1)--
``(A) In general.--In any case in which the total
charitable contributions of a taxpayer for a taxable year
exceed the contribution base, the amount of Economic Freedom
Zone charitable contributions taken into account under
paragraph (1) shall be the amount which bears the same ratio
to the total charitable contributions made by the taxpayer
during such taxable year as the amount of the deduction
allowed under subsection (a) (determined without regard to
this subsection and after application of subsection (b))
bears to the total charitable contributions made by the
taxpayer for such taxable year.
``(B) Carryovers.--In the case of any contribution carried
from a preceding taxable year under subsection (d), such
amount shall be treated as attributable to an Economic
Freedom Zone charitable contribution in the amount that bears
the same ratio to the total amount carried from preceding
taxable years under subsection (d) as the amount of Economic
Freedom Zone charitable contributions not allowed as a
deduction under subsection (a) (other than by reason of this
subsection) for the preceding 5 taxable year bears to total
amount carried from preceding taxable years under subsection
(d).
``(3) Economic freedom zone charitable contribution.--The
term `Economic Freedom Zone charitable contribution' means
any contribution to a corporation, trust, or community chest
fund, or foundation described in subsection (c)(2), but only
if--
``(A) such entity is created or organized exclusively for--
``(i) religious purposes,
``(ii) educational purposes, or
``(iii) any of the following charitable purposes: providing
educational scholarships, providing shelters for homeless
individuals, or setting up or maintaining food banks,
``(B) the primary mission of such entity is serving
individuals in an Economic Freedom Zone,
``(C) the entity maintains accountability to residents of
such Economic Freedom Zone through their representation on
any governing board of the entity or any advisory board to
the entity, and
``(D) the entity is certified by the Secretary for purposes
of this subsection.
Such term shall not include any contribution made to an
entity described in the preceding sentence after the date in
which the designation of the Economic Freedom Zone serviced
by such entity lapses.
``(4) Economic freedom zone.--The term `Economic Freedom
Zone' means any area which is an Economic Freedom Zone under
title II of the Economic Freedom Zone Act.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
TITLE VII--STATE AND COMMUNITY POLICY RECOMMENDATIONS
SEC. 701. SENSE OF THE SENATE CONCERNING POLICY
RECOMMENDATIONS.
It is the sense of the Senate that State and local
governments should review and adopt the following policy
recommendations:
(1) Pension reform.--State and local governments should--
(A) implement reforms to address any fiscal shortfall in
public pension funding, including utilizing accrual
accounting methods, such as those reforms undertaken by the
private sector pension funds; and
(B) restructure and renegotiate any public pension fund
that is deemed to be insolvent or underfunded, including
adopting defined contribution retirement systems.
(2) Taxes.--State and local governments should reduce
jurisdictional tax rates below the national average in order
to help facilitate capital investment and economic growth,
particularly in combination with the provisions of this
division.
(3) Education.--State and local governments should adopt
school choice options to provide children and parents more
educational choices, particularly in impoverished areas.
(4) Communities.--State and local governments should adopt
right-to-work laws to allow more competitiveness and more
flexibility for businesses to expand.
(5) Regulations.--State and local governments should
streamline the regulatory burden on families and businesses,
including
[[Page S4824]]
streamlining the opportunities for occupational licensing.
(6) Abandoned structures.--State and local governments
should consider the following options to reduce or fix areas
with abandoned properties or residences:
(A) In the case of foreclosures, tax notifications should
be sent to both the lien holder (if different than the
homeowner) and the homeowner.
(B) Where State constitutions permit, property tax
abatement or credits should be provided for individuals who
purchase or invest in abandoned or dilapidated properties.
(C) Non-profit or charity demolition entities should be
permitted or encouraged to help remove abandoned properties.
(D) Government or municipality fees and penalties should be
limited, and be proportional to the outstanding tax amount
and the ability to pay.
(E) The sale of tax liens to third parties should be
reviewed, and where available, should prohibit the selling of
tax liens below a certain threshold (for example the
prohibition of the sale of tax liens to third parties under
$1,000).
______
SA 3612. Mr. HATCH submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, add the following new title:
TITLE II--CERTAIN PROVISIONS MADE PERMANENT
SEC. 201. PERMANENT EXTENSION AND MODIFICATION OF INCREASED
EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN
REAL PROPERTY AS SECTION 179 PROPERTY.
(a) In General.--
(1) Dollar limitation.--Paragraph (1) of section 179(b) of
the Internal Revenue Code of 1986 is amended by striking
``shall not exceed--'' and all that follows and inserting
``shall not exceed $500,000.''.
(2) Reduction in limitation.--Paragraph (2) of section
179(b) of such Code is amended by striking ``exceeds--'' and
all that follows and inserting ``exceeds $2,000,000.''.
(b) Computer Software.--Clause (ii) of section 179(d)(1)(A)
of the Internal Revenue Code of 1986 is amended by striking
``, to which section 167 applies, and which is placed in
service in a taxable year beginning after 2002 and before
2014'' and inserting ``and to which section 167 applies''.
(c) Election.--Paragraph (2) of section 179(c) of such Code
is amended--
(1) by striking ``may not be revoked'' and all that follows
through ``and before 2014'', and
(2) by striking ``irrevocable'' in the heading thereof.
(d) Air Conditioning and Heating Units.--The last sentence
of section 179(d)(1) of such Code is amended by striking
``and shall not include air conditioning or heating units''.
(e) Qualified Real Property.--Subsection (f) of section 179
of such Code is amended--
(1) by striking ``beginning in 2010, 2011, 2012, or 2013''
in paragraph (1), and
(2) by striking paragraphs (3) and (4).
(f) Adjustment for Inflation.--Subsection (b) of section
179 of such Code is amended by adding at the end the
following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2013, the dollar amounts in paragraphs (1)
and (2) shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2012' for
`calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--
``(i) Dollar limitation.--If the amount in paragraph (1) as
increased under subparagraph (A) of this paragraph is not a
multiple of $1,000, such amount shall be rounded to the
nearest multiple of $1,000.
``(ii) Phaseout amount.--If the amount in paragraph (2) as
increased under subparagraph (A) of this paragraph is not a
multiple of $10,000, such amount shall be rounded to the
nearest multiple of $10,000.''.
(g) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.
SEC. 202. BONUS DEPRECIATION MODIFIED AND MADE PERMANENT.
(a) Made Permanent; Inclusion of Qualified Retail
Improvement Property.--Section 168(k)(2) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less,
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(III) which is water utility property,
``(IV) which is qualified leasehold improvement property,
or
``(V) which is qualified retail improvement property, and
``(ii) the original use of which commences with the
taxpayer.
``(B) Exception for alternative depreciation property.--The
term `qualified property' shall not include any property to
which the alternative depreciation system under subsection
(g) applies, determined--
``(i) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(ii) after application of section 280F(b) (relating to
listed property with limited business use).
``(C) Special rules.--
``(i) Sale-leasebacks.--For purposes of clause (ii) and
subparagraph (A)(ii), if property is--
``(I) originally placed in service by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(ii) Syndication.--For purposes of subparagraph (A)(ii),
if--
``(I) property is originally placed in service by the
lessor of such property,
``(II) such property is sold by such lessor or any
subsequent purchaser within 3 months after the date such
property was originally placed in service (or, in the case of
multiple units of property subject to the same lease, within
3 months after the date the final unit is placed in service,
so long as the period between the time the first unit is
placed in service and the time the last unit is placed in
service does not exceed 12 months), and
``(III) the user of such property after the last sale
during such 3-month period remains the same as when such
property was originally placed in service,
such property shall be treated as originally placed in
service not earlier than the date of such last sale.
``(D) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $8,000.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).
``(iii) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2014, the $8,000
amount in clause (i) shall be increased by an amount equal
to--
``(I) such dollar amount, multiplied by
``(II) the automobile price inflation adjustment determined
under section 280F(d)(7)(B)(i) for the calendar year in which
such taxable year begins by substituting `2013' for `1987' in
subclause (II) thereof.
If any increase under the preceding sentence is not a
multiple of $100, such increase shall be rounded to the
nearest multiple of $100.
``(E) Deduction allowed in computing minimum tax.--For
purposes of determining alternative minimum taxable income
under section 55, the deduction under section 167 for
qualified property shall be determined without regard to any
adjustment under section 56.''.
(b) Expansion of Election to Accelerate Amt Credits in Lieu
of Bonus Depreciation.--Section 168(k)(4) of such Code is
amended to read as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have this
paragraph apply for any taxable year--
``(i) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not
apply for such taxable year,
``(ii) the applicable depreciation method used under this
section with respect to any qualified property shall be the
straight line method, and
``(iii) the limitation imposed by section 53(c) for such
taxable year shall be increased by the bonus depreciation
amount which is determined for such taxable year under
subparagraph (B).
``(B) Bonus depreciation amount.--For purposes of this
paragraph--
``(i) In general.--The bonus depreciation amount for any
taxable year is an amount equal to 20 percent of the excess
(if any) of--
``(I) the aggregate amount of depreciation which would be
allowed under this section for qualified property placed in
service by the taxpayer during such taxable year if paragraph
(1) applied to all such property, over
``(II) the aggregate amount of depreciation which would be
allowed under this section for qualified property placed in
service by the taxpayer during such taxable year if paragraph
(1) did not apply to any such property.
The aggregate amounts determined under subclauses (I) and
(II) shall be determined without regard to any election made
under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without
regard to subparagraph (A)(ii).
``(ii) Limitation.--The bonus depreciation amount for any
taxable year shall not exceed the lesser of--
``(I) 50 percent of the minimum tax credit under section
53(b) for the first taxable year ending after December 31,
2013, or
``(II) the minimum tax credit under section 53(b) for such
taxable year determined by taking into account only the
adjusted net minimum tax for taxable years ending before
January 1, 2014 (determined by treating credits as allowed on
a first-in, first-out basis).
[[Page S4825]]
``(iii) Aggregation rule.--All corporations which are
treated as a single employer under section 52(a) shall be
treated--
``(I) as 1 taxpayer for purposes of this paragraph, and
``(II) as having elected the application of this paragraph
if any such corporation so elects.
``(C) Credit refundable.--For purposes of section 6401(b),
the aggregate increase in the credits allowable under part IV
of subchapter A for any taxable year resulting from the
application of this paragraph shall be treated as allowed
under subpart C of such part (and not any other subpart).
``(D) Other rules.--
``(i) Election.--Any election under this paragraph may be
revoked only with the consent of the Secretary.
``(ii) Partnerships with electing partners.--In the case of
a corporation which is a partner in a partnership and which
makes an election under subparagraph (A) for the taxable
year, for purposes of determining such corporation's
distributive share of partnership items under section 702 for
such taxable year--
``(I) paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not
apply, and
``(II) the applicable depreciation method used under this
section with respect to any qualified property shall be the
straight line method.
``(iii) Certain partnerships.--In the case of a partnership
in which more than 50 percent of the capital and profits
interests are owned (directly or indirectly) at all times
during the taxable year by 1 corporation (or by corporations
treated as 1 taxpayer under subparagraph (B)(iii)), each
partner shall compute its bonus depreciation amount under
clause (i) of subparagraph (B) by taking into account its
distributive share of the amounts determined by the
partnership under subclauses (I) and (II) of such clause for
the taxable year of the partnership ending with or within the
taxable year of the partner.''.
(c) Special Rules for Trees and Vines Bearing Fruits and
Nuts.--Section 168(k) of such Code is amended--
(1) by striking paragraph (5), and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) Special rules for trees and vines bearing fruits and
nuts.--
``(A) In general.--In the case of any tree or vine bearing
fruits or nuts which is planted, or is grafted to a plant
that has already been planted, by the taxpayer in the
ordinary course of the taxpayer's farming business (as
defined in section 263A(e)(4))--
``(i) a depreciation deduction equal to 50 percent of the
adjusted basis of such tree or vine shall be allowed under
section 167(a) for the taxable year in which such tree or
vine is so planted or grafted, and
``(ii) the adjusted basis of such tree or vine shall be
reduced by the amount of such deduction.
``(B) Election out.--If a taxpayer makes an election under
this subparagraph for any taxable year, this paragraph shall
not apply to any tree or vine planted or grafted during such
taxable year. An election under this subparagraph may be
revoked only with the consent of the Secretary.
``(C) Additional depreciation may be claimed only once.--If
this paragraph applies to any tree or vine, such tree or vine
shall not be treated as qualified property in the taxable
year in which placed in service.
``(D) Coordination with election to accelerate amt
credits.--If a corporation makes an election under paragraph
(4) for any taxable year, the amount under paragraph
(4)(B)(i)(I) for such taxable year shall be increased by the
amount determined under subparagraph (A)(i) for such taxable
year.
``(E) Deduction allowed in computing minimum tax.--Rules
similar to the rules of paragraph (2)(E) shall apply for
purposes of this paragraph.''.
(d) Conforming Amendments.--
(1) Section 168(e)(8) of such Code is amended by striking
subparagraph (D).
(2) Section 168(k) of such Code is amended by adding at the
end the following new paragraph:
``(6) Election out.--If a taxpayer makes an election under
this paragraph with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service (or, in the case of paragraph
(5), planted or grafted) during such taxable year. An
election under this paragraph may be revoked only with the
consent of the Secretary.''.
(3) Section 168(l)(5) of such Code is amended by striking
``section 168(k)(2)(G)'' and inserting ``section
168(k)(2)(E)''.
(4) Section 263A(c) of such Code is amended by adding at
the end the following new paragraph:
``(7) Coordination with section 168(k)(5).--This section
shall not apply to any amount allowable as a deduction by
reason of section 168(k)(5) (relating to special rules for
trees and vines bearing fruits and nuts).''.
(5) Section 460(c)(6)(B) of such Code is amended by
striking ``which--'' and all that follows and inserting
``which has a recovery period of 7 years or less.''.
(6) Section 168(k) of such Code is amended by striking
``Acquired After December 31, 2007, and Before January 1,
2014'' in the heading thereof.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to property placed in service after December 31, 2013.
(2) Expansion of election to accelerate amt credits in lieu
of bonus depreciation.--
(A) In general.--The amendment made by subsection (b)
(other than so much of such amendment as relates to section
168(k)(4)(D)(iii) of such Code, as added by such amendment)
shall apply to taxable years ending after December 31, 2013.
(B) Transitional rule.--In the case of a taxable year
beginning before January 1, 2014, and ending after December
31, 2013, the bonus depreciation amount determined under
section 168(k)(4) of such Code for such year shall be the sum
of--
(i) such amount determined without regard to the amendments
made by this section and--
(I) by taking into account only property placed in service
before January 1, 2014, and
(II) by multiplying the limitation under section
168(k)(4)(C)(ii) of such Code (determined without regard to
the amendments made by this section) by a fraction the
numerator of which is the number of days in the taxable year
before January 1, 2014, and the denominator of which is the
number of days in the taxable year, and
(ii) such amount determined after taking into account the
amendments made by this section and--
(I) by taking into account only property placed in service
after December 31, 2013, and
(II) by multiplying the limitation under section
168(k)(4)(B)(ii) of such Code (as amended by this section) by
a fraction the numerator of which is the number of days in
the taxable year after December 31, 2013, and the denominator
of which is the number of days in the taxable year.
