[United States Statutes at Large, Volume 125, 112th Congress, 1st Session]
[From the U.S. Government Printing Office, www.gpo.gov]


Public Law 112-78
112th Congress

An Act


 
To extend the payroll tax holiday, unemployment compensation, Medicare
physician payment, provide for the consideration of the Keystone XL
pipeline, and for other purposes. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

TITLE I--TEMPORARY PAYROLL TAX RELIEF

Sec. 101. Extension of payroll tax holiday.

TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

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

TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

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

TITLE IV--MORTGAGE FEES AND PREMIUMS

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

TITLE V--OTHER PROVISIONS

Subtitle A--Keystone XL Pipeline

Sec. 501. Permit for Keystone XL pipeline.

Subtitle B--Budgetary Provisions

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

[[Page 1281]]

TITLE I--TEMPORARY PAYROLL TAX RELIEF

SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY.

(a) In General.--Subsection (c) of section 601 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26
U.S.C. 1401 note) is amended to read as follows:
``(c) <>  Payroll Tax Holiday Period.--The term
`payroll tax holiday period' means--
``(1) in the case of the tax described in subsection (a)(1),
calendar years 2011 and 2012, and
``(2) in the case of the taxes described in subsection
(a)(2), the period beginning January 1, 2011, and ending
February 29, 2012.''.

(b) Special Rules for 2012.--Section 601 of such Act (26 U.S.C. 1401
note) is amended by adding at the end the following new subsection:
``(f) <>  Special Rules for 2012.--
``(1) Limitation on self-employment income.--In the case of
any taxable year beginning in 2012, subsection (a)(1) shall only
apply with respect to so much of the taxpayer's self-employment
income (as defined in section 1402(b) of the Internal Revenue
Code of 1986) as does not exceed the excess (if any) of--
``(A) $18,350, over
``(B) the amount of wages and compensation received
during the portion of the payroll tax holiday period
occurring during 2012 subject to tax under section
3101(a) of such Code or section 3201(a) of such Code.
``(2) Coordination with deduction for employment taxes.--In
the case of a taxable year beginning in 2012, subparagraph (A)
of subsection (b)(2) shall be applied as if it read as follows:
`` `(A) the sum of--
`` `(i) 59.6 percent of the portion of such
taxes attributable to the tax imposed by section
1401(a) of such Code (determined after the
application of this section) on so much of self-
employment income (as defined in section 1402(b)
of such Code) as does not exceed the amount of
self-employment income described in paragraph (1),
plus
`` `(ii) one-half of the portion of such taxes
attributable to the tax imposed by section 1401(a)
of such Code (determined without regard to this
section) on self-employment income (as so defined)
in excess of such amount, plus'.''.

(c) Recapture of Excess Benefit.--Section 601 of such Act (26 U.S.C.
1401 note), as amended by subsection (b), is further amended by adding
at the end the following new subsection:
``(g) Recapture of Excess Benefit.--
``(1) In general.--There is hereby imposed on the income of
every individual a tax equal to 2 percent of the sum of wages
(within the meaning of section 3121(a)(1) of the Internal
Revenue Code of 1986) and compensation (to which section

[[Page 1282]]

3201(a) of such Code applies) received during the period
beginning January 1, 2012, and ending February 29, 2012, to the
extent the amount of such sum exceeds $18,350.
``(2) Regulations.--The Secretary of the Treasury or the
Secretary's delegate shall prescribe such regulations or other
guidance as may be necessary or appropriate to carry out this
subsection, including guidance for payment by the employee of
the tax imposed by paragraph (1).''.

(d) Technical Amendments.--Paragraph (2) of section 601(b) of such
Act (26 U.S.C. 1401 note) is amended--
(1) by inserting ``of such Code'' after ``164(f)'';
(2) by inserting ``of such Code'' after ``1401(a)'' in
subparagraph (A); and
(3) by inserting ``of such Code'' after ``1401(b)'' in
subparagraph (B).

(e) <>  Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to remuneration
received, and taxable years beginning, after December 31, 2011.
(2) Technical amendments.--The amendments made by subsection
(d) shall take effect as if included in the enactment of section
601 of the Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010.

TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

SEC. 201. TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION
PROVISIONS.

(a) In General.--(1) Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(A) by striking ``January 3, 2012'' each place it appears
and inserting ``March 6, 2012'';
(B) in the heading for subsection (b)(2), by striking
``january 3, 2012'' and inserting ``march 6, 2012''; and
(C) in subsection (b)(3), by striking ``June 9, 2012'' and
inserting ``August 15, 2012''.

(2) Section 2005 of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
3304 note; 123 Stat. 444), is amended--
(A) by striking ``January 4, 2012'' each place it appears
and inserting ``March 7, 2012''; and
(B) in subsection (c), by striking ``June 11, 2012'' and
inserting ``August 15, 2012''.

(3) Section 5 of the Unemployment Compensation Extension Act of 2008
(Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking ``June
10, 2012'' and inserting ``August 15, 2012''.
(4) Section 203 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
(A) in subsection (d), in the second sentence of the flush
matter following paragraph (2), by striking ``December 31,
2011'' and inserting ``February 29, 2012''; and

[[Page 1283]]

(B) in subsection (f)(2), by striking ``December 31, 2011''
and inserting ``February 29, 2012''.

(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subparagraph (F), by striking ``and'' at the end; and
(2) by inserting after subparagraph (G) the following:
``(H) the amendments made by section 201(a)(1) of
the Temporary Payroll Tax Cut Continuation Act of 2011;
and''.

(c) <>  Effective Date.--The amendments
made by this section shall take effect as if included in the enactment
of the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (Public Law 111-312).
SEC. 202. EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.

(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment
Insurance Act, as added by section 2006 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9
of the Worker, Homeownership, and Business Assistance Act of 2009
(Public Law 111-92) and section 505 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 <> (Public Law 111-312), is amended--
(1) by striking ``June 30, 2011'' and inserting ``August 31,
2011''; and
(2) by striking ``December 31, 2011'' and inserting
``February 29, 2012''.

(b) Clarification on Authority to Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available
to cover the cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments made by
subsection (a) as well as to cover the cost of such benefits provided
under such section 2(c)(2)(D), as in effect on the day before the date
of the enactment of this Act.

TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

SEC. 301. MEDICARE PHYSICIAN PAYMENT UPDATE.

Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d)) is
amended by adding at the end the following new paragraph:
``(13) Update for first two months of 2012.--
``(A) In general.--Subject to paragraphs (7)(B),
(8)(B), (9)(B), (10)(B), (11)(B), and (12)(B), in lieu
of the update to the single conversion factor
established in paragraph (1)(C) that would otherwise
apply for the period beginning on January 1, 2012, and
ending on February 29, 2012, the update to the single
conversion factor shall be zero percent.
``(B) No effect on computation of conversion factor
for remaining portion of 2012 and subsequent years.--The
conversion factor under this subsection shall

[[Page 1284]]

be computed under paragraph (1)(A) for the period
beginning on March 1, 2012, and ending on December 31,
2012, and for 2013 and subsequent years as if
subparagraph (A) had never applied.''.
SEC. 302. 2-MONTH EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

(a) In General.--Section 106(a) of division B of the Tax Relief and
Health Care Act of 2006 (42 U.S.C. 1395 note), <> as amended by section 117 of the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (Public Law 110-173), section 124 of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), sections 3137(a) and 10317 of the Patient Protection and
Affordable Care Act (Public Law 111-148), and section 102(a) of the
Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309), is
amended by striking ``September 30, 2011'' and inserting ``November 30,
2011''.