(3) Special rules for certain trees and vines.--The
amendment made by subsection (c)(2) shall apply to trees and
vines planted or grafted after December 31, 2013.
SEC. 203. PERMANENT EXTENSION AND MODIFICATION OF RESEARCH
CREDIT.
(a) Simplified Credit for Qualified Research Expenses.--
Subsection (a) of section 41 of the Internal Revenue Code of
1986 is amended to read as follows:
``(a) General Rule.--For purposes of section 38, the
research credit determined under this section for the taxable
year shall be an amount equal to 20 percent of so much of the
qualified research expenses for the taxable year as exceeds
50 percent of the average qualified research expenses for the
3 taxable years preceding the taxable year for which the
credit is being determined.''.
(b) Special Rules and Termination of Base Amount
Calculation.--
(1) In general.--Subsection (c) of section 41 of such Code
is amended to read as follows:
``(c) Special Rule in Case of No Qualified Research
Expenses in Any of 3 Preceding Taxable Years.--
``(1) Taxpayers to which subsection applies.--The credit
under this section shall be determined under this subsection,
and not under subsection (a), if, in any one of the 3 taxable
years preceding the taxable year for which the credit is
being determined, the taxpayer has no qualified research
expenses.
``(2) Credit rate.--The credit determined under this
subsection shall be equal to 10 percent of the qualified
research expenses for the taxable year.''.
(2) Consistent treatment of expenses.--Subsection (b) of
section 41 of such Code is amended by adding at the end the
following new paragraph:
``(5) Consistent treatment of expenses required.--
``(A) In general.--Notwithstanding whether the period for
filing a claim for credit or refund has expired for any
taxable year in the 3-taxable-year period taken into account
under subsection (a), the qualified research expenses taken
into account for such year shall be determined on a basis
consistent with the determination of qualified research
expenses for the credit year.
``(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in calculating a
taxpayer's qualified research expenses caused by a change in
accounting methods used by such taxpayer between the credit
year and a year in such 3-taxable-year period.''.
(c) Inclusion of Qualified Research Expenses of an Acquired
Person.--
(1) Partial inclusion of pre-acquisition qualified research
expenses.--Subparagraph (A) of section 41(f)(3) of such Code
is amended to read as follows:
``(A) Acquisitions.--
``(i) In general.--If a person acquires the major portion
of a trade or business of another person (hereinafter in this
paragraph referred to as the `predecessor') or the major
portion of a separate unit of a trade or business of a
predecessor, then the amount of qualified research expenses
paid or incurred by the acquiring person during the 3 taxable
years preceding the taxable year in which the credit under
this section is determined shall be increased by--
``(I) for purposes of applying this section for the taxable
year in which such acquisition is made, the amount determined
under clause (ii), and
``(II) for purposes of applying this section for any
taxable year after the taxable year in which such acquisition
is made, so much of the qualified research expenses paid or
incurred by the predecessor with respect to the acquired
trade or business during the portion of the measurement
period that is part of the 3-taxable-year period preceding
the taxable
[[Page S4826]]
year for which the credit is determined as is attributable to
the portion of such trade or business or separate unit
acquired by such person.
``(ii) Amount determined.--The amount determined under this
clause is the amount equal to the product of--
``(I) so much of the qualified research expenses paid or
incurred by the predecessor with respect to the acquired
trade or business during the 3 taxable years before the
taxable year in which the acquisition is made as is
attributable to the portion of such trade or business or
separate unit acquired by the acquiring person, and
``(II) the number of months in the period beginning on the
date of the acquisition and ending on the last day of the
taxable year in which the acquisition is made,
divided by 12.
``(iii) Special rules for coordinating taxable years.--In
the case of an acquiring person and a predecessor whose
taxable years do not begin on the same date--
``(I) each reference to a taxable year in clauses (i) and
(ii) shall refer to the appropriate taxable year of the
acquiring person,
``(II) the qualified research expenses paid or incurred by
the predecessor during each taxable year of the predecessor
any portion of which is part of the measurement period shall
be allocated equally among the months of such taxable year,
and
``(III) the amount of such qualified research expenses
taken into account under clauses (i) and (ii) with respect to
a taxable year of the acquiring person shall be equal to the
total of the expenses attributable under subclause (II) to
the months occurring during such taxable year.
``(iv) Measurement period.--For purposes of this
subparagraph, the term `measurement period' means the taxable
year of the acquiring person in which the acquisition is made
and the 3 taxable years of the acquiring person preceding
such taxable year.''.
(2) Expenses of a predecessor.--Subparagraph (B) of section
41(f)(3) of such Code is amended to read as follows:
``(B) Dispositions.--If the predecessor furnished to the
acquiring person such information as is necessary for the
application of subparagraph (A), then, for purposes of
applying this section for any taxable year ending after such
disposition, the amount of qualified research expenses paid
or incurred by the predecessor during the 3 taxable years
preceding such taxable year shall be reduced--
``(i) in the case of the taxable year in which such
disposition is made, by an amount equal to the product of--
``(I) the amount of qualified research expenses paid or
incurred during such 3 taxable years with respect to the
acquired business, and
``(II) the number of days in the period beginning on the
date of acquisition (as determined for purposes of
subparagraph (A)(ii)(II)) and ending on the last day of the
taxable year of the predecessor in which the disposition is
made,
divided by the number of days in the taxable year of the
predecessor, and
``(ii) in the case of any taxable year ending after the
taxable year in which such disposition is made, the amount
described in clause (i)(I).''.
(d) Aggregation of Expenditures.--Paragraph (1) of section
41(f) of such Code, as amended by the American Taxpayer
Relief Act of 2012, is amended--
(1) by striking ``of the qualified research expenses, basic
research payments, and amounts paid or incurred to energy
research consortiums,'' in subparagraph (A)(ii) and inserting
``qualified research expenses'', and
(2) by striking ``of the qualified research expenses, basic
research payments, and amounts paid or incurred to energy
research consortiums,'' in subparagraph (B)(ii) and inserting
``qualified research expenses''.
(e) Permanent Extension.--
(1) Section 41 of such Code is amended by striking
subsection (h).
(2) Paragraph (1) of section 45C(b) of such Code is amended
by striking subparagraph (D).
(f) Conforming Amendments.--
(1) Termination of basic research payment calculation.--
Section 41 of such Code is amended--
(A) by striking subsection (e),
(B) by redesignating subsection (g) as subsection (e), and
(C) by relocating subsection (e), as so redesignated,
immediately after subsection (d).
(2) Special rules.--
(A) Paragraph (4) of section 41(f) of such Code is amended
by striking ``and gross receipts''.
(B) Subsection (f) of section 41 of such Code is amended by
striking paragraph (6).
(3) Cross-references.--
(A) Paragraph (2) of section 45C(c) of such Code is amended
by striking ``base period research expenses'' and inserting
``average qualified research expenses''.
(B) Subparagraph (A) of section 54(l)(3) of such Code is
amended by striking ``section 41(g)'' and inserting ``section
41(e)''.
(C) Clause (i) of section 170(e)(4)(B) of such Code is
amended to read as follows:
``(i) the contribution is to a qualified organization,''.
(D) Paragraph (4) of section 170(e) of such Code is amended
by adding at the end the following new subparagraph:
``(E) Qualified organization.--For purposes of this
paragraph, the term `qualified organization' means--
``(i) any educational organization which--
``(I) is an institution of higher education (within the
meaning of section 3304(f)), and
``(II) is described in subsection (b)(1)(A)(ii), or
``(ii) any organization not described in clause (i) which--
``(I) is described in section 501(c)(3) and is exempt from
tax under section 501(a),
``(II) is organized and operated primarily to conduct
scientific research, and
``(III) is not a private foundation.''.
(E) Section 280C of such Code is amended--
(i) by striking ``or basic research expenses (as defined in
section 41(e)(2))'' in subsection (c)(1),
(ii) by striking ``section 41(a)(1)'' in subsection
(c)(2)(A) and inserting ``section 41(a)'', and
(iii) by striking ``or basic research expenses'' in
subsection (c)(2)(B).
(F) Clause (i) of section 1400N(l)(7)(B) of such Code is
amended by striking ``section 41(g)'' and inserting ``section
41(e)''.
(g) Technical Corrections.--Section 409 of such Code is
amended--
(1) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (b)(1)(A),
(2) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984'' after ``relating to the employee
stock ownership credit'' in subsection (b)(4),
(3) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (i)(1)(A),
(4) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)''
in subsection (m), and
(5) by inserting ``(as so in effect)'' after ``section
48(n)(1)'' in subsection (m).
(h) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
credits determined for taxable years beginning after December
31, 2013.
(2) Permanent extension.--The amendments made by subsection
(e) shall apply to amounts paid or incurred after December
31, 2013.
(3) Technical corrections.--The amendments made by
subsection (g) shall take effect on the date of the enactment
of this Act.
SEC. 204. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED
SMALL BUSINESS STOCK.
(a) In General.--Paragraph (4) of section 1202(a) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``and before January 1, 2014'', and
(2) by striking ``certain periods in 2010, 2011, 2012, and
2013'' in the heading and inserting ``certain periods after
2009''.
(b) Conforming Amendments.--
(1) The heading for section 1202 of such Code is amended by
striking ``partial''.
(2) The item relating to section 1202 in the table of
sections of such Code for part I of subchapter P of chapter 1
is amended by striking ``Partial exclusion'' and inserting
``Exclusion''.
(3) Section 1223(13) of such Code is amended by striking
``1202(a)(2),''.
(c) Effective Date.--The amendments made by this section
apply to stock acquired after December 31, 2013.
______
SA 3613. Mr. WARNER (for himself and Mr. Blunt) submitted an
amendment intended to be proposed by him to the bill H.R. 5021, to
provide an extension of Federal-aid highway, highway safety, motor
carrier safety, transit, and other programs funded out of the Highway
Trust Fund, and for other purposes; which was ordered to lie on the
table; as follows:
At the end of the bill, add the following:
TITLE III--INFRASTRUCTURE FINANCING AUTHORITY
SEC. 301. SHORT TITLE.
(a) Short Title.--This title may be cited as the ``Building
and Renewing Infrastructure for Development and Growth in
Employment Act'' or the ``BRIDGE Act''.
SEC. 302. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) infrastructure has always been a vital element of the
economic strength of the United States and a key indicator of
the international leadership of the United States;
(2) the Erie Canal, the Hoover Dam, the railroads, and the
interstate highway system are all testaments to the ingenuity
of the United States and have helped propel and maintain the
United States as the largest economy in the world;
(3) according to the 2013-2014 World Economic Forum's
Global Competitiveness Report, the United States--
(A) ranked fifth in the world on the Global Competitiveness
Index; and
(B) ranked 19th in the world in the ``Quality of overall
infrastructure'' category;
(4) according to the World Bank's 2012 Logistic Performance
Index, the capacity of countries to efficiently move goods
and connect manufacturers and consumers with international
markets is improving around the world, and the United States
now ranks ninth in the world in logistics-related
infrastructure behind countries from both Europe and Asia;
[[Page S4827]]
(5) according to a January 2009 report from the University
of Massachusetts/Alliance for American Manufacturing entitled
``Employment, Productivity and Growth'', infrastructure
investment is a ``highly effective engine of job creation''
such that $1,000,000,000 in new investment in infrastructure
results in 18,000 total long-term jobs;
(6) according to the American Society of Civil Engineers,
the current condition of the infrastructure in the United
States earns a grade point average of D+, and an estimated
$1,600,000,000,000 of additional investment is needed over
the next 7 years to bring the infrastructure of the United
States up to adequate condition;
(7) according to the National Surface Transportation Policy
and Revenue Study Commission, $225,000,000,000 is needed
annually from all sources for the next 50 years to upgrade
the United States surface transportation system to a state of
good repair and create a more advanced system;
(8) the current infrastructure financing mechanisms of the
United States, both on the Federal and State level, will fail
to meet current and foreseeable demands and will create large
funding gaps;
(9) published reports state that there may not be enough
demand for municipal bonds to maintain the same level of
borrowing at the same rates, resulting in significantly
decreased infrastructure investment at the State and local
level;
(10) current funding mechanisms are not readily scalable
and do not--
(A) serve large in-State or cross-jurisdictional
infrastructure projects, projects of regional or national
significance, or projects that cross sector silos;
(B) sufficiently catalyze private sector investment; or
(C) ensure the optimal return on public resources;
(11) although grant programs of the Federal Government must
continue to play a central role in financing the
infrastructure needs of the United States, current and
foreseeable demands on existing Federal, State, and local
funding for infrastructure expansion clearly exceed the
resources to support those programs by margins wide enough to
prompt serious concerns about the ability of the United
States to sustain long-term economic development,
productivity, and international competitiveness;
(12) the capital markets, including pension funds, private
equity funds, mutual funds, sovereign wealth funds, and other
investors, have a growing interest in infrastructure
investment and represent hundreds of billions of dollars of
potential investment; and
(13) the establishment of a federally owned, independent,
professionally managed institution that could provide credit
support to qualified infrastructure projects of regional and
national significance, making transparent merit-based
investment decisions based on the commercial viability of
infrastructure projects, would catalyze the participation of
significant private investment capital.
(b) Purpose.--The purpose of this title 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. 303. DEFINITIONS.
In this title:
(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 313.
(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.
(ii) Intercity passenger rail facilities or equipment.
(iii) Intercity freight rail facilities or equipment.
(iv) Intercity passenger bus facilities or equipment.
(v) Public transportation facilities or equipment.
(vi) Highway facilities, including bridges and tunnels.
(vii) Airports.
(viii) Air traffic control systems.
(ix) Port or marine terminal facilities, including
approaches to marine terminal facilities or inland port
facilities.
(x) Port or marine equipment, including fixed equipment to
serve approaches to marine terminals or inland ports.
(xi) Transmission or distribution pipelines.
(xii) Inland waterways.
(xiii) Intermodal facilities or equipment related to 2 or
more of the sectors described in clauses (i) through (xii).
(xiv) Water treatment and solid waste disposal facilities,
including drinking water facilities.
(xv) Storm water management systems.
(xvi) Dams and levees.
(xvii) 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 subtitle A.
(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) 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.
(13) 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))).
(14) 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 located in
an area described in such section 601(15).
(15) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the designee of the Secretary of the
Treasury.
(16) 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.
(17) Special inspector general.--The term ``Special
Inspector General'' means the Special Inspector General for
IFA.
(18) State.--The term ``State'' means--
(A) each of the several States of the United States; and
(B) the District of Columbia.
Subtitle A--Infrastructure Financing Authority
SEC. 311. 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 title.