(b) <>  Special Rule for October and
November 2011.--
(1) In general.--Subject to paragraph (2), for purposes of
implementation of the amendment made by subsection (a),
including for purposes of the implementation of paragraph (2) of
section 117(a) of the Medicare, Medicaid, and SCHIP Extension
Act of 2007 (Public Law 110-173), for the period beginning on
October 1, 2011, and ending on November 30, 2011, the Secretary
of Health and Human Services shall use the hospital wage index
that was promulgated by the Secretary of Health and Human
Services in the Federal Register on August 18, 2011 (76 Fed.
Reg. 51476), and any subsequent corrections.
(2) Exception.--In determining the wage index applicable to
hospitals that qualify for wage index reclassification, the
Secretary shall, for the period beginning on October 1, 2011,
and ending on November 30, 2011, include the average hourly wage
data of hospitals whose reclassification was extended pursuant
to the amendment made by subsection (a) only if including such
data results in a higher applicable reclassified wage index. Any
revision to hospital wage indexes made as a result of this
paragraph shall not be effected in a budget neutral manner.

(c) <>  Timeframe for Payments.--The
Secretary shall make payments required under subsections (a) and (b) by
not later than December 31, 2012.
SEC. 303. EXTENSION OF MEDICARE WORK GEOGRAPHIC ADJUSTMENT FLOOR.

Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``before January 1, 2012'' and
inserting ``before March 1, 2012''.
SEC. 304. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE THERAPY
CAPS.

Section 1833(g)(5) of the Social Security Act (42 U.S.C.
1395l(g)(5)) is amended by striking ``December 31, 2011'' and inserting
``February 29, 2012''.
SEC. 305. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN
PHYSICIAN PATHOLOGY SERVICES.

Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by

[[Page 1285]]

section 1(a)(6) of Public Law 106-554), as amended by section 732 of the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173), section 136 of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), section 3104 of the Patient
Protection and Affordable Care Act (Public Law 111-148), and section 105
of the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-
309), <> is amended by striking ``and 2011''
and inserting ``2011, and the first two months of 2012''.
SEC. 306. EXTENSION OF AMBULANCE ADD-ONS.

(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security
Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
(1) in the matter preceding clause (i), by striking
``January 1, 2012'' and inserting ``March 1, 2012''; and
(2) in each of clauses (i) and (ii), by striking ``January
1, 2012'' and inserting ``March 1, 2012'' each place it appears.

(b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements
for Patients and Providers Act of 2008 (Public Law 110-275), as amended
by sections 3105(b) and 10311(b) of Public Law 111-148 and section
106(b) of the Medicare and Medicaid Extenders Act of 2010 (Public Law
111-309), <> is amended by striking ``December
31, 2011'' and inserting ``February 29, 2012''.

(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by striking
``January 1, 2012'' and inserting ``March 1, 2012''.
SEC. 307. EXTENSION OF PHYSICIAN FEE SCHEDULE MENTAL HEALTH ADD-ON
PAYMENT.

Section 138(a)(1) of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), as amended by section 3107
of the Patient Protection and Affordable Care Act (Public Law 111-148)
and section 107 of the Medicare and Medicaid Extenders Act of 2010
(Public Law 111-309), <> is amended by
striking ``December 31, 2011'' and inserting ``February 29, 2012''.
SEC. 308. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

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

[[Page 1286]]

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

Section 1848 of the Social Security Act (42 U.S.C. 1395w-4) is
amended--
(1) in subsection (b)--
(A) in paragraph (4)(B), by striking ``and 2011''
and inserting ``, 2011, and the first 2 months of
2012''; and
(B) in paragraph (6)--
(i) in the matter preceding subparagraph (A),
by striking ``and 2011'' and inserting ``, 2011,
and the first 2 months of 2012''; and
(ii) in subparagraph (C), by striking ``and
2011'' and inserting ``, 2011, and the first 2
months of 2012''; and
(2) in subsection (c)(2)(B)(iv)(IV), by striking ``or 2011''
and inserting ``, 2011, or the first 2 months of 2012''.
SEC. 310. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December
2011'' and inserting ``February 2012''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
(1) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph
(O);
(B) in subparagraph (P), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(Q) <>  for the period that
begins on January 1, 2012, and ends on February 29,
2012, the total allocation amount is $150,000,000.''.
SEC. 311. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42
U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking
``December 31, 2011'' and inserting ``February 29, 2012''.
SEC. 312. <>  EXTENSION OF THE
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
PROGRAM.