(c) Incorporation.--
(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
[[Page S4828]]
be necessary to assist in implementing IFA and in carrying
out the purpose of this title.
(e) Rule of Construction.--Chapter 91 of title 31, United
States Code, does not apply to IFA, unless otherwise
specifically provided in this title.
SEC. 312. 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 the enactment of this Act, 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 title.
(d) Terms.--
(1) In general.--Except as otherwise provided in this
title, 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
member 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 the enactment of this Act.
(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 title.
(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 title, if the member
has or is affiliated with an entity who has a financial
interest in that project.
SEC. 313. CHIEF EXECUTIVE OFFICER OF IFA.
(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
title 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 under this title, 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.
SEC. 314. 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 title;
(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;
[[Page S4829]]
(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 title, 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 title; 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 title;
(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 title 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
title and the terms set forth in subtitle B;
(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 title;
(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 title; 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. 315. 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 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. 316. OFFICE OF TECHNICAL AND RURAL ASSISTANCE.
(a) In General.--The chief executive officer shall create
and manage within IFA an office, to be known as the ``Office
of Technical and Rural Assistance''.
(b) Duties.--The Office of Technical and Rural Assistance
shall--
(1) in consultation with the Secretary, 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; and
(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.
SEC. 317. SPECIAL INSPECTOR GENERAL FOR IFA.
(a) In General.--
(1) Initial period.--For the 5-year period beginning on the
date of the enactment of this Act, the Inspector General of
the Department of Treasury shall serve as the Special
Inspector General for IFA in addition to the existing duties
of the Inspector General of the Department of Treasury.
(2) Office of the special inspector general.--Effective
beginning on the day that is 5 years after the date of the
enactment of this Act, 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, 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 the enactment of this Act.
(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.).
[[Page S4830]]
(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 set forth 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 under 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 under 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 a report to the President and to appropriate
committees of Congress that summarizes the activities of the
Special Inspector General during the 1-year period ending on
the date of that report.
(2) Public disclosures.--Nothing in this subsection may be
construed to authorize 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. 318. OTHER PERSONNEL.
(a) Appointment, Removal, and Definition of Duties.--Except
as otherwise provided in the IFA bylaws, 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 315.
(b) Coordination in Identifying Qualifications and
Expertise.--In appointing qualified personnel under
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. 319. COMPLIANCE.
The provision of assistance by IFA under this title does
not supersede any provision of State law or regulation
otherwise applicable to an eligible infrastructure project.
Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees
SEC. 321. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM IFA AND
TERMS AND LIMITATIONS OF LOANS.
(a) Public Benefit Required.--
(1) In general.--Any project the use or purpose of which is
private and for which no public benefit is created, as
determined by the Board of Directors, shall not be eligible
for financial assistance from IFA under this title.
(2) Criteria.--Financial assistance under this title shall
only be made available if the applicant for assistance has
demonstrated to the satisfaction of the Board of Directors
that--
(A) the eligible infrastructure project for which
assistance is being sought--
(i) is not for the refinancing of an existing
infrastructure project; and
(ii) meets--
(I) any pertinent requirements set forth in this title;
(II) any criteria established by the Board of Directors or
chief executive officer in accordance with this title; and
(III) the definition of an eligible infrastructure project;
and
(B) for projects involving 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--
(i) equity;
(ii) deeply subordinate loans or other credit and debt
instruments, which shall be junior to any IFA assistance
provided for the project;
(iii) appropriated funds or grants from governmental
sources other than the Federal Government; or
(iv) irrevocable private contributions of funds, grants,
property (including rights-of way), and other assets that
directly reduce or offset project costs.
(b) Considerations.--The criteria established by the Board
of Directors under this title 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 title, 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.
(c) Application.--
(1) In general.--Any eligible entity seeking assistance
from IFA under this title 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 title 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
[[Page S4831]]
users or beneficiaries that also secure the eligible
infrastructure project obligations.
(d) Eligible Infrastructure Project Costs.--
(1) In general.--Except as provided in paragraph (2), to be
eligible for assistance under this title, 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 title a rural infrastructure project
shall have project costs that are reasonably anticipated to
equal or exceed $10,000,000.
(e) Loan Eligibility and Maximum Amounts.--
(1) In general.--The amount of a direct loan or loan
guarantee under this title 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. 322. LOAN TERMS AND REPAYMENT.
(a) In General.--A direct loan or loan guarantee under this
title 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
title--
(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 title 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 title, 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 and any comparable market rates
available for such a loan or loan guarantee.
(e) Credit Fee.--
(1) In general.--With respect to each agreement for
assistance under this title, 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 title 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 title 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 title 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 title,
based on the projected cash flow from eligible infrastructure
project revenues and other repayment sources.
(2) Commencement.--Scheduled loan repayments of principal
or interest on a direct loan under this title 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.
(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 title, 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 title, 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 title may be applied
annually to prepay the direct loan, without penalty.
(B) Use of proceeds of refinancing.--A direct loan under
this title 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 title 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 FCRA.--
(1) In general.--Except as provided in paragraph (2),
direct loans and loan guarantees authorized under this title
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 title.
(l) Policy of Congress.--It is the policy of Congress that
IFA shall only make a direct loan or loan guarantee under
this title if IFA determines that IFA is reasonably expected
to recover the full amount of the direct loan or loan
guarantee.
SEC. 323. COMPLIANCE AND ENFORCEMENT.
(a) Credit Agreement.--Notwithstanding any other provision
of law, each eligible entity that receives assistance under
this title 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 title 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.
(c) IFA Authority on Noncompliance.--In any case in which
an eligible entity that receives assistance under this title
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. 324. 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.--
[[Page S4832]]
(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 under this title 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 title; and
(E) an assessment of the risks of the portfolio of IFA,
which shall be prepared by an independent source.
(2) GAO evaluation.--Not later than 5 years after the date
of the enactment of this Act, the Comptroller General of the
United States shall conduct an evaluation of, and submit a
report to the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Energy and
Commerce of the House of Representatives, and the Committee
on Transportation and Infrastructure of the House of
Representatives 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.
(3) GAO study and report.--Not later than 10 years after
the date of enactment of this Act, the Comptroller General of
the United States shall conduct a study and submit a report
to the Committee on Commerce, Science, and Transportation of
the Senate, the Committee on Energy and Commerce of the House
of Representatives, and the Committee on Transportation and
Infrastructure of the House of Representatives on the status
of actions taken to make IFA a self-sustaining entity,
including providing recommendations for such legislative or
administrative actions as the Comptroller General considers
necessary for IFA to achieve self-sustaining status or to
promote a greater likelihood of achieving such status.
(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. 325. EFFECT ON OTHER LAWS.
Nothing in this title affects or alters the responsibility
of an eligible entity that receives assistance under this
title to comply with applicable Federal and State laws
(including regulations) relating to an eligible
infrastructure project.
Subtitle C--Funding of IFA
SEC. 331. FEES.
The chief executive officer shall establish fees with
respect to loans and loan guarantees under this title that--
(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. 332. SELF-SUFFICIENCY OF IFA.
The chief executive officer shall, to the extent
practicable, take actions consistent with this title 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. 333. FUNDING.
(a) In General.--There is authorized to be appropriated to
IFA to make direct loans and loan guarantees under this title
$10,000,000,000--
(1) which shall remain available until expended;
(2) of which not more than $25,000,000 may be used for the
administrative costs of IFA for each of the fiscal years 2014
and 2015; and
(3) of which not more than $50,000,000 may be used for the
administrative costs of IFA for fiscal year 2016.
(b) Interest.--The amounts made available to IFA under this
title shall be placed in interest-bearing accounts.
(c) Rural Infrastructure Projects.--Of the amounts made
available to IFA under this title, not less than 5 percent
shall be used to offset subsidy costs associated with rural
infrastructure projects.
SEC. 334. 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 title shall impose upon the
United States a contractual obligation to fund the Federal
credit investment.
SEC. 335. LIMITATION ON AUTHORITY.
IFA shall not have the authority to issue debt in its own
name.
Subtitle D--Budgetary Effects
SEC. 341. BUDGETARY EFFECTS.
The budgetary effects of this title, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this title,
submitted for printing in the Congressional Record by the
Chairman of the Senate Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
______
SA 3614. Mr. SCOTT submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end, add the following:
TITLE II--SOUTHERN ENERGY ACCESS JOBS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Southern Energy Access
Jobs Act'' or the ``SEA Jobs Act''.
SEC. 202. DEFINITIONS.
In this title:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Ocean Energy Management.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(3) Qualified revenues.--The term ``qualified revenues''
means all bonus bids, rentals and royalties (and other sums)
due and payable to the United States from all leases entered
into after the date of enactment of this Act that covers an
area in the South Atlantic planning area.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(5) South atlantic planning area.--The term ``South
Atlantic planning area'' means the area of the outer
Continental Shelf (as defined in section 2 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1331)) that is located
between the northern lateral seaward administrative boundary
of the Commonwealth of Virginia and the southernmost lateral
seaward administrative boundary of the State of Georgia.
(6) State.--The term ``State'' means any of the following
States:
(A) Georgia.
(B) North Carolina.
(C) South Carolina.
(D) Virginia.
(7) Workforce investment board.--The term ``workforce
investment board'' means a State or local workforce
investment board established under subtitle B of title I of
the Workforce Investment Act of 1998 (29 U.S.C. 2811 et
seq.).
SEC. 203. ENHANCING STATE RIGHTS.
(a) In General.--The Secretary shall promulgate regulations
that establish management of the surface occupancy of each
portion of the South Atlantic planning area for the
applicable coastline of a State for any lease sale authorized
under this title to the effect that--
(1) the applicable State shall have sole authority to
restrict or allow surface facilities above the waterline for
the purpose of production of oil or gas resources in any area
that is within 12 nautical miles seaward from the coastline
of the State;
(2) unless permanent surface occupancy is authorized by a
State, only sub-surface production facilities may be
installed in areas that are located between the point that is
12 nautical miles from seaward from the coastline of the
State and the point that is 20 nautical miles seaward from
the coastline of the State;
(3) new offshore production facilities are encouraged and
the impacts on coastal vistas are minimized, to the maximum
extent practical; and
(4) onshore facilities that facilitate the development and
production of the oil and gas resources of the South Atlantic
planning area within 12 nautical miles seaward of the
coastline of a State are allowed.
(b) Temporary Activities Not Affected.--Nothing in the
regulations described in subsection (a) shall restrict, or
give the States authority to restrict, temporary surface
activities related to operations associated with outer
Continental Shelf oil and gas leases.
[[Page S4833]]
SEC. 204. REINSTATEMENT OF VIRGINIA LEASE SALE 220.
Not later than 2 years after the date of enactment of this
Act, the Secretary shall conduct Lease Sale 220 (as described
in the notice of intent to prepare an environmental impact
statement dated November 13, 2008 (73 Fed. Reg. 67201)).
SEC. 205. SOUTH CAROLINA LEASE SALE.
(a) In General.--Notwithstanding the exclusion of the South
Atlantic planning area in the outer Continental Shelf leasing
program for fiscal years 2012-2017 prepared under section 18
of the Outer Continental Shelf Lands Act (43 U.S.C. 1344),
the Secretary shall conduct a lease sale not later than 2
years after the date of enactment of this Act in areas off
the coast of the State of South Carolina--
(1) determined by the Secretary to have the most
geologically promising hydrocarbon resources; and
(2) that constitute not less than 25 percent of the
leasable area located within the offshore administrative
boundaries of the State of South Carolina depicted in the
notice entitled ``Federal Outer Continental Shelf (OCS)
Administrative Boundaries Extending from the Submerged Lands
Act Boundary seaward to the Limit of the United States Outer
Continental Shelf'', published January 3, 2006 (71 Fed. Reg.
127).
(b) Environmental Impact Statement.--The Secretary shall
complete a multisale environmental impact statement for the
lease sales conducted under subsection (a) and section 204.
SEC. 206. SOUTH ATLANTIC PLANNING AREA LEASE SALES.
(a) In General.--The Secretary shall conduct 3 lease sales
in the South Atlantic planning area before June 30, 2017, in
areas--
(1) to be determined by the Secretary based on--
(A) analysis by the Bureau of Ocean Energy Management; and
(B) industry nomination; and
(2) determined by the Secretary to contain the most
hydrocarbon resource potential.
(b) 2017-2022 Leasing Program.--The Secretary shall--
(1) include the South Atlantic planning area in the outer
Continental Shelf leasing program for fiscal years 2017-2022
prepared under section 18 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1344); and
(2) conduct 1 lease sale in the South Atlantic planning
area during each year of the program, for a total of 5 lease
sales.
SEC. 207. BALANCING OF MILITARY AND ENERGY PRODUCTION GOALS.
(a) In General.--In recognition that the outer Continental
Shelf oil and gas leasing program and the domestic energy
resources produced under the program are integral to national
security, the Secretary and the Secretary of Defense shall
work jointly in implementing lease sales under this title--
(1) to preserve the ability of the Armed Forces of the
United States to maintain an optimum state of readiness
through their continued use of the outer Continental Shelf;
and
(2) to allow effective exploration, development, and
production of the oil, gas, and renewable energy resources of
the United States.
(b) Prohibition on Conflicts With Military Operations.--No
person may engage in any exploration, development, or
production of oil or natural gas on the outer Continental
Shelf under a lease issued under this title that would
conflict with any military operation, as determined in
accordance with--
(1) the agreement entitled ``Memorandum of Agreement
between the Department of Defense and the Department of the
Interior on Mutual Concerns on the Outer Continental Shelf''
signed July 20, 1983; and
(2) any revision or replacement for the agreement described
in paragraph (1) that is agreed to by the Secretary of
Defense and the Secretary after that date but before the date
of issuance of the lease under which the exploration,
development, or production is conducted.
SEC. 208. REVENUE SHARING AND DEFICIT REDUCTION.
Notwithstanding section 9 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1338), each fiscal year the Secretary
shall deposit--
(1) 37.5 percent of the qualified revenues in a special
account in the Treasury, from which the Secretary shall
allocate amounts in accordance with section 209;
(2) 2.5 percent of the qualified revenues in the fund
established by section 210(b)(1), from which the Secretary
shall allocate amounts in accordance with that section;
(3) 10 percent of the qualified revenues dedicated towards
deficit reduction; and
(4) 50 percent of the qualified revenues in the general
fund of the Treasury.
SEC. 209. ALLOCATION TO STATES.
(a) In General.--Of the qualified revenues deposited in the
account under section 208(1), 37.5 percent shall be
distributed to each State--
(1) using the formula established under subsection (b); and
(2) in amounts that are inversely proportional to the
respective distances between the point on the coastline of
each State that is closest to the geographic center of the
applicable leased tract and the geographic center of the
leased tract.
(b) Formula.--The formula used to make the calculation
under subsection (a) shall be--
(1) established by the Secretary by regulation; and
(2) modeled after the final rule entitled ``Allocation and
Disbursement of Royalties, Rentals, and Bonuses--Oil and Gas,
Offshore'', dated December 23, 2008 (73 Fed. Reg. 78622).
(c) Minimum Allocation.--Each State shall be entitled to an
amount equal to not less than 10 percent of the qualified
revenues allocated under subsection (a).
(d) Use of Funds.--A State receiving amounts under this
section may use the amounts in accordance with State law.
SEC. 210. VETERANS JOBS GRANT PROGRAM AUTHORIZED.
(a) Establishment of Fund.--
(1) In general.--There is established in the Treasury of
the United States a fund, to be known as the ``Oil and Gas
Production Veterans Workforce Training Fund'' (referred to in
this section as the ``Fund''), consisting of such amounts as
are transferred to the Fund under section 208(2).
(2) Administration.--The Fund shall be administered by the
Secretary to fund the grants authorized by subsection (b).
(b) Grants Authorized.--
(1) In general.--The Secretary, acting through the
Director, shall award grants on a competitive basis to
eligible institutions of higher education and workforce
investment boards to establish and fund oil and gas
exploration, development, and production workforce training
programs.
(2) Eligibility.--To be eligible to receive a grant under
this section, an institution of higher education or workforce
investment board shall--
(A) establish or expand and administer an oil and gas
exploration, development, and production workforce training
program; and
(B) in granting admission to applicants to the program,
give priority to veterans of the Armed Forces of the United
States.
(3) Application.--Each eligible entity desiring a grant
under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by
such information as the Secretary may reasonably require.
(4) Limitation on administrative expenses.--Not more than
0.5 percent of the amounts made available to carry out this
section may be used to pay for the administrative expenses of
the programs described in paragraph (1).
SEC. 211. ENHANCING GEOLOGICAL AND GEOPHYSICAL EDUCATION FOR
AMERICA'S ENERGY FUTURE.
(a) In General.--The Secretary, acting through the
Director, shall partner with institutions of higher education
selected under subsection (c) to facilitate the practical
study of geological and geophysical sciences of areas on the
Atlantic Outer Continental Shelf and elsewhere on the
Continental Shelf of the United States.
(b) Focus.--Activities conducted by institutions of higher
education under this section shall focus all geological and
geophysical scientific research on obtaining a better
understanding of hydrocarbon potential in the South Atlantic
Planning Area while fostering the study of the geological and
geophysical sciences at institutions of higher education in
the United States.
(c) Selection of Institutions.--
(1) Nomination.--Not later than 180 days after the date of
enactment of this Act, the Governor of each State may
nominate for participation in a partnership--
(A) 1 institution of higher education located in the State;
and
(B) 1 institution of higher education that is a
historically Black college or university, as defined in
section 631(a) of the Higher Education Act of 1965 (20 U.S.C.
1132(a)) located in the State.
(2) Preference.--In making nominations under paragraph (1),
each Governor shall give preference to those institutions of
higher education that demonstrate a vigorous rate of
admissions of veterans of the Armed Forces of the United
States and meet the criteria described in paragraph (3).
(3) Selection.--The Director shall select as a partner any
institution of higher education nominated under paragraph (1)
that the Director determines demonstrates excellence in 1 or
more of the following criteria:
(A) Geophysical sciences curriculum.
(B) Engineering curriculum.
(C) Information technology or other technical studies
related to seismic research, including data processing.
(d) Research Authority.--
(1) In general.--Except as provided in paragraph (2), an
institution of higher education selected under subsection
(c)(3) may conduct research under this section upon the
expiration of the 30-day period beginning on the date the
institution of higher education submits notice of the
research to the South Atlantic Regional Director of the
Bureau of Ocean Energy Management.
(2) Permit required.--An institution of higher education
may not under this section conduct research that uses solid
or liquid explosives except as authorized by a permit issued
by the Director.
(e) Data.--
(1) In general.--Geological and geophysical activities
conducted under this section--
(A) shall be considered scientific research and data
produced by the activities;
(B) shall not be used or shared for commercial purposes;
(C) shall not be produced for proprietary use or sale; and
(D) shall be made available by the Director to the public.
[[Page S4834]]
(2) Submission of data to boem.--Not later than 60 days
after completion of initial analysis of data collected under
this section by an institution of higher education selected
under subsection (c)(3), the institution of higher education
shall share with the Bureau of Ocean Energy Management any
data collected that is requested by the Bureau of Ocean
Energy Management.
(3) Fees.--The Director may not charge any fee for the
provision of data produced in research under this section,
other than a data reprocessing fee to pay the cost of
duplicating the data.
(f) Report.--Not less frequently than once every 180 days,
the Director shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report on the
data derived from partnerships under this section.
SEC. 212. ATLANTIC REGIONAL OFFICE.
Not later than the last day of the outer Continental Shelf
leasing program for fiscal years 2012-2017 prepared under
section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344), the Director shall establish an Atlantic
regional office in an area that is--
(1) included in the outer Continental Shelf leasing program
for fiscal years 2017-2022 prepared under section 18 of that
Act; and
(2) determined by the Director to have the most potential
resource development.
______
SA 3615. Mr. RUBIO submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
TITLE __--NATIONAL REGULATORY BUDGET ACT
SEC. _01. SHORT TITLE.
This title may be cited as the ``National Regulatory Budget
Act of 2014''.
SEC. _02. ESTABLISHMENT OF THE OFFICE OF REGULATORY ANALYSIS.
(a) In General.--Part I of title 5, United States Code, is
amended by inserting after chapter 6 the following:
``CHAPTER 6A--NATIONAL REGULATORY BUDGET AND OFFICE OF REGULATORY
ANALYSIS
``Sec.
``613. Definitions.
``614. Office of Regulatory Analysis; establishment; powers.
``615. Functions of Office of Regulatory Analysis; Executive branch
agency compliance.
``616. Public disclosure of estimate methodology and data; privacy.
``617. National Regulatory Budget; timeline.
``618. Executive branch agency cooperation mandatory; information
sharing.
``619. Enforcement.
``620. Regulatory Analysis Advisory Board.
``Sec. 613. Definitions
``In this chapter--
``(1) the term `aggregate costs', with respect to a covered
Federal rule, means the sum of--
``(A) the direct costs of the covered Federal rule; and
``(B) the regulatory costs of the covered Federal rule;
``(2) the term `covered Federal rule' means--
``(A) a rule (as defined in section 551);
``(B) an information collection requirement given a control
number by the Office of Management and Budget; or
``(C) guidance or a directive that--
``(i) is not described in subparagraph (A) or (B);
``(ii)(I) is mandatory in its application to regulated
entities; or
``(II) represents a statement of agency position that
regulated entities would reasonably construe as reflecting
the enforcement or litigation position of the agency; and
``(iii) imposes not less than $25,000,000 in annual costs
on regulated entities;
``(3) the term `direct costs' means--
``(A) expenditures made by an Executive branch agency that
relate to the promulgation, administration, or enforcement of
a covered Federal rule; or
``(B) costs incurred by an Executive branch agency, a
Government corporation, the United States Postal Service, or
any other instrumentality of the Federal Government because
of a covered Federal rule;
``(4) the term `Director' means the Director of the Office
of Regulatory Analysis established under section 614(b);
``(5) the term `Executive branch agency' means--
``(A) an Executive department (as defined in section 101);
and
``(B) an independent establishment (as defined in section
104);
``(6) the term `regulated entity' means--
``(A) a for-profit private sector entity (including an
individual who is in business as a sole proprietor);
``(B) a not-for-profit private sector entity; or
``(C) a State or local government; and
``(7) the term `regulatory costs' means all costs incurred
by a regulated entity because of covered Federal rules.
``Sec. 614. Office of Regulatory Analysis; establishment;
powers
``(a) Establishment.--There is established in the executive
branch an independent establishment to be known as the
`Office of Regulatory Analysis'.
``(b) Director.--
``(1) Establishment of position.--There shall be at the
head of the Office of Regulatory Analysis a Director, who
shall be appointed by the President, by and with the advice
and consent of the Senate.
``(2) Term.--
``(A) In general.--The term of office of the Director
shall--
``(i) be 4 years; and
``(ii) expire on the last day of February following each
Presidential election.
``(B) Appointments prior to expiration of term.--Subject to
subparagraph (C), an individual appointed as Director to fill
a vacancy prior to the expiration of a term shall serve only
for the unexpired portion of the term.
``(C) Service until appointment of successor.--An
individual serving as Director at the expiration of a term
may continue to serve until a successor is appointed.
``(3) Powers.--
``(A) Appointment of deputy directors, officers, and
employees.--
``(i) In general.--The Director may appoint Deputy
Directors, officers, and employees, including attorneys, in
accordance with chapter 51 and subchapter III of chapter 53.
``(ii) Term of deputy directors.--A Deputy Director shall
serve until the expiration of the term of office of the
Director who appointed the Deputy Director (and until a
successor to that Director is appointed), unless sooner
removed by the Director.
``(B) Contracting.--
``(i) In general.--The Director may contract for financial
and administrative services (including those related to
budget and accounting, financial reporting, personnel, and
procurement) with the General Services Administration, or
such other Federal agency as the Director determines
appropriate, for which payment shall be made in advance, or
by reimbursement, from funds of the Office of Regulatory
Analysis in such amounts as may be agreed upon by the
Director and the head of the Federal agency providing the
services.
``(ii) Subject to appropriations.--Contract authority under
clause (i) shall be effective for any fiscal year only to the
extent that appropriations are available for that purpose.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to the Office of Regulatory
Analysis for each fiscal year such sums as may be necessary
to enable the Office of Regulatory Analysis to carry out its
duties and functions.
``Sec. 615. Functions of Office of Regulatory Analysis;
Executive branch agency compliance
``(a) Annual Report Required.--
``(1) In general.--Not later than January 30 of each year,
the Director shall submit to the Committee on Homeland
Security and Governmental Affairs of the Senate, the
Committee on Small Business and Entrepreneurship of the
Senate, the Committee on Oversight and Government Reform of
the House of Representatives, and the Committee on Small
Business of the House of Representatives a Report on National
Regulatory Costs (referred to in this section as the
`Report') that includes the information specified under
paragraph (2).
``(2) Contents.--Each Report shall include--
``(A) an estimate, for the fiscal year during which the
Report is submitted and for the preceding fiscal year, of--
``(i) the regulatory costs imposed by each Executive branch
agency on regulated entities;
``(ii) the aggregate costs imposed by each Executive branch
agency;
``(iii) the aggregate costs imposed by all Executive branch
agencies combined;
``(iv) the direct costs incurred by the Federal Government
because of covered Federal rules issued by each Executive
branch agency;
``(v) the sum of the costs described in clauses (iii) and
(iv);
``(vi) the regulatory costs imposed by each Executive
branch agency on small businesses, small organizations, and
small governmental jurisdictions (as those terms are defined
in section 601); and
``(vii) the sum of the costs described in clause (vi);
``(B) an analysis of any major changes in estimation
methodology used by the Office of Regulatory Analysis since
the previous annual report;
``(C) an analysis of any major estimate changes caused by
improved or inadequate data since the previous annual report;
``(D) recommendations, both general and specific,
regarding--
``(i) how regulations may be streamlined, simplified, and
modernized;
``(ii) regulations that should be repealed; and
``(iii) how the Federal Government may reduce the costs of
regulations without diminishing the effectiveness of
regulations; and
``(E) any other information that the Director determines
may be of assistance to Congress in determining the National
Regulatory Budget required under section 617.
``(b) Regulatory Analysis of New Rules.--
``(1) Requirement.--The Director shall publish in the
Federal Register and on the website of the Office of
Regulatory Analysis a regulatory analysis of each proposed
covered Federal rule issued by an Executive
[[Page S4835]]
branch agency, and each proposed withdrawal or modification
of a covered Federal rule by an Executive branch agency,
that--
``(A) imposes costs on a regulated entity; or
``(B) reduces costs imposed on a regulated entity.
``(2) Contents.--Each regulatory analysis published under
paragraph (1) shall include--
``(A) an estimate of the change in regulatory cost of each
proposed covered Federal rule (or proposed withdrawal or
modification of a covered Federal rule); and
``(B) any other information or recommendation that the
Director may choose to provide.
``(3) Timing of regulatory analysis.--
``(A) Initial regulatory analysis.--Not later than 60 days
after the date on which the Director receives a copy of a
proposed covered Federal rule from the head of an Executive
branch agency under paragraph (4), the Director shall publish
an initial regulatory analysis.
``(B) Revised regulatory analysis.--The Director may
publish a revised regulatory analysis at any time.
``(4) Notice to director of proposed covered federal
rule.--The head of an Executive branch agency shall provide a
copy of each proposed covered Federal rule to the Director in
a manner prescribed by the Director.
``(c) Effective Dates.--
``(1) In general.--Except as provided in paragraph (2), a
covered Federal rule may not take effect earlier than 75 days
after the date on which the head of the Executive branch
agency proposing the covered Federal rule submits a copy of
the proposed covered Federal rule to the Director in the
manner prescribed by the Director under subsection (b)(4).
``(2) Exception.--If the head of the Executive branch
agency proposing a covered Federal rule determines that the
public health or safety or national security requires that
the covered Federal rule be promulgated earlier than the date
specified under paragraph (1), the head of the Executive
branch agency may promulgate the covered Federal rule without
regard to paragraph (1).
``Sec. 616. Public disclosure of estimate methodology and
data; privacy
``(a) Privacy.--The Director shall comply with all relevant
privacy laws, including--
``(1) the Confidential Information Protection and
Statistical Efficiency Act of 2002 (44 U.S.C. 3501 note);
``(2) section 9 of title 13; and
``(3) section 6103 of the Internal Revenue Code of 1986.
``(b) Disclosure.--
``(1) In general.--To the maximum extent permitted by law,
the Director shall disclose, by publication in the Federal
Register and on the website of the Office of Regulatory
Analysis, the methodology and data used to generate the
estimates in the Report on National Regulatory Costs required
under section 615.
``(2) Goal of disclosure.--In disclosing the methodology
and data under paragraph (1), the Director shall seek to
provide sufficient information so that outside researchers
may replicate the results contained in the Report on National
Regulatory Costs.
``Sec. 617. National Regulatory Budget; timeline
``(a) Definition.--In this section--
``(1) the term `annual overall regulatory cost cap' means
the maximum amount of regulatory costs that all Executive
branch agencies combined may impose in a fiscal year;
``(2) the term `annual agency regulatory cost cap' means
the maximum amount of regulatory costs that an Executive
branch agency may impose in a fiscal year; and
``(3) the term `National Regulatory Budget' means an Act of
Congress that establishes, for a fiscal year--
``(A) the annual overall regulatory cost cap; and
``(B) an annual agency regulatory cost cap for each
Executive branch agency.