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

[[Page 1287]]

TITLE IV--MORTGAGE FEES AND PREMIUMS

SEC. 401. GUARANTEE FEES.

Subpart A of part 2 of subtitle A of title XIII of the Housing and
Community Development Act of 1992 is amended by adding after section
1326 (12 U.S.C. 4546) the following new section:
``SEC. 1327. <>  ENTERPRISE GUARANTEE FEES.

``(a) <>  Definitions.--For purposes of this
section, the following definitions shall apply:
``(1) Guarantee fee.--The term `guarantee fee'--
``(A) means a fee described in subsection (b); and
``(B) includes--
``(i) the guaranty fee charged by the Federal
National Mortgage Association with respect to
mortgage-backed securities; and
``(ii) the management and guarantee fee
charged by the Federal Home Loan Mortgage
Corporation with respect to participation
certificates.
``(2) Average fees.--The term `average fees' means the
average contractual fee rate of single-family guaranty
arrangements by an enterprise entered into during 2011, plus the
recognition of any up-front cash payments over an estimated
average life, expressed in terms of basis points. Such
definition shall be interpreted in a manner consistent with the
annual report on guarantee fees by the Federal Housing Finance
Agency.

``(b) Increase.--
``(1) In general.--
``(A) Phased increase required.--Subject to
subsection (c), the Director shall require each
enterprise to charge a guarantee fee in connection with
any guarantee of the timely payment of principal and
interest on securities, notes, and other obligations
based on or backed by mortgages on residential real
properties designed principally for occupancy of from 1
to 4 families, consummated after the date of enactment
of this section.
``(B) Amount.--The amount of the increase required
under this section shall be determined by the Director
to appropriately reflect the risk of loss, as well the
cost of capital allocated to similar assets held by
other fully private regulated financial institutions,
but such amount shall be not less than an average
increase of 10 basis points for each origination year or
book year above the average fees imposed in 2011 for
such guarantees. The Director shall prohibit an
enterprise from offsetting the cost of the fee to
mortgage originators, borrowers, and investors by
decreasing other charges, fees, or premiums, or in any
other manner.
``(2) Authority to limit offer of guarantee.--The Director
shall prohibit an enterprise from consummating any offer for a
guarantee to a lender for mortgage-backed securities, if--
``(A) the guarantee is inconsistent with the
requirements of this section; or

[[Page 1288]]

``(B) the risk of loss is allowed to increase,
through lowering of the underwriting standards or other
means, for the primary purpose of meeting the
requirements of this section.
``(3) Deposit in treasury.--Amounts received from fee
increases imposed under this section shall be deposited directly
into the United States Treasury, and shall be available only to
the extent provided in subsequent appropriations Acts. The fees
charged pursuant to this section shall not be considered a
reimbursement to the Federal Government for the costs or subsidy
provided to an enterprise.

``(c) Phase-in.--
``(1) <>  In general.--The Director may
provide for compliance with subsection (b) by allowing each
enterprise to increase the guarantee fee charged by the
enterprise gradually over the 2-year period beginning on the
date of enactment of this section, in a manner sufficient to
comply with this section. In determining a schedule for such
increases, the Director shall--
``(A) provide for uniform pricing among lenders;
``(B) provide for adjustments in pricing based on
risk levels; and
``(C) take into consideration conditions in
financial markets.
``(2) Rule of construction.--Nothing in this subsection
shall be interpreted to undermine the minimum increase required
by subsection (b).

``(d) <>  Information Collection and Annual
Analysis.--The Director shall require each enterprise to provide to the
Director, as part of its annual report submitted to Congress--
``(1) a description of--
``(A) changes made to up-front fees and annual fees
as part of the guarantee fees negotiated with lenders;
``(B) changes to the riskiness of the new borrowers
compared to previous origination years or book years;
and
``(C) any adjustments required to improve for future
origination years or book years, in order to be in
complete compliance with subsection (b); and
``(2) an assessment of how the changes in the guarantee fees
described in paragraph (1) met the requirements of subsection
(b).

``(e) Enforcement.--
``(1) Required adjustments.--Based on the information from
subsection (d) and any other information the Director deems
necessary, the Director shall require an enterprise to make
adjustments in its guarantee fee in order to be in compliance
with subsection (b).
``(2) Noncompliance penalty.--An enterprise that has been
found to be out of compliance with subsection (b) for any 2
consecutive years shall be precluded from providing any
guarantee for a period, determined by rule of the Director, but
in no case less than 1 year.
``(3) Rule of construction.--Nothing in this subsection
shall be interpreted as preventing the Director from initiating
and implementing an enforcement action against an enterprise, at
a time the Director deems necessary, under other existing
enforcement authority.

[[Page 1289]]

``(f) Expiration.--The provisions of this section shall expire on
October 1, 2021.''.
SEC. 402. FHA GUARANTEE FEES.

(a) Amendment.--Section 203(c)(2) of the National Housing Act (12
U.S.C. 1709(c)(2)) is amended by adding at the end the following:
``(C)(i) In addition to the premiums under subparagraphs (A)
and (B), the Secretary shall establish and collect annual
premium payments for any mortgage for which the Secretary
collects an annual premium payment under subparagraph (B), in an
amount described in clause (ii).
``(ii)(I) Subject to subclause (II), with respect to a
mortgage, the amount described in this clause is 10 basis points
of the remaining insured principal balance (excluding the
portion of the remaining balance attributable to the premium
collected under subparagraph (A) and without taking into account
delinquent payments or prepayments).
``(II) <>  During the 2-
year period beginning on the date of enactment of this
subparagraph, the Secretary shall increase the number of basis
points of the annual premium payment collected under this
subparagraph incrementally, as determined appropriate by the
Secretary, until the number of basis points of the annual
premium payment collected under this subparagraph is equal to
the number described in subclause (I).''.

(b) <>  Prospective Repeal.--Section
203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended
by striking subparagraph (C), as added by subsection (a), effective on
October 1, 2021.

(c) <>  Report Required.--
Not later than 30 days before the date on which the Secretary of Housing
and Urban Development makes a determination under subsection (b)(2), the
Secretary shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report that--
(1) explains the basis for the determination; and
(2) identifies the date on which the Secretary plans to make
the determination.

TITLE V--OTHER PROVISIONS

Subtitle A--Keystone XL Pipeline

SEC. 501. <>  PERMIT FOR KEYSTONE XL PIPELINE.

(a) <>  In General.--Except as provided in
subsection (b), not later than 60 days after the date of enactment of
this Act, the President, acting through the Secretary of State, shall
grant a permit under Executive Order No. 13337 (3 U.S.C. 301 note;
relating to issuance of permits with respect to certain energy-related
facilities and land transportation crossings on the international
boundaries of the United States) for the Keystone XL pipeline project
application filed on September 19, 2008 (including amendments).

(b) Exception.--
(1) <>  In general.--The President
shall not be required to grant the permit under subsection (a)
if the President determines that the Keystone XL pipeline would
not serve the national interest.

[[Page 1290]]

(2) Report.--If the President determines that the Keystone
XL pipeline is not in the national interest under paragraph (1),
the President shall, not later than 15 days after the date of
the determination, submit to the Committee on Foreign Relations
of the Senate, the Committee on Foreign Affairs of the House of
Representatives, the majority leader of the Senate, the minority
leader of the Senate, the Speaker of the House of
Representatives, and the minority leader of the House of
Representatives a report that provides a justification for
determination, including consideration of economic, employment,
energy security, foreign policy, trade, and environmental
factors.
(3) Effect of no finding or action.--If a determination is
not made under paragraph (1) and no action is taken by the
President under subsection (a) not later than 60 days after the
date of enactment of this Act, the permit for the Keystone XL
pipeline described in subsection (a) that meets the requirements
of subsections (c) and (d) shall be in effect by operation of
law.