``(b) Committee Deadlines.--
``(1) Referral.--Not later than March 31 of each year--
``(A) the Committee on Small Business and Entrepreneurship
of the Senate shall refer to the Committee on Homeland
Security and Governmental Affairs of the Senate a bill that
sets forth a National Regulatory Budget for the fiscal year
beginning on October 1 of that year; and
``(B) the Committee on Small Business of the House of
Representatives shall refer to the Committee on Oversight and
Government Reform of the House of Representatives a bill that
sets forth a National Regulatory Budget for the fiscal year
beginning on October 1 of that year.
``(2) Reporting.--Not later than May 31 of each year--
``(A) the Committee on Homeland Security and Governmental
Affairs of the Senate shall report a bill establishing a
National Regulatory Budget for the fiscal year beginning on
October 1 of that year; and
``(B) the Committee on Oversight and Government Reform of
the House of Representatives shall report a bill establishing
a National Regulatory Budget for the fiscal year beginning on
October 1 of that year.
``(c) Passage.--Not later than July 31 of each year, the
House of Representatives and the Senate shall each pass a
bill establishing a National Regulatory Budget for the fiscal
year beginning on October 1 of that year.
``(d) Presentment.--Not later than September 15 of each
year, Congress shall pass and present to the President a
National Regulatory Budget for the fiscal year beginning on
October 1 of that year.
``(e) Default Budget.--
``(1) In general.--If a National Regulatory Budget is not
enacted with respect to a fiscal year, the most recently
enacted National Regulatory Budget shall apply to that fiscal
year.
``(2) Default initial budget.--
``(A) Calculation.--If a National Regulatory Budget is not
enacted with respect to a fiscal year, and no National
Regulatory Budget has previously been enacted--
``(i) the annual agency regulatory cost cap for an
Executive branch agency for the fiscal year shall be equal to
the amount of regulatory costs imposed by that Executive
branch agency on regulated entities during the preceding
fiscal year, as estimated by the Director in the annual
report submitted to Congress under section 615(a); and
``(ii) the annual overall regulatory cost cap for the
fiscal year shall be equal to the sum of the amounts
described in clause (i).
``(B) Effect.--For purposes of section 619, an annual
agency regulatory cost cap described in subparagraph (A) that
applies to a fiscal year shall have the same effect as if the
annual agency regulatory cost cap were part of a National
Regulatory Budget applicable to that fiscal year.
``(f) Initial Budget.--The first National Regulatory Budget
shall be with respect to fiscal year 2016.
``Sec. 618. Executive branch agency cooperation mandatory;
information sharing
``(a) Executive Branch Agency Cooperation Mandatory.--Not
later than 45 days after the date on which the Director
requests any information from an Executive branch agency, the
Executive branch agency shall provide the Director with the
information.
``(b) Memoranda of Understanding Regarding
Confidentiality.--
``(1) In general.--An Executive branch agency may require
the Director to enter into a memorandum of understanding
regarding the confidentiality of information provided by the
Executive branch agency to the Director under subsection (a)
as a condition precedent to providing any requested
information.
``(2) Degree of confidentiality or data protection.--An
Executive branch agency may not require a greater degree of
confidentiality or data protection from the Director in a
memorandum of understanding entered into under paragraph (1)
than the Executive branch agency itself must adhere to.
``(3) Scope.--A memorandum of understanding entered into by
the Director and an Executive branch agency under paragraph
(1) shall--
``(A) be general in scope; and
``(B) govern all pending and future requests made to the
Executive branch agency by the Director.
``(c) Sanctions for Non-Cooperation.--
``(1) In general.--The appropriations of an Executive
branch agency for a fiscal year shall be reduced by one-half
of 1 percent if, during that fiscal year, the Director finds
that--
``(A) the Executive branch agency has failed to timely
provide information that the Director requested under
subsection (a);
``(B) the Director has provided notice of the failure
described in subparagraph (A) to the Executive branch agency;
``(C) the Executive branch agency has failed to cure the
failure described in subparagraph (A) within 30 days of being
notified under subparagraph (B); and
``(D) the information that the Director requested under
subsection (a)--
``(i) is in the possession of the Executive branch agency;
or
``(ii) may reasonably be developed by the Executive branch
agency.
``(2) Sequestration.--The Office of Management and Budget,
in consultation with the Office of Federal Financial
Management and Financial Management Service, shall enforce a
reduction in appropriations under paragraph (1) by
sequestering the appropriate amount of funds and returning
the funds to the Treasury.
``(3) Appeals.--
``(A) In general.--The Director of the Office of Management
and Budget may reduce the amount of, or except as provided in
subparagraph (B), waive, a sanction imposed under paragraph
(1) if the Director of the Office of Management and Budget
finds that--
``(i) the sanction is unwarranted;
``(ii) the sanction is disproportionate to the gravity of
the failure;
``(iii) the failure has been cured; or
``(iv) providing the requested information would adversely
affect national security.
``(B) No waiver for historically non-compliant agencies.--
The Director of the Office of Management and Budget may not
waive a sanction imposed on an Executive branch agency under
paragraph (1) if the Executive branch agency has a history of
non-compliance with requests for information by the Director
of the Office of Regulatory Analysis under subsection (a).
``(d) National Security.--The Director may not require an
Executive branch agency to provide information under
subsection (a) that would adversely affect national security.
``Sec. 619. Enforcement
``(a) Exceeding Annual Agency Regulatory Cost Cap.--An
Executive branch
[[Page S4836]]
agency that exceeds the annual agency regulatory cost cap
imposed by the National Regulatory Budget for a fiscal year
may not promulgate a new covered Federal rule that increases
regulatory costs until the Executive branch agency no longer
exceeds the annual agency regulatory cost cap imposed by the
applicable National Regulatory Budget.
``(b) Determination of Director.--
``(1) In general.--An Executive branch agency may not
promulgate a covered Federal rule unless the Director
determines, in conducting the regulatory analysis of the
covered Federal rule under section 615(b)(3)(A) that, after
the Executive branch agency promulgates the covered Federal
rule, the Executive branch agency will not exceed the annual
agency regulatory cost cap for that Executive branch agency.
``(2) Timing.--The Director shall make a determination
under paragraph (1) with respect to a proposed covered
Federal rule not later than 60 days after the Director
receives a copy of the proposed covered Federal rule under
section 615(b)(4).
``(c) Effect of Violation of This Section.--
``(1) No force or effect.--A covered Federal rule that is
promulgated in violation of this section shall have no force
or effect.
``(2) Judicial enforcement.--Any party may bring an action
in a district court of the United States to declare that a
covered Federal rule has no force or effect because the
covered Federal rule was promulgated in violation of this
section.
``Sec. 620. Regulatory Analysis Advisory Board
``(a) Establishment of Board.--In accordance with the
Federal Advisory Committee Act (5 U.S.C. App.), the Director
shall--
``(1) establish a Regulatory Analysis Advisory Board; and
``(2) appoint not fewer than 9 and not more than 15
individuals as members of the Regulatory Analysis Advisory
Board.
``(b) Qualifications.--The Director shall appoint
individuals with technical and practical expertise in
economics, law, accounting, science, management, and other
areas that will aid the Director in preparing the annual
Report on National Regulatory Costs required under section
615.''.
(b) Technical and Conforming Amendments.--
(1) Table of chapters.--The table of chapters for part I of
title 5, United States Code, is amended by inserting after
the item relating to chapter 6 the following:
``6A. National Regulatory Budget and Office of Regulatory Analysis
613''.
(2) Internal revenue code of 1986.--Section 6103(j) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following:
``(7) Office of regulatory analysis.--Upon written request
by the Director of the Office of Regulatory Analysis
established under section 614 of title 5, United States Code,
the Secretary shall furnish to officers and employees of the
Office of Regulatory Analysis return information for the
purpose of, but only to the extent necessary for, an analysis
of regulatory costs.''.
SEC. _03. REPORT ON DUPLICATIVE PERSONNEL; REPORT ON
REGULATORY ANALYSIS.
(a) Report on Duplicative Personnel.--Not later than
December 31, 2014, the Director shall submit to Congress a
report determining positions in the Federal Government that
are--
(1) duplicative of the work performed by the Office of
Regulatory Analysis established under section 614 of title 5,
United States Code; or
(2) otherwise rendered cost ineffective by the work of the
Office of Regulatory Analysis.
(b) Report on Regulatory Analysis.--
(1) Report required.--Not later than June 30, 2015, the
Director shall provide to Congress a report analyzing the
practice with respect to, and the effectiveness of--
(A) chapter 6 of title 5, United States Code (commonly
known as the ``Regulatory Flexibility Act'');
(B) the Small Business Regulatory Enforcement Fairness Act
of 1996 (5 U.S.C. 601 note);
(C) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'');
(D) each Executive order that mandates economic analysis of
Federal regulations; and
(E) Office of Management and Budget circulars, directives,
and memoranda that mandate the economic analysis of Federal
regulation.
(2) Recommendations.--The report under paragraph (1) shall
include recommendations about how Federal regulatory analysis
may be improved.
SEC. _04. ADMINISTRATIVE PROCEDURE.
(a) Definition of ``Rule''.--Section 551(4) of title 5,
United States Code, is amended by inserting after
``requirements of an agency'' the following: ``, whether or
not the agency statement amends the Code of Federal
Regulations and including, without limitation, a statement
described by the agency as a regulation, rule, directive, or
guidance,''.
(b) Notice of Proposed Rulemaking.--Section 553(b) of title
5, United States Code, is amended, following the flush text,
in subparagraph (A) by striking ``interpretative rules,
general statements of policy, or''.
______
SA 3616. Mr. COONS (for himself and Mr. Moran) submitted an amendment
intended to be proposed by him to the bill S. 2569, to provide an
incentive for businesses to bring jobs back to America; which was
ordered to lie on the table; as follows:
At the end, add the following:
SEC. __. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP
STRUCTURE TO ENERGY POWER GENERATION PROJECTS,
TRANSPORTATION FUELS, AND RELATED ENERGY
ACTIVITIES.
(a) In General.--Subparagraph (E) of section 7704(d)(1) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from
the following:
``(i) Minerals, natural resources, etc.--The exploration'',
(2) by inserting ``or'' before ``industrial source'',
(3) by inserting a period after ``carbon dioxide'', and
(4) by striking ``, or the transportation or storage'' and
all that follows and inserting the following:
``(ii) Renewable energy.--The generation of electric power
exclusively utilizing any resource described in section
45(c)(1) or energy property described in section 48
(determined without regard to any termination date), or in
the case of a facility described in paragraph (3) or (7) of
section 45(d) (determined without regard to any placed in
service date or date by which construction of the facility is
required to begin), the accepting or processing of such
resource.
``(iii) Electricity storage devices.--The receipt and sale
of electric power that has been stored in a device directly
connected to the grid.
``(iv) Combined heat and power.--The generation, storage,
or distribution of thermal energy exclusively utilizing
property described in section 48(c)(3) (determined without
regard to subparagraphs (B) and (D) thereof and without
regard to any placed in service date).
``(v) Renewable thermal energy.--The generation, storage,
or distribution of thermal energy exclusively using any
resource described in section 45(c)(1) or energy property
described in clause (i) or (iii) of section 48(a)(3)(A).
``(vi) Waste heat to power.--The use of recoverable waste
energy, as defined in section 371(5) of the Energy Policy and
Conservation Act (42 U.S.C. 6341(5)) (as in effect on the
date of the enactment of the Bring Jobs Home Act).
``(vii) Renewable fuel infrastructure.--The storage or
transportation of any fuel described in subsection (b), (c),
(d), or (e) of section 6426.
``(viii) Renewable fuels.--The production, storage, or
transportation of any renewable fuel described in section
211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J))
(as in effect on the date of the enactment of the Bring Jobs
Home Act) or section 40A(d)(1).
``(ix) Renewable chemicals.--The production, storage, or
transportation of any renewable chemical (as defined in
paragraph (6)).
``(x) Energy efficient buildings.--The audit and
installation through contract or other agreement of any
energy efficient building property described in section
179D(c)(1).
``(xi) Gasification with sequestration.--The production of
any product from a project that meets the requirements of
subparagraphs (A) and (B) of section 48B(c)(1) and that
separates and sequesters in secure geological storage (as
determined under section 45Q(d)(2)) at least 75 percent of
such project's total qualified carbon dioxide (as defined in
section 45Q(b)).
``(xii) Carbon capture and sequestration.--The generation
or storage of electric power produced from any facility which
is a qualified facility described in section 45Q(c) and which
disposes of any captured qualified carbon dioxide (as defined
in section 45Q(b)) in secure geological storage (as
determined under section 45Q(d)(2)).''.
(b) Renewable Chemical.--Section 7704(d) of such Code is
amended by adding at the end the following new paragraph:
``(6) Renewable chemical.--The term `renewable chemical'
means a monomer, polymer, plastic, formulated product, or
chemical substance produced from renewable biomass (as
defined in section 9001(12) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101(12)), as in effect on
the date of the enactment of the Bring Jobs Home Act).''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act,
in taxable years ending after such date.
______
SA 3617. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
TITLE II--ELIMINATING IMPROPER AND ABUSIVE IRS AUDITS
SEC. 201. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the
``Eliminating Improper and Abusive IRS Audits Act of 2014''.
(b) Table of Contents.--The table of contents of this title
is as follows:
[[Page S4837]]
TITLE II--ELIMINATING IMPROPER AND ABUSIVE IRS AUDITS
Sec. 201. Short title; table of contents.
Sec. 202. Civil damages allowed for reckless or intentional disregard
of internal revenue laws.
Sec. 203. Modifications relating to certain offenses by officers and
employees in connection with revenue laws.
Sec. 204. Modifications relating to civil damages for unauthorized
inspection or disclosure of returns and return
information.
Sec. 205. Extension of time for contesting IRS levy.
Sec. 206. Increase in monetary penalties for certain unauthorized
disclosures of information.
Sec. 207. Ban on raising new issues on appeal.
Sec. 208. Limitation on enforcement of liens against principal
residences.
Sec. 209. Additional provisions relating to mandatory termination for
misconduct.
Sec. 210. Extension of declaratory judgment procedures to social
welfare organizations.
Sec. 211. Review by the Treasury Inspector General for Tax
Administration.
SEC. 202. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL
DISREGARD OF INTERNAL REVENUE LAWS.
(a) Increase in Amount of Damages.--Section 7433(b) of the
Internal Revenue Code of 1986 is amended by striking
``$1,000,000 ($100,000, in the case of negligence)'' and
inserting ``$3,000,000 ($300,000, in the case of
negligence)''.
(b) Extension of Time To Bring Action.--Section 7433(d)(3)
of the Internal Revenue Code of 1986 is amended by striking
``2 years'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to actions of employees of the Internal Revenue
Service after the date of the enactment of this Act.
SEC. 203. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY
OFFICERS AND EMPLOYEES IN CONNECTION WITH
REVENUE LAWS.
(a) Increase in Penalty.--Section 7214 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``$10,000'' in subsection (a) and inserting
``$25,000'', and
(2) by striking ``$5,000'' in subsection (b) and inserting
``$10,000''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 204. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR
UNAUTHORIZED INSPECTION OR DISCLOSURE OF
RETURNS AND RETURN INFORMATION.
(a) Increase in Amount of Damages.--Subparagraph (A) of
section 7431(c)(1) of the Internal Revenue Code of 1986 is
amended by striking ``$1,000'' and inserting ``$10,000''.
(b) Effective Date.--The amendment made by this section
shall apply to inspections and disclosure occurring on and
after the date of the enactment of this Act.
SEC. 205. EXTENSION OF TIME FOR CONTESTING IRS LEVY.
(a) Extension of Time for Return of Property Subject to
Levy.--Subsection (b) of section 6343 of the Internal Revenue
Code of 1986 is amended by striking ``9 months'' and
inserting ``3 years''.
(b) Period of Limitation on Suits.--Subsection (c) of
section 6532 of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (1) by striking ``9 months'' and inserting
``3 years'', and
(2) in paragraph (2) by striking ``9-month'' and inserting
``3-year''.
(c) Effective Date.--The amendments made by this section
shall apply to--
(1) levies made after the date of the enactment of this
Act, and
(2) levies made on or before such date if the 9-month
period has not expired under section 6343(b) of the Internal
Revenue Code of 1986 (without regard to this section) as of
such date.
SEC. 206. INCREASE IN MONETARY PENALTIES FOR CERTAIN
UNAUTHORIZED DISCLOSURES OF INFORMATION.
(a) In General.--Paragraphs (1), (2), (3), and (4) of
section 7213(a) of the Internal Revenue Code of 1986 are each
amended by striking ``$5,000'' and inserting ``$10,000''.
(b) Effective Date.--The amendments made by this section
shall apply to disclosures made after the date of the
enactment of this Act.
SEC. 207. BAN ON RAISING NEW ISSUES ON APPEAL.
(a) In General.--Chapter 77 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING
NEW ISSUES IN AN INTERNAL APPEAL.
``(a) In General.--In reviewing an appeal of any
determination initially made by the Internal Revenue Service,
the Internal Revenue Service Office of Appeals may not
consider or decide any issue that is not within the scope of
the initial determination.
``(b) Certain Issues Deemed Outside of Scope of
Determination.--For purposes of subsection (a), the following
matters shall be considered to be not within the scope of a
determination:
``(1) Any issue that was not raised in a notice of
deficiency or an examiner's report which is the subject of
the appeal.
``(2) Any deficiency in tax which was not included in the
initial determination.
``(3) Any theory or justification for a tax deficiency
which was not considered in the initial determination.
``(c) No Inference With Respect to Issues Raised by
Taxpayers.--Nothing in this section shall be construed to
provide any limitation in addition to any limitations in
effect on the date of the enactment of this section on the
right of a taxpayer to raise an issue, theory, or
justification on an appeal from a determination initially
made by the Internal Revenue Service that was not within the
scope of the initial determination.''.
(b) Clerical Amendment.--The table of sections for chapter
77 of such Code is amended by adding at the end the following
new item:
``Sec. 7529. Prohibition on Internal Revenue Service raising new issues
in an internal appeal.''.
(c) Effective Date.--The amendments made by this section
shall apply to matters filed or pending with the Internal
Revenue Service Office of Appeals on or after the date of the
enactment of this Act.
SEC. 208. LIMITATION ON ENFORCEMENT OF LIENS AGAINST
PRINCIPAL RESIDENCES.
(a) In General.--Section 7403(a) of the Internal Revenue
Code of 1986 is amended--
(1) by striking ``In any case'' and inserting the
following:
``(1) In general.--In any case'', and
(2) by adding at the end the following new paragraph:
``(2) Limitation with respect to principal residence.--
``(A) In general.--Paragraph (1) shall not apply to any
property used as the principal residence of the taxpayer
(within the meaning of section 121) unless the Secretary of
the Treasury makes a written determination that--
``(i) all other property of the taxpayer, if sold, is
insufficient to pay the tax or discharge the liability, and
``(ii) such action will not create an economic hardship for
the taxpayer.
``(B) Delegation.--For purposes of this paragraph, the
Secretary of the Treasury may not delegate any
responsibilities under subparagraph (A) to any person other
than--
``(i) the Commissioner of Internal Revenue, or
``(ii) a district director or assistant district director
of the Internal Revenue Service.''.
(b) Effective Date.--The amendments made by this section
shall apply to actions filed after the date of the enactment
of this Act.
SEC. 209. ADDITIONAL PROVISIONS RELATING TO MANDATORY
TERMINATION FOR MISCONDUCT.
(a) Termination of Unemployment for Inappropriate Review of
Tax-Exempt Status.--Section 1203(b) of the Internal Revenue
Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804
note) is amended by striking ``and'' at the end of paragraph
(9), by striking the period at the end of paragraph (10) and
inserting ``; and'', and by adding at the end the following
new paragraph:
``(11) in the case of any review of an application for tax-
exempt status by an organization described in section 501(c)
of the Internal Revenue Code of 1986, developing or using any
methodology that applies disproportionate scrutiny to any
applicant based on the ideology expressed in the name or
purpose of the organization.''.
(b) Mandatory Unpaid Administrative Leave for Misconduct.--
Paragraph (1) of Section 1203(c) of the Internal Revenue
Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804
note) is amended by adding at the end the following new
sentence: ``Notwithstanding the preceding sentence, if the
Commissioner of Internal Revenue takes a personnel action
other than termination for an act or omission described in
subsection (b), the Commissioner shall place the employee on
unpaid administrative leave for a period of not less than 30
days.''.
(c) Limitation on Alternative Punishment.--Paragraph (1) of
section 1203(c) of the Internal Revenue Service Restructuring
and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by
striking ``The Commissioner'' and inserting ``Except in the
case of an act or omission described in subsection (b)(3)(A),
the Commissioner''.
SEC. 210. EXTENSION OF DECLARATORY JUDGMENT PROCEDURES TO
SOCIAL WELFARE ORGANIZATIONS.
(a) In General.--Section 7428(a)(1) of the Internal Revenue
Code of 1986 is amended by striking ``or'' at the end of
subparagraph (C) and by adding at the end the following new
subparagraph:
``(E) with respect to the initial classification or
continuing classification of an organization described in
section 501(c)(4) which is exempt from tax under section
501(a), or''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to pleading filed after the date of
the enactment of this Act.
SEC. 211. REVIEW BY THE TREASURY INSPECTOR GENERAL FOR TAX
ADMINISTRATION.
(a) Review.--Subsection (k)(1) of section 8D of the
Inspector General Act of 1978 (5 U.S.C. App.) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) by redesignating subparagraph (D) as subparagraph (E);
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) shall--
[[Page S4838]]
``(i) review any criteria employed by the Internal Revenue
Service to select tax returns (including applications for
recognition of tax-exempt status) for examination or audit,
assessment or collection of deficiencies, criminal
investigation or referral, refunds for amounts paid, or any
heightened scrutiny or review in order to determine whether
the criteria discriminates against taxpayers on the basis of
race, religion, or political ideology; and
``(ii) consult with the Internal Revenue Service on
recommended amendments to such criteria in order to eliminate
any discrimination identified pursuant to the review
described in clause (i); and''; and
(4) in subparagraph (E), as so redesignated, by striking
``and (C)'' and inserting ``(C), and (D)''.
(b) Semiannual Report.--Subsection (g) of such section is
amended by adding at the end the following new paragraph:
``(3) Any semiannual report made by the Treasury Inspector
General for Tax Administration that is required pursuant to
section 5(a) shall include--
``(A) a statement affirming that the Treasury Inspector
General for Tax Administration has reviewed the criteria
described in subsection (k)(1)(D) and consulted with the
Internal Revenue Service regarding such criteria; and
``(B) a description and explanation of any such criteria
that was identified as discriminatory by the Treasury
Inspector General for Tax Administration.''.
______
SA 3618. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
TITLE II--SMALL BUSINESS TAXPAYER BILL OF RIGHTS
SEC. 201. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the ``Small
Business Taxpayer Bill of Rights Act of 2014''.
(b) Table of Contents.--The table of contents of this title
is as follows:
TITLE II--SMALL BUSINESS TAXPAYER BILL OF RIGHTS
Sec. 201. Short title; table of contents.
Sec. 202. Modification of standards for awarding of costs and certain
fees.
Sec. 203. Civil damages allowed for reckless or intentional disregard
of internal revenue laws.
Sec. 204. Modifications relating to certain offenses by officers and
employees in connection with revenue laws.
Sec. 205. Modifications relating to civil damages for unauthorized
inspection or disclosure of returns and return
information.
Sec. 206. Interest abatement reviews.
Sec. 207. Ban on ex parte discussions.
Sec. 208. Alternative dispute resolution procedures.
Sec. 209. Extension of time for contesting IRS levy.
Sec. 210. Waiver of installment agreement fee.
Sec. 211. Suspension of running of period for filing petition of
spousal relief and collection cases.
Sec. 212. Venue for appeal of spousal relief and collection cases.
Sec. 213. Increase in monetary penalties for certain unauthorized
disclosures of information.
Sec. 214. De novo tax court review of claims for equitable innocent
spouse relief.
Sec. 215. Ban on raising new issues on appeal.
SEC. 202. MODIFICATION OF STANDARDS FOR AWARDING OF COSTS AND
CERTAIN FEES.
(a) Small Businesses Eligible Without Regard to Net
Worth.--Subparagraph (D) of section 7430(c)(4) of the
Internal Revenue Code of 1986 is amended by striking ``and''
at the end of clause (i), by striking the period at the end
of clause (ii) and inserting ``and'', and by adding at the
end the following new clause:
``(iii) in the case of an eligible small business, the net
worth limitation in clause (ii) of such section shall not
apply.''.
(b) Eligible Small Business.--Paragraph (4) of section
7430(c) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(F) Eligible small business.--For purposes of
subparagraph (D)(iii), the term `eligible small business'
means, with respect to any proceeding commenced in a taxable
year--
``(i) a corporation the stock of which is not publicly
traded,
``(ii) a partnership, or
``(iii) a sole proprietorship,
if the average annual gross receipts of such corporation,
partnership, or sole proprietorship for the 3-taxable-year
period preceding such taxable year does not exceed
$50,000,000. For purposes of applying the test under the
preceding sentence, rules similar to the rules of paragraphs
(2) and (3) of section 448(c) shall apply.''.
(c) Effective Date.--The amendments made by this section
shall apply to proceedings commenced after the date of the
enactment of this Act.
SEC. 203. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL
DISREGARD OF INTERNAL REVENUE LAWS.
(a) Increase in Amount of Damages.--Section 7433(b) of the
Internal Revenue Code of 1986 is amended by striking
``$1,000,000 ($100,000, in the case of negligence)'' and
inserting ``$3,000,000 ($300,000, in the case of
negligence)''.
(b) Extension of Time To Bring Action.--Section 7433(d)(3)
of the Internal Revenue Code of 1986 is amended by striking
``2 years'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to actions of employees of the Internal Revenue
Service after the date of the enactment of this Act.
SEC. 204. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY
OFFICERS AND EMPLOYEES IN CONNECTION WITH
REVENUE LAWS.
(a) Increase in Penalty.--Section 7214 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``$10,000'' in subsection (a) and inserting
``$25,000'', and
(2) by striking ``$5,000'' in subsection (b) and inserting
``$10,000''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 205. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR
UNAUTHORIZED INSPECTION OR DISCLOSURE OF
RETURNS AND RETURN INFORMATION.
(a) Increase in Amount of Damages.--Subparagraph (A) of
section 7431(c)(1) of the Internal Revenue Code of 1986 is
amended by striking ``$1,000'' and inserting ``$10,000''.
(b) Effective Date.--The amendment made by this section
shall apply to inspections and disclosure occurring on and
after the date of the enactment of this Act.
SEC. 206. INTEREST ABATEMENT REVIEWS.
(a) Filing Period for Interest Abatement Cases.--
(1) In general.--Subsection (h) of section 6404 of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``Review of Denial'' in the heading and
inserting ``Judicial Review'', and
(B) by striking `` `if such action is brought' '' and all
that follows in paragraph (1) and inserting ``if such action
is brought--
``(A) at any time after the earlier of--
``(i) the date of the mailing of the Secretary's final
determination not to abate such interest, or
``(ii) the date which is 180 days after the date of the
filing with the Secretary (in such form as the Secretary may
prescribe) of a claim for abatement under this section, and
``(B) not later than the date which is 180 days after the
date described in subparagraph (A)(i).''.
(2) Effective date.--The amendments made by this subsection
shall apply to claims for abatement of interest filed with
the Secretary after the date of the enactment of this Act.
(b) Small Tax Case Election for Interest Abatement Cases.--
(1) In general.--Subsection (f) of section 7463 of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``and'' at the end of paragraph (1),
(B) by striking the period at the end of paragraph (2) and
inserting ``, and'', and
(C) by adding at the end the following new paragraph:
``(3) a petition to the Tax court under section 6404(h) in
which the amount of interest abatement sought does not exceed
$50,000.''.
(2) Effective date.--The amendments made by this subsection
shall apply to--
(A) cases pending as of the day after the date of the
enactment of this Act, and
(B) cases commenced after such date of enactment.
SEC. 207. BAN ON EX PARTE DISCUSSIONS.
(a) In General.--Notwithstanding section 1001(a)(4) of the
Internal Revenue Service Restructuring and Reform Act of
1998, the Internal Revenue Service shall prohibit any ex
parte communications between officers in the Internal Revenue
Service Office of Appeals and other Internal Revenue Service
employees with respect to any matter pending before such
officers.
(b) Termination of Employment for Misconduct.--Subject to
subsection (c), the Commissioner of Internal Revenue shall
terminate the employment of any employee of the Internal
Revenue Service if there is a final administrative or
judicial determination that such employee committed any act
or omission prohibited under subsection (a) in the
performance of the employee's official duties. Such
termination shall be a removal for cause on charges of
misconduct.
(c) Determination of Commissioner.--
(1) In general.--The Commissioner of Internal Revenue may
take a personnel action other than termination for an act
prohibited under subsection (a).
(2) Discretion.--The exercise of authority under paragraph
(1) shall be at the sole discretion of the Commissioner of
Internal Revenue and may not be delegated to any other
officer. The Commissioner of Internal Revenue, in his sole
discretion, may establish a procedure which will be used to
determine whether an individual should be referred to the
Commissioner of Internal Revenue for a determination by the
Commissioner under paragraph (1).
(3) No appeal.--Any determination of the Commissioner of
Internal Revenue under this subsection may not be appealed in
any administrative or judicial proceeding.
[[Page S4839]]
(d) TIGTA Reporting of Termination or Mitigation.--Section
7803(d)(1)(E) of the Internal Revenue Code of 1986 is amended
by inserting ``or section 7 of the Small Business Taxpayer
Bill of Rights Act of 2014'' after ``1998''.
SEC. 208. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.