(c) Requirements.--The permit granted under subsection (a) shall
require the following:
(1) The permittee shall comply with all applicable Federal
and State laws (including regulations) and all applicable
industrial codes regarding the construction, connection,
operation, and maintenance of the United States facilities.
(2) The permittee shall obtain all requisite permits from
Canadian authorities and relevant Federal, State, and local
governmental agencies.
(3) The permittee shall take all appropriate measures to
prevent or mitigate any adverse environmental impact or
disruption of historic properties in connection with the
construction, operation, and maintenance of the United States
facilities.
(4) For the purpose of the permit issued under subsection
(a) (regardless of any modifications under subsection (d))--
(A) the final environmental impact statement issued
by the Secretary of State on August 26, 2011, satisfies
all requirements of the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) and section 106 of
the National Historic Preservation Act (16 U.S.C. 470f);
(B) any modification required by the Secretary of
State to the Plan described in paragraph (5)(A) shall
not require supplementation of the final environmental
impact statement described in that paragraph; and
(C) no further Federal environmental review shall be
required.
(5) The construction, operation, and maintenance of the
facilities shall be in all material respects similar to that
described in the application described in subsection (a) and in
accordance with--
(A) the construction, mitigation, and reclamation
measures agreed to by the permittee in the Construction
Mitigation and Reclamation Plan found in appendix B of
the final environmental impact statement issued by the
Secretary of State on August 26, 2011, subject to the
modification described in subsection (d);
(B) the special conditions agreed to between the
permittee and the Administrator of the Pipeline
Hazardous

[[Page 1291]]

Materials Safety Administration of the Department of
Transportation found in appendix U of the final
environmental impact statement described in subparagraph
(A);
(C) if the modified route submitted by the Governor
of Nebraska under subsection (d)(3)(B) crosses the Sand
Hills region, the measures agreed to by the permittee
for the Sand Hills region found in appendix H of the
final environmental impact statement described in
subparagraph (A); and
(D) the stipulations identified in appendix S of the
final environmental impact statement described in
subparagraph (A).
(6) Other requirements that are standard industry practice
or commonly included in Federal permits that are similar to a
permit issued under subsection (a).

(d) <>  Modification.--The permit issued under
subsection (a) shall require--
(1) the reconsideration of routing of the Keystone XL
pipeline within the State of Nebraska;
(2) a review period during which routing within the State of
Nebraska may be reconsidered and the route of the Keystone XL
pipeline through the State altered with any accompanying
modification to the Plan described in subsection (c)(5)(A); and
(3) the President--
(A) to coordinate review with the State of Nebraska
and provide any necessary data and reasonable technical
assistance material to the review process required under
this subsection; and
(B) to approve the route within the State of
Nebraska that has been submitted to the Secretary of
State by the Governor of Nebraska.

(e) <>  Effect of No Approval.--If the President
does not approve the route within the State of Nebraska submitted by the
Governor of Nebraska under subsection (d)(3)(B) not later than 10 days
after the date of submission, the route submitted by the Governor of
Nebraska under subsection (d)(3)(B) shall be considered approved,
pursuant to the terms of the permit described in subsection (a) that
meets the requirements of subsection (c) and this subsection, by
operation of law.

(f) Private Property Savings Clause.--Nothing in this section alters
the Federal, State, or local processes or conditions in effect on the
date of enactment of this Act that are necessary to secure access from
private property owners to construct the Keystone XL pipeline.

Subtitle B--Budgetary Provisions

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

Section 314 of the Congressional Budget Act of 1974 <> is amended by--
(1) redesignating subsection (e) as subsection (f); and
(2) inserting after subsection (d) the following:

``(e) Senate Point of Order Against an Emergency Designation.--

[[Page 1292]]

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

[[Page 1293]]

SEC. 512. PAYGO SCORECARD ESTIMATES.

The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.

Approved December 23, 2011.

LEGISLATIVE HISTORY--H.R. 3765:
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CONGRESSIONAL RECORD, Vol. 157 (2011):
Dec. 23, considered and passed House and Senate.