(a) In General.--Section 7123 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(c) Availability of Dispute Resolutions.--
``(1) In general.--The procedures prescribed under
subsection (b)(1) and the pilot program established under
subsection (b)(2) shall provide that a taxpayer may request
mediation or arbitration in any case unless the Secretary has
specifically excluded the type of issue involved in such case
or the class of cases to which such case belongs as not
appropriate for resolution under such subsection. The
Secretary shall make any determination that excludes a type
of issue or a class of cases public within 5 working days and
provide an explanation for each determination.
``(2) Independent mediators.--
``(A) In general.--The procedures prescribed under
subsection (b)(1) shall provide the taxpayer an opportunity
to elect to have the mediation conducted by an independent,
neutral individual not employed by the Office of Appeals.
``(B) Cost and selection.--
``(i) In general.--Any taxpayer making an election under
subparagraph (A) shall be required--
``(I) to share the costs of such independent mediator
equally with the Office of Appeals, and
``(II) to limit the selection of the mediator to a roster
of recognized national or local neutral mediators.
``(ii) Exception.--Clause (i)(I) shall not apply to any
taxpayer who is an individual or who was a small business in
the preceding calendar year if such taxpayer had an adjusted
gross income that did not exceed 250 percent of the poverty
level, as determined in accordance with criteria established
by the Director of the Office of Management and Budget, in
the taxable year preceding the request.
``(iii) Small business.--For purposes of clause (ii), the
term `small business' has the meaning given such term under
section 41(b)(3)(D)(iii).
``(3) Availability of process.--The procedures prescribed
under subsection (b)(1) and the pilot program established
under subsection (b)(2) shall provide the opportunity to
elect mediation or arbitration at the time when the case is
first filed with the Office of Appeals and at any time before
deliberations in the appeal commence.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 209. EXTENSION OF TIME FOR CONTESTING IRS LEVY.
(a) Extension of Time for Return of Property Subject to
Levy.--Subsection (b) of section 6343 of the Internal Revenue
Code of 1986 is amended by striking ``9 months'' and
inserting ``3 years''.
(b) Period of Limitation on Suits.--Subsection (c) of
section 6532 of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (1) by striking ``9 months'' and inserting
``3 years'', and
(2) in paragraph (2) by striking ``9-month'' and inserting
``3-year''.
(c) Effective Date.--The amendments made by this section
shall apply to--
(1) levies made after the date of the enactment of this
Act, and
(2) levies made on or before such date if the 9-month
period has not expired under section 6343(b) of the Internal
Revenue Code of 1986 (without regard to this section) as of
such date.
SEC. 210. WAIVER OF INSTALLMENT AGREEMENT FEE.
(a) In General.--Section 6159 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e) the
following new subsection:
``(f) Waiver of Installment Agreement Fee.--The Secretary
shall waive the fees imposed on installment agreements under
this section for any taxpayer with an adjusted gross income
that does not exceed 250 percent of the poverty level, as
determined in accordance with criteria established by the
Director of the Office of Management and Budget, and who has
agreed to make payments under the installment agreement by
electronic payment through a debit instrument.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 211. SUSPENSION OF RUNNING OF PERIOD FOR FILING PETITION
OF SPOUSAL RELIEF AND COLLECTION CASES.
(a) Petitions for Spousal Relief.--
(1) In general.--Subsection (e) of section 6015 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(6) Suspension of running of period for filing petition
in title 11 cases.--In the case of a person who is prohibited
by reason of a case under title 11, United States Code, from
filing a petition under paragraph (1)(A) with respect to a
final determination of relief under this section, the running
of the period prescribed by such paragraph for filing such a
petition with respect to such final determination shall be
suspended for the period during which the person is so
prohibited from filing such a petition, and for 60 days
thereafter.''.
(2) Effective date.--The amendment made by this subsection
shall apply to petitions filed under section 6015(e) of the
Internal Revenue Code of 1986 after the date of the enactment
of this Act.
(b) Collection Proceedings.--
(1) In general.--Subsection (d) of section 6330 of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``appeal such determination to the Tax
Court'' in paragraph (1) and inserting ``petition the Tax
Court for review of such determination'',
(B) by striking ``Judicial review of determination'' in the
heading of paragraph (1) and inserting ``Petition for review
by tax court'',
(C) by redesignating paragraph (2) as paragraph (3), and
(D) by inserting after paragraph (1) the following new
paragraph:
``(2) Suspension of running of period for filing petition
in title 11 cases.--In the case of a person who is prohibited
by reason of a case under title 11, United States Code, from
filing a petition under paragraph (1) with respect to a
determination under this section, the running of the period
prescribed by such subsection for filing such a petition with
respect to such determination shall be suspended for the
period during which the person is so prohibited from filing
such a petition, and for 30 days thereafter.''.
(2) Conforming amendment.--Subsection (c) of section 6320
of such Code is amended by striking ``(2)(B)'' and inserting
``(3)(B)''.
(3) Effective date.--The amendments made by this subsection
shall apply to petitions filed under section 6330 of the
Internal Revenue Code of 1986 after the date of the enactment
of this Act.
SEC. 212. VENUE FOR APPEAL OF SPOUSAL RELIEF AND COLLECTION
CASES.
(a) In General.--Paragraph (1) of section 7482(b) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``or'' at the end of subparagraph (E),
(2) by striking the period at the end of subparagraph (F)
and inserting a comma, and
(3) by inserting after subparagraph (F) the following new
subparagraphs:
``(G) in the case of a petition under section 6015(e), the
legal residence of the petitioner, or
``(H) in the case of a petition under section 6320 or
6330--
``(i) the legal residence of the petitioner if the
petitioner is an individual, and
``(ii) the principal place of business or principal office
or agency if the petitioner is an entity other than an
individual.''.
(b) Effective Date.--The amendments made by this section
shall apply to petitions filed after the date of enactment of
this Act.
SEC. 213. INCREASE IN MONETARY PENALTIES FOR CERTAIN
UNAUTHORIZED DISCLOSURES OF INFORMATION.
(a) In General.--Paragraphs (1), (2), (3), and (4) of
section 7213(a) of the Internal Revenue Code of 1986 are each
amended by striking ``$5,000'' and inserting ``$10,000''.
(b) Effective Date.--The amendments made by this section
shall apply to disclosures made after the date of the
enactment of this Act.
SEC. 214. DE NOVO TAX COURT REVIEW OF CLAIMS FOR EQUITABLE
INNOCENT SPOUSE RELIEF.
(a) In General.--Subparagraph (A) of section 6015(e)(1) of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new flush sentence:
``Any review of a determination by the Secretary with respect
to a claim for equitable relief under subsection (f) shall be
reviewed de novo by the Tax Court.''.
(b) Effective Date.--The amendment made by this section
shall apply to petitions filed or pending before the Tax
Court on and after the date of the enactment of this Act.
SEC. 215. BAN ON RAISING NEW ISSUES ON APPEAL.
(a) In General.--Chapter 77 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING
NEW ISSUES IN AN INTERNAL APPEAL.
``(a) In General.--In reviewing an appeal of any
determination initially made by the Internal Revenue Service,
the Internal Revenue Service Office of Appeals may not
consider or decide any issue that is not within the scope of
the initial determination.
``(b) Certain Issues Deemed Outside of Scope of
Determination.--For purposes of subsection (a), the following
matters shall be considered to be not within the scope of a
determination:
``(1) Any issue that was not raised in a notice of
deficiency or an examiner's report which is the subject of
the appeal.
``(2) Any deficiency in tax which was not included in the
initial determination.
``(3) Any theory or justification for a tax deficiency
which was not considered in the initial determination.
``(c) No Inference With Respect to Issues Raised by
Taxpayers.--Nothing in this section shall be construed to
provide any limitation in addition to any limitations in
effect on the date of the enactment of this section on the
right of a taxpayer to raise an issue, theory, or
justification on an appeal from a determination initially
made by the Internal Revenue Service that was not within the
scope of the initial determination.''.
[[Page S4840]]
(b) Clerical Amendment.--The table of sections for chapter
77 of such Code is amended by adding at the end the following
new item:
``Sec. 7529. Prohibition on Internal Revenue Service raising new issues
in an internal appeal.''.
(c) Effective Date.--The amendments made by this section
shall apply to matters filed or pending with the Internal
Revenue Service Office of Appeals on or after the date of the
enactment of this Act.
______
SA 3619. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. ___. REPEAL OF UNEARNED INCOME MEDICARE CONTRIBUTION.
(a) In General.--Chapter 2A of the Internal Revenue Code of
1986 is repealed.
(b) Conforming Amendment.--The table of chapters for
subtitle A of chapter 1 of the Internal Revenue Code of 1986
is amended by striking the item relating to chapter 2A.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2013.
______
SA 3620. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. POINT OF ORDER ON LEGISLATION THAT RAISES INCOME TAX
RATES ON SMALL BUSINESSES.
(a) Point of Order.--
(1) In general.--In the Senate, it shall not be in order to
consider any bill, joint resolution, amendment, motion, or
conference report that includes any provision which increases
Federal income tax rates.
(2) Definition.--In this section, the term ``Federal income
tax rates'' means any rate of tax under--
(A) subsection (a), (b), (c), (d), or (e) of section 1 of
the Internal Revenue Code of 1986,
(B) section 11(b) of such Code, or
(C) section 55(b) of such Code.
(b) Supermajority Waiver and Appeals.--
(1) Waiver.--This section may be waived or suspended in the
Senate only by an affirmative vote of three-fifths of the
Members, dully chosen and sworn.
(2) Appeals.--An affirmative vote of three-fifths of the
Members of the Senate, duly chosen and sworn, shall be
required to sustain an appeal of the ruling of the Chair on a
point of order raised under this section.
______
SA 3621. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. ___. TAX EFFECT TRANSPARENCY.
(a) In General.--Chapter 2 of title 1, United States Code,
is amended by inserting after section 102 the following:
``Sec. 102a. Tax effect transparency
``(a) In General.--Each Act of Congress, bill, resolution,
conference report thereon, or amendment there to, that
modifies Federal tax law shall contain a statement describing
the general effect of the modification on Federal tax law.
``(b) Failure To Comply.--
``(1) In general.--A failure to comply with subsection (a)
shall give rise to a point of order in either House of
Congress, which may be raised by any Senator during
consideration in the Senate or any Member of the House of
Representatives during consideration in the House of
Representatives.
``(2) Nonexclusivity.--The availability of a point of order
under this section shall not affect the availability of any
other point of order.
``(c) Disposition of Point of Order in the Senate.--
``(1) In general.--Any Senator may raise a point of order
that any matter is not in order under subsection (a).
``(2) Waiver.--
``(A) In general.--Any Senator may move to waive a point of
order raised under paragraph (1) by an affirmative vote of
three-fifths of the Senators duly chosen and sworn.
``(B) Procedures.--For a motion to waive a point of order
under subparagraph (A) as to a matter--
``(i) a motion to table the point of order shall not be in
order;
``(ii) all motions to waive one or more points of order
under this section as to the matter shall be debatable for a
total of not more than 1 hour, equally divided between the
Senator raising the point of order and the Senator moving to
waive the point of order or their designees; and
``(iii) a motion to waive the point of order shall not be
amendable.
``(d) Disposition of Point of Order in the House of
Representatives.--
``(1) In general.--If a Member of the House of
Representatives makes a point of order under this section,
the Chair shall put the question of consideration with
respect to the proposition of whether any statement made
under subsection (a) was adequate or, in the absence of such
a statement, whether a statement is required under subsection
(a).
``(2) Consideration.--For a point of order under this
section made in the House of Representatives--
``(A) the question of consideration shall be debatable for
10 minutes, equally divided and controlled by the Member
making the point of order and by an opponent, but shall
otherwise be decided without intervening motion except one
that the House of Representatives adjourn or that the
Committee of the Whole rise, as the case may be;
``(B) in selecting the opponent, the Speaker of the House
of Representatives should first recognize an opponent from
the opposing party; and
``(C) the disposition of the question of consideration with
respect to a measure shall be considered also to determine
the question of consideration under this section with respect
to an amendment made in order as original text.
``(e) Rulemaking Authority.--The provisions of this section
are enacted by the Congress--
``(1) as an exercise of the rulemaking power of the House
of Representatives and the Senate, respectively, and as such
they shall be considered as part of the rules of each House,
respectively, or of that House to which they specifically
apply, and such rules shall supersede other rules only to the
extent that they are inconsistent therewith; and
``(2) with full recognition of the constitutional right of
either House to change such rules (so far as relating to such
House) at any time, in the same manner, and to the same
extent as in the case of any other rule of such House.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 2 of title 1, United States Code, is
amended by inserting after the item relating to section 102
the following new item:
``102a. Tax effect transparency.''.
______
SA 3622. Mr. ISAKSON submitted an amendment intended to be proposed
by him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. __. REPEAL.
Section 18A of the Fair Labor Standards Act (29 U.S.C.
218a), as added by section 1511 of the Patient Protection and
Affordable Care Act, is repealed.
______
SA 3623. Mr. CASEY (for Mr. Kirk) proposed an amendment to the
resolution S. Res. 489, supporting the goals and ideals of ``Growth
Awareness Week''; as follows:
In the ninth whereas clause of the preamble, strike
``providing resources'' and insert ``support''.
______
SA 3624. Mr. PAUL submitted an amendment intended to be proposed by
him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the appropriate place, insert the following:
SEC. ___. FEDERALISM IN MEDICAL MARIJUANA.
(a) State Medical Marijuana Laws.--Notwithstanding section
708 of the Controlled Substances Act (21 U.S.C. 903) or any
other provision of law (including regulations), a State may
enact and implement a law that authorizes the use,
distribution, possession, or cultivation of marijuana for
medical use.
(b) Prohibition on Certain Prosecutions.--No prosecution
may be commenced or maintained against any physician or
patient for a violation of any Federal law (including
regulations) that prohibits the conduct described in
subsection (a) if the State in which the violation occurred
has in effect a law described in subsection (a) before, on,
or after the date on which the violation occurred,
including--
(1) Alabama;
(2) Alaska;
(3) Arizona;
(4) California;
(5) Colorado;
(6) Connecticut;
(7) Delaware;
(8) the District of Columbia;
(9) Florida;
(10) Hawaii;
(11) Illinois;
(12) Iowa;
(13) Kentucky;
(14) Maine;
(15) Maryland;
(16) Massachusetts;
(17) Michigan;
(18) Minnesota;
(19) Mississippi;
(20) Missouri;
(21) Montana;
(22) Nevada;
(23) New Hampshire;
(24) New Jersey;
(25) New Mexico;
(26) Oregon;
(27) Rhode Island;
[[Page S4841]]
(28) South Carolina;
(29) Tennessee;
(30) Utah;
(31) Vermont;
(32) Washington; and
(33) Wisconsin.
______
SA 3625. Mr. BOOZMAN submitted an amendment intended to be proposed
by him to the bill S. 2569, to provide an incentive for businesses to
bring jobs back to America; which was ordered to lie on the table; as
follows:
At the end of the bill, add the following:
TITLE I--ACCOUNTABILITY THROUGH ELECTRONIC VERIFICATION
SEC. 11. SHORT TITLE.
This title may be cited as the ``Accountability Through
Electronic Verification Act''.
SEC. 12. PERMANENT REAUTHORIZATION.
Section 401(b) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (division C of Public
Law 104-208; 8 U.S.C. 1324a note) is amended by striking
``Unless the Congress otherwise provides, the Secretary of
Homeland Security shall terminate a pilot program on
September 30, 2015.''.
SEC. 13. MANDATORY USE OF E-VERIFY.
(a) Federal Government.--Section 402(e)(1) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note) is amended--
(1) by amending subparagraph (A) to read as follows:
``(A) Executive departments and agencies.--Each department
and agency of the Federal Government shall participate in E-
Verify by complying with the terms and conditions set forth
in this section.''; and
(2) in subparagraph (B), by striking ``, that conducts
hiring in a State'' and all that follows and inserting
``shall participate in E-Verify by complying with the terms
and conditions set forth in this section.''.
(b) Federal Contractors; Critical Employers.--Section
402(e) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) United states contractors.--Any person, employer, or
other entity that enters into a contract with the Federal
Government shall participate in E-Verify by complying with
the terms and conditions set forth in this section.
``(3) Designation of critical employers.--Not later than 7
days after the date of the enactment of this paragraph, the
Secretary of Homeland Security shall--
``(A) conduct an assessment of employers that are critical
to the homeland security or national security needs of the
United States;
``(B) designate and publish a list of employers and classes
of employers that are deemed to be critical pursuant to the
assessment conducted under subparagraph (A); and
``(C) require that critical employers designated pursuant
to subparagraph (B) participate in E-Verify by complying with
the terms and conditions set forth in this section not later
than 30 days after the Secretary makes such designation.''.
(c) All Employers.--Section 402 of the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
1324a note) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Mandatory Participation in E-Verify.--
``(1) In general.--Subject to paragraphs (2) and (3), all
employers in the United States shall participate in E-Verify,
with respect to all employees recruited, referred, or hired
by such employer on or after the date that is 1 year after
the date of the enactment of this subsection.
``(2) Use of contract labor.--Any employer who uses a
contract, subcontract, or exchange to obtain the labor of an
individual in the United States shall certify in such
contract, subcontract, or exchange that the employer uses E-
Verify. If such certification is not included in a contract,
subcontract, or exchange, the employer shall be deemed to
have violated paragraph (1).
``(3) Interim mandatory participation.--
``(A) In general.--Before the date set forth in paragraph
(1), the Secretary of Homeland Security shall require any
employer or class of employers to participate in E-Verify,
with respect to all employees recruited, referred, or hired
by such employer if the Secretary has reasonable cause to
believe that the employer is or has been engaged in a
material violation of section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a).
``(B) Notification.--Not later than 14 days before an
employer or class of employers is required to begin
participating in E-Verify pursuant to subparagraph (A), the
Secretary shall provide such employer or class of employers
with--
``(i) written notification of such requirement; and
``(ii) appropriate training materials to facilitate
compliance with such requirement.''.
SEC. 14. CONSEQUENCES OF FAILURE TO PARTICIPATE.
(a) In General.--Section 402(e)(5) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C. 1324a note), as redesignated by section 13(b)(1),
is amended to read as follows:
``(5) Consequences of failure to participate.--If a person
or other entity that is required to participate in E-Verify
fails to comply with the requirements under this title with
respect to an individual--
``(A) such failure shall be treated as a violation of
section 274A(a)(1)(B) with respect to such individual; and
``(B) a rebuttable presumption is created that the person
or entity has violated section 274A(a)(1)(A).''.
(b) Penalties.--Section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a) is amended--
(1) in subsection (e)--
(A) in paragraph (4)--
(i) in subparagraph (A), in the matter preceding clause
(i), by inserting ``, subject to paragraph (10),'' after ``in
an amount'';
(ii) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$2,500 and not more than $5,000'';
(iii) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $5,000 and not more than $10,000'';
(iv) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $10,000 and not more than $25,000''; and
(v) by amending subparagraph (B) to read as follows:
``(B) may require the person or entity to take such other
remedial action as is appropriate.'';
(B) in paragraph (5)--
(i) by inserting ``, subject to paragraphs (10) through
(12),'' after ``in an amount'';
(ii) by striking ``$100'' and inserting ``$1,000'';
(iii) by striking ``$1,000'' and inserting ``$25,000'';
(iv) by striking ``the size of the business of the employer
being charged, the good faith of the employer'' and inserting
``the good faith of the employer being charged''; and
(v) by adding at the end the following: ``Failure by a
person or entity to utilize the employment eligibility
verification system as required by law, or providing
information to the system that the person or entity knows or
reasonably believes to be false, shall be treated as a
violation of subsection (a)(1)(A).''; and
(C) by adding at the end the following:
``(10) Exemption from penalty.--In the case of imposition
of a civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment or recruitment or referral by
person or entity and in the case of imposition of a civil
penalty under paragraph (5) for a violation of subsection
(a)(1)(B) for hiring or recruitment or referral by a person
or entity, the penalty otherwise imposed may be waived or
reduced if the violator establishes that the violator acted
in good faith.
``(11) Authority to debar employers for certain
violations.--
``(A) In general.--If a person or entity is determined by
the Secretary of Homeland Security to be a repeat violator of
paragraph (1)(A) or (2) of subsection (a), or is convicted of
a crime under this section, such person or entity may be
considered for debarment from the receipt of Federal
contracts, grants, or cooperative agreements in accordance
with the debarment standards and pursuant to the debarment
procedures set forth in the Federal Acquisition Regulation.
``(B) Does not have contract, grant, agreement.--If the
Secretary of Homeland Security or the Attorney General wishes
to have a person or entity considered for debarment in
accordance with this paragraph, and such an person or entity
does not hold a Federal contract, grant or cooperative
agreement, the Secretary or Attorney General shall refer the
matter to the Administrator of General Services to determine
whether to list the person or entity on the List of Parties
Excluded from Federal Procurement, and if so, for what
duration and under what scope.
``(C) Has contract, grant, agreement.--If the Secretary of
Homeland Security or the Attorney General wishes to have a
person or entity considered for debarment in accordance with
this paragraph, and such person or entity holds a Federal
contract, grant or cooperative agreement, the Secretary or
Attorney General shall advise all agencies or departments
holding a contract, grant, or cooperative agreement with the
person or entity of the Government's interest in having the
person or entity considered for debarment, and after
soliciting and considering the views of all such agencies and
departments, the Secretary or Attorney General may waive the
operation of this paragraph or refer the matter to any
appropriate lead agency to determine whether to list the
person or entity on the List of Parties Excluded from Federal
Procurement, and if so, for what duration and under what
scope.
``(D) Review.--Any decision to debar a person or entity
under in accordance with this paragraph shall be reviewable
pursuant to part 9.4 of the Federal Acquisition
Regulation.''; and
(2) in subsection (f)--
(A) by amending paragraph (1) to read as follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of subsection (a)(1)
or (2) shall be fined not more than $15,000 for each
unauthorized alien with respect to which such a violation
occurs, imprisoned for not less
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than 1 year and not more than 10 years, or both,
notwithstanding the provisions of any other Federal law
relating to fine levels.''; and
(B) in paragraph (2), by striking ``Attorney General'' each
place it appears and inserting ``Secretary of Homeland
Security''.
SEC. 15. PREEMPTION; LIABILITY.
Section 402 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note), as amended
by this Act, is further amended by adding at the end the
following:
``(h) Limitation on State Authority.--
``(1) Preemption.--A State or local government may not
prohibit a person or other entity from verifying the
employment authorization of new hires or current employees
through E-Verify.
``(2) Liability.--A person or other entity that
participates in E-Verify may not be held liable under any
Federal, State, or local law for any employment-related
action taken with respect to the wrongful termination of an
individual in good faith reliance on information provided
through E-Verify.''.
SEC. 16. EXPANDED USE OF E-VERIFY.
Section 403(a)(3)(A) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is
amended to read as follows:
``(A) In general.--
``(i) Before hiring.--The person or other entity may verify
the employment eligibility of an individual through E-Verify
before the individual is hired, recruited, or referred if the
individual consents to such verification. If an employer
receives a tentative nonconfirmation for an individual, the
employer shall comply with procedures prescribed by the
Secretary, including--
``(I) providing the individual employees with private,
written notification of the finding and written referral
instructions;
``(II) allowing the individual to contest the finding; and
``(III) not taking adverse action against the individual if
the individual chooses to contest the finding.
``(ii) After employment offer.--The person or other entity
shall verify the employment eligibility of an individual
through E-Verify not later than 3 days after the date of the
hiring, recruitment, or referral, as the case may be.
``(iii) Existing employees.--Not later than 3 years after
the date of the enactment of the Accountability Through
Electronic Verification Act, the Secretary shall require all
employers to use E-Verify to verify the identity and
employment eligibility of any individual who has not been
previously verified by the employer through E-Verify.''.
SEC. 17. REVERIFICATION.
Section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is
amended by adding at the end the following:
``(5) Reverification.--Each person or other entity
participating in E-Verify shall use the E-Verify confirmation
system to reverify the work authorization of any individual
not later than 3 days after the date on which such
individual's employment authorization is scheduled to expire
(as indicated by the Secretary or the documents provided to
the employer pursuant to section 274A(b) of the Immigration
and Nationality Act (8 U.S.C. 1324a(b))), in accordance with
the procedures set forth in this subsection and section
402.''.
SEC. 18. HOLDING EMPLOYERS ACCOUNTABLE.
(a) Consequences of Nonconfirmation.--Section 403(a)(4)(C)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
to read as follows:
``(C) Consequences of nonconfirmation.--
``(i) Termination and notification.--If the person or other
entity receives a final nonconfirmation regarding an
individual, the employer shall immediately--
``(I) terminate the employment, recruitment, or referral of
the individual; and
``(II) submit to the Secretary any information relating to
the individual that the Secretary determines would assist the
Secretary in enforcing or administering United States
immigration laws.
``(ii) Consequence of continued employment.--If the person
or other entity continues to employ, recruit, or refer the
individual after receiving final nonconfirmation, a
rebuttable presumption is created that the employer has
violated section 274A of the Immigration and Nationality Act
(8 U.S.C. 1324a).''.
(b) Interagency Nonconfirmation Report.--Section 405 of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) is amended by adding at the end
the following:
``(c) Interagency Nonconfirmation Report.--
``(1) In general.--The Director of U.S. Citizenship and
Immigration Services shall submit a weekly report to the
Assistant Secretary of Immigration and Customs Enforcement
that includes, for each individual who receives final
nonconfirmation through E-Verify--
``(A) the name of such individual;
``(B) his or her Social Security number or alien file
number;
``(C) the name and contact information for his or her
current employer; and
``(D) any other critical information that the Assistant
Secretary determines to be appropriate.
``(2) Use of weekly report.--The Secretary of Homeland
Security shall use information provided under paragraph (1)
to enforce compliance of the United States immigration
laws.''.
SEC. 19. INFORMATION SHARING.
The Commissioner of Social Security, the Secretary of
Homeland Security, and the Secretary of the Treasury shall
jointly establish a program to share information among such
agencies that may or could lead to the identification of
unauthorized aliens (as defined under section 274A(h)(3) of
the Immigration and Nationality Act), including any no-match
letter and any information in the earnings suspense file.
SEC. 20. FORM I-9 PROCESS.
Not later than 9 months after date of the enactment of this
Act, the Secretary of Homeland Security shall submit a report
to Congress that contains recommendations for--
(1) modifying and simplifying the process by which
employers are required to complete and retain a Form I-9 for
each employee pursuant to section 274A of the Immigration and
Nationality Act (8 U.S.C. 1324a); and
(2) eliminating the process described in paragraph (1).
SEC. 21. ALGORITHM.
Section 404(d) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is
amended to read as follows:
``(d) Design and Operation of System.--E-Verify shall be
designed and operated--
``(1) to maximize its reliability and ease of use by
employers;
``(2) to insulate and protect the privacy and security of
the underlying information;
``(3) to maintain appropriate administrative, technical,
and physical safeguards to prevent unauthorized disclosure of
personal information;
``(4) to respond accurately to all inquiries made by
employers on whether individuals are authorized to be
employed;
``(5) to register any times when E-Verify is unable to
receive inquiries;
``(6) to allow for auditing use of the system to detect
fraud and identify theft;
``(7) to preserve the security of the information in all of
the system by--
``(A) developing and using algorithms to detect potential
identity theft, such as multiple uses of the same identifying
information or documents;
``(B) developing and using algorithms to detect misuse of
the system by employers and employees;
``(C) developing capabilities to detect anomalies in the
use of the system that may indicate potential fraud or misuse
of the system; and
``(D) auditing documents and information submitted by
potential employees to employers, including authority to
conduct interviews with employers and employees;
``(8) to confirm identity and work authorization through
verification of records maintained by the Secretary, other
Federal departments, States, the Commonwealth of the Northern
Mariana Islands, or an outlying possession of the United
States, as determined necessary by the Secretary, including--
``(A) records maintained by the Social Security
Administration;
``(B) birth and death records maintained by vital
statistics agencies of any State or other jurisdiction in the
United States;
``(C) passport and visa records (including photographs)
maintained by the Department of State; and
``(D) State driver's license or identity card information
(including photographs) maintained by State department of
motor vehicles;
``(9) to electronically confirm the issuance of the
employment authorization or identity document; and
``(10) to display the digital photograph that the issuer
placed on the document so that the employer can compare the
photograph displayed to the photograph on the document
presented by the employee or, in exceptional cases, if a
photograph is not available from the issuer, to provide for a
temporary alternative procedure, specified by the Secretary,
for confirming the authenticity of the document.''.
SEC. 22. IDENTITY THEFT.
Section 1028 of title 18, United States Code, is amended--
(1) in subsection (a)(7), by striking ``of another person''
and inserting ``that is not his or her own''; and
(2) in subsection (b)(3)--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by adding ``or'' at the end; and
(C) by adding at the end the following:
``(D) to facilitate or assist in harboring or hiring
unauthorized workers in violation of section 274, 274A, or
274C of the Immigration and Nationality Act (8 U.S.C. 1324,
1324a, and 1324c).''.
SEC. 23. SMALL BUSINESS DEMONSTRATION PROGRAM.
Section 403 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Small Business Demonstration Program.--Not later than
9 months after the date of the enactment of the
Accountability Through Electronic Verification Act, the
Director of U.S. Citizenship and Immigration Services shall
establish a demonstration program that assists small
businesses in rural
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areas or areas without internet capabilities to verify the
employment eligibility of newly hired employees solely
through the use of publicly accessible internet terminals.''.
____________________